#121
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Re: General life questions / observations / random whatever thread
On a related note, is it a good mindset to want to raise the percentage of my total income that comes from investments, rather than the absolute amount?
Right now it's about 2% of my total income from (safe) investments, and I'm more interested in getting that up than caring much about what it comes to. Sensible? Quitting my job just to increase the ratio isn't really part of the plan, to clarify. |
#122
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Re: General life questions / observations / random whatever thread
[ QUOTE ]
The problem with this approach is that inflation will be 2 or 3% per year too, so it's a fairly short term plan. Furthermore, the places you store money to get good returns are often not easy to take money out of each month. [/ QUOTE ] My return is above 5% but yes you do need to have a decent amount and inflation is an issue. I've had to top up investments as my rent increases. The principle is decreasing in real value but my goal is to have my fixed expenses covered so this doesn't matter. |
#123
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Re: General life questions / observations / random whatever thread
[ QUOTE ]
My return is above 5% but yes you do need to have a decent amount and inflation is an issue. I've had to top up investments as my rent increases. The principle is decreasing in real value but my goal is to have my fixed expenses covered so this doesn't matter. [/ QUOTE ] I guess it's not really THAT much of a problem - you just have to make that $2k from 3% return instead of 5%, then your original amount still increases with inflation. If you earn > 5% doesn't that mean the extra is taken up by added risk or you just know something about that market that others don't? |
#124
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Re: General life questions / observations / random whatever thread
This is probably why so many people fail at becoming a professional poker player-they don't seem to understand the complexity of not having a steady flow of income.
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#125
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Re: General life questions / observations / random whatever thread
[ QUOTE ]
I guess it's not really THAT much of a problem - you just have to make that $2k from 3% return instead of 5%, then your original amount still increases with inflation. [/ QUOTE ] I would still need to top it off since my rent has increased from $1900 to $2700 in 6 years which is much higher than inflation. [ QUOTE ] If you earn > 5% doesn't that mean the extra is taken up by added risk or you just know something about that market that others don't? [/ QUOTE ] Added risk. |
#126
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Re: General life questions / observations / random whatever thread
Hey,
All you IRCers might find this fun: http://www.irseek.com/ http://www.techcrunch.com/2007/11/30...t-on-irc-chat/ |
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