Where are you in your investing life cycle?
Re: Where are you in your investing life cycle?
Middle accumulation as well.
Mid 30s. Paid off mortgage (house was until recently biggest asset, now slightly less than half). Really kicked up my time devoted to learning in the past 18 months or so as I moved away from all e-series with haphazard asset allocation to etfs as financial assets started accumulating more significantly.
Mid 30s. Paid off mortgage (house was until recently biggest asset, now slightly less than half). Really kicked up my time devoted to learning in the past 18 months or so as I moved away from all e-series with haphazard asset allocation to etfs as financial assets started accumulating more significantly.
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Always in accumulation mode
According to RRIFmetic, my networth (net after-tax estate in today's dollars) keeps increasing for as long as I live. In theory I am always in accumulation mode. When I graphed it in Excel, the slope is greater in my working years than in retirement.
I think most of that is because my spending is modest. I hate traveling, don't enjoy golfing, there is really not much I can spend money on. To keep things simple, I assumed that expenses in retirement will be identical to when working.
However there is one big curve that someone can throw at the plan. I am single. I would like to re-run RRIFmetic for a couple, assuming that my spouse has no income of any type. What multipler should I use (I assume that expenses doesn't double for a couple).
I think most of that is because my spending is modest. I hate traveling, don't enjoy golfing, there is really not much I can spend money on. To keep things simple, I assumed that expenses in retirement will be identical to when working.
However there is one big curve that someone can throw at the plan. I am single. I would like to re-run RRIFmetic for a couple, assuming that my spouse has no income of any type. What multipler should I use (I assume that expenses doesn't double for a couple).
Re: Where are you in your investing life cycle?
There are huge variables that would be different for everyone. On the plus side, there would be income splitting when withdrawing pensions saving tax dollars. In the case of living expenses, those could easily double for 2 people if having a spouse causes you to travel, play golf, boating, etc. Food costs will depend on how much you and your new spouse entertain a lot. In short, the only likely things that may only be 100-150% of what you incur now would be property taxes/insurance, and utility bills.
As an example, since my SO and I have just combined our households, we really do not expect much, if any, savings from making the combination. What we save in some things, we will spend more in other ways.
As an example, since my SO and I have just combined our households, we really do not expect much, if any, savings from making the combination. What we save in some things, we will spend more in other ways.
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Re: Where are you in your investing life cycle?
We save on accommodations when travelling or living. Not much else. I suppose I am happier sitting at home than heading to the pub for company. So there is some savings there hypothetically.
For the fun of it...Keith
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Re: Where are you in your investing life cycle?
By your definition, withdrawal phase = "living off of their investments", but it doesn't mean one has to spend all the income from the investments. So one can be in the withdrawal phase while his/her/theirs wealth is still increasing at the same time.
So I would think people who are really "retired" (stopped working for salary income) are all, by definition, in withdrawal phase, regardless your money still grows or not, right?
We are definitely in withdrawal phase, retired and living off investments (not on pensions). Our investments still grow some, but the rate is much slower comparing to working time.
So I would think people who are really "retired" (stopped working for salary income) are all, by definition, in withdrawal phase, regardless your money still grows or not, right?
We are definitely in withdrawal phase, retired and living off investments (not on pensions). Our investments still grow some, but the rate is much slower comparing to working time.
“Life is 10% what happens to you and 90% how you react.” — Charles R. Swindoll
Re: Where are you in your investing life cycle?
I agree with that.freedom_2008 wrote: So I would think people who are really "retired" (stopped working for salary income) are all, by definition, in withdrawal phase, regardless your money still grows or not, right?
Re: Where are you in your investing life cycle?
I agree 100%. IMHO, around 5 of the votes (perhaps moe) in the late accumulation phase should really be in the withdrawal phase. This means that close to half of the respondents are (by my definition) are in withdrawal phase. The overwhelming majority of these are probably what most people would consider to be "retired". Exceptions are certainly possible.freedom_2008 wrote:By your definition, withdrawal phase = "living off of their investments", but it doesn't mean one has to spend all the income from the investments. So one can be in the withdrawal phase while his/her/theirs wealth is still increasing at the same time.
So I would think people who are really "retired" (stopped working for salary income) are all, by definition, in withdrawal phase, regardless your money still grows or not, right?
"The term is over: the holidays have begun. The dream is ended: this is the morning."-C.S.Lewis, The Last Battle
Re: Where are you in your investing life cycle?
I think it is a matter of degree. If you investment portfolio is primarily growing, then you are accumulating even if you are retired.
For the fun of it...Keith
Re: Where are you in your investing life cycle?
Early accumulation, not accumulating at the moment though.
Paying off student loans before starting any real accumulation.
Wife has a fair chunk accumulated, because she was smarter than me and didn't take on any student loan debt
Paying off student loans before starting any real accumulation.
Wife has a fair chunk accumulated, because she was smarter than me and didn't take on any student loan debt
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Re: Where are you in your investing life cycle?
As always, the definition is important. I have always presumed that the accumulation phase meant you were adding to the portfolio. In other words, passive investment gains do not equate to accumulation in my mind. Therefore I voted withdrawal.kcowan wrote:I think it is a matter of degree. If you investment portfolio is primarily growing, then you are accumulating even if you are retired.
Re: Where are you in your investing life cycle?
I agree with the addition of 'adding to the portfolio from external sources'. What a difference May 2013 versus March 2009 makes.Come on Eileen wrote: As always, the definition is important. I have always presumed that the accumulation phase meant you were adding to the portfolio. In other words, passive investment gains do not equate to accumulation in my mind. Therefore I voted withdrawal.
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Re: Where are you in your investing life cycle?
So if someone in retirement spends less than his pension income, he then fits the definition, and is therefore in the accumulation phase?AltaRed wrote:I agree with the addition of 'adding to the portfolio from external sources'. What a difference May 2013 versus March 2009 makes.
Re: Where are you in your investing life cycle?
I reckon so. I think the real point is whether one is physically adding funds to their investment portfolio or not, however it is done. That is the definition of accumulation to me.
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Re: Where are you in your investing life cycle?
Personally, I'd be inclined to qualify anybody withdrawing from assets to live on as in the withdrawl phase. This regadless of whether that person is still net accumulating. That person would be accumulating more if not withdrawing. To me, they are in the withdrawing phase. Withdrawing does not mean depletion.
Re: Where are you in your investing life cycle?
Looks like we are getting a little hung up on definitional issues. Any conclusions re the survey? Maybe that we are pretty mature ( at least from an investment perspective) group?
Re: Where are you in your investing life cycle?
With 71 respondents the sample size is quite adequate. In spite of the "definitional issues", I think that some conclusions can be drawn.
#1 Respondents are a mature group with an overwhelming majority in late accumulation or withdrawal.
#2 Close to half of all respondents are in the withdrawal phase (especially if those who appear to be retired but have responded accumulating are transferred to the withdrawal phase).
#1 Respondents are a mature group with an overwhelming majority in late accumulation or withdrawal.
#2 Close to half of all respondents are in the withdrawal phase (especially if those who appear to be retired but have responded accumulating are transferred to the withdrawal phase).
"The term is over: the holidays have begun. The dream is ended: this is the morning."-C.S.Lewis, The Last Battle
Re: Where are you in your investing life cycle?
yes, agreeStuBee wrote:With 71 respondents the sample size is quite adequate. In spite of the "definitional issues", I think that some conclusions can be drawn.
#1 Respondents are a mature group with an overwhelming majority in late accumulation or withdrawal.
#2 Close to half of all respondents are in the withdrawal phase (especially if those who appear to be retired but have responded accumulating are transferred to the withdrawal phase).
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Re: Where are you in your investing life cycle?
As a proud DIYer, my savings have recently crossed the million-dollar mark.
I think my achievement is remarkable in a couple of ways :
I think my achievement is remarkable in a couple of ways :
- I'm only 35 years old
- The money was accumulated solely through saving and investing (no inheritances)
- I am employed and work regular hours (no business income)
- A divorce has cut my net worth in half four years ago
- A desire to learn about financial stuff and taking care of my money
- Watch my spending closely in the early years
- Be good at what I do so I could earn more than the average Joe doing the same job
- Some luck (let's be honest)
Re: Where are you in your investing life cycle?
EC, congratulations! 1M @ 35 is very impressive, especially after divorce.
I'm curious how you invest. Can you describe your investment style?
I'm curious how you invest. Can you describe your investment style?
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Re: Where are you in your investing life cycle?
Only stocks, with a bit of leverage when valuations are appealing (never more than 10% leverage)ig17 wrote:Can you describe your investment style?
I own 5 to 8 stocks at a time, I do lots of research. I am mostly a value investor. I buy when it's cheap and sell when it's fairly valued. So buy and hold is not for me.
Re: Where are you in your investing life cycle?
+1!ig17 wrote:EC, congratulations!
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“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
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Re: Where are you in your investing life cycle?
I too am really impressed (and also envious ) We (household) crossed that line a few years ago but I was 15 years older than you now are and (probably) with a bigger net employment income. I presume that you are not including personal real estate in your number. Would you mind telling me what sort of IRR (internal rate of return) it took to get you there??EmperorCoder wrote:As a proud DIYer, my savings have recently crossed the million-dollar mark.
I think my achievement is remarkable in a couple of ways :
- I'm only 35 years old
- The money was accumulated solely through saving and investing (no inheritances)
- I am employed and work regular hours (no business income)
- A divorce has cut my net worth in half four years ago
"The term is over: the holidays have begun. The dream is ended: this is the morning."-C.S.Lewis, The Last Battle
Re: Where are you in your investing life cycle?
+2adrian2 wrote:+1!ig17 wrote:EC, congratulations!
This is extraordinary!
For the fun of it...Keith
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Re: Where are you in your investing life cycle?
I don't own any real estate, but I plan to eventually when valuations come back to earth.StuBee wrote:I presume that you are not including personal real estate in your number. Would you mind telling me what sort of IRR (internal rate of return) it took to get you there??
I track my net worth since 2007. I've enjoyed an IRR of 24% despite a divorce that had pretty much the effect of halving it in 2010.
I also track my investment returns since 2006, which have yielded 21.4% annualized.
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Re: Where are you in your investing life cycle?
Mid accumulation. 43, household net worth around $2m. Would like to be semi retired in 10 years and run my business 15-20 hours a week (get away to my nice man cave at my office building I own to get away from my then menopausal wife).
Plan on selling commercial building in 15 years when its paid for and taking the proceeds as income over first 10 years of retirement.
Plan on selling commercial building in 15 years when its paid for and taking the proceeds as income over first 10 years of retirement.