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The Part-time Investor  

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  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    DVK,

    "The reason is that income has so much less volatility than price returns. It is relatively straightforward to set up an income goal 20 years out and track your progress towards it. If you were in your 40s when 2008 hit, and your portfolio was cut in half, how could you answer whether you were on track to retire at age 55? The only true answer is that you could not tell. Nobody knew at that time that a 6-year bull market would commence in 2009 and you would make it all back and then some."

    EXACTLY!!! Once again you make a concept clear for all of us to learn. Thank you David. I wish I could explain things as well as you.
    Jun 30, 2015. 06:51 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    diamond,

    Thanks for your comment and your story. I find that it is, and will be, much easier to track dividend income rather than portfolio value. The market moves up and down too much, as will my portfolio. But I expect my dividend income to keep increasing year after year, and that will be something that will be much easier to track, and a much more reliable metric with which I can track my progress.
    Jun 30, 2015. 06:49 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    rnsmth,

    But you do have a goal. And this is what is important. I felt it was important for me to set a hard income goal, not so much to have something to shoot for, but so that i have something to track. That way I can tell if I'm doing well, or if I need to make some changes so that I can meet my goal.
    Jun 30, 2015. 06:45 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    L1329-8,

    "While you may be in a 33% bracket at retirement, that won't be the rate you'll be paying on every dollar of income. Dividends and Cap Gains are taxed at lower rates; ROTH at zero %."

    You are correct, but everybody's tax situation is different, and I can't tell exactly what mine will be in 15 years. So I went for the basic ballpark figure. Unless the tax code changes 33% would be the worst case scenario. Roth IRAs and dividend rates would make my tax cost even lower, so I would just be in a better position. If I assume the worst I 'll be ready if it actually turns out better.

    I prefer not to include SS in my plans because I don't know what SS laws will be in the future. Again, if I receive SS as well it will be a bonus.
    Jun 30, 2015. 06:30 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Chowder,

    All very true. Still I'm not complaining about anything. I make good money and have a good life. I'm just documenting the process I recently went through, along the lines of your project $3 million, in which I figured out what I will need (want) and what it will take to get there.
    Jun 30, 2015. 03:48 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    as10675,

    You sound like you have great kids and you've done wonderful job. You should be proud of them and of yourself as a father.
    Jun 30, 2015. 03:44 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Paul,

    "PTI....College was less expensive in the past and worth more, from what I can tell." Sadly, I believe you are correct.
    Jun 30, 2015. 03:40 PM | 3 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Marty,

    Microsoft money? Or a website? Can you direct me somewhere?
    Jun 30, 2015. 03:36 PM | Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    travelguru,

    If only it were that simple. I don't spend much. Others in the family do. And they have different priorities than me, saving and retirement not being at the top. I have spoken to them many times, but without constant fights I can only bring it up so many times. To maintain the over-all happiness I only bring it up when absolutely necessary.
    Jun 30, 2015. 03:35 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    as10675,

    I already have my retirement planned out.

    GOLF.
    Jun 30, 2015. 03:33 PM | 1 Like Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    DVK,

    I am already doing that. I wish I could pay off even more, but can't afford the extra payments right now. I'm doing an extra $500 a month right now. Hopefully that will cut off a few years of payments.
    Jun 30, 2015. 03:31 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    Skip,

    Thanks for your comment.

    I guess I do have a high standard of living. Nice house, nice car, summer home. But I paid too much for some of them, and even with my present income it has kept me from being able to save much or pay down debt. Oh well, lesson learned. Still, I can't complain about how I live. :-)
    Jun 30, 2015. 02:28 PM | 2 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    bg,

    Yes, it may be undoable. But that was with keeping the yield at 3.5%. By moving the yield up to 5% it's more likely I can meet my goal. And by focusing on the dividend income, and growth of that income, regardless of market movements, rather than the portfolio value, I think I should be able to stay on track. If not I will be able to see that I am not on track and make changes accordingly.
    Jun 30, 2015. 02:25 PM | Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    I think it was Einstein who said "Quotes attributed to me are highly dubious."
    Jun 30, 2015. 02:23 PM | 7 Likes Like |Link to Comment
  • How To Be Sure You Won't End Up Eating Cat Food In Your Retirement [View article]
    B&H2012,

    Thanks for your comment and encouragement. The power of compounding is amazing, but I don't think I have enough years left to get to 16 million. But by getting my yield up to 4-5%, or more, rather than 2.5%, I'll be fine whetever my portfolio value ends up being.
    Jun 30, 2015. 02:22 PM | 1 Like Like |Link to Comment
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