Bernie Sanders

[Governor]

Just now, Chef Jim said:

 

So you're in cash? 

I am. My gf will be the one with a NJ teachers pension. I think we might be ok. The HC system cleans everyone out at some point but there isn’t anything we can really do about that. When you get old, you get scared and listen to doctors and they clean your clock. That’s not even factoring in the whole retirement home business. 
 

What I can say is this, and I know you disagree, but where you live is going to become really important in the next 20 years.

 

This is where I fear that your ideology will do you harm.

[Chef Jim]

4 minutes ago, Governor said:

I am. My gf will be the one with a NJ teachers pension. I think we might be ok. The HC system cleans everyone out at some point but there isn’t anything we can really do about that. When you get old, you get scared and listen to doctors and they clean your clock. That’s not even factoring in the whole retirement home business. 
 

What I can say is this, and I know you disagree, but where you live is going to become really important in the next 20 years.

 

This is where I fear that your ideology will do you harm.

 

So you're afraid of the markets and you're in cash when inflation is a constant headwind on your cash while over the long run the markets are a tailwind.   Thinking you're going to be ok is not a plan.  Trust me on this one.  

 

What is my ideology and how will it do me harm?  

[Governor]

5 minutes ago, Chef Jim said:

 

So you're afraid of the markets and you're in cash when inflation is a constant headwind on your cash while over the long run the markets are a tailwind.   Thinking you're going to be ok is not a plan.  Trust me on this one.  

 

What is my ideology and how will it do me harm?  

What I’m experiencing now is how family members(gf) act when someone passes away. All of a sudden family members get really greedy and entitled and think something is owed to them and tension starts. Then you find out the granddaughter has been getting 10k “gifted” over the last 5 years. 
 

it’s an ugly situation that rips families apart. I don’t want to be involved with any of that in my family.

[leh-nerd skin-erd]

2 hours ago, Governor said:

I’m in the center. Commie Kay is on the left, and the rest of you are way off the reservation right and can no longer recognize center. I haven’t moved.

I don’t worry much where someone else feels I should be placed on the political spectrum.    I would describe myself as center right, though that sort of labeling limits conversation and dialogue in my opinion. 
 

Anyway, that’s largely irrelevant to my point.  
 

 

 

[Governor]

17 minutes ago, Chef Jim said:

 

So you're afraid of the markets and you're in cash when inflation is a constant headwind on your cash while over the long run the markets are a tailwind.   Thinking you're going to be ok is not a plan.  Trust me on this one.  

 

What is my ideology and how will it do me harm?  

I have my Publix nest egg but that isn’t publicly traded. Other than that, it’s cash.

[jhh9327]

Couple things.

 

Pulling $45k (and adjusted for inflation) from a $1 million portfolio in 2000 would not only have worked, but would have thrived if invested in any even semi-responsible way, so Chef Jim is off base on that. 

 

No business cares where the money you spend with them comes from.  $100 is a $100 whether it came from the lotto, an inheritance, from a job, or collecting cans.  Human judgement is where that matters to some and most often comes from jealously.  "My $100 is better than your $100 because I earned it and you didn't".  No, it's the exact same.  Money is fungible.

 

If "Andy" or anyone else who has determined they have "enough" and is happy, then good for them.  It should be the goal for all to have "enough" and how much that is should be a personal decision. 

 

Relying on cash and gov't pension as your strategy can work as long as you are flexible and don't set your expectations very high, but yes inflation is a problem for you and sorry to say it's a way sub-optimal strategy. 

 

[Governor]

32 minutes ago, jhh9327 said:

Couple things.

 

Pulling $45k (and adjusted for inflation) from a $1 million portfolio in 2000 would not only have worked, but would have thrived if invested in any even semi-responsible way, so Chef Jim is off base on that. 

 

No business cares where the money you spend with them comes from.  $100 is a $100 whether it came from the lotto, an inheritance, from a job, or collecting cans.  Human judgement is where that matters to some and most often comes from jealously.  "My $100 is better than your $100 because I earned it and you didn't".  No, it's the exact same.  Money is fungible.

 

If "Andy" or anyone else who has determined they have "enough" and is happy, then good for them.  It should be the goal for all to have "enough" and how much that is should be a personal decision. 

 

Relying on cash and gov't pension as your strategy can work as long as you are flexible and don't set your expectations very high, but yes inflation is a problem for you and sorry to say it's a way sub-optimal strategy. 

 

Right, we don’t know what Andy gained and lost over the last 30 years. That’s an unknown. You could probably take a few good guesses if he was strictly in mutual funds. Andy wasn’t one to take risks, so I always assumed he had everything spread out and never took any huge hits. I don’t know that for sure.
 

All I know is the dude is still riding his bike around town with no worries.

Edited August 16, 2021 by Governor

[Chef Jim]

42 minutes ago, jhh9327 said:

Couple things.

 

Pulling $45k (and adjusted for inflation) from a $1 million portfolio in 2000 would not only have worked, but would have thrived if invested in any even semi-responsible way, so Chef Jim is off base on that. 

 

I'm spot on.   Inflation never stops.   How much would you need to be pulling from that $1m today to buy what you bought in 2000 for $45k?  We were talking a long term plan.  Gov's buddy was going to run out of money. 

 

Define semi-responsible. 

17 minutes ago, Governor said:

Right, we don’t know what Andy gained and lost over the last 30 years. That’s an unknown. You could probably take a few good guesses if he was strictly in mutual funds. Andy wasn’t one to take risks, so I always assumed he had everything spread out and never took any huge hits. I don’t know that for sure.
 

All I know is the dude is still riding his bike around town with no worries.

 

Strictly in mutual funds?  What does that mean?  

[Governor]

3 minutes ago, Chef Jim said:

 

I'm spot on.   Inflation never stops.   How much would you need to be pulling from that $1m today to buy what you bought in 2000 for $45k?  We were talking a long term plan.  Gov's buddy was going to run out of money. 

 

Define semi-responsible. 

 

Strictly in mutual funds?  What does that mean?  

My brother’s money was spread out on 3 ocean front properties in Florida and the rest was spread out in mutual funds. He took a slight hit in 2008 but didn’t lose his ass. 
 

Basically, my dad told him that he had too much money and had to park it in properties.

[Chef Jim]

3 minutes ago, Governor said:

My brother’s money was spread out on 3 ocean front properties in Florida and the rest was spread out in mutual funds. He took a slight hit in 2008 but didn’t lose his ass. 
 

Basically, my dad told him that he had too much money and had to park it in properties.

 

Wait....so your brother is racking it in with ocean front properties in FL.  I think we just got to the bottom of your hatred of FL.   

[jhh9327]

2 minutes ago, Chef Jim said:

 

I'm spot on.   Inflation never stops.   How much would you need to be pulling from that $1m today to buy what you bought in 2000 for $45k?  We were talking a long term plan.  Gov's buddy was going to run out of money. 

 

Define semi-responsible. 

You said 8% return.  Assume 3% inflation rate even though that is more than what the last 20 years gave us.  Do the math.

$1,000,000 at start

$1,000,000 - $45,000 = $955,000

$955,000 x 1.08 = $1,031,400 at end of year 1

$1,031,400 - ($45,000 x 1.03 = $46,350) = $985,050

$985,050 x 1.08 = $1,063,854 at end of year 2

$1,063,854 - ($46,350 x 1.03 = $47,740.50) = $1,016,113.50

$1,016,113.50 x 1.08 = $1,097,402.58 at end of year 3

 

And it's going to keep rising each year under those assumptions.

 

[Governor]

1 minute ago, Chef Jim said:

 

Wait....so your brother is racking it in with ocean front properties in FL.  I think we just got to the bottom of your hatred of FL.   

No hated at all. I visit and lived in those units.

[Chef Jim]

1 hour ago, jhh9327 said:

You said 8% return.  Assume 3% inflation rate even though that is more than what the last 20 years gave us.  Do the math.

$1,000,000 at start

$1,000,000 - $45,000 = $955,000

$955,000 x 1.08 = $1,031,400 at end of year 1

$1,031,400 - ($45,000 x 1.03 = $46,350) = $985,050

$985,050 x 1.08 = $1,063,854 at end of year 2

$1,063,854 - ($46,350 x 1.03 = $47,740.50) = $1,016,113.50

$1,016,113.50 x 1.08 = $1,097,402.58 at end of year 3

 

And it's going to keep rising each year under those assumptions.

 

I did the math. He runs out. You’re forgetting taxes. 

 

Edited August 16, 2021 by Chef Jim

[Governor]

1 hour ago, Chef Jim said:

 

Wait....so your brother is racking it in with ocean front properties in FL.  I think we just got to the bottom of your hatred of FL.   

Would you like to purchase one?

[Chef Jim]

1 hour ago, Governor said:

No hated at all. I visit and lived in those units.

No dude.  Deep down your hatred of FL is rooted in the jealousy you have towards your brother. 

3 minutes ago, Governor said:

Would you like to purchase one?

Possibly 

Edited August 16, 2021 by Chef Jim

[Governor]

7 minutes ago, Chef Jim said:

No dude.  Deep down your hatred of FL is rooted in the jealousy you have towards your brother. 

Normally, I see why someone on the outside would think that, but it isn’t that at all. I don’t want anything from him. He lived his life, I decided that I didn’t really want to live that exact life, and I would hope that there aren’t grudges and bitterness.

 

I think you’re too caught in money and that’s why I told Andy’s story in the first place.

 

My hatred for Florida is strictly political.

 

I think you’re having a hard time grasping how I can be this way…..because it clashes against everything you think you know.

 

Take a step back. Slow down. You’ll thank me later.

Edited August 17, 2021 by Governor

[Chef Jim]

5 minutes ago, Governor said:

Normally, I see why someone on the outside would think that, but it isn’t that at all. I don’t want anything from him. He lived his life, I decided that I didn’t really want to live that exact life, and I would hope that there aren’t grudges and bitterness.

 

I think you’re too caught in money and that’s why I told Andy’s story in the first place.

 

My hatred for Florida is strictly political.

You say it’s political but it’s your brother.  And I’m just busting them on you. 
 

Too caught in money?  Damn ***** straight. It makes the world and my retirement go round and round. 

[jhh9327]

3 minutes ago, Chef Jim said:

I did the math. He runs out 

 

Not with a 8% investment return and 3% inflation assumption on a 4.5% initial withdrawal rate.   Want to actually share what rates you used for your chart? 

Last 20 years had an average 2.2% inflation rate.  $45,000 in 2000 is about $72,000 today using CPI over that time.    

 

 

 

 

[Chef Jim]

27 minutes ago, jhh9327 said:

Not with a 8% investment return and 3% inflation assumption on a 4.5% initial withdrawal rate.   Want to actually share what rates you used for your chart? 

Last 20 years had an average 2.2% inflation rate.  $45,000 in 2000 is about $72,000 today using CPI over that time.    

 

 

 

 

$1m taxable investment($1m basis) (CA/Fed) growing at 8% inflation 3%. This is a 70 plus year plan. The guy were talking about was young.  Long term inflation runs about 3%.  He runs out. 
 

The 40 year income need is $107k.  That’s a  10.7% distribution rate.  As inflation increases and we star taping into principal the distribution rate skyrockets.  Why he runs out. 

[Irv]

We could use Bernie now.  At least he’s lucid and not killing off Americans Saigon style.  What a mess.  Incompetence.