Mr. Money Mustache

Strongly Agree . Downside planning is a must do !!

As a worst case planner , my plan  when crafted was purposefully complex with multiple assumptions modeled and resultant strategies designed that CAN  carry the freight , regardless of ANY potential loss of any " public employment related "retirement and health benefits. Once a modicum of HNW is achieved you are then able to shift into another realm that allows one to be less aggressive and preserve  and grow .

To date  at almost 72. Yrs of age our  retirement experience for the past twenty yrs ,demonstrates that Plan A has worked beyond original  conservative expectations.  So again , it IS worth the effort to put these  types  approaches together  ( like MMM, ) for yourself , just make sure you model the downside too.

D'ya'll get that ?

Answer.... Play the Lottery !

Snowballs wrote

D'ya'll get that ?

Answer.... Play the Lottery !

Does that mean you have to buy a ticket?
I doubt that follows the MMM mantra, but if that's you plan - good luck.

Lottery. Yeah uh huh , you can also marry a vc's daughter too ,   good luck with outcomes tho .

PeeTex wrote

 

The true Mustachian may be that guy pulling up at the Warrensburg bottle return in the rusted out 20 YO Subaru wearing an old flannel shirt and worn out blue jeans, you look over in your new beamer and think, what a low life, he looks back and smiles because he's got no debt and multiple mills in hard liquid assets.

Now you're talkin

Campy , u gots to keep a low profile (in W Burg dude !!! 😜😜😜😜😜 when yer at yer big ole spread in J Burg . But at least u be drivin the RIGHT i "tired - iron ".  on

hey THAT example is not very far from the truth , when i first moved up here to. God' s Country we had  trash haulers we called " Adam and Eve " ... They were a mite rough around the edges , real north country folk , drove. Tired iron and were worth a shit ton o' money .. No one knew these guys were millionaires ,and old ADAM was a piece o work , used ro sit in the truck  chewing on an unlit stogie while he sent EVE in the apartment house complex at the time to get the cans .

PeeTex wrote

The true Mustachian may be that guy pulling up at the Warrensburg bottle return in the rusted out 20 YO Subaru wearing an old flannel shirt and worn out blue jeans, you look over in your new beamer and think, what a low life, he looks back and smiles because he's got no debt and multiple mills in hard liquid assets.

Swimmin' Jim?

witch hobble wrote

Swimmin' Jim?

Jimmy doesn't have a Subi, he's the one with the old bike riding up to the bottle return with a basket full of bottles.
The rest is fairly close - he's FIRE but I can't speak for his net worth.

A man of extraordinary thrift.  He makes Henry David Thoreau look like Henry VIII.

Classic MMM article that I just re-read:

http://www.mrmoneymustache.com/2012/01/30/your-money-can-work-harder-than-you-can/

MC2 5678F589 wrote

Classing MMM article that I just re-read:

http://www.mrmoneymustache.com/2012/01/30/your-money-can-work-harder-than-you-can/

Now do this analysis with Bernie’s tax plan or if we had a wealth tax in addition to an income tax. I think MMM would leave the country and take his stash with him.

Not from MMM himself, but pretty good:

https://www.fool.com/investing/general/2015/10/13/financial-advice-for-my-new-son.aspx

That’s pretty good advice. Money is a tool. You need good tools but if you have a collection of good tools that you never use you are no better than the man with no tools at all.

PeeTex wrote

That’s pretty good advice. Money is a tool. You need good tools but if you have a collection of good tools that you never use you are no better than the man with no tools at all.

Money isn't a tool in today's society, it's time.

If you have enough money, you have more time to do the things you love to do.

If you don't have enough money, you'll forever be trading your time for more money.

The determining factor in all of that is the word "enough" which varies from person to person.

EDIT: just read the article and it mentions this as point number 7

#3 is probably the most important.

For those of you who consider yourselves good investors, say in the top 20% of the general public, how important do you think it is to know financial history?  Like what caused the Great Depression?  History strikes me as being important because investing is based on peoples' decisions.  And history repeats itself.

I'll  go with number 9.  It is IMO related to 3.

D.B. Cooper wrote

For those of you who consider yourselves good investors, say in the top 20% of the general public, how important do you think it is to know financial history?  Like what caused the Great Depression? .

Not important at all. The stock market goes up & down. But the overall trend is up (even including the Great Depression, the 1987 crash, the dot com crash, and the Great Recession, the broader market returns X% a year, and the best inflation hedge is to own little pieces of thousands of the world's biggest companies).

Also, looking at it historically, even during the depths of the Great Depression, unemployment was what, 30%? Great Recession around 12%? I don't remember the exact numbers, but the overwhelming majority of people still had jobs, still made money.

If there was some kind of global crisis that caused every stock market worldwide to go to zero, it's wouldn't just be stockholders getting screwed, even people holding cash would be in trouble. That would be some kind of global cataclysm, Thanos-style "half the population dies" kinda thing.

The most important thing is savings rate, which is a combination of earning more & cutting your costs. Here's an MMM article:

https://www.mrmoneymustache.com/2011/04/26/why-hardcore-saving-is-much-more-powerful-than-masterful-investing/

I agree with that.   Also "considering yourself a good investor" could be dangerous.

MC2 5678F589 wrote

D.B. Cooper wrote

For those of you who consider yourselves good investors, say in the top 20% of the general public, how important do you think it is to know financial history?  Like what caused the Great Depression? .

Not important at all. The stock market goes up & down. But the overall trend is up (even including the Great Depression, the 1987 crash, the dot com crash, and the Great Recession, the broader market returns X% a year, and the best inflation hedge is to own little pieces of thousands of the world's biggest companies).

Also, looking at it historically, even during the depths of the Great Depression, unemployment was what, 30%? Great Recession around 12%? I don't remember the exact numbers, but the overwhelming majority of people still had jobs, still made money.

If there was some kind of global crisis that caused every stock market worldwide to go to zero, it's wouldn't just be stockholders getting screwed, even people holding cash would be in trouble. That would be some kind of global cataclysm, Thanos-style "half the population dies" kinda thing.

The most important thing is savings rate, which is a combination of earning more & cutting your costs. Here's an MMM article:

https://www.mrmoneymustache.com/2011/04/26/why-hardcore-saving-is-much-more-powerful-than-masterful-investing/

 
Do you ever fucking read what you write, you start by saying that a knowledge of market history is not important only to write paragraphs about market history, WTF.

The philosophy I have used has been to hold 3 years of operating funds in very conservative investments (now that’s cash) and the rest in riskier/high yield. Works like a champ and is based on market history. I let the pros manage the higher risk investments, I handle the conservative investments by rotating CDs and higher interest insured accounts. You get to sleep at night and over a 30 to 40 year period you have a nice balance sheet.