Category Archives: penguin philosophy

Who Drives a Used Car?

car

 

Everyone drives a used car!

Some  people buy a new car.  Some people buy a used car.  If you buy a new car you pay more than if you buy the same car used.  But when you buy it, it becomes a used car the instant that paperwork is signed.

That new car smell is just the volatile plasticizers from the interior polymers hitting your nose.  Yes, that nice smell (probably poisonous) – is only an impurity from the manufacturing process.

Oh, wait.  I looked it up for you.  That smell is indeed toxic: http://www.cbsnews.com/8301-504763_162-57378591-10391704/new-car-smell-is-toxic-study-says-which-cars-are-worst/ .  The research found that more than 275 chemicals were airborne in a new car.  The health risks were linked to problems with the liver, thyroid, testes, ovaries, kidneys, and blood.

Honestly, new cars should be sold at a discount since they are swimming in a toxic cloud for any unlucky passengers or driver.  Ironically, people are willing to pay extra to have the opportunity to deeply inhale this cloud.

Luckily, the Independent Penguin always seeks a good used car value if he needs a car.

A Safe Rate

bengen

 

You will see lots of pontification on the internet about safe withdrawal rates from a wealth reserve over the course of retirement.  Bla, bla, bla.  Most of them reference the 4% withdrawal rate  and then debate it’s use.  But they don’t reference the  originator of this groundbreaking paper.

William Bengen wrote the paper that has led to the 4% safe withdrawal rate discusssion.  I get the feeling that many of his detractors haven’t even read it.   It makes alot of sense if one reads it.

The paper has a pdf link here: www.retailinvestor.org/pdf/Bengen1  .

The upshot for the Independent Penguin is that if the iceberg is equal to 25X (annual expenses) then he will never have to work for cash again.

As an independent thinker you will appreciate the chance to read the original paper.

Riddle me this

retro moneybag

David and Charles Koch are brothers.  They run Koch industries and are incredibly wealthy and powerful.  They can buy anything they want.

And yet, the Independent Penguin has something they can’t get!  What is it?

Answer: Enough