Wealth, of course, does not equal happiness. However, the lack of wealth, often, leads to depression, hardships, and general un-happiness.

Anyhow.... for talk about money, this is the place to do it. Stocks, bonds, mutual funds. Banks, businesses, real estate. Doesn't really matter. If it's about money, post it here.

On a related matter, I love putting money into the stock market. =) Real estate is all the rage nowdays, I know, but it's so messy. So much money in one basket. And what if you need some cash for a quick trip to Zimbabwe because you want to win the Amazing Race: Letterboxing Edition contest I just annonced? Not like you can sell just the garage and save the rest of the house as an investment. Even then, it could takes weeks or months to actually find a buyer!

Stocks, though, no, stocks are simple. Buy a stock and it doesn't require maintenance. You don't have to collect rent, pay for flood insurance, or anything. You can sell it immediately during the next 'business day'. And you can even sell some of it rather than it being an all-or-nothing deal.

Yep, I like stocks. I'm a stock man. =)

It used to be, back in my Intel days, I'd check my stocks daily. Not because I had to, but because I was bored out of my mind and it gave me something to do. =) Nowdays I'm not so bored and spend almost no effort analyzing or keeping track of my stocks, so my investments have become more conservative. I want to own companies that I don't have to pay a great deal of attention to but still be able to rest easy that they're kicking butt and if I wait long enough, it's bound to pay off sooner or later.

I'm now down to basically two stocks: Boeing and Costco. Oh, I have several other stocks. One share of several stocks just so I'd keep getting their annual reports including Pixar, Tyco, and YoCream. Probably some others I can't even remember off the top of my top. I also have 63 shares of Intel stock which is kind of complicated to explain. I don't want it, I never did want it, I've even tried to get rid of it, but it's been such a pain in the butt I finally gave up. Let those dividends keep rolling in. ;o)

No, my two biggest holdings are Boeing and Costco. Boeing I purchased a couple of years back when they were really getting trounced after 9/11, scandals jumping out like fleas from a drowning dog, and things were looking pretty dark. The two reasons I bought into it: (1) I believe their 787 was going to kick Airbus's A380 where it really hurt and could be a catalyst for better things to come, and (2) they had the staying power and enough money to see them through the Dark Years. It's up over 50% from where I bought it, so I'm pretty happy on that count. =)

Then there's Costco. That just seemed like a rock-solid company. No debt, very profitable, and a management team that's top notch. As long as the shares could be had for a decent price, it's a company I'd feel perfectly comfortable going to sleep for ten years and not checking back until then to see that things were still going well or not. I considered buying when it was down there at around $30-35 share, but this was about the same time I was planning my AT hike and I just didn't want to deal with any financial stuff just then. Which is a pity. I didn't finally pull the trigger until a little after I finished the AT, and the price was at $42/share. =( Not nearly the bargin I thought it was below $35/share, but I didn't have any better ideas at the time and $42/share still seemed okay if not great.

It's up about 13%, though, so I can't complain too badly. =)

I've been thinking about Wal-Mart lately, though. I'm not really a Wal-Mart kind of person. Hate that place. But you know, from an investment perspective, I just LOVE the idea of buying a company that other people hate. =) Wal-Mart certainly a solid, stable company. Oh, sure, a movie's come out that dishes dirt on it. Sure, they've been blamed for hiring illegal aliens. Sure, most of their workers on welfare and such. The company is so darned hated at the moment, and that perception is bound to change at some point. And when it does, I think the stock price is likely to do very, very well.

-- Ryan

This message did not show up as a "new" unread message. I picked it from the recent post lists. Was that supposed to happen?

Wow, just mention a possible board in a note on any other board and BLAMMO! Thanks Ryan. While this board may not get the play that the other boards get, it may be one of the better values here at AQ.

For those that are trying to figure out how to retire with some bucks in the bank here are a few insights to how we were able to pull the pin at 63. Since we had a small business we had no established retirement and had to set up our own. In 1970 we bought a home and that should be considered your first step. While working 50 to 70 hour weeks during the seventies I had very little time to devote to retirement finances. Gwen did some studying on some no load mutual funds and in 1980 decided to dive in. I just stayed the heck out of her way. After 3 years she told me she wanted to sell one of the funds and I told her whatever she wanted to do. A few days later I caught the mail and opened up this check that was for quite a bit of cash. I asked her why she wanted to sell that fund and she just replied it wasn't doing as well as the others. Oooops! I checked and the return rate was 32% per year. I gave her more $ to invest.

Around this same time my mom passed away and left us some $1500 Union Carbide stock. We recieved yearly dividends(about $75 per year at the time)and I figured , heck we will just reinvest the dividends. We still have Dow Chem and Praxair which are spin offs from the UC stock and the value is well over $50,000.

Now the bottom line is invest early and reinvest dividends. You will never miss the few dollars you receive in dividends. Over the years we have primarily invested in no load index funds and Vangard Total Stock Mkt fund is our main holding in the equities market.
Oh yeh, we are Bob Brinker fans. He put out a sell/go 50% cash just before the market took a dump, and put out a buy call just as the DOW hit 790.
Every time Gwen & I discuss finances I thank her for her vision.
You might want to pick up Silent Doug's book "Arm Chair Millionaire" for Christmas.

Don

First, don't get me wrong. I don't think there is anything wrong with $$$, or anyone getting their fair share of it.

This is a great board idea, and a great thing for people to share information on what is working for them. Too many people are lost when it comes to money management, so good advice should be welcomed.

I look forward to reading this board.

But, another way to get rich and die happy...

Have children. Focus on them instead of yourself.

Seriously.

The statistic you see about "it takes $250,000 to raise a child" is hogwash.

More of my favorite myths are that people should "wait until they can afford kids", or "need to get established in their careers", or "find themselves first", or "travel first", or "live on their own first"...

Sure, the early years were harder. No fun to drive a beat-up old jalopy when your "peers" drive the newest and go to all the "fun" vacation spots.

My first 3 kids taught me how much joy they add to life. My next 4 have all benefited from that ever increasing joy.

My oldest 2 have gotten married now, and those new families are due in the spring! I hear grandchildren are even more fun than your own--a myth I hope is true!

We just found out that our eighth is due in August.

How wonderful is that?

Merry Christmas!

FamilyMan

i totaly agree. i'm more in the realestate game myself, i ...i say i but my husband and I own 3 houses...we also have 4 children.
the children do make you rich in other ways. (god knows its not the houses making us rich)
althought i wish the kids make me rich enough to buy stock..in lets say...ummmm.....Staedtler or something.
-CCL

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we also have 4 children.
the children do make you rich in other ways.

Yep , they sure do! Our grandchildren are adding even more to our happiness!

Don

This gives me some hope since I can't comprehend stocks nor do I have the attention span to concentrate on it-- but I know how to save and avoid debt!

http://money.cnn.com/2005/12/16/retirement/updegrave_money_0601/index.htm

"by raising his contribution from 2 percent of salary to 6 percent, Joe would have tripled his 401(k) balance"

Well duh!! Where is the funny math in that?

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This gives me some hope since I can't comprehend stocks nor do I have the attention span to concentrate on it-- but I know how to save and avoid debt!

No load Index funds is your answer.


Here is something I came across and even though I'm probably not plagerizing it properly the gist is there.
It is called something like the Starbucks Effect.

A triple Caffe Americano and muffin costs about $5 and that is roughly $150 per month, instead of that purchase you invested it regularly and let it compound at 10 % in a tax free vehicle starting at age 25. You would have $955,000.00 when you reach the age of 65. Your contribution would be about $72,000.00 and the bulk of the money comes from the compounding.

Don

Hello,

The end of the year is a great time to increase your 401K by 1%.

Since it is pre-tax $$$, you will hardly notice the change, and it won't be missed.

FamilyMan

Just wanted to give folks a heads up. Dave Ramsey, aka the guy who's singlehandedly most responsible for changing our 'physical' lives 2 years ago, is scheduled to be on Oprah today. I'm not much of a TV watcher nor Oprah but just wanted to let folks know in case they're interested. I missed it last time when he was bumped for Katrina updates so I'm psyched to get a second chance to see it. If he helps one person out there, that'd be awesome! I know he's completely changed our world! Turned our thought processes on finances upside down!!! Oh, if you miss the afternoon show, it's usually repeated in the evening on the Oxygen network (if you get it in your area).

Enjoy, dvn2r ckr

If you miss the show altogether you can learn more about his Financial Peace concepts at his website: www.daveramsey.com or just google Dave Ramsey's Baby Steps for finances. Awesome!!!

And what happened to me? I only turned it on for the last 10 minutes. UGH! I wish I had read this earlier.

Definitely agree, Dave Ramsey sure has me thinking differently.

If you've got cable, Oprah's on twice eachday. She's definitely on Oxygen later at night but her show may be on WB/UPN networks or one of those other networks, too--usually 9pm. If all else fails, check out Dave's website where you can listen to his radio show via the archives and look for his Baby Steps outlined on various websites you can find through Google.
...
The Oprah show highlighted 'extreme' situations and recommended his book "The Total Money Makeover". That book is geared toward folks on the verge of bankruptcy--although it'll open folks' eyes who aren't in such dire straits, too. I actually prefer his book "Financial Peace Revisited". It covers more ground, so to speak, and clearly explains things I knew intuitively all along but would never got off my duff to actually implement and reap the rewards.
...
We weren't in debt like the three situations they showed on Oprah. We were just being stupid with our money. We still found his advice life-changing and easy to implement. His humorous approach to debt-free living initially caught my attention while 'surfing talk radio on a business trip out of town' & motivated me to investigate his concepts, apply them & to stick with it--for 2 years now (actually our 2-year anniversary with DR will be 9 Jan!!!). His baby steps coupled with his motivating radio show mobilized us into action and the rest is history. Life's been totally different ever since!
...
I'm so impressed with how life-changing his concepts are that I plan to volunteer to run some Financial Peace University classes in the future (once I'm in a different job that will provide me more free time to do so) so I can help other folks improve their lives.

dvn2r ckr

I've never been to an annual shareholder meeting before, but have wanted to go to one--any one--for years now out of curiosity. =) And it just so happens that I'll happen to be in the Seattle area when Costco holds their annual shareholder meeting in Bellevue on January 25th. Any fellow shareholders want to meet up with me and attend? Give management there a piece of our minds? =)

-- Ryan

I would love to go, but I will be off-planet that day.

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And it just so happens that I'll happen to be in the Seattle area when Costco holds their annual shareholder meeting in Bellevue on January 25th. Any fellow shareholders want to meet up with me and attend?

I should own Costco stock, I shop there almost exclusively for groceries! I'll look through our various mutual funds and see if we own any stock right now. Maybe we'll join you there. ;) It'll be educational, if anything.

dvn2r ckr

Couldn't find any direct mention of Costco stock on our fund statements. Although, I didn't check them all. Ok--I found a site where you can purchase Costco stock directly--either an initial $250 minimum purchase or a commitment to $25/stock/month. Hmmmm....at the rate we shop at Costco we really should own some stock, shouldn't we? ;)

dvn2r ckr

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It'll be educational, if anything.

That's kind of my feeling on the matter. =) I actually bought a little bit of YoCream stock (based in Portland) hoping to attend an annual meeting there (and they gave out free samples of their yogurt!) but haven't been in the area whenever their annual shareholders meetings occurred. (On a related note, their largest customer is Costco--if you've ever gotten one of those sundaes or berry shakes in one of their food courts, it comes from YoCream.)

At the time I bought it, the company was listed on NASDAQ, but they decided to delist themselves from there because to avoid the "escalating costs of compliance associated with being a public company." So now the shares trade on the Pink Sheets. My only stock I've ever owned that's traded on the Pink Sheets, in fact. =) All one share, worth a whopping $4.65 at the moment. The commission to sell the share would cost more than the share is worth! That just cracks me up. =)

But their press release--when they announced they were planning to delist themselves from NASDAQ--said they still intended to hold annual meetings. So I may yet get a year when I can attend the meeting and get some free YoCream yogurt. One day each year. For life. Just $4.65. How cool is THAT?! =)

-- Ryan

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So I may yet get a year when I can attend the meeting and get some free YoCream yogurt. One day each year. For life. Just $4.65. How cool is THAT?! =)

I think it would be cool to have enough free time in my life that i thought it was worth my time to attend a shareholders meeting to get free yogurt! I can't even find time to make it to Ben & Jerry's when they have free ice cream day.

On the other hand, since you're mentioning Costco, you can get all kinds of samples there while doing your shopping. Plus, it's hard to beat a HUGE hot dog and a drink for 1.50.

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On the other hand, since you're mentioning Costco, you can get all kinds of samples there while doing your shopping. Plus, it's hard to beat a HUGE hot dog and a drink for 1.50.

Guilty! Guilty! Guilty! =)

I don't know of anything they'll be giving out at the shareholders meeting, though. Just fun and entertainment, I guess.

-- Ryan

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Plus, it's hard to beat a HUGE hot dog and a drink for 1.50.

Ah, the $1.50 special!!! Best bargain in town!!! Something interesting to note here is that that $1.50 price for the hot dog & soda hasn't changed since the day Costco first opened! Their loss leader...

Also, we've attempted to visit Costco in as many foreign countries as possible. Canada is quite similar to ours although they did have a lot of candy I grew up with in Europe and haven't seen in the US--so that was neat (like Aero Bars, Kinder Ei & Milka).

Korea was a bit more different--they served seafood pizza--with entire fish (heads & all) on the pizza. They also had squid and other interesting seafood on the pizzas. They still had the old faithful hot dog & soda & chicken bakes, though--much to our kids' relief. Oh, they even had books in English in addition to the Hangul--that was neat. Catered a tad to the expats over there, I presume. Oh, the coolest thing about the Costco we visited in Seoul was that it was on multiple floors! You had to take this 'rolling sidewalk' that allowed your carts to 'lock in to the moving floor' between the clothing/home furniture upper section and the grocery section/bulk items down below. They also had 6 floors of parking--AND WE STILL DIDN'T FIND A SPOT until we reached the roof--where we waited 25 minutes for a spot!!! Yes, it's a big draw over there!!! Perhaps that may explain the stock doing so well? Never saw a Costco in China. But we did see IKEA and really wanted to check it out (especially to see how the prices compared)--just didn't get a chance to.

dvn2r ckr

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Ah, the $1.50 special!!! Best bargain in town!!! Something interesting to note here is that that $1.50 price for the hot dog & soda hasn't changed since the day Costco first opened! Their loss leader...

Well, when it comes right down to it, hot dogs and sodas aren't exactly a lot of money. I suspect they probably still make a small profit on that deal--just not as much as they did when they first opened their stores, though! Costco doesn't seem like the kind of company that would peddle around stuff like loss leaders.

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They also had 6 floors of parking--AND WE STILL DIDN'T FIND A SPOT until we reached the roof--where we waited 25 minutes for a spot!!!

As big as companies like Costco or even Wal-Mart are, I read somewhere that Wal-Mart only has about 3% of the world retail market. That's still an enormous amount of growth potential! Glad to know Costco is doing so well in Seoul, though. =) Good for the stock if they can grow well overseas. *nodding*

-- Ryan

Yes, today marked the day that Costco held its annual shareholder meeting. And I attended. Alone, by my little self. The day was dark, threatening rain. In fact, it sprinkled. I walked downtown, then took the bus the rest of the way to Bellevue. Large signs pointed the way to the conference room.

It was great. Just like walking into a Costco. Lots of people, lots of displays, and lots of people handing out free food. =) I nabbed a small bag of organic carrots and apple slices, picked up a bag of goodies including a battery-operated fan for those warm sunny days (that doubles as a radio, no less!).

Two thirds of the room had chairs for everyone to sit for the presentation at 4:00. I took a seat at the far side of the room and started reading a copy of the annual report they were handing out at the door. Good times. =) While munching on my apple slices and washing it down with a bottle of official Costco water.

When the presentation started, I would guess there were probably about 300 people in the room. It was rather more crowded than I expected, though as it turned out, taking a seat at the far end of the room was a stroke of genuis. Even though there was standing-room-only on the left side of the room (facing the stage), half the chairs on the right side of the room were still empty. Even after the first guy who got up on stage to speak told all those people standing on the left side of the room that there's still a lot of empty seats left on the right side of the room, nobody moved. Idiots. *shaking head* Or maybe they just wanted to hang out closer to the food. =)

The first order of business was 'official business' like voting proxies and stuff. Nothing especially exciting. Two people who had submitted shareholder proposals got a chance to make their case, though it seemed kind of stupid to me since most people had already voted online or through the mail weeks before. But hey, they had their chance to talk. It would be like scheduling a presidental debate ON the day of the election. Gotta do it before the election to do any good. *shrug*

Then came the presentation from the CEO. It started with a short film about "Costco in the news"--which was rather entertaining including lots of clips from people like Leno and Ellen Degeneres mentioning Costco, and Ellen 'taking her show to Costco' which was very funny stuff.

Then the dreaded PowerPoint presentation where he basically covered everything you could find in the annual report. That part was kind of boring, although I did learn that the new Costco in Hillsboro--my home before I lost my job--is the WORLD'S LARGEST COSTCO! Well, now I *have* to make a point of going there the next time I'm in Hillsboro. =) I also learned that their store in Hawaii is the largest volume store they have selling over $300 million in goods last year. That's a heck of a lot of money for one store, don't you think? But that's just trivia. Not really anything I'd make investment decisions on.

After the presentation was over came the question and answers period where shareholders could ask the board or CEO any questions they wanted. I was shocked when half the people left! This was the good part, in my opinion! The presentation was just a bunch of fluff. Stats from the annual report, ra-ra-ra, "we're the best" kind of stuff. Paints an artificially rosy and cheery picture. But at this point, shareholders can ask the tough questions that will make any CEO squirm, and that's the best part, I think. =) I can't believe so many people skipped out on it! Showed up for free food and the "we're the best" presentation, and left before the good stuff started. Losers.

Some of the questions were pretty boring. One person from Hawaii thanked Costco for stocking 'local goods' like pineapple wine or something. Blah, blah, boring.... Another person asked the CEO what he felt were the two or three top issues the company was facing. Yeah! That's the kind of question I want to hear! Put them on the hot seat!

Not that I have anything against the CEO, but I'd rather him recognize things he's done wrong and how he'll fix it for the future. I want him to keep an eye on competitive threats such as Wal-Mart. Don't lob easy stuff at him like thanking him for stocking pineapples in their Hawaii store. *rolling eyes* It's the one time each year you can ask these people the tough questions, and I want people asking them!

Eventually that questions ran out, and that was that. I grabbed another bag of organic carrots and apple slices on my way out. I ate the carrots and saved the bag of apple slices for Amanda later that evening. =)

And that was my experience at the first annual shareholder meeting I'd ever attended. =) If I knew about all the free food, though, I'd have definitely shown up before! Keep this in mind for next year. You can probably find me helping myself to food and the goodie bags there next year. ;o)

-- Ryan

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I also learned that their store in Hawaii is the largest volume store they have selling over $300 million in goods last year.

When I read that, it reminded me of something one of my college professers told my class. He said that people from Japan and other countries don't have mega stores like walmart, you might walk down the street and see a store for toothbrushes, another for soap, etc. So people will fly to places like Hawaii and go shopping. For normal stuff. Factoring in the plane ride and all, if they buy enough stuff they will save money in the long run. They'll go once a year or so and just stock up. Weird huh? Now I've never checked this out personally, but reading that made me wonder if it's true...

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I also learned that their store in Hawaii is the largest volume store they have selling over $300 million in goods last year.

The reason why the Costco in Hawaii (was it Pearl Harbor or Kona?) is doing so well is because they sell these Hawaiian Ginger Cookies (like fortune cookies with bits of ginger baked in) that are INCREDIBLE! Last time we were at the Costcos in Hawaii we bought five giant (Costco sized) containers of these and stuffed our luggage with them. Made them last an entire year--now we have to go back--just for those cookies! ;) Oh, by the way, the hotdogs & soda combo was still $1.50 at both Pearl Harbor & Kona (the best value in town!). Everything else there was marked up quite a bit from the mainland prices-I wonder if that's part of the reason why they sell so much in volume $$wise? dvn2r ckr

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I also learned that their store in Hawaii is the largest volume store they have selling over $300 million in goods last year.

When my Dad lived in Taiwan, he would fly trips to Hawaii and that was the most "USA-American" place that he was able to get to! He would stock up on American Brands at Costco and take it back to Taiwan-- small stuff, like cereal, licorice, peanut butter or maybe Ginger cookies! Also he would bring his flight attendants who were all Asians and they would load up with a couple of carts full of stuff!! The first time he took them there, he had no idea that they were going to GO CRAZY! But it became the thing to do on their Hawaii Layovers! (this was in the early 90's)

-Amanda

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Everything else there was marked up quite a bit from the mainland prices-I wonder if that's part of the reason why they sell so much in volume $$wise?

I have a friend who was stationed in Pearl Harbor and he told me that the prices for everything there are marked up. When you establish residency or are stationed there, you are given a card that gets you the lower prices. I bet this is why the high $$.

Of course, I could have misunderstood, but I think it makes sense as well.

Moonduck

And so, the question must be asked: What was the CEOs answer for the question about the three issues Costco will be facing in the near future? Inquiring minds want to know...

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The reason why the Costco in Hawaii (was it Pearl Harbor or Kona?) is doing so well is because they sell these Hawaiian Ginger Cookies

Actually, they said it was in Honolulu.

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the hotdogs & soda combo was still $1.50 at both Pearl Harbor & Kona (the best value in town!).

Speaking of the hotdogs and soda combo.... One person asked if Costco used any loss leaders, and Costco's answer was a definitive no. They're might be times they sell goods at a loss, but it wasn't intentional!

They also said they'd NEVER raise the prises on the hotdog and soda combo so long as the current management stayed in place. I guess that's their way of bribing the stockholders to continue electing all the board members year after year. ;o)

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What was the CEOs answer for the question about the three issues Costco will be facing in the near future?

Apparently the Texas market is challenging them. Wal-Mart is a tough competitor. Battling the world's largest retailer can be difficult for any company, I suppose. And he said they sometimes have trouble acquiring certain products. Seems some companies don't want to sell to Costco because they're afraid it'll hurt their margins if they do.

-- Ryan

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One person asked if Costco used any loss leaders, and Costco's answer was a definitive no.

Yes, I used that term incorrectly. Many 'regular' grocery stores use loss leaders to bring folks into the store--take a hit on one product so you can jack up the price on other products folks will pick up along their way to nab the 'royal discount'. Costco doesn't 'lose' money on the hotdogs/soda--they just don't make as much of a profit as they probably could. I'm sure the wholesale cost of hotdogs and soda isn't even close to $0.15--so they're still making a major $1.35 profit on the whole shabang (minus whatever it costs to operate the store/pay the employees). Another reason why it pays to buy generic products in bulk and prepare meals yourself!

Sorry we couldn't join you at the meeting. I researched the stock but forgot to actually 'purchase' it--since I couldn't find it in any of our mutual fund arrays a few weeks ago. Well, based on your personal assessment from yesterday, is it still a good investment? Do you recommend dropping some $$ on their stock? dvn2r ckr