Stock Market is the bottom in?

[homerj1]

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I believe one rule of thumb on investment withdrawals is 4% so as not to eat up your principal. So $40,000 a year x 4 years $160,000 in bonds or maybe a straight Marcus by Goldman Sachs savings account. The rest in stocks. I think this is more along his thinking I could be wrong. There are so many variables involved with each person’s other retirement income it’s hardly a one size fits all equation.

Yes, that makes sense.
I was only taking issue with the statement that a person could draw $100K from a $1 million portfolio (no matter the composition) and not touch the principal.

 

[homerj1]

Not me, I don't live so high on the hog that I need 100k a year

Me either. Read the previous posts. The $100K was mentioned coming from a $1 million portfolio annually and not touching the principal

 

[b116757]

My oldest boy turns 18 in a few days he worked this year at a couple places and made a total of $3400 for the year. He will be opening an Roth IRA in Feb with the $3400
His projected balance at age 60 with no other deposits is drumroll…….

Around $500,000 at 12% interest not nearly enough to retire but starting early in life really helps. I suggested to him that he use $2,000,000 minimum as his baseline target for age 60.

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[homerj1]

Inflation sucks.

$2 million today will be worth around $600K in 40 years. 40 year equivalent of $2million = about $6.5 million

Inflation Calculator - Save Enough to Account for Inflation

 

[Jerry-B-WI]

Me either. Read the previous posts. The $100K was mentioned coming from a $1 million portfolio annually and not touching the principal

Maybe he meant the $1 million portfolio could earn 100k per year.

 

[Angus 1895]

Money markets ?

Meh


Marlins!!!!!!

Now u be invested!

 

[homerj1]

Maybe he meant the $1 million portfolio could earn 100k per year.

"Unless you spend like a drunken sailor 1 mil should get you about 100K a year to spend"

 

[Jerry-B-WI]

"Unless you spend like a drunken sailor 1 mil should get you about 100K a year to spend"

If my $1 million portfolio earns 100k per year can't I spend it? We all know it won't make 100k every year though.....right?

 

[Bill]

You guys are making me want to go back to work……NOT.

But I am dumping some real estate in two weeks. Cashing in while the market is still stupid. And I’m real estate heavy.

 

[Jerry-B-WI]

You guys are making me want to go back to work……NOT.

But I am dumping some real estate in two weeks. Cashing in while the market is still stupid. And I’m real estate heavy.

REIT's?

 

[homerj1]

If my $1 million portfolio earns 100k per year can't I spend it? We all know it won't make 100k every year though.....right?

Ok

 

[Bowsnbucks]

Around $500,000 at 12% interest not nearly enough to retire but starting early in life really helps. I suggested to him that he use $2,000,000 minimum as his baseline target for age 60.

In today's dollars, most CFP's recommend at least $1,500,000 for a "decent" - not luxurious - retirement. Your $2,000,000 target for your son is probably a bit light for another 42 years of work life ................ sad to say. Starting EARLY and contributing heavily and regularly will help get him there. I've preached it to our own young adults.

 

[b116757]

Inflation sucks.

$2 million today will be worth around $600K in 40 years. 40 year equivalent of $2million = about $6.5 million

Inflation Calculator - Save Enough to Account for Inflation

I should done the math I figured $2 mil was enough

 

[Bowsnbucks]

The $100K was mentioned coming from a $1 million portfolio annually and not touching the principal

Not happening.

 

[homerj1]

Not happening.

Clearly

 

[Bill]

REIT's?

No. I’m selling raw land. It’s been good to me. Logged $80k off it about 8 years ago and now it’s going for more then I paid. In 10 years I’ve hunted it once, it’s not costing me anything but it’s not making me enough to hold it.

I just have to much of $ in real estate to not cash in some.

 

[homerj1]

I should done the math I figured $2 mil was enough

Inflation over decades is really crazy. I'm not sure $2 million is enough for a 55 year old retiree today. Maybe if they also receive some kind of pension and Social Security doesn't disappear in 2035.

 

[yoderjac]

That's why you don't leave all of your money in stocks. Put about 4 years worth in bonds, money market or similar safer places to ride out the market down turn.

I know that is the conventional wisdom, but when I look historically, I just can't make the math work out. I can't find a historical period of any significant length where holding a mix with bonds outperforms a mix of stock and cash only.

 

[b116757]

"Unless you spend like a drunken sailor 1 mil should get you about 100K a year to spend"

No you will not the market is fickle you may lose money one year maybe two years then gain it all back and gain 30% over your loss it’s really all over the place year to year. They average it and say a 12% or so gain every year but that is not reality on a year to year basis. Not a big deal for long term investors we ride the waves. If your retirement horizon is approaching most folks start to transition part of their portfolio to safer investments so a couple year down turn right at retirement doesn’t derail their long term financial health. I think I’m down about $40,000 from a couple weeks ago. I just smile and figure any stock I buy is at a discount. But I’m still a minimum of 7 year out of retirement and possibly as many as 12 so that little hiccup is not concerning to me. Now all of this could come crashing down at any time then all bets are off. My absolute biggest concern with the Ukraine Russia thing is China and Russia working in concert to dethrone the dollar as the world reserve currency then we are screwed things would probably be very very bad in this country for decades. So glad we have Brandon in there calling the shots he is a genius.

 

[homerj1]

"One of the major problems for an investor hoping to regularly recreate that 10.67% average return is inflation. Adjusted for inflation, the historical average annual return is only around 7%."

S&P 500 Average Returns and Historical Performance

See the historical performance of the S&P 500 Index. Learn more about the factors that affect the S&P 500 average return.

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