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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (63178)	4/23/2006 1:45:20 AM
From: Paul Senior	Read Replies (1) \| Respond to of 206334

Dave: Somewhere in this week's Barron's somebody stated that twenty years ago nobody had $1M in their IRA. Now... thousands and thousands do. So somebody's saving and investing. Maybe it'll encourage or help the next generation to plan for the future. Recalling article(s) from Paul Farrell of Marketwatch, my opinion (his too if I remember), is to capitalize those annual incomes to see what you've really got for net worth. So, if social security provides a couple with $15K per year (for couples with a least one of them with decent jobs for the past 25-30 years would that be about right? (rhetorical question)-- I haven't a real good idea what the amount is) that $15K/year should pump up net worth by another $375,000. (Assuming here that an equivalent somebody with $375K withdrew 4% per year = $15K/yr.). And doing that with a couple of pensions also, that "essentially" (my opinion) beefs up net worth. My cousin, a lowly (sorry, cuz) retired lifer Coast Guardsman and lowly recently retired Fed. civil servant - not sure what those pensions are but there's free med/dent. and pensions are indexed (I still presume such) to some sort of inflation index --- this guy with a frugal lifestyle (bonds and mutuals) with his maybe total $30K/year pension puts him in the millionaire class--- well, by my reckoning. True, it's a stream of earnings mostly so that he can't go out so easily and buy a new Lexus for cash. (He only pays cash for used cars anyway.) But then again there's something about age and buying things. People his age don't necessarily crave these material things like now the big boat, now the big house, now the fancy newest car, or etc.--- especially if they've been frugal in most aspects of their life for their whole life. I could be wrong. I can't see my "wealthy" (-g-) cousin changing though. All jmo.