The Fed's stagflation fear

Here is an article explaining the negative of reducing rates to help the economy. There is only so much a rate cut can do. What can happen is that inflation can take over and the economy won't recover. The average person is stuck in a place where things cost more and the economy is poor, so no new money will reach them. How can the economy recover if the average consumer is spending more money on gas, groceries and other essentials. The average person is left with little or no money to buy consumer goods. When the fed doesn't care about inflation and it is a real thing then the economy has no chance to recover because all of the limited spending in an economic slowdown goes to essentials. (The Fed's stagflation fear)

Fed Cut: What It Means for Your Mortgage

(Fed Cut: What It Means for Your Mortgage) Here is a quick read article about what someone thinks will happen to typical mortgage.

Myths of Leasing Cars

Here is the best article I have seen about leasing a car. I like how it tells you want each part of your lease is and that every bit of it should be negotiable. I also like that it explains that the common thoughts about leasing might be true, but that there are terms you can change to make it work better for certain situations. (Five top car-leasing myths)

Skip the 20% Down Payment

This article says that savings for a down payment could prevent you from doing other things that could be better for you financially. It is a good article, but keep in mind that instance gratification is most peoples largest financial problem. This article is not telling you to buy a home without a down payment. It is telling you to consider some of the other things you can be doing with your money. (Skip the 20% Down Payment)

6 Money Dilemmas

Here is a good quick article with advice on six common questions in the personal finance world.

1. Pay off a credit card OR fund your 401(k)
2. Save in a Roth 401(k) OR a regular 401(k)
3. Lease a car OR buy a car
4. Prepay your mortgage OR invest
5. Buy a home OR rent a home
6. Take Social Security early OR late

(6 money dilemmas)

Roth IRA or Not?

This is the best article I have found to date that address the debate over using Roth accounts as opposed to traditional tax differed accounts. The last section of the article is what makes the biggest statements to me. It said that an economist ran several senerios with both a Roth and regular retirement accounts. The results were more wins for one then the other, but the differences being rather insignificant. Remember in the end not stating to save to wait for the answer to this debate is your worst choice. Waiting a month, year, or decade is going to have a far worst result on your retirement savings that putting your money in a Traditional or Roth IRA. (Roth IRAs: Good for You or Not?)

No Free Ride For Subprime Borrowers?

This article attempts to explain to a reader that there is no free ride for a subprime borrower. The point the article makes is that the intro rate for an ARM for a subprime borrower is higher than what a responsible person getting a 30-year fix mortgage at prime would be. I understand this point, but by not letting the rate reset an additional 2 or 3 percent higher they are giving these borrowers something they don't deserve. You are putting hundreds of dollars a month into their pocket. They planned poorly. Why do they deserve to get money in their pocket? Their credit was poor. They earned the original rate and the reset rate. A responsible person earned their prime rate and a subprime borrower earned their higher payment after 2 or so years. Interest rates went up and the market went south. They took a gamble on paying the maximum amount they could afford for a house and it didn't pay off. They took a risk. They lost. Put that house they shouldn't be able to afford back on the market and let the market adjust and jump and fall and do its thing. I would love some feed back with another view. I can't understand why they deserve this? (No free ride for subprime borrowers)

A 401K Where The Company Invests For You

I found this article that seems to address an interesting point with retirement plans. It is a 401K plan that the employee allows the company to invest as it sees fit. This situation gives the benefit of a defined benefit plan where you don't have to worry about where to invest your savings. This seems like an interesting solution for the average person that does not have the time or desire to research investments. It lets someone that should have more information and resources invest your money for you. The idea seems great, but at the end of the day it could make a huge difference who is investing for you. If there is a well qualified team as there is com trolling pension funds, then this could turn out to be a great thing. If companies start to throw departments together with unqualified people this type of system could turn into a huge mess. Tell me what you think about this type of plan. (Redrawing the Route to Retirement)

Subprime Mess Winners and Losers for Rate Lock Solution

The number one solution for intervention is the rate lock solution for this subprime mess. The idea is that all the people with adjustable mortgages will have their initial lower interest rate locked in for the entire length of the loan. I hate that a responsible person who took on a loan they could afford and took the extra interest up front to protect themselves down the line gets screwed. That is the person that deserve help. The person that has proved they can take care of money. Why give it to people that took a risk that didn't work in their favor? They didn't plan ahead for when the worst might happen. Why do these people deserve the help? We have a market for a reason. Let it learn its lesson and figure itself out. (Proposed rate freeze to reduce foreclosures)

101 Ways To Save Around The Holidays

Here is a good list of 101 things to do to save money around the holidays. I hope you enjoy the article. (Trim Expenses While You Trim the Tree)

A Guide For Your December Spending

Here is a good little quick read article about how to keep yourself under control during the holiday season. The author start by suggesting some great things to do with your holiday bonus. Then the author goes on to give tips on how to stay on track and not over spend in December. (A December Spending Survival Guide)

Good Ideas For Your Average 401K

Here is an article I found helpful on what to do with an average to poor 401K plan. This first point is that you make sure to use it if your are getting an employer match. The cardinal sin of a 401K plan is to no participate and lose out on a match. This article does a good job of pointing out easy strategies for directing your money in a weak 401K. (Don't Panic If Your 401(k) Plan Stinks)

New Retirement Income Rule

This article talks about the old retirement rule of needing 80% of your pre-retirement income in retirement. It should be a pretty simple concept that this is just a general rule and depending on what you do in retirement that percentage could be off by quite a bit. If you are going to travel the world in your retirement that is going to cost you more that you are currently spending on bills and the grocery store. If you plan to live in the room over your child's garage and play with the grand kids all day then you could possibly need a lot less than that. This article just points out that you need to plan out what your expenses will be in retirement to know what percentage of pre-retirement income you will need. (Ask the Mole: Retirement - How Much You'll Really Need)

Investing To Beat Inflation

Here is an interesting article that monitored several areas of stocks through years of inflation to find out the places that perform the best. This article takes a different view on how to beat inflation. (Investing to Beat Inflation)

Cyber Monday

Here is a good quick article on some tips to score good deals today on Cyber Monday. (Beat the mobs on 'Cyber Monday')

Protecting your home's value

Here is a quick article about how to protect your homes value amid this foreclosure frenzy. Just a few good tips for anyone looking to keep a little extra value in their neighborhood. (Protecting your home's value)

Holiday Shopping Tips

Here is a good quick read article with some good advice on how to save around the holidays. The reason I put up this article is because I think it has a couple different ideas. (Ten Ways to Fatten Your Wallet on Black Friday)

Costs of Raising Children

Here is a depressing article that reminds me that it is going to be very costly to have kids. This article claims that the cost to raise a kid are way above what they should be and economically speaking it doesn't make much sense to have children. This is a good read, but keep in mind most people don't make the decision to have children based on economics. On the other hand several people do chose not to have children based on finances. Just keep in mind when planning for children that there are great impacts on your finances. (Is Raising Kids a Fool's Game?)

No-Match 401K

(A no-match 401(k): Still worth it) This is a good question a person or two is probably wondering. This article gives the answer to one man's questions about where to invest when you company 401K plan does not provide a match. The answer is that it can still be worth it to invest in a 401K with no match as opposed to a taxable account. In this article the man is already maxing out a Roth IRA. I would be interested to confirm my guess that it would be advisable to put money in a Roth IRA before putting money in a 401K plan that had no match.

Pet Ownership Costs

This is a fresh look at the cost of owning a dog. The author brings up the fact that there is more to money than just want it buys you. When you buy a dog you don't just get shots and food with the money you put out. You get a friend which you can't measure the benefits of. (A Not So Shaggy Dog Story)

Rent vs. Buy

The debate rages on with the currently falling real estate values. Does the subprime effect change which side wins? This author has a few good examples of places where renters are winning in this market. I tend to like the idea of buying for more non-financial related reasons. I want the feeling of owning what I live in. I don't want to have to worry about what the rent will go up this year. Or for any half way decent reason being asked to leave or not being able to resign a lease when my term is up. I see the argument financially that you could save money by renting and the money invested properly could be worth a lot more if it is put in the stock market. Just remember if you are going to use this as your excuse for renting to actual put that "saved" money in the stock market. Too many times we use the idea that we can save money by doing something, but they we throw the money away in another wasteful place. Then at the end of the month we are in the same boat of wondering where all our money went. Read this article for a little light on how current events are shaping the rent vs. buy debate. (Now That Housing Has Soured, Renters Are Glad They Didn't Buy)

Employer or Company Paid Insurance Pros and Cons

This article does a great job of explaining all the things that need to be considered when looking into buying life insurance and you have the option of buy additional amounts from your employer. This is the first article I saw that explained that you have to pay taxes on coverage your employer pays for that is above a certain amount. This complicates things a little, but if you think through it you will be fine. The basic idea is that if you are in good health you should find a better deal outside your employer and along with the cheaper rate you get to keep the coverage if you ever leave the company. (Pros, Cons Of Company-Paid Insurance)

10 Financial Planning Steps You Shouldn't Put Off

This article starts off by telling you that 25% of people report themselves as chronic procrastinators. The article then proceeds to give ten places where you can't afford to wait in your financial planning. Procrastination is a financial plan killer. Not starting to save is your biggest mistake when you are in your 20's. So along with a lot of the classic items such as starting to save. This article brings up a few less typical items. Take a second to read this and then get to work on your financial planning. Taking the time today, not waiting is always worth something. (10 Financial Steps You Can't Afford to Put Off)

Before Baby Set Up Costs

The following has the costs of individual items required before bringing a baby home. The ranges are varied for simple reasons. You can go all out on every little thing or can get reasonable pieces that work.

Nursery Setup: $2,000

Crib with a mattress ($160 and $750)
Bedding set ($35-$270)
Crib blankets and sheets ($8-$20 each)
Mattress cover ($10-$20).
Changing table ($70 and $600) then add $40 for a changing pad and cover.
Dresser ($90 and $650)
Rocking chair ($90-$500).

Ways to save: Do your nursery furniture research and prioritize. You may want to spend more on the rocking chair to use for future generations, and less on the crib and dresser.


Items for outside the nursery: $1,500

Stroller ($30-$300)
Car seat ($35-$280)
Playpen or portable crib ($60-$180)
Baby carrier or sling ($20- $140)

For at home:
Swing ($45-$130)
Play center ($50-$125)
Bouncer seat ($30-$90).
Monitor (about $80)
High chair ($45-$240)
Diaper bag (about $35)
Baby gate ($35-$250).

Ways to save: Buy double-duty gear. Some strollers convert to high chairs for an easy switch at the restaurant; and many diaper bags can take you from newborn to toddler in function and style.

Retire Early: Here's Some Advice

(Cash Out Early) This article explains what a few people are doing to obtain their dream of retiring early. I like this article because it gives both examples of actual people and what exactly they are doing, but it also give a generic example of a 35 year person and how much more they would have to save to retire 10 years earlier. Everyone would love to retire early, but as the article points out it takes a lot more savings to retire 10 years earlier.

Retiring early also presents problems with health insurance. Most people wh0 retire don't get health benefits from their previous employer. The cost of health insurance can be a huge hurtle to overcome when retiring early. Medicare won't cover you till you turn 65 and that is the current requirement. The age could raise as the program digs its self deeper and deeper into a hole. Looking for part-time work that provides benefits could be the perfect situation. But if you truly want to quit working, you are going to need to do a lot of planning and saving.

Retire Rich: Beat the Market by Doing Nothing

(Retire Rich: Beat the Market by Doing Nothing) Here is a good article for our now volatile market. It is the first article in a while that I have read that talks about dollar cost averaging. This is a good concept to keep in mind as the market turns down and you have a long horizon for your retirement earnings to work themselves out.

College Credit Card Debt

(Buy Now, Pay Forever) This is a great article for young people to think about before getting into credit card debt. It is something that is very hard to get out of. This article talks about some developments with college students and credit card debt.

Two New 401K Options

(Harvest a Rich 401(k)) This article talks about two new options for 401K's. The first is a Roth 401K which lets you take tax free withdraws in retirement, but there is no tax advantage up front. The second options is a 401K annuity. This is a product you buy through your 401K that gives you guaranteed income for the rest of your life once you retire. The article does a good job of explaining where each of these could make sense in your retirement planning. They also do a good job of giving you numbers for how much a good amount to stick in the 401K annuity would be. This article gives a good amount of advice along with producing the facts on these products.

Your 5-minute guide to money in your 20s

(Your 5-minute guide to money in your 20s) Good quick read article. Article name explains it all.

10 Little Expenses That Add Up

Coffee: According to the National Coffee Association, the average price for a cup of brewed coffee is $1.38. There are roughly 260 weekdays per year, so buying one coffee every weekday morning costs almost $360 per year.

Cigarettes: The Campaign for Tobacco-Free Kids reports that the average price for a pack of cigarettes in the United States is $4.54. Pack-a-day smokers fork out $1,650 a year. Weekend smoker? Buying a pack once a week adds up, too: $236.

Alcohol: Drink prices vary based on the location. But assuming an average of $5 per beer including tip, buying two beers per day adds up to $3,650 per year. Figure twice that for two mixed drinks a day at the local bar. That's not chump change.

Bottled water from convenience stores: A 20-ounce bottle of Aquafina bottled water costs about $1. One bottle of water per day costs $365 per year. It costs the environment plenty, too.

Manicures: The Day Spa Magazine Price Survey of 2004 found that the average cost of a manicure is $20.53. A weekly manicure sets you back about $1,068 per year.

Car washes: The average cost for a basic auto detailing package is $58, according to Costhelper.com. The tab for getting your car detailed every two months: $348 per year.

Weekday lunches out: $9 will generally cover a decent lunch most workdays. If you buy, rather than pack, a lunch five days a week for one year, you shell out about $2,340 a year.

Vending-machines snacks: The average vending machine snack costs $1. Buy a pack of cookies every afternoon at work and pay $260 per year.

Interest charges on credit card bills: According to a survey released at the end of May, the median amount of credit card debt carried by Americans is $6,600. The average interest rate on a standard card is about 13%. Making the minimum payment each month, it will take 250 months (almost 21 years) to pay off the debt and cost $4,868 in interest. Ouch!

Unused gym memberships: Costhelper.com reports that the monthly service fee at gyms averages between $35 and $40. At $40 per month, an unused gym membership runs $480 per year.