When the CEO of the company says dont buy the stock on margin!
Short it?
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DASH is an abomination. I never use the service, but my company gave me a $50 gift card so I’ve done 2 pickup orders.
The first time I had to wait 50 mins after arriving 15 mins after it was “ready.” The second time Chipotle didn’t give me 1/2 of the ingredients in my bowl, and they were kind enough to refund me $2.82 based on reasons.
The doordash subreddit is a trip. It’s filled with absolute hatred from both customers and drivers. Sorry, dashers.
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New edition of Security Analysis is out:
https://www.amazon.com/Security-Analysis-Seventh-Principles-Techniques/dp/1264932405
This one’s edited by Seth Klarman, famously the manager of Baupost Group and the author of Margin of Safety–the hard-to-find “holy grail” of investment books.
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What on earth?
Toby Bloom, 63, tried investing 60% of his retirement savings in stocks and 40% in bonds. But five years ago, the Albuquerque, N.M., resident realized his returns weren’t high enough to achieve his goal of retiring by 2026 with at least $40,000.
If your goal is to retire on 40k, your stock/bond allocation isn’t terribly important.
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Well you see, taking into account what we know from the 4% rule he can safely withdraw $1600 a year.
He could fully fund UP in perpetuity!
Edit: the butler’s Christmas gift from Trading Places would have been perfect here, but I’m on my phone at a swim meet and can’t get the gif.
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Not $40k/year?
He has an Amazonian tribal village all picked out
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That was my immediate thought, but I don’t think so. I should have posted the next paragraph:
So he moved 80% of his money into dividend-paying and other stocks in his IRA, which now holds $21,000.
20% doesn’t seem that bad. A lot of 85 year olds with enough assets to be investing would have significant social security income and probably pensions. Today’s 85 year olds retired in 2003 - many corporate pensions were closed by then, but many of them would have accumulated a lot of guaranteed income for life in private or public sector pension plans. And on top of that a bunch of them are sitting on huge home equity.
An ex-coworker of mine is in his mid 60s and lives in Missouri. He lives by himself in house that is paid off and doesn’t have any real debt or car payments. He collects around 1,300ish in SS and states that his monthly expenses are under 2k a month. In a scenario like that, dipping in to 40k at only a couple hundred or so a month on top of SS and other govt assistance can get some people by for a long time. It’s just going to end up being that way for a lot of folks when jobs don’t pay pensions or even offer a rate of savings like they used to.
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This. Boomers have nutty pensions. CA teachers can bank $7k+/month with a consistent COLA.
A lot also sold houses in one of them damn LIBRUL states for a huge profit, and moved to a cheaper area.
$40k at $700/month is < 5 years
Sure, but I think that amount of money can make a pretty big difference for those who rely mostly on SS, food stamps, and any other type of govt housing or support. I mean, we are heading into a world where AI is going eliminate a good portion of the workforce and those people are going to have to be taken care of financially for the rest of their lives to maintain a civilized society.
I think any extra income saved is going to be far more useful in the future in terms of its utility than it would in the past when your avg person doesn’t have the opportunity to save and protect themselves without govt assistance as before.
The theoretically optimal equity glidepath during accumulation and retirement is very complicated and individualized. But 100% stocks is probably optimal for many 85 year olds.
This is decent reading: The Ultimate Guide to Safe Withdrawal Rates – Part 19: Equity Glidepaths in Retirement - Early Retirement Now
Nice link. The general idea that you should increase equity weight as you age was immediately counterintuitive to me, but this was a nice way of providing the intuition:
The idea behind a glidepath is that if we start with a relatively low equity weight and then move up the equity allocation over time we effectively take our withdrawals mostly out of the bond portion of the portfolio during the first few years. If the equity market were to go down during this time, we’d avoid selling our equities at rock bottom prices. That should help with Sequence of Return Risk!
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