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 … [Read more...] about Will Your Retirement Cost $2 Million?
Archives for November 2011
Adventures in Refinancing, Chapter 3
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. … [Read more...] about Adventures in Refinancing, Chapter 3
Wasted Time Waiting for Service Appointments Equals $38 Billion!
Every once in a while, I come across a great poll or statistic that makes me smile. This is certainly one of them. In an article from CNN called “Waiting for the Cable Guy is Costing Us $38 Billion”, it claims that American workers lost approximately $37.7 billion dollars in 2011 in the form of wasted time while waiting for in-home services and appointments. This is according to an IBOPE Zogby poll. Waiting for service is one of those things we occasionally have to deal with and cringe when we have to. There have been a number of times I’ve had to leave work early or even take the day off just to meet with someone about our washing machine, sprinklers, cable, etc. It’s bad enough that the only available hours are from Monday through … [Read more...] about Wasted Time Waiting for Service Appointments Equals $38 Billion!
Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 2
In Part 1, we introduced the question of whether it is better to payoff your mortgage or simply invest the money. We also walked through an example that demonstrates how your mortgage is really the same thing as an investment where you earn the same rate of return as your mortgage interest rate. Back to the Question: So after the previous example, you’d probably think that that was the answer and we’re all done. Unfortunately, it’s not that simple. There are two main variables that change the circumstances: … [Read more...] about Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 2