Shiller PE Ratio above 30

[Myriad]

[quote=flu]Since I won’t be able to touch my 401k/IRA until 65, my other thing is my non-ira/401k investments with 4% dividend returns would generate $40k/year after taxes if I could consistently hit a 4% dividend return.[/quote]

Sounds like you have a lot of income & assets by the time you’re 60. Why not retire then and start moving all your IRA/401k to Roth?
I’m looking at what to do to reduce my taxable income at 72 to avoid hitting the Medicare IRMAA limits. Mostly involves retiring early enough to move assets from non-Roth to Roth when i retire (assuming markets don’t just die from here on out)

[Coronita]

[quote=Myriad][quote=flu]Since I won’t be able to touch my 401k/IRA until 65, my other thing is my non-ira/401k investments with 4% dividend returns would generate $40k/year after taxes if I could consistently hit a 4% dividend return.[/quote]

Sounds like you have a lot of income & assets by the time you’re 60. Why not retire then and start moving all your IRA/401k to Roth?
I’m looking at what to do to reduce my taxable income at 72 to avoid hitting the Medicare IRMAA limits. Mostly involves retiring early enough to move assets from non-Roth to Roth when i retire (assuming markets don’t just die from here on out)[/quote]

Hmmm that’s a good point…. haven’t thought about this. Right now, my 401k is roughly split 50/50 between a traditional 401k and Roth 401k., though this year it’s closer to 40/60 I wish that tax free 30% gain in the S&P500 last year would be the case for a few more years, lol.

Thanks for the suggestion. Need to research.

[The-Shoveler]

Yea but do they bring you free lunch?

Just kidding.

I think I would rather do real work than attend boring meetings LOL.

Have fun!

[Coronita]

[quote=The-Shoveler]Yea but do they bring you free lunch?

Just kidding.

I think I would rather do real work than attend boring meetings LOL.

Have fun![/quote]

They did until finance started to complain about the large food expenses our dept was submitting. And there’s only so many meetings I can take before wanting to blow out brain. Free or no free lunch.

[The-Shoveler]

I don’t have retirement FOMO,

I have FOMO of not being in involved/working in the tech biz (or something like that, can’t describe it exactly).

[FlyerInHi]

If only people would spend as much time on their healthcare as they do working out financial schemes. Maybe they would live a few more years to enjoy their money.

We would also be a healthier, more productive and more beautiful country, with an even better economy.

[PCinSD]

[quote=FlyerInHi]If only people would spend as much time on their healthcare as they do working out financial schemes. Maybe they would live a few more years to enjoy their money.

We would also be a healthier, more productive and more beautiful country, with an even better economy.[/quote]
You sound upset. Are you crying right now?

[Coronita]

Dow up 200 pts, Nasdaq up 72, SP500 up 21…

I think the only people probably needing to worry are their health are all the people suffering from depression after talking themselves into sitting out of the markets for some time or counting on everyone else being as miserable as they feel..

or worse those suffering from hyper tension from trying to short the markets and having that blow up completely.

At least everyone should have health care coverage now though.

[FlyerInHi]

I did not sit out the market. Stock investments are indexed. And for real estate I have been buying and gentrifying. But it not about me.

More beautiful, gentrified real estate makes for a better country. More beautiful, healthy people be to our benefit.

BTW, flu, I agree that we must mostly follow trends. The cycles cannot be controlled.
But real estate is much slower; it’s very important to identify the broad cycles. I probably have another cycle in my lifetime, and I don’t want to miss the opportunity.

[Coronita]

Ok Boomer, if you say so.

[FlyerInHi]

Flu, I hope you know that, generation wise, the boomers have the most wealth and are the most optimistic — they are happy with their investment, prospect me for retirement and end of life.
The millennials and younger are pessimistic about jobs, the environment and the structure of our society. They reject the status quo that boomers created. The younger ones are more willing to give socialism a try.

It would be more appropriate to say “OK Boomer” to a climate change denier or a dude who supported war on Iraq.

[svelte]

[quote=flu]
there is a point in life where you want to arbitrage a low interest loan with higher returns higher risk investment and take additional risk to build wealth

there is another point in life where you want to protect what you’ve built

People get screwed when their goals get mixed up. Those decisions I make irrespective of what the market is actually doing. Why take on extra risk if you don’t need to?

I use to regret paying off my loans. I don’t anymore, because my cash and investment portfolio has basically returned back to the same level last November and went over the previous level end of December. And now all my properties in SD are free and clear. So technically I don’t need to work. Then again, current company is paying me a lot and I get a senior management position so why not. if I stayed at home, I’d get fat and and lazy. Whereas I like going to the free company gym.

I’m not a proponent for doom and gloom. I am not a proponent of pie and the sky euphoria. I’ve learned taking profits and doing something with it constructively is the best thing for me because it’s self-governing to prevent an unexpected disaster from wiping out what you gained . [/quote]

Totally spot on.

I’m at that point too flu where I’d rather just have everything paid off and not worry about strategies to capture that last penny.

With regard to saving, it is very tricky to determine how much to invest and how much to spend. Last thing I want to do is get hit by a truck tomorrow and not have enjoyed any of the money I worked so hard to get. Figure out what makes you happy and pursue that…after you’ve stashed away enough to be set in retirement should you be lucky to make it that far.

I used to calculate how much I’d need to have to spend as I do now well into my 90s. As I’ve grown older and watched others grow old, I realized chances are very good that if I should be fortunate enough to make it even to my 80s, I’ll probably be so feeble I’ll just be watching TV and surfing the net. So my financial needs will be much lower.

Sure I want to leave money to my kids and I don’t see many ways that won’t happen, but I also want to enjoy life while I’m here.

It would be so much easier if I knew when I was gonna die. Wait scratch that. That would be a terrible thing.

[Coronita]

My goal is to try to hit the $5million mark in net worth before calling it a day. That would allow a low risk net passive income strategy indefinitely and something I think would be obtainable not too far in the future. I don’t care who is in office or who is running the government so long as they don’t interfere with my plans. The world’s problems are not my problem and as long as I don’t interfere with other people, I could care less. I am simply results oriented and that has been my primary focus.

Originally my plan was to hit the $10million mark so that the passive income from it could be done at very very low risk ($10 million at 2% passive return is virtually an easy slam dunk annual income of $200k/yr for doing nothing) but I don’t think I will be able to obtain that in my lifetime. Just not that lucky to hit the right investments and hit the right stock options at the right company at the right time in my lifetime. A more realistic goal is $5million returning 2.5-3% passive income ($125-200k passive income annually which can afford me a comfortable retirement lifestyle, not something lavishing.) That’s slightly higher required return than I wish for and certainly not a slam dunk, but should be obtainable annually but even if it dipped to 2% occasionally, that’s still ok . Got to work with what is practically obtainable, and one of the main reasons why I am not spending a lot right now. Wish I was younger and had gotten more done. Oh well. That will be my kids empire building goal for an easy life.

Last year’s S&P500 30% gain certainly helped cut the time down to obtain my goals significantly, and while I don’t expect a repeat this year, a decent 5% would be nice.

[Myriad]

I should learn to invest in things I don’t believe in, that don’t make a profit, and are anti-value investing.
Those seem to go up way more than the stuff I invest in.
Of course, when I go with that strategy, that’s when the market switches back to favor value investing

[Coronita]

Intel just announced smashing numbers …up 6% AH.

[Author]

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