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  • Dividends Matter If They Matter To You [View article]
    I am all in favor of an "Endless Summer!" When I was younger I thought that was just a saying, but now that I am older I see that it can be a reality.

    "America, What a Country!"

    Aug 20 10:03 PM | 1 Like Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    I was actually somewhat relieved when I was laid off because they made the retirement date decision for me. I actually got excited when I left the plant yesterday.

    I went back to clean out my office in the afternoon so that the other employees would still be there. It was two hours of people lining up at my door to say fair well. I held up well one on one but when people entered my office in mass I ended up with a lump in my throat.

    After all the hugs and handshakes, in the end it was an exhausting day. I am not even upset about my layoff because I have been planning for years for this very day. It is a time to rejoice.

    My manager got laid off also (they laid off all the functional managers). He called me today and said he had no idea that I would be laid off and he had no idea that he would be laid off either at age 57.

    My retirement schedule is already heavily booked with travel to April. I am so far behind in everything at home it will take me a year to catch up. I see this as exciting times.

    I don't think I will go back to work, but yesterday I texted back to my team to not wait for me since I had been laid off and that I was stopping at the mall on the way home to fill out an application at Victoria's Secret. That got some laughs when I showed up today.

    Thanks for the well wishes. I received a lot of well wishes and it is very comforting. I just told my coworkers not to worry about me that I am better off than most.

    I not your ordinary everyday fool (multimillionaire). A take off from National Lampoon vacation. I just love those dividends.

    "No shirt, no shoes, 'dividends' ... no problems."
    Aug 20 09:57 PM | Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Thanks for the kind words. I have been preparing for yesterday for several years. After seeing the many names on the layoff list it consisted of people who helped build the company. Right now it looks like the company may have been helping these people since they were some of the highest rated.

    I have tracked all my expenses since December 1996 and have accurate budgets for every expense category.

    Also I have four retirement budgets Emergency (61%/99% income replacement), Basic (104%/169% income replacement), Standard (includes all pensions 121%/198% income replacement) and Full (includes all pensions and social security at age 62, 135%/202% income replacement). The first percentage is the raw income replacement percentage and the second is the effective purchasing power compared to pre-retirement expenses.

    "Everyday is like Saturday now."
    Aug 20 03:23 PM | 1 Like Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    "Since when does anyone get shown statistics, especially as relates to age?"

    They put the raw age data on a sheet in my HR package that they provided to me. They did not cut loose the oldest person, only the second oldest person.

    "I have many friends that are waiting for a similar send-off from their employers."

    The exit package is the same for all the rank and file. Maybe at the director or vice president level it is higher.

    What they provide is better than just an "hasta la vista". I am thankful for what they gave me both on the exit and over the 19 years that I worked there. They even helped me make an important decision, retirement.

    My regret, a continuation of my salary for the next year or two would have provided a great lifestyle. On the other hand no amount of money can buy my life back.

    "Best Wishes."
    Aug 19 11:23 PM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Thanks gfmn2000,

    When family or a close friend asked me when I was going to retire, I would say that someone else will make that decision for me.

    The main point is that the forced retirement date needs to be after the persons planned date.

    My company tried to show me some compassion on exit while I restrained my joy and happiness about an assisted transition to retirement.

    By the way, I did not see this coming and it had wide spread impact to the employees, those who were cut lose and those who remain.

    Since they provided me the metrics for my labor category, 19 people were considered. Age range 45 to 62. Average age approximately 55. There were 2 people age 60 and one age 62. One age 60 selected for layoff.

    My performance rating on a forced bell curve was top 1% for the last two years in a row and top 5% for the last 17 years. Indications were for the most part that this was a income based layoff. Exit comments included competitive environment and cost reductions.

    "Age people think that they will work to is 65. Average age people work to is 62. My age 60, almost 61.
    Aug 19 09:56 PM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]

    "I would regret that I had worked longer than I needed to."

    No longer will I wonder if I worked too long since I got caught up in a massive layoff this afternoon.

    Aug 19 08:56 PM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    After today I could use a "Sugar Mama"!

    Big lay off today, and it hit me after more than 19 years of service. 'cez la vie.'

    Aug 19 08:46 PM | 1 Like Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    "The conclusion we came to is that we're doing the right things, even though it's not generally obvious how much different from us that they really are, financially."

    A comparison of the savers to the spenders net worth would be quite revealing. Most self made wealthy people do not live an extravagant lifestyle.

    There are essentially three economic classes in our society.

    "The trapped economic class."
    This group spends their disposable income on 'stuff'. They have stuff every where, in their house, in their garage, in their basement, and in their car. They may even have to buy a larger house or rent storage space to hold all their stuff. Consequently they little to no money left over for savings.
    This group is characterized by lower income, medium debt and low to negative net worth.

    "The impress me class."
    This economic class buys liabilities such as vacation houses, boats, airplanes, numerous vacations, fancy clothes. So this group looks like they have a lot but what they are is so heavy in debt that they do not have much left over for savings and investment.
    This group in the early stage can be characterized by higher income, possibly high debt and maybe even negative net worth.

    There are always exceptions to the above examples, but many are trapped in these two classes because once certain actions are taken it is hard to escape the class and move on to the next level.

    "The investor class."
    This class spends their disposable income on assets (things that produce income and wealth). They rent homes, boats, vacation property, airplanes to stay debt free so they can maximize wealth generation.
    This group is characterized by mid to high income, little to no debt and medium to high net worth.

    I have seen that wealth creation is not necessarily based on how much a person makes, it is based on what they do with what they have.

    "Start saving early, save often."
    Aug 18 12:33 AM | 7 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    I think we all know some people who spend just too much.

    We were avid scuba divers. Many years ago we went to Mexico scuba diving and the husband of one couple we went with was spending like crazy. After the trip they bought two new cars. Within a year they were over their heads in debt and divorced shortly thereafter in part due to the finances.

    Since I lived a dangerous life when I was under 40, I pretty much lived for the day but did not go into debt.

    When I realized (1995) that I was most likely going to live to be old(er), I decided to live a balanced life going forward. I have been and still am a best value type of consumer. Even though I could spend more, I do not because I don't get any additional intrinsic value from it.

    I finally have enough to wealth retire (yeah!). So now I do not even have to save any longer because the compounding of the dividends and capital growth dwarf my annual contributions. In spite of meeting my goals, I still save for retirement but I also spend a lot more (c'est la vie) because my current budget and retirement budget indicates that I can do so. My return on happiness is of greater benefit to me than having more money because no matter what, I should still have enough income to get by on.

    Technically I retired in 1995 with about 46% income replacement. With a kid in college I started my new job the Monday after my Friday retirement. That was almost 20 years ago.

    Now for me retirement is a matter of choice. This period of 'super financial freedom' is a good place to be (thanks to dividends) and I am trying to adapt (It is not so easy if you have been a saver).

    If I could send a text to all the young people out there it would be to save at least 10% of their salary, 20% if they do not have a pension so they will be able to live a more comfortable life in retirement.

    "I wish you good health and happiness."
    Aug 17 11:42 PM | 4 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Thank you for the link and sharing your story.

    I was able to only flip through part of it, but what I saw brought back many memories of my past experiences. I look forward to reading it all.

    I wish you the best in retirement.

    Aug 17 10:51 PM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    Monday is going to be stressful for me, only one dividend check in my electronic mailbox for $205.22. It is a good thing that it is the weekend and I have my dividend support group to see me through to Monday.

    What is even worse is that my total savings balance is off its high so now even my fall back TR plan is failing me.

    Now I have to worry about what will happen Tuesday. Maybe the trip to Dallas and the Cowboy's game will take my mind off all this dividend anticipation.

    "Dividends are magical! I spend most of my free time planning on how to spend them during my worry free retirement. I hope everyone finds their path to and achieves financial freedom."
    Aug 16 12:00 PM | 3 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    This co-worker retired at age 68. With is pension and his wife's and his social security and 401K savings, I would estimate his income replacement at 80% to 90% of pre-retirement for his income only because I do not know anything about his wife's work history.

    If his wife worked he would probably be in the 65% to 75% income replacement. Most likely this is the case since he said something about not having a paycheck anymore. So his retirement income must be right at the essential expenses level, meaning that he has his bills paid but no left over funds to enjoy retirement like he thought he would.

    I am glad that your retirement transition is going well for you. Please share your Mexico retirement adventure with us sometime. I am sure that many would be interested in your retirement story.

    "Enjoy your retirement!"
    Aug 16 11:34 AM | 3 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    What is important is to be able to pay the bills in retirement when the daily grind paycheck stops coming in.

    So a person should probably choose a strategy that will pay the bills. If that strategy does not work, a switch to a different strategy will be required out of necessity (if at that time any viable strategies remain).

    A few months after a coworker retired I saw him in a WALMART and I asked how he was enjoying retirement. To my surprise the first thing that he said to me was "When you retire your paycheck stops."

    "Choose wisely my friend. Best wishes in your investing."
    Aug 15 10:00 PM | 2 Likes Like |Link to Comment
  • Dividends Matter If They Matter To You [View article]
    I still work although now it is less hours then before, but now I live it up a lot more when I am not at work.

    * 5 to 6 vacations per year.

    * Visit relatives or long weekend trips minimum of 6 times per year.

    * I can afford to attend special events now like the last George Straight Concert, ACM's, and pro-games.

    * I can now give my children, grandchildren, and father special memories when I see them.

    * Attend more live sporting events.

    * I buy better food and drink as well as exercise more.

    * I can now have everyone in my family and their friends over for football games on Sundays and not worry about what it costs.

    * When something breaks or I need something new I do not have to worry about where the money will come from.

    * I do not let job stress get to me because I could retire at any time.

    * 3 of my 5 retirement goals have been achieved and the last two are probably one year from being achieved.

    * I am 60 so I am still not all that old.

    * Sometimes I go into work to rest.

    In my mind these are some of the extra things dividends can provide. I even told my girlfriend to start a bucket list and she listed Grand Canyon (did that), Niagara Falls (did that), Germany (did that two times), Ireland, Tahiti, etc.

    My of the conditions to my family was that if I continued to work that we would do some special activity at least once a month. Tomorrow it is a trip to Dallas for the Cowboys pre-season game.

    I understand your comment that life is short and I agree with you. So what you see is part of my life/retirement strategy.

    Most of the people waited until they were retired to start traveling. We would like to do the things we dreamed about while we are still young enough to remember it.

    I still clip coupons.

    "Best Wishes to all."
    Aug 15 06:16 PM | 7 Likes Like |Link to Comment
  • How Dividends Don't Matter In Retirement; A Few Examples [View article]
    I don't think that DGIer's are ignoring appreciation. Often when I get 75% to 100% return I will remove my original investment to play with the house money. So is 100% appreciation good enough?

    They are saying that their primary objective is to be able to pay the bills each an every time when they are due and to have some left over for enjoyment for the remainder of their life.

    They don't want to be staring at their stocks all day long waiting for the 'moment'.

    Also they do not want the stress of seeing their stock value cut in half and not being able to pay the bills.

    The perspective on life changes when retired and there is no longer a steady paycheck.

    Aug 15 05:34 PM | 1 Like Like |Link to Comment