One of the most common financial pitfalls out there is having a poor money attitude. And among the worst money attitudes is the idea that all you need is more money, and that once you have it, your financial problems will be solved.
The harsh reality is that, while making more money can help your situation, chances are that it’s not truly a money earning problem you have; it’s a money management problem.
One of the retirement options that I often think about is whether it makes sense for me to retire overseas one day. Being born in Asia and then growing up in Canada, there are quite a few places that attract our family on many levels. For one, we have many family and friends all over the globe. In fact, there are more friends and family of ours living in Hong Kong, Taiwan, or Canada than where I live. Moving to any of these places wouldn’t be much of an adjustment because the connections we have will make our family feel instantly at home.
Still, I live in Southern California and I love the lifestyle here. When I’m no longer working and the kids are out of the nest, the primary motivation for me to move would be due to the high cost of staying here. Whenever I think about how I can reduce my recurring expenses, I always think of how high our basic living costs are when we compare them to many other parts of the world. It’s almost like I have to pay just to breathe the air in America because I have to pay this amount even if I spent $0 on food.
So how much more are we talking about? Let’s take a look.
[ continue reading… ]
My husband and I met with our financial advisor last week to tweak some of our retirement savings. As an aside, our advisor mentioned it was unlikely that our generation — all three of us are currently in our mid-thirties — will retire at 65. Instead, he believed we will probably work until we’re 70.
Aside from the disappointing idea that we’re still in for another 30 years of working, the prospect of pushing retirement off a few years is not necessarily a negative one. Here are some of the reasons why a later retirement could be beneficial — or a major problem.
[ continue reading… ]
Timeshares are vacation properties that several people share partial ownership of – usually over a time span of about 25 years. They’re typically located in exotic locations that are popular tourist destinations.
Starting in Europe in the 1960s, the concept of timeshares spread quickly to the United States. They became a huge trend with seasonal vacationers who liked the idea of “owning” property in an exotic area for a fraction of the price.
Today, timeshares are generally sold through high-pressure sales presentations that present them as a more financially responsible way to vacation.
COVID has decimated the timeshare industry for obvious reasons. Still, you know they are eventually going to come back and get people. In case you’re thinking about purchasing a timeshare now or in the future, here are some things you should know before you sign.
[ continue reading… ]
Many of you know about the 4% retirement withdrawal rule, which claimed that a retiree can withdraw 4% from their nest egg each year, adjust the amount for inflation, and have it last for 30 years. The 4% rate is pretty much the gold standard when it comes to retirement planning since the Trinity report was published in 1995. You may also have heard many experts claim how 4% is no longer safe because the study was based on stock market history and how the stock and bond portfolio that the nest egg needed to be invested in won’t provide nearly the same return as what history has provided us. That can only mean one thing – a lower withdrawal rate.
I’ve spoken to many of you about this because the reasoning is undeniable. I mean, bonds used to provide good single-digit and at times double-digit returns in the past. The 10-year treasury is expected to return roughly 1% a year these days. Stock prospects aren’t faring much better. The vast majority of metrics people use to value the stock market is flashing warning signs of how everything is severely overvalued.
It’s scary, especially when some are now saying that 2.5% is the new withdrawal rate. Now 1.5% may not sound like much, but changing the withdrawal rate to the lower number means a 37.5% reduction in spending money in retirement. You can try to save more to keep the same retirement income, but we are talking about having to accumulate 60% more in savings. That’s working years if not decades longer.
So what are soon-to-be-retirees to do? Luckily, the situation isn’t nearly as dire as the doomsayers are claiming. Here are a few reasons why:
[ continue reading… ]
You’ve been dating for six months now, and it’s feeling right. He gives you butterflies when he walks into the room. You think he could be “the one.”
The problem is that you’ve been withholding some information from him.
You’re not sure if you should even be bringing up such a topic so early on in a relationship – and quite frankly, this secret has the potential to make your new love interest run for the hills.
You have $90,000 in student loan debt and $45,000 in credit card debt. You’re not quite sure what his financial situation is, or if yours will scare him away. What do you do?
[ continue reading… ]
Free signup to get a free ebook on How to Save Money on Everything! Constantly expanding, it will be the biggest money saving ebook available, and it's FREE! →
(I hate spam and promise that your information will never be shared.)
