Distribution of Wealth in SD County

[UCGal]

[quote=AN]With regards to saving $4k/month. I don’t think that’s optimistic at all. As I said in prior post, we’re making less than $150k and we’re saving on average of $4k/month. We’re not even close to our parents in term of frugality. We go on vacations, we buy luxury cars, we eat out at fancy restaurants, etc. It’s all about setting goals and making saving for retirement as a priority.[/quote]

I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.

As far as $4k/month savings – if you’re contributing max to the 401k – that’s $2750/month for a 2 income household right there. Toss in the 529 contributions for your kids college fund… and your taxable investments and income… it’s not that hard to get to $4k. Especially if you have a habit of using employee stock purchase plans to fund savings/investing or annual bonuses being allocated for savings/investing.

We’re not at 4k… but we’re getting close. If they hadn’t decimated my bonus the last few years we would have hit the 4k average/month figure.

[an]

[quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.

[an]

[quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.

[an]

[quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.

[an]

[quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.

[an]

[quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.

[equalizer]

[quote=AN][quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.[/quote]
In today’s market of 0% rates, 5% is more realistic. I just traced back 15 years of biggest fund and indexes with Morningstar data. Only 25% of 500 funds/indexes were over 8% avg over 15 years and only 10% over 8% over last 10 years with S&P 0% over 10 years.

By the way, I bought Vanguard Health Care 15 years ago and it is avg 14% since then. It is ranked #2 of all funds/indexes over that time period. I made the mistake of drinking/dating/diversifying, otherwise I would be ahead of Buffet by now.

Typical child care expenses are over 10K per child per year in San Diego, throw in high rent/mortgage, home expense it is very difficult to save much money even with 150K salary outside 401K. If you include 401Ks then 2-3K savings/month can be done if you stick to the picnics, etc.

[Of course this year includes the 60% rate over last 12 months. Had you done this report last year the 15 year returns would nearly all be 3% or less]

[equalizer]

[quote=AN][quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.[/quote]
In today’s market of 0% rates, 5% is more realistic. I just traced back 15 years of biggest fund and indexes with Morningstar data. Only 25% of 500 funds/indexes were over 8% avg over 15 years and only 10% over 8% over last 10 years with S&P 0% over 10 years.

By the way, I bought Vanguard Health Care 15 years ago and it is avg 14% since then. It is ranked #2 of all funds/indexes over that time period. I made the mistake of drinking/dating/diversifying, otherwise I would be ahead of Buffet by now.

Typical child care expenses are over 10K per child per year in San Diego, throw in high rent/mortgage, home expense it is very difficult to save much money even with 150K salary outside 401K. If you include 401Ks then 2-3K savings/month can be done if you stick to the picnics, etc.

[Of course this year includes the 60% rate over last 12 months. Had you done this report last year the 15 year returns would nearly all be 3% or less]

[equalizer]

[quote=AN][quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.[/quote]
In today’s market of 0% rates, 5% is more realistic. I just traced back 15 years of biggest fund and indexes with Morningstar data. Only 25% of 500 funds/indexes were over 8% avg over 15 years and only 10% over 8% over last 10 years with S&P 0% over 10 years.

By the way, I bought Vanguard Health Care 15 years ago and it is avg 14% since then. It is ranked #2 of all funds/indexes over that time period. I made the mistake of drinking/dating/diversifying, otherwise I would be ahead of Buffet by now.

Typical child care expenses are over 10K per child per year in San Diego, throw in high rent/mortgage, home expense it is very difficult to save much money even with 150K salary outside 401K. If you include 401Ks then 2-3K savings/month can be done if you stick to the picnics, etc.

[Of course this year includes the 60% rate over last 12 months. Had you done this report last year the 15 year returns would nearly all be 3% or less]

[equalizer]

[quote=AN][quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.[/quote]
In today’s market of 0% rates, 5% is more realistic. I just traced back 15 years of biggest fund and indexes with Morningstar data. Only 25% of 500 funds/indexes were over 8% avg over 15 years and only 10% over 8% over last 10 years with S&P 0% over 10 years.

By the way, I bought Vanguard Health Care 15 years ago and it is avg 14% since then. It is ranked #2 of all funds/indexes over that time period. I made the mistake of drinking/dating/diversifying, otherwise I would be ahead of Buffet by now.

Typical child care expenses are over 10K per child per year in San Diego, throw in high rent/mortgage, home expense it is very difficult to save much money even with 150K salary outside 401K. If you include 401Ks then 2-3K savings/month can be done if you stick to the picnics, etc.

[Of course this year includes the 60% rate over last 12 months. Had you done this report last year the 15 year returns would nearly all be 3% or less]

[equalizer]

[quote=AN][quote=UCGal]I agree with CAR about 8% being optimistic. Especially if you’re diversified to mitigate risk.[/quote]
I used the Dow index as my example of diversity and long term return. I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. So to me, either I’ll buy a DOW index fund, try to beat the DOW with my own set of investments, or trust Buffett and his team. I don’t think I can out do Buffett and his team.

Here one other example for those who thinks 8% is too optimistic. At 4% return, you’ll have $1.47M in 20 years. Or $1.56M after 25 years at 2% return . I’m a firm beliver in the power ofcompound interest. So the sooner you start saving, the higher chance of you amassing a million or two and be able to retire early.[/quote]
In today’s market of 0% rates, 5% is more realistic. I just traced back 15 years of biggest fund and indexes with Morningstar data. Only 25% of 500 funds/indexes were over 8% avg over 15 years and only 10% over 8% over last 10 years with S&P 0% over 10 years.

By the way, I bought Vanguard Health Care 15 years ago and it is avg 14% since then. It is ranked #2 of all funds/indexes over that time period. I made the mistake of drinking/dating/diversifying, otherwise I would be ahead of Buffet by now.

Typical child care expenses are over 10K per child per year in San Diego, throw in high rent/mortgage, home expense it is very difficult to save much money even with 150K salary outside 401K. If you include 401Ks then 2-3K savings/month can be done if you stick to the picnics, etc.

[Of course this year includes the 60% rate over last 12 months. Had you done this report last year the 15 year returns would nearly all be 3% or less]

[all]

[quote=AN]I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. [/quote]

6.9%, taxable

[all]

[quote=AN]I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. [/quote]

6.9%, taxable

[all]

[quote=AN]I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. [/quote]

6.9%, taxable

[all]

[quote=AN]I just checked out BRKB’s 10 year return and it’s greater than 8% over the last 10 years. [/quote]

6.9%, taxable

[Author]

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