(12-16-2018, 09:20 PM)fenders53 Wrote: This was a good thread.  This is a very good forum.  I really like that everyone is open minded enough to discuss opposing views.  No one is here trying to "win the internet"  

Randomly from Kerims post..........

-I've had time to think about my last post and it wouldn't be so terrible if I can't live strictly off dividends.  It also wouldn't be so terrible if I don't achieve $100K annual income in retirement either (including some pensions so don't start thinking my DGI port is $3M lol).  It wouldn't hurt me to work part-time a few extra years either.  This is nothing to obsess about until retirement time.

-We'll have to talk about this Chowder rule sometime.  I'll have to plead ignorance of it.

-I've never owned an extravagant auto, though I have owned some new cars and trucks.  I told myself if I bought many I'd be working years longer.  I wouldn't be any happier in a $50K+ car.  No judgement of anyone that would be though.  

-When it gets true retirement time, I think I'll own about 12 of the very highest quality stocks.  Add a few high div sector ETFs I really believe in like healthcare or real estate..  I am fooling myself if I believe I can truly understand the business of every single sector, and how the macros like inverted yield curves truly affect them.  Doesn't mean I haven't invested in stocks I didn't understand well enough, I surely have, but when they got hurt I sometimes didn't see it coming because I wasn't informed enough.  I keep getting bit by oil, even though I think I know what drives those stocks.  You could interpret what I said as supportive of Otter's "too damn many stocks plan, but I can live with that".  His idea isn't completely crazy lol.    I doubt anyone has ever went broke attempting to own 100 good DGI stocks.

(12-16-2018, 01:39 PM)Kerim Wrote: Great thread – thanks all! And sorry I’m late to the party.
 
A lot of great points to consider and respond to. In no particular order:
 

• As to living exclusively off the dividends versus selling off a portion of the assets, all I can say is that I hope this is a decision I’ll have to wrestle with one day. I save and invest aggressively, but my monthly expenses are really high (largely due to daughter’s medical condition). So even rosy projections don’t show me being able to live exclusively off dividends, unless circumstances change dramatically. I did a thread on this a long time ago, complete with tables, arguing that a willingness to sell assets allows you to aim at a lower total savings target, and that can free up time and resources for other important things in your life. There is a danger to over-saving!
  
• Incidentally, I’m with fenders about driving the older cars. If you saw my apartment, you’d probably think I’m living paycheck to paycheck. I love the stealth approach to affluence!
  
• Here are my thoughts on equal weightings, with more illustrations! In short, I’ll worry about that much closer to retirement. For now, I’ll buy the best opportunities as they present themselves.
  
• I don’t have a strong opinion as to the appropriate number of stocks in a portfolio. I think we all agree that past some point, the diversification value decreases. But there isn’t much harm there, except for each individual’s ability to manage and track the portfolio. To each their own. For me, I’ve held as many as 30, but I’m in a long, slow process of winnowing that down. As I’ve gained experience, I’m focusing more and more on only the highest-quality companies I can find…
  
• …and waiting for the market to present good entry opportunities into them. I completely agree that your fate in holding a stock is largely baked into the moment of purchase. 
  
• (And with great trepidation, I’ll mention that I have some qualms with the “Chowder Rule.”)
  

 
Thanks again everyone!

(12-17-2018, 10:46 AM)fenders53 Wrote: In the end we should pay ourselves first, and then enjoy or lives with some disposable income.  My wife thinks expensive makeup and Starbucks coffee is a good investment    I've spend some serious money on fly rods and tools in the woodworking shop.  Ten years later I am still enjoying those purchases so I find justification easy.  I am almost always frugal when it comes to purchases that will be consumed in a month, or an hour.  That's a waste of investing funds in my mind.

As Kerim suggested whether he intended to or not....  finding some balance and enjoying this life is probably best.   Few are going to remember how many assets I accumulated when I'm gone from this world.

(12-17-2018, 10:57 AM)Otter Wrote:

(12-17-2018, 10:46 AM)fenders53 Wrote: In the end we should pay ourselves first, and then enjoy or lives with some disposable income.  My wife thinks expensive makeup and Starbucks coffee is a good investment    I've spend some serious money on fly rods and tools in the woodworking shop.  Ten years later I am still enjoying those purchases so I find justification easy.  I am almost always frugal when it comes to purchases that will be consumed in a month, or an hour.  That's a waste of investing funds in my mind.

As Kerim suggested whether he intended to or not....  finding some balance and enjoying this life is probably best.   Few are going to remember how many assets I accumulated when I'm gone from this world.

Travel is the "enjoy this life" spending bucket for me and my wife. Headed to Japan and Vietnam for 10 days next week, and really looking forward to it. Fourth trip to Japan, and first to Vietnam. We have been fortunate enough to visit 83 countries on six continents so far, and have enjoyed our travels immensely.

(12-17-2018, 11:49 AM)fenders53 Wrote:

(12-17-2018, 10:57 AM)Otter Wrote:

(12-17-2018, 10:46 AM)fenders53 Wrote: In the end we should pay ourselves first, and then enjoy or lives with some disposable income.  My wife thinks expensive makeup and Starbucks coffee is a good investment    I've spend some serious money on fly rods and tools in the woodworking shop.  Ten years later I am still enjoying those purchases so I find justification easy.  I am almost always frugal when it comes to purchases that will be consumed in a month, or an hour.  That's a waste of investing funds in my mind.

As Kerim suggested whether he intended to or not....  finding some balance and enjoying this life is probably best.   Few are going to remember how many assets I accumulated when I'm gone from this world.

Travel is the "enjoy this life" spending bucket for me and my wife. Headed to Japan and Vietnam for 10 days next week, and really looking forward to it. Fourth trip to Japan, and first to Vietnam. We have been fortunate enough to visit 83 countries on six continents so far, and have enjoyed our travels immensely.

That's awesome!  I'm happy for you.  Most of my travels outside the US were sponsored by the US Army.  Other than that only a trip to Mexico, and some time in Seoul where we picked up my daughter at an orphanage.  I've been married 32 years and lately it's been separate vacations.  She loves Vegas and has a high school friend there.  I would just be a drag on her fun meter as I don't like gambling.  I have a close friend that is a flyfishing guide from Alaska, so I spend some time there.  I used to be a client and now he just invites me up for a few weeks, and when we aren't chasing salmon or trout I spend some time working on his cabin in the bush, waaaay off the grid.

(12-18-2018, 07:40 AM)NilesMike Wrote: ]