Stock Market

YYZRC

I needed one 5/4x6x8 cedar for the treehouse - $20! I am glad I built it in the fall. I told my little guy that he better save up for insurance as I cannot afford to rebuild now!!

Handymans342

$7 for a 2x4x8 This is criminal

LaRea

The retail price here for 5/4x6 deck boards used to be $0.75/foot.  Now we're at $1.25/foot, up 66%.  And you guys in Canada are paying (in USD) $2/foot ... yikes.  

LaRea

Since this conversation is ranging all over the place, let me ask you guys a question about retirement planning. 

I'm hoping to someday retire with a little bit of 401K money in boring mutual funds.  How can I estimate the income that money will earn in retirement?  What I'm looking for is "well, you can probably count on between X% and Y%."  Obviously, in retirement I'll have a relatively conservative portfolio.  

Willhound

There are calculators that advisors use that calculate future value based on an assumed rate of return, usually an average over past years return. The longer term the better. And then if you plan on using some of those funds there are calculators that do the same thing but take into account the declining balance as you withdraw each year. Can even be done monthly. You should be able to find these online also. Some will even take into account taxes based on a fixed rate and other sources of income. All basic retirement planning stuff.
There are pencil and paper Present Value and Future Values formulas but trust me, they'll give you a headache.

LaRea

I built my own spreadsheet for the calculations.  (I earned my Microsoft Excel Ranger patch many years ago!)  But if I don't use realistic numbers for rate of return, it's garbage-in-garbage-out. 

What I mean is:  for planning the size of my retirement yacht , would I use a return of 3%, 6%, 1%? 

Willhound

Ahhh....that number is entirely up to you and what you think is realistic. Also depends on where your funds fit in the investment pyramid.Income, Growth and Income, Growth, Aggressive growth. This is also where the historical return average comes in. If your average over the past 10 years is say 6% then is it reasonable to use 6% going forward? Most would say yes, but that depends on what your emotional or gut feel tells you. So there is no right answer but in my days I never used more than 6%. No crystal ball. And again, if you get an Advisor /Broker that is willing to guarantee you a rate of return they're talking out their a$$. Nobody can predict the future.

Dream_Inn

That is a tough question LaRea.  It depends on many things such as the risk you take.  You state basic mutual funds.  I would use an inflation value of 2.5% (or 3% to be extra conservative) and a conservative growth of 6%.  So, actual growth may be 4%. 

You could also take what you currently have, and if you were retiring now, the rule is you can pull out 4% each year from that.  I've also heard 3% or 5% as well, of course if you retire in mid-60s.  But, we know you are much younger than that and will be retiring soon!

For the yacht, you just need to keep the extra stash on the side to easily pull out when ready!!

randy56

We have one checking account that pay's 2%. per mo, or $50,  some restrictions. Must have min balance 20k. So many debits per mo, one auto deposit. It's $600 per year income.

Dream_Inn

randy56 said:

We have one checking account that pay's 2%. per mo, or $50,  some restrictions. Must have min balance 20k. So many debits per mo, one auto deposit. It's $600 per year income.

That's pretty impressive.  Much better than any CD out there right now.  Care to say the bank?

Willhound

Good point I forgot to mention @Dream_Inn. Need to account for inflation so tomorrow a dollars, not today's.

Handymans342

Well I wish I would have bought Lumber futures at 125 a thousand board feet. Went up to over 1000 now at 840

LaRea

(Sorry, didn't want to hijack the thread into a discussion about retirement planning, but it kinda fits.) 

My spreadsheet uses today dollars for everything.  If I play my cards right, retirement is not too far away.  And I'm not trying to split hairs with my planning -- just get a general sense of it while I keep plugging away.  

J3ff

I bought 1 share of RKT early this morning. Why the **** didn't I buy 100!!!

Handymans342

Sure went up big

Dream_Inn

I actually bought a little of NIO today.  It took a pretty good dip due to lack of chip supply and I thought the value was decent.  Speaking of chip supply, I have quite a bit in AMAT (for about 6 months),been really great buy.

LaRea, retirement fits the topic perfectly!  It's why I'm investing.

J3ff

still waiting for GME to pay off.. !!

J3ff

SLGG tomorrow, get it while you can. 

randy56

@LaRea finance, retirement, stocks, investments, all fit's.
@Dream_Inn It's a local credit union been  in it a couple years. Happens to be a Evansville Teachers credit union. 

Selling a few Wednesday, seeing some other's with better opportunity.  

boatman37

A mod in the one trading room I'm in bought RKT yesterday and said he made almost $100,000 on it today. He did show a screenshot of a Tasty account he just opened with $10,000 and he made $30,000 on RKT in that account overnight. I didn't trade it. In fact I didn't trade anything today. Spent 5 hours in meetings today...lol

J3ff

RKT up another 5 bucks as of right now... wish I had bought more.. 

Aqua_Aura

I was so busy yesterday I didn't even look at the markets. I have 30 shares of RKT I bought at 21.69 back in December. 

J3ff

Well I dont know if I'd sell RKT right now, but DEF. watch it today... so Far GME is the only thing making me any real money today. 

Only just started playing this game, so trying not to jump in face first.. bought small amounts in all of these this morning. 

randy56

RKT a lot of selling going on this am, Big money plays, They pump it first  it now dumping.

J3ff

randy56 said:

RKT a lot of selling going on this am, Big money plays, They pump it first  it now dumping.

yeah, but it didnt really do anything till afternoon yesterday...I'll hold my 1 share in it till it hits 100 

mattie

Up here in Canada most financial advisors use 4% projections for retirement income.

You may very well attain better than that - but as a benchmark & retirement budget planning, 4% seems to be the number for sustainability.

Willhound

Yep. Used to use 6 minus 2 for inflation. 

LaRea

By coincidence or dumb luck, that's the figure I was using in my spreadsheet.   

randy56

A bear market is defined by a prolonged drop in investment prices — generally, when prices fall by 20% or more from their most recent high. There can be bear markets for a market as a whole, such as in the Dow Jones Industrial Average or the S&P 500, as well as for individual stocks.

MarkB

randy56 said:

A bear market is defined by a prolonged drop in investment prices — generally, when prices fall by 20% or more from their most recent high. There can be bear markets for a market as a whole, such as in the Dow Jones Industrial Average or the S&P 500, as well as for individual stocks.

LOL, that is one day for BTC ...