How long do you plan to work?
In a very depressing recent article on CNN Money entitled “Delaying Retirement: 80 is the New 65”, it was reported that at least a quarter (1 in 4) of middle class Americans are failing to prepare for their retirements and will likely work until the age of 80. Keep in mind that the average life expectancy of a person is only 78.
Here are some more sad facts that were quoted:
• The respondents (ages 20 to 80) had a median savings of $25,000. However, their median retirement savings goal was $350,000.
• 30% of people in their 60’s had saved less than $25,000 for retirement.
• Three-fourths of middle-class Americans expect to work throughout retirement (Remember: If you work through retirement because you need the income, then you aren’t truly retired yet)
Have you ever considered that the hobby of blogging could lead to a six-figure income? Although it sounds crazy, that is exactly what happened to blogger Darren Rowse. Starting with a website about his hobby in photography, Rowse went from earning a few dollars a month to earning enough to quit his full-time job.
With the help of fellow blogger and co-author Chris Garrett, Rowse decided to publish a book entitled “ProBlogger: Secrets for Blogging Your Way to a Six-Figure Income”. The book is a collection of tips and advice on the art and business of building a blog. It not only provides several introductory step-by-step processes for getting started and keeping your blog running, but it also provokes many questions about what type of subject you’d like to write about, how to keep things interesting, etc.
Category: Blogs & Internet Sales
/ Tags: affiliate marketing
, Chris Garrett
, Darren Rowse
, David Lindahl
, Get Rick Click!
, Jonathan Rozek
, Marc Ostrofsky
, passive income
, Search Engine Optimization
, The Six-Figure Second Income
This one comes courtesy of my wife, courtesy again from the blog “Mama Cheaps”.
“Discount Mags” is running a Black Friday Magazine Sale from now through November 27 with some very unbelievable deals on magazine subscriptions; 80 to 90% off the normal price for 1 – 4 year subscriptions! Perfect for Christmas gifts!
I’d like to be the first one to give you a gift this Christmas season: My free, downloadable Christmas Present Planner.
If you really want to save money this season, the first thing you need to do is get organized so you don’t over-spend. This handy Microsoft Excel file will allow you to keep track of both your initial budget and the amount you actually spent on each individual. Overall, it will help you keep your spending on track and make sure that everyone on your list is well taken care of.
Category: Savings & Budgeting
/ Tags: budget
This is one of those books that proves that great advice is timeless.
For anyone new to this title, “How to Win Friends and Influence People” is a book about exactly what the title suggests: Using psychological techniques and strategies to effectively connect with other people. The advice is not only intended to help you get along with people, but also how to persuade them in a non-confrontational way. Although this book was written in 1936, it is still just as effective as ever.
The book was written by the now famous Dale Carnegie. Born into poverty, Carnegie became a well known author and public speaker on the subject of self-improvement. Today the Carnegie name is used to promote several public speaking courses that are taught according to his teachings.
When I was younger, my bank had this thing called a “Christmas Club” program. The way it worked was I’d sign up for a set amount of money I wanted to save for Christmas ($100 – yeah, I know big spender – I was about 10 years old) and then I’d receive a small book with 50 payment slips ($2 each). Each week throughout the year, I’d pay off each of those slips. As part of the program, the bank would pay the last one. Although this wasn’t a groundbreaking investment (about a 2% return), it did teach me a little something about saving and preparing for Christmas:
• Christmas is a lot easier when you save little by little throughout the year
• Getting free money for the act of saving isn’t bad either
Now that I’m all grown up, I have a little different strategy for getting ready to make my Christmas purchases. Basically, I now use multiple streams of cash back, rewards, and other programs to finance my gifts. Although this takes a little planning and approach, it’s well worth the effort.
Did you receive a weird email from “OnlineDVDclass”? If you did, it’s not some stranger trying to sell you unnecessary courses over the Internet. No, you’ve officially been invited to take part in a class-action lawsuit involving Netflix and Wal-Mart.
This past fall, I ditched Netflix when they decided to double the cost of their subscription service (click here to read my post). Apparently, I wasn’t the only one. Thousands of other subscribers have left as well, and the stock is down 63% over the last 3 months.
When it comes investing, very few of us think about “defense” as much as we think about the “offense”. It’s easy to want to put money into something when the value of it goes up and up, but we never think about how it could come back down (and fast!). Sound familiar? Anyone with a mortgage knows this scenario all too well.
So as the major indexes begin to perk up, it’s natural to wonder:
• What will the next big economic bubble will be?
More importantly, how can I avoid the next big bubble and not become a victim? There are a lot of interesting theories and opinions out there. The following are a few recent ones I’ve collected.
How much money will you need to save in retirement? Think you’ll need $2 million? You may be surprised, but according to a recent article on MSN, experts believe that $2M should be the new goal for most Gen Y’ers. In fact, they also suggest that Gen X’ers strive for a $2M nest egg as well.
Although I appreciate articles of this nature and understand that their intended purpose is to reach a broad general interest audience, there were a few things that raised a red flag:
1) $2M may be way more than some people will ever need.
2) The $2M goal is based on working until you reach age 70. Who wants to do that? What if your timeline is compressed so that you can retire earlier?
Using conventional wisdom, a $2M portfolio with a 4% withdrawal rate would give you $80,000 of income each year (excluding taxes). Sounds pretty good, but do you make this much now?
It’s not that hard to figure out how much income you’ll need in retirement (see my previous post on how to do this). All things considered, many experts believe you’ll only need about 80% of your current income to continue your same standard of living into retirement. So really that $80,000 figure applies if you’re making $100,000 each year right now! Making a little less than that? Then read on….
Since my last post on refinancing, I have visited a great deal of posts and articles on the web and have learned that we have something is common:
• Many of us have the same problem with trying to get a refinance.
That problem is:
1) We are underwater (our house is worth less than what we still owe). In mortgage terms, our loan-to-value (LTV) ratio is above 100%.
2) We faithfully make our payments on time
3) We have no other home equity or liens against our property
4) We have private mortgage insurance (PMI)
Number 4 is the real kicker. In most instances, this is where all the government help you see advertised all over hits a brick wall.
Category: Mortgage & Refinance
/ Tags: Bills.com
, Home Affordable Refinance Program
, home loan
, principal mortgage insurance
, private mortgage insurance
, Quicken Loans