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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?


To: sea_biscuit who wrote (2068)11/9/1997 10:51:00 PM
From: Investor2  Read Replies (1) | Respond to of 42834
 
RE: "If I remember right, he pegs the qualifying number for "critical mass" at $1.4 million or $1.5 million."

Not true. If all someone wants is $20,000 per year, his critical mass (per Bob) will be in the range of $500,000 per year. This assumes that 50% of the $500,000 is invested in equities (yielding about 2% per year) and 50% in long-term treasuries or the like (yielding about 6% per year).

On the other hand, if someone wants $100,000 per year, his Critical Mass will be in the range of $2.5 million. It all depends on the lifestyle that the individual wants to live out his days with.

Best wishes,

I2



To: sea_biscuit who wrote (2068)11/9/1997 11:25:00 PM
From: mister topes  Read Replies (2) | Respond to of 42834
 
Wrong again Dippy. Brinker has repeatedly refused to place any
cash value on critical mass. He calls it strictly a personal
number that will provide you with the lifetime cash flow to
do as you wish with your time without the need to work if you
choose to do other things with your time. Today he said a
balanced portfolio of one million would generate about
$40,000 in annual investment income as an example. Of course,
some additional annual cash flow could come from adoption of
a total return strategy on the portfolio. This could easily
take the annual cash flow up to the $50,000 level per million
of balanced holdings.



To: sea_biscuit who wrote (2068)11/12/1997 11:59:00 PM
From: The Chairman  Respond to of 42834
 
Dipy,

As I recall there are no exact numbers or assumptions. Where did you hear these figures? In fact, as a Moneytalk regular for many years I remember Bob going out of his way saying it is a personal call based on your spending habits. I haven't ever heard Bob state a figure that is the "magical elixir" for critical mass?

Katie