How are your investments doing?

[mark in portugal]

I've noticed a lot of states with relatively low property taxes have sales taxes that approach or even surpass 10%. That's a LOT of money!!
</rant>

Here in the EU, sales tax ("value added tax" or similar wording) is over 20%. In portugal, 23% on almost everything.

And we still pay property tax (not very high though), AND a massive income tax. Those who work (I do not) also pay social security / health care tax. Despite all this, and poor public services, the country runs a reliable, solid deficit.

As I am a US citizen, I have to file a US tax return each year too. So I can tell you, the US tax is a lot lower. For me anyway.

 

[ultrarunner]

Here in the EU, sales tax ("value added tax" or similar wording) is over 20%. In portugal, 23% on almost everything.

And we still pay property tax (not very high though), AND a massive income tax. Those who work (I do not) also pay social security / health care tax. Despite all this, and poor public services, the country runs a reliable, solid deficit.

As I am a US citizen, I have to file a US tax return each year too. So I can tell you, the US tax is a lot lower. For me anyway.

The big difference I’ve found is property tax is significantly lower and not unusual to find property in the same family for hundreds of years in Europe.

A 3 bedroom 35-50 year old house in my Oakland California neighborhood with a property tax approaching 20k is not unusual.

Utilities and cell phones add 7.5% and sales tax over 10% and State and Federal Income Tax in the 40+ percent is not unusual…

Just had visitors from Austria … he is an Engineer and she a MD and they were floored with property tax we pay…

I did say California has just about every tax and some other States are significantly less.

 

[DarkBlack]

No one in Indiana pays sales tax on food, rich or poor.

The internet says a lot of different food items are taxed in Indiana

Is Food Taxed in Indiana? - Chef's Resource

Is Food Taxed in Indiana? The simple answer is yes, but not all food. Indiana generally taxes groceries, but there ... Read moreIs Food Taxed in Indiana?

www.chefsresource.com

 

[MossRoad]

The internet says a lot of different food items are taxed in Indiana

Is Food Taxed in Indiana? - Chef's Resource

Is Food Taxed in Indiana? The simple answer is yes, but not all food. Indiana generally taxes groceries, but there ... Read moreIs Food Taxed in Indiana?

www.chefsresource.com

That article is splendidly inaccurate.

 

[bdhsfz6]

How are my investments doing?

Just fine today, but ask me tomorrow and I might give you a different answer.

 

[ultrarunner]

I have heard it’s better to be lucky than smart and as a kid it didn’t make sense.

Later in life I have met some very lucky folks…

Selling their home at market peak before prices dropped 50%

Or retiring and moving funds to cash IRA from company plan before stocks tanked… etc.

They were basically oblivious to what was going on other than needing to sell for a life event that coincided with the best timing possible…

 

[Highlandr]

Or retiring and moving funds to cash IRA from company plan before stocks tanked…

Company 401K plan... was invested in funds across the board from aggressive (real estate) to very conservative. Lost half of it in 2008. Lost 30% of it again in 2012. Two years before I retired I moved it all to the money market. Right now it's only making 4%, but it's not going anywhere regardless of what the stock market does.

These days places like Vanguard & Fidelity have taken out a lot of the guesswork by offering "Retiring in 5/10/20" funds. As you get closer to retirement your money is gradually moved from aggressive to conservative investments.

 

[CloverKnollFarms]

I mostly invest in different index funds... The returns have averaged about 14% the past 20 years. I will gladly shove $3m into a money market at 4% and live on that after 60

 

[Highlandr]

I mostly invest in different index funds... The returns have averaged about 14% the past 20 years. I will gladly shove $3m into a money market at 4% and live on that after 60

Eggs zackaree!

 

[CloverKnollFarms]

I think one thing to consider in retirement is what it costs you to live.

We won't have a mortgage. We have never had a car payment either. I don't imagine we will be making payments in retirement, since we didn't while raising a family ($$$). My son is the last to leave the nest this coming fall, and currently our monthly expenses hover around $2000-$2500. Once I stop feeding him, I'll save a little more

 

[DarkBlack]

Company 401K plan... was invested in funds across the board from aggressive (real estate) to very conservative. Lost half of it in 2008. Lost 30% of it again in 2012. Two years before I retired I moved it all to the money market. Right now it's only making 4%, but it's not going anywhere regardless of what the stock market does.

Personally, I haven’t seen a company 401k that allows risky investments like real estate. I’m guessing they allowed you to pick a fund of REIT’s?

How did you “loose” 30% in 2012?
That wasn’t a bad year for the market.
It looks like you’ve tried to time the market, and gotten it all backwards. That unfortunately happens to a lot of people

 

[MossRoad]

Company 401K plan... was invested in funds across the board from aggressive (real estate) to very conservative. Lost half of it in 2008. Lost 30% of it again in 2012. Two years before I retired I moved it all to the money market. Right now it's only making 4%, but it's not going anywhere regardless of what the stock market does.

These days places like Vanguard & Fidelity have taken out a lot of the guesswork by offering "Retiring in 5/10/20" funds. As you get closer to retirement your money is gradually moved from aggressive to conservative investments.

2008 we lost about 30% of our net worth value. We followed our plan and kept investing. By 2010 we were back to our 2008 value. By 2012 we had doubled our 2008 value.

We were fortunate that we didn't need the funds in 2008. But even then, we wouldn't have needed all of them, and I'm sure we'd have been OK.

 

[DarkBlack]

I luv this chart on market timing psychology

 

[MossRoad]

I think one thing to consider in retirement is what it costs you to live.

We won't have a mortgage. We have never had a car payment either. I don't imagine we will be making payments in retirement, since we didn't while raising a family ($$$). My son is the last to leave the nest this coming fall, and currently our monthly expenses hover around $2000-$2500. Once I stop feeding him, I'll save a little more

Oh, man.... since our two kids went out on their own, we have food in the fridge and money in the bank!

I often tell them I want my $250K back.

 

[MossRoad]

Personally, I haven’t seen a company 401k that allows risky investments like real estate. I’m guessing they allowed you to pick a fund of REIT’s?

How did you “loose” 30% in 2012?
That wasn’t a bad year for the market.
It looks like you’ve tried to time the market, and gotten it all backwards. That unfortunately happens to a lot of people

At my current job and my last job, we had/have 401Ks through the company, but they were managed by Fidelity. We could only select from a list of funds, not every fund that Fidelity offered.

Even with that, there was/is a good mix of risk levels. I've been in really aggressive stuff for about 25-30 years. So you have to be able to stomach the large swings that come with it.

My wife's 401 is similar. She's in medium risk stuff, so not as wild of swings.

 

[ponytug]

At my current job and my last job, we had/have 401Ks through the company, but they were managed by Fidelity. We could only select from a list of funds, not every fund that Fidelity offered.

Even with that, there was/is a good mix of risk levels. I've been in really aggressive stuff for about 25-30 years. So you have to be able to stomach the large swings that come with it.

My wife's 401 is similar. She's in medium risk stuff, so not as wild of swings.

So, net, net a balanced portfolio.

All the best, Peter

 

[Highlandr]

Personally, I haven’t seen a company 401k that allows risky investments like real estate. I’m guessing they allowed you to pick a fund of REIT’s?

How did you “loose” 30% in 2012?
That wasn’t a bad year for the market.
It looks like you’ve tried to time the market, and gotten it all backwards. That unfortunately happens to a lot of people

Yes, it was an REIT fund.

Didn't really try to "time" anything. From the time the co. offered a 401K with match I was 30% "Income" funds, 30% "Growth" funds (large cap), 20% "Aggressive" funds (5% small cap & 15% international) and 20% REIT. So I leaned aggressive.

In other words, I just let it ride for over 20 years. Of course the funds offered changed a few times (mostly Vanguard now), but I stayed with the same type.

 

[DarkBlack]

Yes, it was an REIT fund.

Didn't really try to "time" anything. From the time the co. offered a 401K with match I was 30% "Income" funds, 30% "Growth" funds (large cap), 20% "Aggressive" funds (5% small cap & 15% international) and 20% REIT. So I leaned aggressive.

In other words, I just let it ride for over 20 years. Of course the funds offered changed a few times (mostly Vanguard now), but I stayed with the same type.

Ok, but I still don’t know how you lost 30% in 2012? That year was ok for REIT’s and the overall stock market

 

[Highlandr]

Ok, but I still don’t know how you lost 30% in 2012? That year was ok for REIT’s and the overall stock market

Don't remember what funds I was in back then as it was before the switch to the Vanguard funds, but that's the number I have in my spreadsheet. ::::

 

[CloverKnollFarms]

Fed just made asset holders wealthier today. The more money they inject, the wealthier asset holders become