The FIRE (Financial Independence, Retire Early) movement is gaining more attention than ever before. Most of those dedicated to achieving FIRE follow a program of aggressive saving and investment that will allow them to step back from the world of work much earlier than traditional retirement savings plans would allow. There are a few misconceptions […]
The trap that gets even financial experts and banks In the mid-1950s, my parents bought their first house using a fixed-rate 15-year mortgage. The payments were exorbitant – almost half of my dad’s take-home pay. By the time they paid off the loan in the late 1960s, the same payment cost only as much as a […]
I’M SUPPOSED TO HAVE SET ASIDE HOW MUCH?! What the Millionaire Next Door’s “Wealth Equation” does well and where it’s less accurate How much should you have saved for retirement by now? Isn’t that something most of us would dearly love to know, so we can tell how well (or less well) we’ve done? The […]
The Roth IRA Is a Sweet Deal in Many Cases In a previous article, I mentioned how I wish the Roth IRA would have been available when I started saving for retirement in the early 90s. Back then, I lived in Texas, where there are no state or local income taxes, and my annual income […]
Hint: it depends on your personality… We’ve all been there. Student loans to help pay for tuition. A business loan to help rent an office space and furnish it before you see any paying clients. Credit card debt to cover expenses while you start building your practice. It’s tough to get your education and start […]
Free stuff! Woohoo! Who doesn’t love free stuff?! It almost seems like you can get something free anywhere you turn these days. That’s because people don’t hesitate to accept something for free, where they’ll be reluctant to pay for it. However, free giveaways aren’t always great. It’s no surprise that the threshold for saying “yes” […]
I know. I’m weird. I love numbers. But maybe not so weird after all, if it helps you reach FIRE faster. You know. FIRE. Financial Independence, Retire Early? How Far Away Is Your FIRE Point Now? In “How Soon Can You Reach Your Personal FIRE Point?” I show a table that lets you figure out […]
Thoughts about the fundamental basis of “Financial Independence, Retire Early” In the early 90s, I was approached by an Ameripise representative who wanted to sell me retirement planning services. I was taken aback, given that I was in my early 30s and broke, but I have to give the guy credit for being forward-looking :). […]
With a nod to Ben Le Fort for mentioning in an article this Wall Street Journal (WSJ) tool for estimating retirement costs, here is why I think you should absolutely use the tool, but also how to fix it so the results it gives you have a chance of working out. The Importance of Making a Retirement Plan […]