Down goes the Dow

Stew wrote:

Brack P. wrote:

Personally, I couldn't live like Flagpole. Having to scrimp and save for 40-50 years before even thinking about having enough to retire is not for me. Fortunately, I got a great job out of college which led to some lucrative opportunities early in life. I was able to spend on travel, nice homes, etc. throughout my life and still save and retire early.

Flagpole's strategy is great for someone who perhaps didn't make wise decisions on their education choices and career path. People like that HAVE to save and grow every dollar in order to be able to retire since their lifetime income is so low. They can't take investment risks because there is no way to recover from loses without the ability to generate significant future income. One loss could devastate them. These people have to play it conservatively and hope everything works in their favor.

A prime example of poking the bear.

Brack P. wrote:

Flagpole wrote:

1) CORRECT!

2) Change "most" to "vast majority", and it's even more right. Those who don't need to invest the way I do are those who...have an enormous salary (I'm talking millions each year for years and years...think Major League baseball players), people who are retired and now just withdrawing money, people who are independently wealthy (through inheritance, divorce, whatever). If you have anywhere from below average income all the way up to a million dollars a year even, you would be best served my following my strategies.

3) Remember that my way DOES allow people to invest in individual stocks or anything else really. You just have to meet some criteria first...NO debt at all, a paid-for house OR enough extra money to handle rent increases the rest of your life, a million dollars minimum in the stock market, continuing to put in 15% or more into your retirement accounts if working. Have all that, THEN you can invest in individual stocks or a restaurant or whatever else.

Personally, I couldn't live like Flagpole. Having to scrimp and save for 40-50 years before even thinking about having enough to retire is not for me. Fortunately, I got a great job out of college which led to some lucrative opportunities early in life. I was able to spend on travel, nice homes, etc. throughout my life and still save and retire early.

Flagpole's strategy is great for someone who perhaps didn't make wise decisions on their education choices and career path. People like that HAVE to save and grow every dollar in order to be able to retire since their lifetime income is so low. They can't take investment risks because there is no way to recover from loses without the ability to generate significant future income. One loss could devastate them. These people have to play it conservatively and hope everything works in their favor.

Stew wrote:

Brack P. wrote:

Personally, I couldn't live like Flagpole. Having to scrimp and save for 40-50 years before even thinking about having enough to retire is not for me. Fortunately, I got a great job out of college which led to some lucrative opportunities early in life. I was able to spend on travel, nice homes, etc. throughout my life and still save and retire early.

Flagpole's strategy is great for someone who perhaps didn't make wise decisions on their education choices and career path. People like that HAVE to save and grow every dollar in order to be able to retire since their lifetime income is so low. They can't take investment risks because there is no way to recover from loses without the ability to generate significant future income. One loss could devastate them. These people have to play it conservatively and hope everything works in their favor.

A prime example of poking the bear.

Stew wrote:

Brack P. wrote:

Personally, I couldn't live like Flagpole. Having to scrimp and save for 40-50 years before even thinking about having enough to retire is not for me. Fortunately, I got a great job out of college which led to some lucrative opportunities early in life. I was able to spend on travel, nice homes, etc. throughout my life and still save and retire early.

Flagpole's strategy is great for someone who perhaps didn't make wise decisions on their education choices and career path. People like that HAVE to save and grow every dollar in order to be able to retire since their lifetime income is so low. They can't take investment risks because there is no way to recover from loses without the ability to generate significant future income. One loss could devastate them. These people have to play it conservatively and hope everything works in their favor.

A prime example of poking the bear.

Flagpole wrote:

Brack P. wrote:

Personally, I couldn't live like Flagpole. Having to scrimp and save for 40-50 years before even thinking about having enough to retire is not for me. Fortunately, I got a great job out of college which led to some lucrative opportunities early in life. I was able to spend on travel, nice homes, etc. throughout my life and still save and retire early.

Flagpole's strategy is great for someone who perhaps didn't make wise decisions on their education choices and career path. People like that HAVE to save and grow every dollar in order to be able to retire since their lifetime income is so low. They can't take investment risks because there is no way to recover from loses without the ability to generate significant future income. One loss could devastate them. These people have to play it conservatively and hope everything works in their favor.

Such BS. I DON'T scrimp and save, and I don't suggest you do either. Putting away 15% of your income is not "scrimping". Now, I put away more than that, but that's because we make very good money and I can.

Also, I have been investing now for just 31 years, not 40 or 50. I've been to the point that we could have retired for a few years now. So, NO, my strategy does NOT mean you have to save and invest for 50 years. Regarding wise decisions with education, My wife is a college professor with graduate degrees from The University of Michigan and Stanford. I have a Masters Degree and own my own company.

What YOU want is to try to make a big score on individual stocks. Being driven by greed and unearned success is the downfall of people in their lives and in investing. That is inherently risky and should be done ONLY after you have solidified other areas of your financial life...no debt, paid for house, million dollars in investments minimum, and still contributing to stock mutual funds if you are still working. I was at that point at age 50 (owning the house outright being the last piece). IF I scrimped and saved as you suggested, I could have done it earlier.

For people who have a large salary right out of college, it makes even MORE sense for them to just religiously put money away for retirement and get out of debt as soon as possible.

Rack-Ette wrote:

Flagpole wrote:

Such BS. I DON'T scrimp and save, and I don't suggest you do either. Putting away 15% of your income is not "scrimping". Now, I put away more than that, but that's because we make very good money and I can.

Also, I have been investing now for just 31 years, not 40 or 50. I've been to the point that we could have retired for a few years now. So, NO, my strategy does NOT mean you have to save and invest for 50 years. Regarding wise decisions with education, My wife is a college professor with graduate degrees from The University of Michigan and Stanford. I have a Masters Degree and own my own company.

What YOU want is to try to make a big score on individual stocks. Being driven by greed and unearned success is the downfall of people in their lives and in investing. That is inherently risky and should be done ONLY after you have solidified other areas of your financial life...no debt, paid for house, million dollars in investments minimum, and still contributing to stock mutual funds if you are still working. I was at that point at age 50 (owning the house outright being the last piece). IF I scrimped and saved as you suggested, I could have done it earlier.

For people who have a large salary right out of college, it makes even MORE sense for them to just religiously put money away for retirement and get out of debt as soon as possible.

Ladies and gentlemen, I present to you the living embodiment of #middleclassfancy