Monday, May 06, 2019

How Much Times Final Salary is Needed to Retire

16.4 times, assuming no pension, and having Social Security account for 5.3 of the amount.   So only 11.1 times is needed.  Still that is a pretty daunting number, especially if one wasn't planning for it. 

Personally, I've always targeted for 20 times, not including Social Security.  I think that gives us a comfortable buffer.

For more on Strategies and Plans Ideas, check back Mondays for a new segment.

This is not financial, saving or retirement advice advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

How Governent Can Reduce the Cost of College

Let all future student loans be forgivable in bankruptcy. 

Banks would be more judicious in lending money.   Less money would be lent.  Fewer people would go to college.   Supply would exceed demand.   Colleges would need to reduce tuition.   More students could attend at lower costs.

Simple economics.

For more on  Strategy and Plans, check back Mondays for a new segment.

This is not financial, economic, or higher eduction advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Saturday, May 04, 2019

Doing the Unthinkable

"I made a fortune getting out too soon." ~ J.P. Morgan

Despite the market hitting all time highs again this week, I'm looking to exit the market.   Well, not completely, but definitely with my peripheral holdings that are profitable, and a significant part of our core holdings.

I've already gone to 100% Cash/CDs in my daughter's 529 account.   Since then I've been scaling out of our investments in smaller chunks.   I sold parts of the peripheral holdings in my personal investment strategies.   I've been taking profits in stocks that were purchased in November/December 2018.   I've been selling part of some core holdings (specifically REITs) that are up significantly.

Yesterday, I gave instructions on selling a big piece, closing out one of the investment managers at a brokerage.  The manager has done acceptably well, but again, I prefer to lock in the gains that have occurred to date.   The close out will happen later next week, so I won't mind the market continuing to advance through next week.

Everything is on the table for selling, except my company stock, which I am holding to do an NUA.  By the end of May, I plan to exit another investment manager account.

Why all the sudden selling?

  • First, on yield curve inverted in late 2018, and another yield curve inverted in March 2019.  Typically, a recession has occurred 7-24 months after a yield curve inversion.
  • The rebound from the December 24, 2018 lowest has been parabolic.  Our gains in the first four months of 2019 would be a good return for most entire years.   It can't continue at this rate, and if it does, a market crash is very likely.
So I am selling early, know full well that I may miss out on some gains.   But that's a risk I'm willing to take to sleep better at night.


For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC