The Russell 1000 and 2021 Resolutions

[Sir Henry]

The stock market sure has been kind to me in 2020. All my mutual funds are tied to the Russell 1000 and it like the Dow and S&P have set record highs.

Because I haven’t been able to go very many places, especially on a daily basis I’ve been able to save quite a bit this year. Well quite a bit for a poor person.

I’m not rich and I’m not poor however in 2021 I’m going to start spending money. My goal is to spend my last dime on the day I die. I don’t want to die poor or with a lot of money in the bank.

So my plan is to sell shares. It’s a good plan because I’m at the age where I need to cash in on IRAs or get a huge tax penalty. Starting Monday I’m going to sell half of what is required of me to sell in 2021 before January 20th and sell the second half in the third or fourth quarter.

[daytime dave]

Gene,
I'm glad you will have a chance to spend it. I have never heard of the Russell 1000. I'll not try to say I know anything about finances or much of how it works.
Perhaps you can share some of your financial wisdom with those of us who should put our nickels someplace other than in a jar under the bed. I'd be interested to learn. If it catches on, we could make a forum for it. I'll bet we'd be one of the few to have that. I think we are pretty diverse already.
I hope it's a long time until you get down to your last dime.
I'm glad to see you in such a positive mood and great outlook. Things seldom remain the same. They change and evolve and your evolution seems right on course my friend.
Enjoy the spending, after all, you earned it!

[Sir Henry]

Pay yourself first and live within your means is about all I know. As far as individual stocks I don’t have a clue. I went strictly with mutual funds, American Century Select (TWCIX) and Fidelity Magellan (FMAGX) was my two best.

[daytime dave]

See, I'm already learning.

[Ernie]

Sounds like a fun way to start the year off. Enjoy!!!

[Headhog]

Five years ago the company I worked for was converting our pension to an annuity, or a cash buyout option. The annuity option had two payouts, one with and one without a spousal survivor benefit (more per month). Since I have a great dislike for annuities, I did some calculations for go, no-go decision on the buyout value. Fortunately the pension buyout exceeded my go number and I took it.

It was 3 months before they distributed the buyout and in that time I researched local financial investors. The company I choose handles my investment for a fixed percentage fee. I receive my checks monthly, they pay taxes on the distributions and my principle amount has grown in that time. Plus I'm receiving more money than if I had had chosen the annuity with spousal benefit. Finally when my wife and I are gone there will have something to leave to our children, unlike the annuity.

Gene I admire anyone that can manage their own retirement and investments. I know my limitations and chose a reputable investment group that's exceeding my expectations.

Paul

[Sir Henry]

Five years ago the company I worked for was converting our pension to an annuity, or a cash buyout option. The annuity option had two payouts, one with and one without a spousal survivor benefit (more per month). Since I have a great dislike for annuities, I did some calculations for go, no-go decision on the buyout value. Fortunately the pension buyout exceeded my go number and I took it.

It was 3 months before they distributed the buyout and in that time I researched local financial investors. The company I choose handles my investment for a fixed percentage fee. I receive my checks monthly, they pay taxes on the distributions and my principle amount has grown in that time. Plus I'm receiving more money than if I had had chosen the annuity with spousal benefit. Finally when my wife and I are gone there will have something to leave to our children, unlike the annuity.

Gene I admire anyone that can manage their own retirement and investments. I know my limitations and chose a reputable investment group that's exceeding my expectations.

Paul

Paul it sounds like you are the one that is controlling your finances and the investment group is merely doing what you tell them to do.

[Sir Henry]

I studied the philosophy of J. Paul Getty on finances. Two things stick out, 1) don’t trust any financial advisor that can benefit from your investments, 2) if you are going to purchase something that will depreciate in value pay cash. If you can not afford to pay cash you shouldn’t buy it. If the purchase is expected to appreciate in value like a house then buy the biggest one you can afford with someone else’s money (a loan).

These two principles have been my guiding light. Add paying yourself first and living within your means and that is about all I know.

[GeoBoy]

I like Gene, have always believed that we always needed to make a weekly payment to ourselves. I also believe that if your company offers a 401k with a company match, stand in that free money line. I known how to make money with my skills but my knowledge or interest in the financial markets was nonexistent, so interview several financial advisers and pick a good one. Don’t be afraid to fire one either and above all, live within your means.

[GFK]

I studied the philosophy of J. Paul Getty on finances. Two things stick out, 1) don’t trust any financial advisor that can benefit from your investments, 2) if you are going to purchase something that will depreciate in value pay cash. If you can not afford to pay cash you shouldn’t buy it. If the purchase is expected to appreciate in value like a house then buy the biggest one you can afford with someone else’s money (a loan).

These two principles have been my guiding light. Add paying yourself first and living within your means and that is about all I know.

Seems like good advice. In addition, I hope to leave something to grandchildren as well, if nothing but money for an education.