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Thread: % of bankroll to put in the stock market

  1. #40


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    Quote Originally Posted by BoSox View Post
    "Originally Posted by Bigdaddy
    My conclusion is (contrary to popular opinion) that it is probably best in most cases to take at age 66. You can decide for yourself."


    Three replied with:
    "I helped my uncle with this decision a while back and came to the same conclusion. When I pointed out he could park the money he would defer and earn a return on it he saw the decision wasn't even close. In the very unlikely event that he lived long enough to start accruing a tiny bit extra he would likely not be able to do anything with it anyway."


    Further down Moses wrote:

    "Unless you are telling me you can take it with you. Acquiring assets is one thing. Enjoying them is quite another. i have to admit being far better at the former than the latter. But Im working on it. "


    I put a few bad jokes in the thread, but when all was said and done I decided to take the advice of you three brilliant mathematical minds, and take Social Security at full pay, without the bonus. Thank you all, the subject came up at the perfect time for me.

    I'll be filing this away as a decision I don't have to think much about. Thanks.

  2. #41


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    Quote Originally Posted by drunk View Post
    when i reach age 70 which is quite a ways away i plan to make an investment similar to s.s. i plan to purchase an annuity. annuities have a bad rep due to being overly complex and because the drawbacks to investors are sometimes hidden. but i plan to purchase a very simple annuity which is called "single premium immediate lifetime." it is the one that i believe carries the lowest house edge. according to the linked calculator if i was 70 now a 100K purchase would guarantee me $633 per month for life. i would have to live to be about 83 to recover the full 100K and if i lived to be 93 i would have recovered about 175K. in this one instance i don't mind paying the house something to assume the risk since if i lost the bet by dying early i won't care since i'm dead. my heirs will still have plenty. the $ amount of my purchase is as of now undecided. if for example inflation begins to eat away at the payout's buying power at age 76 i would purchase a 2nd much smaller one. the payout % should me much greater because i have fewer expected years. i think this strategy is better than accepting a reduced payout with an inflation rider. i'll look at this more closely when the time comes. the annuity plus my s.s. should be enough for me to live on. the purchase will be a very small % of my portfolio so with the remainder i can afford to be relatively aggressive since i shouldn't be needing those funds.

    http://money.cnn.com/tools/annuities/
    Though, if you have a spouse, with the pissibilities of relatively close to shoestring budget, you may wish to consider a guarantee of a set number of years, which would add to the house edge - sorta like taking insurance slightly below index.

  3. #42


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    Quote Originally Posted by drunk View Post
    when i reach age 70 which is quite a ways away i plan to make an investment similar to s.s. i plan to purchase an annuity. annuities have a bad rep due to being overly complex and because the drawbacks to investors are sometimes hidden. but i plan to purchase a very simple annuity which is called "single premium immediate lifetime." it is the one that i believe carries the lowest house edge. according to the linked calculator if i was 70 now a 100K purchase would guarantee me $633 per month for life. i would have to live to be about 83 to recover the full 100K and if i lived to be 93 i would have recovered about 175K. in this one instance i don't mind paying the house something to assume the risk since if i lost the bet by dying early i won't care since i'm dead. my heirs will still have plenty.

    Drunk, there is another real risk you did not mention, the future financial stability of the company that you plan to purchase the annuity.

    http://An annuity is as safe as the ...ny backing it.
    Last edited by BoSox; 07-21-2017 at 05:46 PM.

  4. #43


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    Regulations within Canada for companies selling these types of products are such that virtually guarantee that your investment will be paid as agreed to. These companies are financially super solid.

  5. #44


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    Quote Originally Posted by drunk View Post
    when i reach age 70 which is quite a ways away i plan to make an investment similar to s.s. i plan to purchase an annuity. annuities have a bad rep due to being overly complex and because the drawbacks to investors are sometimes hidden. but i plan to purchase a very simple annuity which is called "single premium immediate lifetime." it is the one that i believe carries the lowest house edge. according to the linked calculator if i was 70 now a 100K purchase would guarantee me $633 per month for life. i would have to live to be about 83 to recover the full 100K and if i lived to be 93 i would have recovered about 175K. in this one instance i don't mind paying the house something to assume the risk since if i lost the bet by dying early i won't care since i'm dead. my heirs will still have plenty. the $ amount of my purchase is as of now undecided. if for example inflation begins to eat away at the payout's buying power at age 76 i would purchase a 2nd much smaller one. the payout % should me much greater because i have fewer expected years. i think this strategy is better than accepting a reduced payout with an inflation rider. i'll look at this more closely when the time comes. the annuity plus my s.s. should be enough for me to live on. the purchase will be a very small % of my portfolio so with the remainder i can afford to be relatively aggressive since i shouldn't be needing those funds.

    http://money.cnn.com/tools/annuities/
    Right now is a bad time to buy an immediate annuity because interest rates are so low. Of course, in a few years interest rates may be much higher.

    I looked into buying an immediate annuity when I first retired. I was only looking for something like 5 years certain to cover the time period from my early retirement to when I could start drawing social security. I was going to fund it by cashing in part of my 401(k) something like $60,000. Then the stock market crashed and interest rates went to almost zero in 2008. I decided against it.

    I hope you will have more than $100,000 available because social security plus $633 a month won't cut it to live on. In my case I had a pension plus my 401(k) and savings to live on until social security kicked in and it was tough. I was paying over $20,000 alone for health insurance.
    Last edited by Midwest Player; 07-22-2017 at 09:42 PM.

  6. #45


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    Quote Originally Posted by Meistro123 View Post
    what % of your bankroll do you like to keep in the stock market vs how much cash on hand / high interest savings account / redeemable CDs or w/e do you prefer to keep in case you start losing?
    Right now, it could be 25% or 33%. But after a crash that should soon arrive, stock market will have a nuclear winter lasting at least 15 years, likely 25 or 30 years, then 0%.

  7. #46
    Senior Member MJGolf's Avatar
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    Quote Originally Posted by Fenix View Post
    Had a bad experience with an advisor too.. 2008 was my introduction to the stock market. Had some stuff invested in more volatile things and when it started to crash I told him to move it. He didn't. Told him to move it again. He didn't. Eventually figured out how to move it myself. Got a nasty phone call from him. Apparently he got money off of me having it invested there. Lost a lot more dealing with him than if I never bothered in the first place.

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    Don't let this color you on the market. That was the beginning of one of the worst bloodbath's in history. But if you left your money in good mutual funds or ETF you would have recovered more than from what you initially invested. As Norm said in prior post, investing in the stock market is gambling. At least if you are trying to time the market. It's better to invest and leave it in there for at least 5 years (with money you can afford) than to worry about it on a daily basis like your BJ bankroll. I would NOT have any of my playing bankroll in the market for investment purposes. I think the suggestions of money markets or quick access bonds would make a lot more sense IF it was something you didn't need your hands on "immediately". To me you are mixing apples and oranges to liken your BJ bankroll to investment money. They should NOT be the same type of "cash".
    "Women and cats will do as they please, and Men and dogs should just relax and get used to the idea" --- Robert A. Heinlein

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