<p>Ahhhhhh…</p>
<p><a href=“Financial Sense Newshour”>Financial Sense Newshour;
<p>In the first Big Picture topic this week, Jim looks at those “Left Behind” in cash since the credit crisis of 2008. Jim notes that those who have remained in cash since 2008 have lost 25% of their purchasing power. In the second topic, “Lessons From the Master” Jim goes over the key points of Warren Buffett’s annual letter to shareholders, and notes that all investors would benefit from reading it.</p>
<p>He also briefly goes over the 4% rule. He mentions that he’s going to do a future show on the 4% rule.</p>
<p>Ok…that is almost an hour to tell me what I already know… ;).</p>
<p>The 4 percent rule…spend down your assets while inflation makes those assets worth less over time…</p>
<p>I listened to various parts of the program…</p>
<p>The baby boomers are going to have retirement problems…</p>
<p>The stock market is back at its highs…</p>
<p>Residential real estate is working its way back to the highs…</p>
<p>Personal income is stagnant…</p>
<p>Real interest rates are negative which is causing the above pricing in assets…</p>
<p>The country’s economic problems are not really fixed…</p>
<p>It’s not bad for background stuff when doing weights or washing dishes or driving to the office. I do listen for recaps or news that I didn’t see during the week or something that’s highlighted but I know about a lot of stuff because I see it during the week. The aspect of getting left behind caught my eye because of the guy I ran into in the parking lot last night. I might send him the link to listen to.</p>
<p>Baby boomers and younger people will not have problems with retirement at least from the info I see here. There are all kinds of great investors on cc who can do well in the market, and would rather handle their own money than put it into ss.</p>
<p>I like CC, but let’s face it, the board tilts to those more financially well off…</p>
<p>I hope to live another 40 years or so…</p>
<p>I have no idea what inflation is going to be, which insurance companies are going to survive, if msft still exists, or which investments are going to carry me. </p>
<p>These financial guys who use the past to project the future and are so confident with their
asset alllocation models…well… I guess I just don’t have that kind of
confidence.</p>
<p>Hindsight is great…for talk radio. Woulda, coulda, shoulda…
If I knew the stock market was going to recover, I would have been more heavily invested in stocks. Lol</p>
<p>I invested and worked with a hft firm and our investment was up 100 percent in about a year. We were just getting started. I didn’t have that much invested, but I thought we had a good chance to have our investment grow 1000 to 2000 percent, so…my attention was not focused that much on stock market returns. :)</p>
<p>Well…it didn’t work out. We were unable to steal enough to make the investment work
better. :)</p>
<p>In retrospect, I would have focused more on stocks…</p>
<p>We didn’t make filthy returns, maybe 150 to 200 percent over 6 years, but I did learn a lot about mental illness.</p>
<p>I think I am just going to do my own crap from now on… :)</p>
<p>Doct, what were the latest sentiment readings?</p>
<p>Sentiment: 31.06. It’s been falling as the market has been rising.</p>
<p>I am surprised by that number.</p>
<p>I wish I had more details. Somebody was hired as a computer consultant in the Midwest and the pay was the Same as 22 years ago. </p>
<p>Make sense? Was I told wrong?</p>
<p>The definition of the term consultant in the computer industry varies widely.</p>
<p>Yeah… I just don’t have the details…it is not a high paying job. It is entry level. 52,000 a year…</p>
<p>Doct, I do like your last post…</p>
<p>If there was no SS, how much would somebody who is 55 need to save? </p>
<p>For many over 1 million… Maybe 2 million? More?</p>
<p>And how many people of any age are worth over 1 million</p>
<p>The statistic that I heard back around 2007 was that one in 140 households had a net worth of at least a million. That’s a small percentage but still a lot of people.</p>
<p>Ok this link has slightly more millionaires and counts home ownership. </p>
<p>100000 is affluent? </p>
<p>Anyway, the amount of millionaires isn’t that large.</p>
<p><a href=“Fewer Millionaires Than Thought in U.S. - ABC News”>http://abcnews.go.com/m/story?id=87939</a></p>
<p>That link is too old. Sorry.</p>
<p>This might be better.</p>
<p><a href=“http://www.joshuakennon.com/1-out-of-every-25-households-millionaire-united-states/”>http://www.joshuakennon.com/1-out-of-every-25-households-millionaire-united-states/</a></p>
<p>I guess that the one I looked at didn’t count primary residence. The numbers put out in global reports usually don’t include primary residence. The importance of the $100,000 number (I actually thought that it was higher) is for the people that financial institutions target because they have enough assets to generate enough in commissions and fees to make it worthwhile to provide services.</p>
<p>Millions of millionaires still seems like a lot of people to me. They could easily fill my state.</p>
<p>If a couple needs 50000 the first year and their net worth returns the inflation rate after tax, and they live 30 years… They need a nest egg of 1.5 million. If SS covers half, they still need 750000. </p>
<p>And most retires are not going to have company paid healthcare.</p>
<p>We all need to get as thin as you to keep our healthcare costs down.</p>
<p>Lol…</p>
<p>I appreciate that. The 146 1/4 is already history. The 150 is coming back …it was cool to hit 146 1/4 though.</p>