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Questions on how we spend our cash and our time – client items and providers, residence and automobile, leisure and leisure actions
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Re: Struggling with the Hedonic Treadmill / Lifestyle Creep
clip651 wrote: ↑Sat Aug 31, 2024 7:08 pmThat is good basic recommendation, however not for this OP. She has labored lengthy and exhausting to get herself in direction of a really conservative inventory allocation, from 0/100 (no shares in any respect only a few years in the past) to twenty or 30% inventory. She’ll want that small conservative inventory allocation to assist sustain with inflation in what is going to hopefully be an extended retirement.
Sure, I used to be 18 % shares just a few years in the past and now I’m round 40 in my 401ks, 28 % general.
Re: Struggling with the Hedonic Treadmill / Lifestyle Creep
EnjoyIt wrote: ↑Fri Aug 30, 2024 8:38 pmrockstar wrote: ↑Fri Aug 30, 2024 3:38 pmAnnetteLouisan wrote: ↑Fri Aug 30, 2024 3:17 pmFeralCat wrote: ↑Fri Aug 30, 2024 3:11 pmI do not suppose Annette goes to spend much less in retirement – that’s the nature of life-style creep. As well as, there might be extra free time, and she is going to wish to do issues. She is presently spending $100K exterior of housing (I presume) which requires a portfolio of not less than $2.5M utilizing the 4% rule. However I do not suppose she will use the 4% rule due to the conservative nature of her portfolio. If she needs to spend greater than $100K now, then I feel she must mission upwards her retirement quantity.
Oh no the $100k consists of housing and is housing. Nearly no frivolous spending – simply housing, automotive, fuel, automotive insurance coverage, journey, meals, ideas, toiletries, utilities, telephones, expense ratios, and well being. Pulled again on eating out, subscriptions, garments, items, on-line ordering and … nicely there wasn’t a lot to drag again on anyway. I’d prefer to make this spend degree everlasting however unsure if it is smart. I could also be trendy, however I’m not the luxurious garments purchaser upthread.
Luxurious clothes is a con. It’s a genius strategy to take away cash from wealthy individuals’s pockets with large margins. I’d would slightly put money into LVMH than purchase something they promote.
Luxurious clothes:
Undecided what the definition is of luxurious, however I’ll admit to having some objects of clothes which can be expensive and I wish to defend them. An important merchandise on my listing of pricy clothes is efficiency gear. Good gear that matches the wants of the exercise make an enormous distinction. For example, ski gear that retains you heat however is not cumbersome whereas additionally sturdy is not low-cost, however in my view nicely well worth the cash.My favourite every day apparel is denims and a t-shirt. What I discover is that nicer t-shirts are preshrunk (do not shrink within the dryer) and I should buy manufacturers that match a lean muscular physic. Plus the fabric is softer to the contact. You aren’t getting that from cheaper t-shirts. I’m keen to pay extra for that.
I even have a few pairs of sweat pants and shorts which can be expensive as nicely. Identical factor. They’re tender, match higher, and do not shrink within the wash. They’re extra snug to be energetic in. Though they price extra, they final far longer than a budget stuff.
I actually do not suppose I’m being coned right here or possibly I’m comfortably oblivious of actuality.
Once I’m speaking about luxurious items, I am fascinated with $10k purses and objects like that, the place it is clearly a excessive margin merchandise.
Re: Struggling with the Hedonic Treadmill / Lifestyle Creep
AnnetteLouisan wrote: ↑Sat Aug 31, 2024 7:23 pmclip651 wrote: ↑Sat Aug 31, 2024 7:08 pmThat is good basic recommendation, however not for this OP. She has labored lengthy and exhausting to get herself in direction of a really conservative inventory allocation, from 0/100 (no shares in any respect only a few years in the past) to twenty or 30% inventory. She’ll want that small conservative inventory allocation to assist sustain with inflation in what is going to hopefully be an extended retirement.
Sure, I used to be 18 % shares just a few years in the past and now I’m round 40 in my 401ks, 28 % general.
I’m curious — why do you trouble to individually monitor and report on fairness % within the 401k? Don’t you have a look at your total portfolio and AA as a complete?
Additionally, tax environment friendly asset location usually suggests having equities in taxable and stuck earnings in tax-deferred. Yours appears to be the opposite means round. Any cause why?
