Critical Mass

[EricDeLee]

I was reading a few articles regarding investments and looking for a few to send to my son who started Active Duty last year. I want to get him off on the right foot.


Ran across an article regarding savings and hitting the "critical Mass". See link:

http://askunclebill.typepad.com/my_weblog/2007/05/how_to_save_a_m.htm

At what point do you consider critical mass... And what are your actions from that point? I'd assume you'd still want to invest, as you'd want to outlive your earnings. My goal isn't to just earn enough to withdraw an amount every year based off of what I think I'll live to. What I'd like to do is pass that hard earned compounding money to the grand children when i decide to leave this great earth.

Ill have to play with some calculations to see when my money will be working for me and actually out earning my contributions. When do expect that to be for you? Or have you hit it already?

Whats the plans for withdraws? 3-4% annually, while hoping to beat inflation and withdraws with your yearly gains?

 

[Frixxxx]

I was reading a few articles regarding investments and looking for a few to send to my son who started Active Duty last year. I want to get him off on the right foot.


Ran across an article regarding savings and hitting the "critical Mass". See link:

http://askunclebill.typepad.com/my_weblog/2007/05/how_to_save_a_m.htm

At what point do you consider critical mass... And what are your actions from that point? I'd assume you'd still want to invest, as you'd want to outlive your earnings. My goal isn't to just earn enough to withdraw an amount every year based off of what I think I'll live to. What I'd like to do is pass that hard earned compounding money to the grand children when i decide to leave this great earth.

Ill have to play with some calculations to see when my money will be working for me and actually out earning my contributions. When do expect that to be for you? Or have you hit it already?

Whats the plans for withdraws? 3-4% annually, while hoping to beat inflation and withdraws with your yearly gains?

Critical Mass is used to describe a point where there are changes that occur at a point where the action is overshadowed by the outcome. In investing the question is not what not to do but ask yourself what to do next. Achieving a goal in investing and the exceeding it is a good thing, not a greed thing. If you reach critical mass in your investment strategy, then it is a place where you change gears and move toward a new goal. Do you set a new goal? Do you start paying out to a new venture, charity, or add a new car/toy to you asset column?

Me personally, my critical mass point will never bother me, I will adjust by what type of food I eat, where I vacation, what I leave my kids (if anything.) Hitting that critical mass point for your grand kids could mean a 509 investment if you want or set up trust funds...or just take them on a "learning vacation"

Funny, when investing people succeed, they get to have conversations like this!