The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early CampFIRE


Subject:  Re: New book by James 'Dow 36,000' Glassman Date:  8/11/2002  2:13 PM
Author:  intercst Number:  73506 of 883336

hocus objects,

Dominguez experienced his "steadily declining standard of living" due to his "all fixed income" strategy from age 29 to 57. I think most of us expect to be fairly active during those years.

I'm tempted to conclude from out-of-the-blue attack on the godfather of the Retire Early movement that Intercst the Ridiculer himself is developing a serious case of thin-skin disease.

This is one of those cases where the board need not have any sort of debate as to whether what intercst says is shot full of holes or not. He doesn't have any spreadsheets with worrisome numbers and such to fool any non-MasterMinds in our midst into thinking that, since he says it with such assurance, there must be some sliver of truth to the claim. Here he is just parading his fantasy life out for all to see without the slightest scrap of evidence to back up the assertion.

I refer all doubters to the August 1996 issue of Kiplinger's Personal Finance Magazine page 36:


"Of course, achieving financial independence is easier if you start as a well-paid professional. Dominguez was a Wall Street analyst before he retired 25 years ago at age 31, and [Vicki] Robin [his wife] was directing and acting in New York City. Now both live simply, in a group house, on $500 to $600 a month apiece in income from Treasury bonds"


Dominguez retired with a $100,000 portfolio of US Treasury securities and $7,000 per year in living expenses. Expenses of $500 to $600 per month, each for two people, equate to $12,000 to $14,400 per year. To keep pace with inflation, Dominguez's $7,000 per year in 1969 would need to grow to $30,360 per year by 1996 to maintain the same purchasing power.

I happen to like the vast majority of what's in Your Money or Your Life and have recommended it the REHP web site, but with the strong caveat that the financial advice to "put everything in Treasury bonds" that Dominguez provides in Chapter 9 be ignored. It's only appropriate for those that see a group home and a $500/month budget in their future. Dominguez unfortunately died of cancer in 1997. I wonder if his $500/month budget included health insurance?

This financial nonsense may appeal to hocus, but I'm not aware of anyone with even rudimentary arithmetic skills who would follow this approach.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us