Posted on October 6, 2008 @ 10:19 pm - Written by BawldGuy
I feel so much for those who’ve been watchin’ the retirement plans they have at work slide downward as if they’re on Teflon. Millions of Americans have worked honestly and hard building up their 401(k)/IRA’s. Seeing years, often many years of disciplined effort, shrink significantly in real time is a body blow to the spirit. I know, I’ve been there. I empathize with you.
So many of us, usually when we’ve been kicked in the groin financially, have vowed passionately if not also with righteous indignation, to take control of our own futures. By future, we meant our retirement. That word means so many different things to us, but one factor is shared by us all — the older we get the more valuable the stability and reliability of our retirement becomes.
BawldGuy Axiom: Words mean things. For example: The physics of economics will not be mocked.
What do the words ‘Take control of my retirement’ mean to you? Think about it honestly. Read the rest of this entry »
Posted on October 3, 2008 @ 9:23 pm - Written by BawldGuy
When last we left our local couple, they’d been told to, surprise surprise, Get Outa Dodge! We outlined what they’d been advised to do, and gave a snapshot of what might happen over a five year period. Though Jon and Jill get far more detail, with all the analysis you’d expect, plus their own personal Purposeful Plan, you got an idea of why they should be putting San Diego in their rear view mirror as it relates to real estate investing.
As you may have noticed, I eschew photos matching the day’s topic from time to time. Tonight’s one of those times. Also, I wanted to grab the opportunity to use the word ‘eschew’ in the post.
Today we’ll take a snapshot of what might happen if they’d decided to remain in San Diego, hoping for a better future. Let’s first review where they are today.
They own both their primary residence and a local rental house free and clear. The sale of the rental will generate $200,000 give or take. The family’s income is around $127,000 yearly. They live frugally. Their credit is excellent, and they have $50,000 cash savings, which will act as their Sominex Account (cash reserves). You can read what I advised them to do by reading Wednesday’s post.
We’ll make some assumptions first. Read the rest of this entry »
Posted on October 2, 2008 @ 12:03 am - Written by BawldGuy
If you wanna catch up, please read the post preceding this one, as it sets the table for tonight’s post. The pics for this post are for us to share as completely unrelated enjoyment.
OK, let’s get this road on the show. 
I”m going to give a snapshot of what I plan to tell Jon and Jill.
At 42, they’ve given themselves a head start over most by having already invested in real estate. Also, they have cash savings of around $50,000. This will act as their Sominex Account. (Cash Reserves) You know, sleep at night? They also own the family home free and clear. (Grandpa cheering in background.)
Their stated goal is to retire sooner, rather than later. Jon is not lookin’ at 65 as retirement time. If he could retire around 4:30 yesterday afternoon he would. Our end game is tax sheltered cash flow for retirement. Duh. First however, we must grow their capital. All retirement income is, is a yield on capital. The yield is, give or take, the same for $3 million as it is for $300,000. The idea is to be the guy with $3 million. The yield’s the same, but the dollars? Not the same.
The net equity in their rental house is around $200,000 — give or take. It will go on the market immediately. Since they paid $250,000 for it, they’ll sustain a long term capital loss. A tax deferred exchange will not be necessary here. Read the rest of this entry »
Posted on October 1, 2008 @ 12:13 am - Written by BawldGuy
This will, by default, be a teaser for tomorrow’s post, as truth be known, I’m pooped. Still, one of the best conversations I’ve had recently, inspired a post. I spoke with a couple toay who’ve subscribed to Grandpa Economics, executing its strategy with admirable efficiency and excellence.
They’ve granted permission for me to post about them, subject to the maintenance of their anonymity. I’ll adhere easily by changing immaterial facts, including names, locations, etc.
Here’s a brief outline.
Married couple, early 40’s with kids. Wife is stay at home mom, no job. Husband earns solid income in aeronautical engineering — about $127,000 give or take.
They live in San Diego, and have for quite awhile. Besides their primary residence, they own a rental home, purchased in 2004. They own both their home and the rental free and clear of all debt. Jon has a 401(k) with a current balance of just over $150,000. It used to be much more, but the stock market has been, uh, unkind to them.
They’re very good savers, and don’t try to keep up with the Jones’s, or anyone else. They’ve begun to see what’s in store for them as it relates to their retirement, and realize they need to modify their strategy.
Tomorrow I’ll fill in the blanks, and outline what my advice will be.
Meanwhile, back at BawldGuyRanch, help yourself out, by takin’ a quick listen to the Grandpa Economics podcast. It’s cleverly listed under the heading of Podcasts, a little way down from the top of this page. NOTE: Don’t pay attention to the email given at the end of the podcast, as it’s no longer in force.
If you think a Purposeful Plan is called for to get your retirement plans back on track, click on the Contact BawldGuy thingy up top and to the right of this page. Meanwhile, I’ve expended my last calorie of the day. Have a good one.
Posted on September 25, 2008 @ 11:37 pm - Written by BawldGuy
Ever wonder why the guy at yer office goes from one success to another? Sure, the usual reasons work, but the common denominator is almost always goals, which then lead to their version of what for decades I’ve been callin’ a Purposeful Plan.
A Plan without goals is an eighth grade creative writing assignment. Goals without a plan is a daydream that turns into a whole lotta nothin’ the moment your mind is refocused. A locomotive is of little value with no train to pull — and a 20 car train is goin’ nowhere without the locomotive’s power.
I’ve always envisioned the train as my goals, and the Plan as my engine.
Take some time and listen to the Purposeful Planning podcasts. They’re located at the top of the page on the right. Just click and listen. They’re not long, about 15 minutes give or take. Then, if you’re interested, give a listen to Grandpa Economics. That one surprises most who listen. Many have told me it’s what pushed them to get going.
And you thought this weekend was gonna be boring. Silly you. Read the rest of this entry »