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apogee
climber
Technically expert, safe belayer, can lead if easy
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Nov 23, 2015 - 07:04pm PT
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Nice to have you back, Ragetta!
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Reilly
Mountain climber
The Other Monrovia- CA
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Nov 23, 2015 - 07:54pm PT
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5%? BwaHaHaHa! More like 2-3%, and that ain't 'middle class'.
Moosie, how do you say 'noblesse oblige' in Polish?
Let them eat pirogi!
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Reilly
Mountain climber
The Other Monrovia- CA
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Nov 23, 2015 - 08:11pm PT
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Not only is he apparently Polish, he is!
And apparently you don't know too many Scots. ;-)
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Dapper Dan
Trad climber
Redwood City
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Topic Author's Reply - Nov 23, 2015 - 08:14pm PT
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CA school teacher so no Social Security for us, not that SS ever figured heavily into our plans anyway...
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Jan
Mountain climber
Colorado, Nepal & Okinawa
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Nov 24, 2015 - 12:08am PT
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I'd like to point out that with TIAA-CREF, the teacher's fund that Dapper Dan may or may not have access to, one of the biggest benefits is that you can buy and sell stock without paying a fee. They used to be unlimited in number of trades but now you can only buy and sell the same stock three times in one month. This allows you to gamble a bit in good times and escape with the click of a mouse when you get nervous.
Knowing this, my strategy based on almost a century of stock history, was to buy every Nov. 1 and sell every March 1 as historically that has been more profitable than buy and hold. A lot of this has to do with the federal budget and tax cycle. Fortunately, using this strategy I had sold all my stocks a few days before the big crash of 2001 and preserved my gains.
One of the biggest factors in stocks is the price of oil which is very low right now. When it starts to rise, time to think more conservatively. That was also going on in the spring of 2001.
TIAA-CREF also has excellent information available on investing and retirement, all for free. I read everything they ever published and it was extremely useful. I highly recommend them if they are available. They have many choices of funds including 401, IRA and Roth IRA.
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Bargainhunter
climber
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Nov 24, 2015 - 12:35am PT
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Ragetta you need to understand that 33% is a _marginal tax rate_, which applies to only income above the cutoff for next lowest marginal tax rate. We have an incrementally increasing tax scale, thus the marginal rate only applies to a fraction of the total income, not the entire income; it's isn't the same as the effective tax rate.
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the Fet
climber
Tu-Tok-A-Nu-La
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Nov 24, 2015 - 11:38am PT
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I've asked a number of financial advisers how much should I invest in real estate vs. equities and none of them gave me a straight answer. They seem to know equities investing well, but have no clue about real estate or the appropriate mix between the two. Then the people who know a lot about real estate generally focus on that and don't know much about equities.
So I have just bought a few properties and invest regularly in equities.
I will say that I've made a lot more in real estate than equities for much less initial investment.
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Dapper Dan
Trad climber
Redwood City
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Topic Author's Reply - Nov 24, 2015 - 11:50am PT
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I called TIAA-CREF and they no longer manage CalStrs, so bummer there. They said a company called VOYA manages them now...
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JLP
Social climber
The internet
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Nov 24, 2015 - 02:19pm PT
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5%? BwaHaHaHa! More like 2-3%, and that ain't 'middle class'. Roth phases out above 116k, gone at 131k for 2015. Hardly the top 2-3%. More like middle career, middle class. With a paltry $5.5k contribution limit, the numbers posted above are a fantasy.
Let's assume on ROI of 7% over 32 years Good luck with that.
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blahblah
Gym climber
Boulder
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Nov 24, 2015 - 02:20pm PT
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Maybe the CA pension management is doing exactly what SS is doing namely paying the beneficiaries from the contributions of the younger contributors without any thought to investment i.e. ponzi scheme.
Of course, but it's important to remember the teachers (and government employees generally and their agents) are the ones conducting the scheme, and the taxpayers are the victims. As in normal ponzi schemes, it's hard to have too much sympathy for the victims--they get what the deserve for abdicating all responsibility. Or I suppose another way to look at it is something like Romney's famous 47% line--when about half of the electorate is on the government dole, why should things like government run ponzi schemes benefiting that half be a surprise?
Interesting to see the careful advice on how two government employees can shelter their taxpayer generated profits in a way so that they pay minimal income tax on their profits, all of which came from taxpayers.
This is probably from the same people who decry "corporate welfare" and get all hot and bothered when corporations, often in a desperate attempt to avoid collapse, structure their business activities so as to reduce their tax burden.
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donini
Trad climber
Ouray, Colorado
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Nov 24, 2015 - 03:25pm PT
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There are just two economists who truly understand how the American economic system works......and they disagree.
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Dapper Dan
Trad climber
Redwood City
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Topic Author's Reply - Nov 24, 2015 - 04:03pm PT
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Yo T Hocking what do you teach ??
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Dapper Dan
Trad climber
Redwood City
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Topic Author's Reply - Nov 24, 2015 - 04:56pm PT
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Yo Tad , I'm 3rd grade and my wife is kinder :)
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Reilly
Mountain climber
The Other Monrovia- CA
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Nov 24, 2015 - 05:24pm PT
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And why we are thinking southern Oregon coast.
Dood, southern Washington coast = no state income tax.
Cross the bridge to Astoria and shop sans state sales tax*.
yer welcome
*plus you won't have to pump yer own gas!
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donini
Trad climber
Ouray, Colorado
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Nov 24, 2015 - 05:29pm PT
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The fact that Oregon doesn't have state sales tax is just plain dumb. They need to get money from somewhere......check out their real estat taxes. A sales tax would get revenue from out of state visitors and Oregon is blessed with high tourism. High real estate taxes our a burden shouldered only by residents.
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Anastasia
climber
Home
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Nov 25, 2015 - 11:42pm PT
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As a wise man, a very rich man said... Never put your money in one place. Mix it up. Do it all... Take a few high risk stock at an amount you can lose. Some low risk stocks because you just might get lucky, etc. I know someone who did that with Apple in 1989... Yes, she is very set right now. Put some in bonds, 401k, CD ladders, property, etc. Real Estate is heading into another bubble. If it's time to buy anything, it is condos because no one is going for them. I think that is temporary since in California... We tend to have more people than homes. They have to live somewhere. Oh and if your stocks are always earning, the line doesn't zig zag... Someone is stealing. Nothing goes up in a straight line EVER.
That's my two cents.
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Bruce Morris
Social climber
Belmont, California
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Nov 26, 2015 - 12:23am PT
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Never invest in anything that breathes or eats.
You'll never get back your principle.
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Reilly
Mountain climber
The Other Monrovia- CA
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Nov 26, 2015 - 10:25am PT
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Tad, I hear ya on Brookings and Bandon, two sweet towns, if a little remote.
Some surprisingly good restaurants, too!
The Big Boulder at Bandon...(30')
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Mad Max
Trad climber
Bakersfield
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Dec 23, 2015 - 09:37am PT
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Okay I'm resurrecting this thread because I enjoy reading about investment strategies, and would like some opinions on my own:
I'm 22 in January, and I'm currently contributing as much as I (safely) can into a Roth IRA, post-tax. Very aggressive portfolio as well, as I have a 40-year horizon.
As I go along down the road, and get to being able to max out my contributions, 50% of the leftovers will go into another highly aggressive set of funds through a discount broker or something, the other 50% of the leftovers will go into possibly money market funds for shorter term goals like maintaining property and vehicles or major purchases, etc.
That's my strategy for now, along with just spending less and saving more in general. I'll keep adjusting it as I learn new things and realize new ways to prepare myself for the future.
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