Financial decisions... and regerts.

[biosurfer1]

I wish I would have found dividend growth investing sooner.
It's certainly not a perfect investing strategy but the consistent, reliable income will make retirement so much easier to prepare for.

It takes a while for the snowball to really get going but once it does, all you can think is "if I just started doing this a year earlier, imagine where I'd be!" But that's mostly for all kinds of investing

[Superman]

I am asking some financial people some questions and getting compliments on my understanding of math and finance. I have always understood stuff, but I have not always cared about it. Had I taken a more active role years ago, I'd be WAY better off.

I did get lucky, though. Worked for a company which was employee-owned/privately-owned with an Employee Stock Option Plan. I thought nothing of that. I just liked the work and the salary. Worked there seven years, just long enough to be fully vested. I watched the annually-estimated stock value rise modestly. I looked into that ever 1-2 years. Meh. Then one day I looked at it and thought somebody had made a huge math error so I called them. Nope. The company had gone public. IPO. That stock is now traded on NYSE. I got very lucky.

Also, hindsight makes everyone think they made a big mistake. But back then, hindsight was unavailable. Today, investors might be nervous about equity or real estate investments, not knowing what will happen. In thirty years, they might imagine they made huge mistakes. I disagree. You did the best you could with what you had. Stop with the "woulda-coulda-shoulda" flagellation.

[daepp]

Originally Posted by Seahawk

The basics of financial health haven't changed since the Silk Road.

The percentages of where your money should go in the average, successful life, unless there is a financial windfall, are so well know I am always surprised when families are surprised at their un-tethered financial decisions and the impacts. I could cut and paste a thousand web sites that outline age related investments, risk, etc. Not knowing how to be financially solvent (assuming a normal economy) is irresponsible.

Debt, unless the risk is understood and the consequences acceptable, crushes most retirement dreams; as does daily spending that prevents investment, spending on non-essentials.

Financial acumen is not taught in this country, nor are the basics of a household budget...all the stuff I learned early.

My Daughter's FJ Cruiser, a 2007 we bought for her in 2008 off lease when she was in HS, finally began to have issues last week. She called and we discussed all her options. She loved the FJ but at 230k miles we did the math, worked the numbers and she decided to sell it with full disclosure and get a used 2019 4Runner. We also ran the life-style numbers.

She has a business degree and background.

The financial guy at the Toyota dealership told her it is very rare that he deals with people her age that are as solvent as she is, have the ability to pivot and get a car like she did. A little tear formed when she relayed the info.

I am not cheap or penurious: you can budget sloth and indiscretion but it takes discipline.

Trust me.

^Good parenting right there. And good parenting is a significant component of a good education. In this case, make sure your children only get some of what they want and everything that they need. At times this includes that which their schools miss.

Oh, and every student should get a business (accounting!) degree, and then focus on their passions.

[daepp]

For me, I too left a bank. It was a mid-sized (regional) and I was on the team that started it. I owned a very small interest, but when we sold in 2004 at 2.75 X BV it was enough to pay off my house and start another business. I've been self employed ever since, and aside from a R/O IRA from my 401K all my retirement is after-tax savings.

As for regerts, my wife and I had this discussion just a few nights ago. When we were looking for jobs near the end of 4 years of accounting (BS BA), we never once thought about going to work for a city, state or the federal government. We (arrogantly?) believed those were dead-end, soul crushing jobs. In our case, our path was very risky, but it paid off well. However, in California anyways, now we think we were the chumps. When we hear that our City Manager is making $450K plus benefits and pension or City Treasurer $375K ++, and that they will make nearly that much in retirement - and they are in their fifties - well, who's the chump now?

(Not sure if that's a regert or just envy...)

[KFC911]

^^^^ I dunno ... what Seahawk is talking about comes naturally and is part of who I am also. I'd like to give all the credit to my parents .... but I have a sister too .

Some get "it" ... but most don't

[Seahawk]

Originally Posted by daepp

Oh, and every student should get a business (accounting!) degree, and then focus on their passions.

You must have been there when I told them both the exact same thing.

If I was King, Home Econ would be a four class extravaganza in HS, one per year; in college, get rid of the language requirement (anybody here speak the language they learned in 101/2?) and replace with finance 101/2.

That would be the minimum.

[masraum]

Originally Posted by Robert Coats

+1 for Fidelity; I had a 401k with them for 27 years and now as a regular account since retiring from Honda back in '19.

Honda had a pension plan when I started in '91, and I took the lump sum option. The jury is still out if that was the best choice, or if I should have gone with the lifetime monthly check. I guess the only way to 'win' for sure is to die pretty soon At least the Widow Coats will be able to afford the premium suntan lotion for Juan the Pool Boy to apply.

I have an account with Fidelity, but I wish it was with Vanguard instead. I could move it, but don't want to deal with the hassle, and fidelity isn't bad, so I'm letting it ride.

Fidelity is like a bank. Vanguard is like a credit union.

[biosurfer1]

Originally Posted by daepp

When we hear that our City Manager is making $450K plus benefits and pension or City Treasurer $375K ++, and that they will make nearly that much in retirement - and they are in their fifties - well, who's the chump now?

(Not sure if that's a regert or just envy...)

Wow, how did they pull that off??

From CalPERS website:
"In addition, for the 2020 calendar year, there is a cap on pensionable compensation of $126,291 for members who participate in Social Security and $151,549 for members who don't. Both limits are subject to increases in the Consumer Price Index"

[widgeon13]

Lots of mention of IRA’s here and don’t want to steal the thread but anyone have any idea how a change in step up in basis might effect holdings in an IRA. Will Biden’s tax plan have any impact?

Right now any RMD is taxed as income and there is no impact once you sell any holdings, hope it stays that way.

[Chocaholic]

Dogecoin. My daughter told me to get some in January. I didn’t. A $1k gamble would be worth $110k today.

Just one of many stupid financial decisions on my part.

[KFC911]

Originally Posted by Chocaholic

Dogecoin. My daughter told me to get some in January. I didn’t. A $1k gamble would be worth $110k today.

Just one of many stupid financial decisions on my part.

If it makes ya feel any better ... I actually lost 50Kish betting on Canadian Pot (stocks) .

That was a WAG (wild azz gamble) on my part, but I knew it and was willing to roll the dice...

Anyone want my advice ?

Regarding IRAs .... I foresee zero changes in cost basis (doesn't really apply imo), nor how distributions are taxed. I have taken 72(t) distributions before (avoiding penalties), and that was always part of my strategy near the end of my corporate rodeos .... I had always planned to exit @ 50 .... then 07-08 happened ... didn't make it that far .

I had had enough.... adios muchachos

[daepp]

Originally Posted by Seahawk

You must have been there when I told them both the exact same thing.

If I was King, Home Econ would be a four class extravaganza in HS, one per year; in college, get rid of the language requirement (anybody here speak the language they learned in 101/2?) and replace with finance 101/2.

That would be the minimum.

Interestingly enough, at USNA before commencement all Mids are offered ~ $32,000 no-interest loan to help set them up for their first tour. Before they receive the funds, however, they're required to complete a semester of personal finance. The course includes investing, compounded interest, the cost of debt, spending, etc. My daughter ended up just investing the funds (with NFCU I think) but she told me once that most (in her opinion - the guys) just go out and buy nice cars... Like was said above, you can lead a horse to water...

On another note, my oldest daughter - whie staying out of debt - was a rather prolific spender. When she and her fiance were nearing their wedding date they agreed (I'm guessing he pushed for it) to enroll in a Dave Ramsey personal finance class. It taught much the same info, and they expressed when they got on the same page about their financial future. And a few years later they had their first child and my daughter is able to stay home with him.

So yeah, I really do believe these things should be taught!

[Seahawk]

Originally Posted by daepp

...but she told me once that most (in her opinion - the guys) just go out and buy nice cars...

Not an opinion, fact.

The average flight school, Navy squadron parking lot looks like an episode of Top Gear.

I was an AOCS guy. After I got my commission I stashed at an A-6 squadron in Oceana for 4 months. My old BMW 2002, sans a/c and beginning to have issues, was traded in for a new car. I needed a/c.

I went all in on a Mazda GLC. Kooky, I know. I think I traded the 2002 in and owed maybe 2k, which I had.

Green test implied.

AOCS guys had no guarantees: Bomb flight school and buenos días, rust picker.

I wanted zippy debt...I wasn't worried about the flying part, but a year plus job interview (flight school) has random, unknown, integers. The GLC was the perfect, non-sexy solution, at least to me.

I got to my first squadron in San Diego, sold the GLC and bought a '68 912.

Didn't need a/c

[stevej37]

No regerts at all here.
38 years of pension...ss...ira's....and savings lead up to a big raise on retirement.
My hope of dying penniless is probably 'out the window'.

[Bill Douglas]

Originally Posted by KC911

If it makes ya feel any better ... I actually lost 50Kish betting on Canadian Pot (stocks) .

50K Sorry to hear that.

Even as a teenager I couldn't have worked my way through 50K on pot.

[KFC911]

^^^^ LOL ... it would have certainly taken longer and been more fun the "old fashioned way" Bill.

[daepp]

Originally Posted by Seahawk

Not an opinion, fact.

The average flight school, Navy squadron parking lot looks like an episode of Top Gear.

I was an AOCS guy. After I got my commission I stashed at an A-6 squadron in Oceana for 4 months. My old BMW 2002, sans a/c and beginning to have issues, was traded in for a new car. I needed a/c.

I went all in on a Mazda GLC. Kooky, I know. I think I traded the 2002 in and owed maybe 2k, which I had.

Green test implied.

AOCS guys had no guarantees: Bomb flight school and buenos días, rust picker.

I wanted zippy debt...I wasn't worried about the flying part, but a year plus job interview (flight school) has random, unknown, integers. The GLC was the perfect, non-sexy solution, at least to me.

I got to my first squadron in San Diego, sold the GLC and bought a '68 912.

Didn't need a/c

Haha - yep, SD is ground zero for no A/

And yeah, boys will be boys!

[kevin993]

Good thread. Made me think of this recently published post from Ben Carlson - it is mandatory reading with lessons far beyond those of financial planning:

https://awealthofcommonsense.com/2021/05/10-things-you-shouldnt-care-about-as-an-investor/

[Seahawk]

Originally Posted by kevin993

https://awealthofcommonsense.com/2021/05/10-things-you-shouldnt-care-about-as-an-investor/

I enjoyed that very much.

[wdfifteen]

Originally Posted by Seahawk

I went all in on a Mazda GLC. Kooky, I know.

I had a 1984 GLC that helped me start my business. GREAT CAR! I did a lot of traveling and the IRS allowed you to expense 36 cents per mile back then. I figured I was making about $10 per hour driving to my destinations. The car ran on fumes, I mean wave a gas pump nozzle at it and it was good for another 100 miles. I gave it away at 196,000 miles. It needed a battery and exhaust system and by then I needed a truck.