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Devaluation of the dollar VS my retirement savings

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Devaluation of the dollar VS my retirement savings

Old 06-12-2019, 08:36 AM
  #41  
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Originally Posted by Marlin308 View Post
I don't have the book, my ex does. And proving you wrong is not worth dealing with her. But you've got me curious, so I'll try to check their math.

Based on my trusty HP12C, it appears they used a return of around 10.5% to get Jack's numbers, or they may have used monthly payments instead of annual. Either way I can't get to their precise number. For Blake they used a return of 12%. Not sure why they'd use different rates of returns for this example unless its a math error. By the way if they'd used 12% for Jack his sum at 68 years old should've been $4,094,121, so the book actually underestimates the power of compound interest.

Your numbers using a 7% return are incorrect.

Here's how it would break down for Jack:
$2,400 pmt, 9 years, 7%: FV = $28,747 (sum at 30 years old)
$28,747 PV, 38 years, 7%: FV = $790,139 (sum at 68 years old)

And for Blake:
$2,400 pmt, 38 years, 7%: FV = $414,146 (sum at 68 years old)
First off, $200 a month at 7% for 9 years ends up being $30,146.62
Second off after 38 years 30146.62 at 7% = $427,666.86

I have no clue how you are doing math, but please don't do it professionally.
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Old 06-12-2019, 09:14 AM
  #42  
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Just curious if you don't save any money for retirement what does that compound to?
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Old 06-12-2019, 09:49 AM
  #43  
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Look into Dollar cost averaging, simple to understand and works.I retired 10 years ago after working for 38 years in Telcom at he age of 57. I do have a pension and a 401k. I planned my retirement to be debt free. That means live below your means now, so when you retire and you income is gone, your pension is the income. I would recommend splitting your savings into a 401k and a Roth IRA. That way you can have a way to minimize you tax obligations on withdrawal.I did a lot of reading and decided to only use the a strategy that I could fully understand and made sense to me. I had lots of pressure to get broker, but decided not because they get paid before you do, whether or not their strategy works.Good Luck!
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Old 06-12-2019, 10:59 AM
  #44  
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Originally Posted by mikefloyd View Post
Just curious if you don't save any money for retirement what does that compound to?
Delicious, warmed in the microwave, cat food...
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Old 06-12-2019, 01:31 PM
  #45  
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And we're $22 Trillion in debt, with $122 trillion in debt in unfunded liabilities, in an economy that spends $1 trillion yearly more than it takes in.

If he's 22 now and expects to retire in 38 years-43 years, how much more debt can we acquire from today before the world stops buying it and our dollar becomes worthless because we can no longer afford the debt payments? Add in a few %age points of inflation, and we're bankrupt. I mean technically, we're bankrupt now, but when we can no longer repay the payments on out debt, our country is essentially over.

No one knows how that will end, but I'd imagine it starts with civil unrest (9 meals to anarchy) and maybe includes some international wars as well when the rest of the world follows us. One thing is for sure..it won't be a very pretty environment to live in. Mexico may be putting up walls to keep Americans out to keep us from living on the beaches down there.

I just hope we can cobble together this mess we've made for about another 20-30 years. Most likely I won't be alive to see it after that, and that's probably not a bad thing.

Originally Posted by Re-Bait View Post
LOL yeah it's just the worlds currency and it's strongest market.And has higher rates on Treasury then 10 TRILLION dollars of sovereigns which have negative yields!
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Old 06-19-2019, 05:04 AM
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Originally Posted by mikefloyd View Post
Just curious if you don't save any money for retirement what does that compound to?
zero........ point......... zero..............
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Old 06-19-2019, 07:26 AM
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Originally Posted by Joe View Post
And we're $22 Trillion in debt, with $122 trillion in debt in unfunded liabilities, in an economy that spends $1 trillion yearly more than it takes in.

If he's 22 now and expects to retire in 38 years-43 years, how much more debt can we acquire from today before the world stops buying it and our dollar becomes worthless because we can no longer afford the debt payments? Add in a few %age points of inflation, and we're bankrupt. I mean technically, we're bankrupt now, but when we can no longer repay the payments on out debt, our country is essentially over.

No one knows how that will end, but I'd imagine it starts with civil unrest (9 meals to anarchy) and maybe includes some international wars as well when the rest of the world follows us. One thing is for sure..it won't be a very pretty environment to live in. Mexico may be putting up walls to keep Americans out to keep us from living on the beaches down there.

I just hope we can cobble together this mess we've made for about another 20-30 years. Most likely I won't be alive to see it after that, and that's probably not a bad thing.
When the rest of the world runs out of crude oil and we have all our reserves we have been sitting on and they need it we will gladly share it in exchange for wiping out our debt.
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Old 06-19-2019, 02:26 PM
  #48  
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I just want to congratulate you for having a head on your shoulders. Dont over think it. Keep putting as much money as you can away. I like index funds. When your 60 you will understand the importance of your decision to invest early. You will be able to live high on the hog if you so choose in your golden years. You will be one of those dudes who spends the winters in the keys fishing everyday
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Old 06-19-2019, 03:59 PM
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Buy some gold...
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Old 06-19-2019, 04:59 PM
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Originally Posted by schoolsout1 View Post
Buy some gold...
colored 3 ring binders to keep your brokerage statements in...
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Old 06-19-2019, 10:24 PM
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Originally Posted by aubv View Post
colored 3 ring binders to keep your brokerage statements in...
you watching the action tonight? The mania will follow...crypto’s? Meh be...gold is forever. It’s coming...
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Old 06-20-2019, 06:19 AM
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Originally Posted by schoolsout1 View Post


you watching the action tonight? The mania will follow...crypto’s? Meh be...gold is forever. It’s coming...
The real time to buy gold(if inclined)isn’t when things look shaky but when things look calm...
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Old 06-20-2019, 12:15 PM
  #53  
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We've been running out of oi for as long as I can remember.

The US will run out of credit long before the rest of the world runs out of oil. And even if we did have all the oil in the world...oil companies sell it, not the US government. Its not a nationalized industry yet.

But if you are talking about the strategic petroleum reserves the government does own--that's about 649.1 million barrels--This equates to about 35 days of oil at 2013 daily U.S. consumption levels of 18.49 million barrels per day or 67 days of oil at 2013 daily U.S. import levels of 9.859 million barrels per day .However, the maximum total withdrawal capability from the SPR is only 4.4 million barrels per day (700,000 m3/d), so it would take over 150 days to use the entire inventory.

Originally Posted by Locke N Load View Post
When the rest of the world runs out of crude oil and we have all our reserves we have been sitting on and they need it we will gladly share it in exchange for wiping out our debt.
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