Let’s face it. Americans, and for that matter, most of the western world, are ill-prepared for their retirement. Reading ER blogs and personal finance websites will not give you the real picture as the authors and commentators are a progressive bunch who, collectively, are better off financially than others. The real truth, of course, is scary. In this post, I analyze two charts from a well-researched American study to explain what this means to you and why you should care.
A scoreboard keeps us engaged in the game. As a player, you need to focus on the game and not on the scoreboard, but once in a while, it helps to lift your head up to see what the score is, so you can change your game accordingly. A scoreboard also keeps us grounded, gives us a chance to pat ourselves on the back when we are doing well, or say meh when we are doing just OK and importantly, give us a kick in the shins (not this shins) or in the a** if you prefer, when we need to catch up.
One of the common themes among self-improvement seminars, self-help gurus and life coach experts is this idea that you are limiting yourself by working in a job and that you must own your own business. The clarion call for entrepreneurship is tempting indeed. One well-known blogger has built a thriving business telling others to create their own business and not to be the ‘slave’ by working in a job. Personal development is critical for everyone, but do you have to start a business to develop yourself?
When it comes to a home, most people look at buy vs. rent decision in isolation. Mainstream finance magazines contribute to this thinking by presenting the numbers of buy vs. rent decision as if those direct costs are the only ones that matter. Some bloggers take this discussion forward (but barely) by including the opportunity cost of investing the down payment or other exclusive house-related costs in an S&P 500 index fund. This is still incomplete. Few people consider the bigger opportunity cost of home ownership while working in a corporate career.
Elections are an exciting time in a democracy – campaign rallies, conventions, debates, allegations, mud-slinging and fund-raising. The end objective is to earn the investment (vote) of as many citizens as possible. Amidst all the hoopla, one only hopes that truth and fair process get a chance to influence voters on the best candidate to lead the country. This Presidential election season in U.S. has moved up the excitement scale, mainly due to the polar opposite candidates fielded by both major parties.
Col. Jessup: I ordered his assets be transferred off the base as I believe his investing life is in danger. Lt. Kaffee: You mean his investing is not value investing? Col. Jessup: Is there another kind? Lt. Kaffee: What about growth investing, dividend investing, momentum investing and investing in distressed assets? Col. Jessup: Son, I […]
Folks, you have all heard this before. “If you don’t indulge in that Starbucks coffee every day and invest the savings, you will get rich” or something like that. I have heard this story far too many times from far too many ‘experts’. It has even found a place in some bestseller books that sold a million copies! Time to put this overused latte story to test. Let’s compare the latte math with the real math @ TFR.
This post took 10 years in the making. It has its origins in 2005 when I moved to the Washington DC area during the peak of the real estate bubble. Soon after, I have been recommended, advised, urged and sometimes even warned about my foolish decision to rent.
There are 10 factors in my life journey that I see as integral to a meaningful and successful life, and net worth is only one part of it. Each of these factors directly or indirectly contribute to my financial and well-being goals. I hope to share my experience (both pains and pleasures) and learn from your comments on each of these areas. Here we go: