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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Len who wrote (15533)	1/18/2000 11:46:00 AM
From: LindyBill	Read Replies (1) \| Respond to of 54805

Now, if we could figure out how to live long enough to enjoy it all I worked for a guy in the 70's who spent part of every Sat morning going over his retirement account. His Father had lived to 95 and he took care of him. He was a real scrooge with his family and himself. He had a car accident that killed him the first month of his retirement. That was a seminal event for my thinking on retirement. When I read the book, "The Millionaire next door", I was struck by how stingy the people were. I am here to tell you that you don't have to pinch pennies to make a buck. I decided that the most important thing was to enjoy it along the way. I constantly tell my friends in their 20's that I dance with, that my only regret in life was not taking bigger bites of the apple along the way. I only learned to do this in the last 10 years. Now, when I decide to do something, I push it to the edge of the envelope!

To: Len who wrote (15533)	1/18/2000 1:32:00 PM
From: William	Respond to of 54805

Len - Now, if we could figuren out how to live long enough to enjoy it all.... Have you not been paying attention? Bill keeps telling us. Stay *ACTIVE* . Dance the night away or whatever, but get active. William

To: Len who wrote (15533)	1/19/2000 4:38:00 AM
From: John Stichnoth	Read Replies (1) \| Respond to of 54805

Len, Inflation is a great threat to all of us. In a quite moderate 4% inflation environment, $40,000 in living costs today would become $41,600 next year. With compounding that number will become $60,000 in 10 years. With further compounding it becomes $130,000 (!) in 30 years. It is not unreasonable that anyone retiring at 50 today should expect to live to 80. That modest $40,000 in living costs is after taxes. To have that, it will cost you $60,000--presuming all of your IRA withdrawals or stock sales are taxable. Or, maybe $185,000 per year in 30 years. Finally, consider what will happen if we have a (modest by historical standards) 5-year downturn in the market. Suddenly your $2,000,000 could have a book value of $1,000,000--from which you'd have to take your living expenses (at exactly the time you'd want to be adding to the market!). And that might occur precisely when inflation pops up to 12% p.a. for five years. Now, before retirement, is the best time to prepare for a downturn. You certainly don't want to spend your last few years of life worrying if you're going to run out of money before you die. Remember, Gorilla Gaming is based on theory. It has worked for us for one year, but that doesn't mean we won't see some "nasty" prices at some point. Best, John EDIT--Just realized this is a response to a 2-day old message. Damn SI subjectmarks for some reason keeps taking me back to messages I've already read. Apologies to any who feel we've beaten the retirement subject to death. I just believe so strongly that we should err on the side of extreme caution in our planning.--js