It your income is over $500K for a single, or $750K for a married couple, you're really paying high premiums, over $500 a month per person extra. However, at least you don't have to worry about long term care - you can just pay out of your income.
It depends entirely on how your finances are structured. Yes, if you are relying solely on SS plus withdrawing from a traditional retirement account, there is a risk. But there are many other types of retirement income you might have.
I have been retired for ten years, and I have been living on SS plus dividends and interest from a taxable brokerage account, so I'm not really at risk. Other retirees might have a pension, an annuity, or income from rentals.
If you are an investor, you want to look at whether the company is allocating capital wisely or foolishly. If you need dividend income, you should buy companies where paying a dividend is the most sensible thing to do.
You should be looking at what role dividends play in corporate capital allocation. If a company has extra money, it can pay dividends, buy back stock, pay down debt, make capitol expenditures, or just put the money in the bank. Which course is likely to be most profitable in the long term? It obviously depends on the company and the industry. One size does not fit all.
If you are a regular, it benefits you as well. When my Friday group walks into a restaurant, we are greeted effusively and shown to our usual table immediately. They remember.
I was interested to see that Warren Buffett recently bought about $1.7 billion of United Health Care, which had fallen 50% due to regulatory issues - they were found out to be crooks. I had been thinking about the stock myself - big companies that are making lots of money seldom die no matter how much trouble they get themselves into. I wouldn't hold it for long, it would be a trade. The dead cat bounce can make you rich if you play your cards right. I used to do utility-merger arbitrage, but I haven't had any good opportunities lately.
If you were a private-equity house, chopping up deals into parcels to sell to investors, what sorts of deals would you offer small retail investors?
I would say you would be most likely to reserve the best deals for your wealthy private clients, who are putting up $500 million or $300 million. The junk, you can sell to retail investors, or maybe Japanese banks - somebody who will fall for any pitch.
The Jetsons was quite unsophisticated, because it didn't show any social impacts from all this advanced technology - they were still a 50s suburban family with a lot of gadgets.
But more advanced science fiction writers did predict dramatic social changes as a result of advanced technology. But even they could not possibly have dreamed up where we are now!
Comments
It your income is over $500K for a single, or $750K for a married couple, you're really paying high premiums, over $500 a month per person extra. However, at least you don't have to worry about long term care - you can just pay out of your income.
Post: Healthcare spending and premiums during a post age-65 retirement- facts and ideas.
Link to comment from September 8, 2025
It depends entirely on how your finances are structured. Yes, if you are relying solely on SS plus withdrawing from a traditional retirement account, there is a risk. But there are many other types of retirement income you might have. I have been retired for ten years, and I have been living on SS plus dividends and interest from a taxable brokerage account, so I'm not really at risk. Other retirees might have a pension, an annuity, or income from rentals.
Post: Sequence of Return Risk
Link to comment from August 28, 2025
If you are an investor, you want to look at whether the company is allocating capital wisely or foolishly. If you need dividend income, you should buy companies where paying a dividend is the most sensible thing to do.
Post: Dividends Part II – At least
Link to comment from August 25, 2025
Congress will make changes, all right - about 8 hours before Social Security doesn't have enough money to send out the monthly payments.
Post: 2024 Update to the OASDI Beneficiaries by State and County
Link to comment from August 25, 2025
You should be looking at what role dividends play in corporate capital allocation. If a company has extra money, it can pay dividends, buy back stock, pay down debt, make capitol expenditures, or just put the money in the bank. Which course is likely to be most profitable in the long term? It obviously depends on the company and the industry. One size does not fit all.
Post: Dividends Part II – At least
Link to comment from August 24, 2025
If you are a regular, it benefits you as well. When my Friday group walks into a restaurant, we are greeted effusively and shown to our usual table immediately. They remember.
Post: Frugality for fun and profit… but please, not necessity
Link to comment from August 20, 2025
Well, that kind of depends on your income. I'm retired on 250% of my final salary, and I live way below my income - but I wouldn't say I'm frugal!
Post: Frugality for fun and profit… but please, not necessity
Link to comment from August 20, 2025
I was interested to see that Warren Buffett recently bought about $1.7 billion of United Health Care, which had fallen 50% due to regulatory issues - they were found out to be crooks. I had been thinking about the stock myself - big companies that are making lots of money seldom die no matter how much trouble they get themselves into. I wouldn't hold it for long, it would be a trade. The dead cat bounce can make you rich if you play your cards right. I used to do utility-merger arbitrage, but I haven't had any good opportunities lately.
Post: Harder Than It Looks
Link to comment from August 16, 2025
If you were a private-equity house, chopping up deals into parcels to sell to investors, what sorts of deals would you offer small retail investors? I would say you would be most likely to reserve the best deals for your wealthy private clients, who are putting up $500 million or $300 million. The junk, you can sell to retail investors, or maybe Japanese banks - somebody who will fall for any pitch.
Post: Hedge funds, venture capital. private equity, etc. in a 401k. BAD IDEA!
Link to comment from August 12, 2025
The Jetsons was quite unsophisticated, because it didn't show any social impacts from all this advanced technology - they were still a 50s suburban family with a lot of gadgets. But more advanced science fiction writers did predict dramatic social changes as a result of advanced technology. But even they could not possibly have dreamed up where we are now!
Post: Back to the Future
Link to comment from August 12, 2025