Rule of thumb for pulling money out of the stock market?

Discussion in 'Bad Dog Cafe' started by klasher, Jan 15, 2019.

  1. uriah1

    uriah1 Telefied Ad Free Member

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    Have safe stocks.

    Msg brought to you by trojan equities.
     
    Last edited: Jan 17, 2019
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  2. dkmw

    dkmw Friend of Leo's

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    Well, it may be imperfect but it has worked over our lifetimes.

    Here's an example: If someone had invested $10 per week in an S&P index fund, starting in December of 1978, with reinvested dividends, they would have had ~$205,000 at the end of 2018. And that's with the big drop in December.

    $205K isn't a whole lot of money these days, but it ain't chicken feed and it was only a measly $10/week (total investment $20,800)

    Fun calculator: https://dqydj.com/sp-500-dividend-reinvestment-and-periodic-investment-calculator/
     
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  3. Guitarzan

    Guitarzan Poster Extraordinaire

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    I have not posted in this thread yet because there really is no suitable standard such as a rule of thumb. You need to hire a financial planner, perhaps one with a CPA and law degree that understands tax planning and the tax profile you will have before and after retirement, to formulate a tailored strategy for you.

    Building principal is important while you work and there is no expectation of income from it then, your sources of income come from your labor rather than your savings and retirement. When you retire, you need multiple income streams (in addition to SS, a pension, whatever) so you can make a budget and live by it. Because you need that income, you have to be concerned about taxation on it and the order in which you will convert and exhaust assets to minimize your tax burden.

    For example, you may want to convert part (maybe half?) of your holdings from a financial investment to a real investment like rental real estate (or sold on a lease-purchase arrangement) held in a self-directed IRA so that you generate more income streams well before retirement so that when you retire you have money coming in without having to count on the liquidation of financial assets (and avoiding having to sell when the markets are volatile and down).

    Dyches Boddiford is a guy that has written and spoken a lot about real estate in self directed IRA's.

    http://atlantareia.com/biographies/dyches-boddiford/


    I have not read Wealth Without Wall Street and do not know what the authors are pitching.

    http://www.wealthwithoutwallstreet.com/#www-pillars


    I'm an attorney and represent a lot of small to medium businesses and affluent individuals. I see wealthy families doing a number of things with money as alternatives to putting it in stocks, in low return bonds, or in risky junk bonds. People on the street underestimate how important privately controlled individual and family money is to capital formation and local, smaller denomination lending in our economy. They own income producing real estate, they may invest in hedge funds that do private lending or run their own private lending concern, they may invest in funds that buy tax liens on real property, they may buy trucks and trailers and lease them to companies and small operators, and they often own cash generating entities like car washes and laundromats.

    Hard assets are generally a better hedge against inflation than financial assets.
     
  4. CJM3309

    CJM3309 Tele-Meister

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    Corner the frozen concentrated orange juice market!!! It's just that easy

    trading-places-10.jpg
     
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  5. Djentleman Dan

    Djentleman Dan Tele-Holic

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    Uhhhh....thanks for the tip?

    [​IMG]
     
  6. Djentleman Dan

    Djentleman Dan Tele-Holic

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    It is if Beeks gets you the Secretary of Agriculture's crop report early!
     
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  7. bcorig

    bcorig Tele-Afflicted Silver Supporter

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    MERRY NEW YEAR!!!
     
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  8. klasher

    klasher Tele-Holic

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    Unfortunately, I had very little available cash at the time. And I was really bummed when the market started roaring back and I didn't have much to put in when it was low.
     
  9. bftfender

    bftfender Friend of Leo's

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    i get that, as i figure my plan out, i foresee other business ventures as investment income but just not going to do the work. Its crazy if you have cash-liquid what you can do ..just flipping stuff, for fun always have restored things and then sold em..but i have a workshop and can sandblast and weld and paint ..my dad and i have done well just messing around. have made decent money promoting shows too and the band always clears over 2k at merch table just screwing around and my studio guy hires me for leads or to finish bands songs and lyrics sometimes..so retirement probably will just be my company is sold but all kind of other crazy stuff is going to go on
     
  10. ce24

    ce24 Poster Extraordinaire

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    That's a tough one. I had a paycheck pull every month so I didn't see it, or id have more amps and not be retired
     
  11. Djentleman Dan

    Djentleman Dan Tele-Holic

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    BEEF JERKY TIME!
     
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