Be obsessed or be average and other bits

Unfortunately, as with other traits, parents pass along their spending habits to their kids. I say unfortunately, because few among us make saving money a priority. […read more] (Center for Economic Research at Boston College) – That said, it’s nice to see high school students receiving a personal finance education. The earlier kids learn to start saving and investing for their future, the better off they’ll be. One of the most important aspects of investing is time in the market. (Time in the market, not timing the market.) [… read more]

I am a firm believer that everyone should contribute to their 401(k). However, there are those who think otherwise. Meet Grant Cardone, a self-made millionaire who has started five companies of his own. Grant, on his website, suggests that people shouldn’t invest in their employer’s retirement account. Sure you get an extra $6,000 (or so) a be-obsessed-of-be-averageyear as a corporate match, but that money is tied up in the company’s retirement account and can’t be touched (without penalty) for 30 years (or however long it is until you retire. Granted, your choices are only investing in the options offered by the company’s plan — and those options might be inferior to what you can get in a regular retail account — but I believe that few among us are disciplined to invest that money wisely. Further, if you invest that money in a Roth 401(k) — if your company offers that option — that money will grow tax free. Not tax deferred, tax free. Put $10K away for 30 years (assuming an 8.5% annual return) and you will be sitting on $1.25M when you retire. And unlike a traditional 401(k), that money can then be withdrawn free of any tax burden. You will also have another $750K from your corporate match. That money however, will be subject to taxation when it is withdrawn. I like that option for most people. Mr. Cardone has a book, Be Obsessed of Be Average, and his website is certainly worth investigating. He has a lot of good information. He and I just disagree on this point. [… read more]

Mortgage rates are up 4 basis points in the week. The average mortgage rate on a 30-year fixed rate mortgage in the USA is now 3.49%. [… read more]

Apps that can help you save more money during the holiday season. [… read more]

 

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