03-11-2008, 06:58 PM

Doug

OT, how’s your IRA doing.

As a follow on to smallshop’s unfortunate real estate situation. how are you guys feeling about your retirement accounts?

The way the market’s been going the last few months it’s scary. Today there was a bit of good news though, the market’s up 400+ points.

I’m reasonably well diversified, but I’m down about 12% since last Aug/Sept 2007.

I’m in 25% Intl, 30% Lg cap US stocks, 10% mid cap, 10% small cap, & 5% REIT, & 20% bonds. All in Vanguard & Fidelity low cost index funds. I’ve continue to buy via 401-K bi-weekly, and once a year or so I rebalance to keep my allocations on target. I’m 13-15 years out before I cut back to part time work. Figure I’ll work part time while in my 60’s. But who really knows what the future will be like. i think its safe to say it will be harder for me in retirement than my parents. I watch it, but the up/down but doesn’t bother me as I’m far enough out that I should recover OK. However long this recession lasts, I will be increasing my bond holdings on the next economic upswing.

to answer the question, i am down about 13% since november 1st ’07

and yes retirement is looming ever closer, mainly because of a bad back

but i figure to work as long as i can.

my plan basically is a follows

1.pick an area with low property tax. done

2.buy around 10 acres. done

3.build a small house, superinsulated, properly positioned for solar gain

and harvest wind, solar electric and solar hot water. in progress

4.integrate a sunroom/greenhouse to extend the growing season. as planned

5.plant a garden to produce a good portion of my food requirments. as planned

6.raise rabbits, chickens, a pig, but no large animals such as a cow. absolutely

7.poach a deer whenever possible to offset the lack of beef. bambi better hide!

8.find a niche’ market to start a micro business. yup

(does not need to make much money, just some money, and provide tax shelter

as well)

9. develop as many methods of energy production as is economically feasible,

solar electric via used surplus panels, wind power from the ridge above (catagory 3+ area)

develop wood gasifier, backup cogenerator, and then develop as many fuel sources as

i can think up, beit waste motor oils, waste veggie oils, oil grains, firewood, wood chips,

basically anything that has a btu rating/cheap price/ and easy storage.

i figure if i can have a house paid for, that is as efficient as i can make it

produce the vast majority of my energy needs on site

produce hopefully at least 2/3 of my food on site

and then live a simple and quiet life, maybe i can retire

before i am too old to know whether or not i am enjoying it.

having been through an ugly mid life divorce, forced into financial ruin in the process

i see no way that i want to buy into the american dream of buying a home on a 30 year mortgage (i would be well into my 80’s before payoff), and there is no realistic way of making payments on the median home price around here on what i might expect from a retirement income.

although.

i figure i can live a comfortable life in a small home that is efficient and paid for on

very little money. maybe about half of what social security says it will pay me in retirement. so as long as uncle sam can keep half of what they tell me coming in

i should be ok..

but then there is the whole health care issue. i guess i will have to try and stay healthy

or just have the wife bury me out back

(and no, i don’t believe hillary/obama/mccain can fix the health care system)

personally i think there is going to be one hell of a lot of folks having to rethink their lifestyle over the next decade, some are going to be in for a real shock!

i am just glad that i started reaccessing my lifestyle about 10 years ago,

bob g

who buys these $375k homes around here? and how the hell do they pay for them?