When does contributing to your portfolio start to feel pointless?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I kinda get what OP is saying even though I don't see it that way. yes, the old money makes a lot more than any new money you put in. we have about 6 mil in the market now but still continue to put in up to the limits. today's money will make money 30 years down the road.

You’ll dead by then

I might be. But my money will still be making money for our kids. So, that's okay.

[Anonymous]

Anonymous wrote:10% is insane for a long term average. Investors that have millions or billions to invest, that have access to a lot more investment vehicles than you and lower fees, are told to expect something more in the 6-8% range depending on how aggressive they are. For public employer pension funds, the average eoxected long term return is about 6.7%. The fact you are saying 10% makes you sound very young and not very sophisticated.

Maybe you aren’t smart enough.
I have been investing for 25 years. My portfolio has averaged 12% annually. It’s not rocket science.

FYI, The average return of the S&P 500 over the last 10 years (2015-2024) has been around 12.21% annually, including dividend.

[Anonymous]

Anonymous wrote:

Anonymous wrote:10% is insane for a long term average. Investors that have millions or billions to invest, that have access to a lot more investment vehicles than you and lower fees, are told to expect something more in the 6-8% range depending on how aggressive they are. For public employer pension funds, the average eoxected long term return is about 6.7%. The fact you are saying 10% makes you sound very young and not very sophisticated.

Maybe you aren’t smart enough.
I have been investing for 25 years. My portfolio has averaged 12% annually. It’s not rocket science.

FYI, The average return of the S&P 500 over the last 10 years (2015-2024) has been around 12.21% annually, including dividend.

Don't be an a$$.

[Anonymous]

Anonymous wrote:

Anonymous wrote:10% is insane for a long term average. Investors that have millions or billions to invest, that have access to a lot more investment vehicles than you and lower fees, are told to expect something more in the 6-8% range depending on how aggressive they are. For public employer pension funds, the average eoxected long term return is about 6.7%. The fact you are saying 10% makes you sound very young and not very sophisticated.

Maybe you aren’t smart enough.
I have been investing for 25 years. My portfolio has averaged 12% annually. It’s not rocket science.

FYI, The average return of the S&P 500 over the last 10 years (2015-2024) has been around 12.21% annually, including dividend.

I assume you have a good guarantee from your financial managers that the index will continue to return the same results for the next ten years as it did for the last ten?

[Anonymous]

Most financial planners say you can expect a return of 7-9%. We are retired and we were always pretty aggressive savers but we never starved ourselves in order to save aggressively. We did live below our means but we did live well. Now in retirement we are spending far more on things like a second home, annual gifts to children, 529 plans for grandchildren, charity and travel. Our annual spending in total is likely in the high six figures which is pretty crazy but our net worth grows by well more than that which is also crazy. Yes, a market correction could be painful but we keep enough in cash type accounts to cover two years of a downturn. If we were still working we wouldn’t stop saving once we reached a “number”, we’d just keep at it.

[Anonymous]

Anonymous wrote:Most financial planners say you can expect a return of 7-9%. We are retired and we were always pretty aggressive savers but we never starved ourselves in order to save aggressively. We did live below our means but we did live well. Now in retirement we are spending far more on things like a second home, annual gifts to children, 529 plans for grandchildren, charity and travel. Our annual spending in total is likely in the high six figures which is pretty crazy but our net worth grows by well more than that which is also crazy. Yes, a market correction could be painful but we keep enough in cash type accounts to cover two years of a downturn. If we were still working we wouldn’t stop saving once we reached a “number”, we’d just keep at it.

What's your net worth? I wonder at what point making annual gifts to kids and funding grandkids’ 529 plans is in play. $10m?

[Anonymous]

How about helping someone in need? Could be partially funding a college kid's tuition, donating to the Innocence Project, an animal rescue, etc. You might find purpose in designating a certain portion of overage to someone it could really help.

[Anonymous]

Anonymous wrote:How about helping someone in need? Could be partially funding a college kid's tuition, donating to the Innocence Project, an animal rescue, etc. You might find purpose in designating a certain portion of overage to someone it could really help.

Hahaha. You go first.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How about helping someone in need? Could be partially funding a college kid's tuition, donating to the Innocence Project, an animal rescue, etc. You might find purpose in designating a certain portion of overage to someone it could really help.

Hahaha. You go first.

PP here. I do, but on a much smaller scale. I'm helping a few people in Nigeria that have lost their jobs that I knew personally because a $300 donation here and there goes MUCH further than it would here. I also foster dogs with breaks in between. I don't overcommit, just assist when I have the bandwidth and desire. I have debt that I'm paying off, but sometimes being of service to others adds to my sense of purpose as well.

OP doesn't seem to find much joy in saving and accruing wealth above a certain level. There are a ton of funding cuts happening right now. OP could find a passion project and contribute an amount they're comfortable with to it.

[Anonymous]

Anonymous wrote:How about helping someone in need? Could be partially funding a college kid's tuition, donating to the Innocence Project, an animal rescue, etc. You might find purpose in designating a certain portion of overage to someone it could really help.

Everyone wants money, but nobody wants to learn how to make it. I can tell people how I have no tax expense, and how to grow money tax free. I love it. It's my passion, my hobby, and my degree.
For the life of me, I cannot get anyone to listen or understand how to make money from money. I have a friend who goes 'blank' when she hears number. The rest of the people simply change subject. Nobody is interested.
All those non-profits should have finance people that double the money coming in, and people to stretch the dollar. They don't do that, because it's easier to ask for more money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How about helping someone in need? Could be partially funding a college kid's tuition, donating to the Innocence Project, an animal rescue, etc. You might find purpose in designating a certain portion of overage to someone it could really help.

Everyone wants money, but nobody wants to learn how to make it. I can tell people how I have no tax expense, and how to grow money tax free. I love it. It's my passion, my hobby, and my degree.
For the life of me, I cannot get anyone to listen or understand how to make money from money. I have a friend who goes 'blank' when she hears number. The rest of the people simply change subject. Nobody is interested.
All those non-profits should have finance people that double the money coming in, and people to stretch the dollar. They don't do that, because it's easier to ask for more money.

Ok tell us how to do it. We will pay attention

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most financial planners say you can expect a return of 7-9%. We are retired and we were always pretty aggressive savers but we never starved ourselves in order to save aggressively. We did live below our means but we did live well. Now in retirement we are spending far more on things like a second home, annual gifts to children, 529 plans for grandchildren, charity and travel. Our annual spending in total is likely in the high six figures which is pretty crazy but our net worth grows by well more than that which is also crazy. Yes, a market correction could be painful but we keep enough in cash type accounts to cover two years of a downturn. If we were still working we wouldn’t stop saving once we reached a “number”, we’d just keep at it.

What's your net worth? I wonder at what point making annual gifts to kids and funding grandkids’ 529 plans is in play. $10m?

If pp is spending high six figures, their NW is 3x+.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How about helping someone in need? Could be partially funding a college kid's tuition, donating to the Innocence Project, an animal rescue, etc. You might find purpose in designating a certain portion of overage to someone it could really help.

Everyone wants money, but nobody wants to learn how to make it. I can tell people how I have no tax expense, and how to grow money tax free. I love it. It's my passion, my hobby, and my degree.
For the life of me, I cannot get anyone to listen or understand how to make money from money. I have a friend who goes 'blank' when she hears number. The rest of the people simply change subject. Nobody is interested.
All those non-profits should have finance people that double the money coming in, and people to stretch the dollar. They don't do that, because it's easier to ask for more money.

Ok tell us how to do it. We will pay attention

This is the gambling lady who never earned much.

[Anonymous]

We view it as every 100k we save now is a year less we need to work later. Maybe 1.5 years less.

[Anonymous]

I’m not going to read all the responses and someone may have already told you, but it’s all about the balance between your savings target and lifestyle creep. If you start spending 100k more a year now on yourself and expect to keep the same lifestyle in retirement then you’ve moved the goalposts and the 5M target probably needs to increase