Retirement

Borrowing Against A Retirement Plan To Make A 20% Down Payment

My wife and I are currently contemplating an interesting question: should we borrow against our retirement plans in order to make a 20% down payment and avoid PMI or an adjustable rate mortgage? We’ve arrived at an answer to this question, but it’s not an answer that works for everyone, so let’s work through the …

Categories: Housing, Retirement

The Treasury Note Retirement Plan

A few weeks ago, I wrote an overview of what treasury notes, bonds, and bills are and how they work. In the discussion, I dropped this little tidbit which turned out to be alluring to a few of my readers: I know of at least one person with several million dollars sitting in treasury notes; …

Categories: Investing, Retirement

What Do I Need To Retire? A Simple Way To Calculate Your Number

Quite often, I’ve been asked by my relatives how I have such confidence in my esitmation of what I’ll need to retire. I told them that I have developed a very specific process for developing an estimate of the amount of money I’ll need to retire. Please note that I am not including any pension …

Categories: Retirement

Review: The Number

This week, The Simple Dollar takes a look at Lee Eisenberg’s The Number, a frank, well-written, and entertaining book that addresses the one number that so many of us obsess over: the amount of money we each need to live the rest of our lives the way we want to. For the last few months, …

When Your Investment Income Covers Your Living Expenses

About a month and a half ago, I read Your Money or Your Life and found it to be a relevatory experience (check out my review of the book). One particularly interesting part was a discussion of a concept that the authors referred to as the “crossover point.” Since then, I’ve seen reference to this …

Another Approach To Retirement Planning: Balancing A Retirement Target Fund Myself

Regular readers of The Simple Dollar are aware that I’m going through the process of starting my Roth IRA. For those unaware, so far I’ve decided to start a Roth IRA this year, found a company (Vanguard) that I’m comfortable with as a manager, developed a detailed plan for making it happen this year, and …

Categories: Investing, Retirement

Musings On Diversifying My Portfolio

The phrase “diversify my portfolio” has always made me giggle. An old friend of the family, who was quite proud of his highly blue-collar attitude and lifestyle, came into a large amount of money. He had a financial advisor invest it for him and teach him a little bit, and so he’d stand there, wearing …

Categories: Investing, Retirement

The Number: Overview

This week, The Simple Dollar takes a look at Lee Eisenberg’s The Number, a frank, well-written, and entertaining book that addresses the one number that so many of us obsess over: the amount of money we each need to live the rest of our lives the way we want to. For the last few months, …

Planning For My Roth IRA: Looking At Vanguard’s Target Retirement Funds

This year, I’ve made a commitment to start a Roth IRA and I’ve developed a very specific plan to make it happen. I’ve also decided to use Vanguard to manage the IRA because they’ve treated me very well in the past and their returns are strong. Now comes the hard part: how exactly do I …

How To Start a Roth IRA Successfully

Many people often think in the back of their heads that it would be a great idea to start a Roth IRA, but they let it stay there in the back of their heads because it’s easier to do other things than plan for an optional retirement plan, especially if one is already deducting money …

Categories: Money, Retirement

How To Retire In Your 30s … Without Selling Your Soul

Recently, I came across an article at WikiHow entitled How to Retire in Your 30s which pledged to describe a plan by which a person could retire by their 40th birthday in only six short steps. For the most part, the article is spot-on but out of touch with reality. Let’s take a look. 1. …

Categories: Money, Retirement

Live Like You Were Dying

So many of us have imagined what we would do with our lives if we had just one year to live. Most of these fantasies involve quitting a job, spending time with loved ones, and traveling around the world. What’s keeping you from doing this right now? Debt? Responsibilities? Don’t know? Don’t worry, you’re not …

Figuring Out What Money Really Is

My wife and I used to sit around and wonder what we would do if ten million dollars fell on our lap. I used to imagine buying fancy cars and an amazing house and more electronic gadgets than I can even imagine. They were great dreams, the fantasies of a twentysomething yuppie couple wanting to …

#10: The Nest Egg

This is part of a series in which we re-evaluate Money Magazine’s “25 Rules To Grow Rich By”. One “rule” will be re-evaluated each weekday until the series concludes; you can keep tabs on the action at the 25 Rules index. Build a Large Retirement Nest Egg Rule #10: Aim to build a retirement nest …

Categories: Investing, Money, Retirement

Investment Management: The Automatic Thousandaire

Recently, I mentioned that I strongly value an emergency fund and that I had reached my short-term goal of a two month emergency fund, currently held in a high-interest savings account. Since I reached this goal, I’ve continued to automatically drop the same large amount each week into that account. “That’s great,” you might think, …

Categories: Investing, Retirement

Facing My Financial Fears: Roth IRAs

This week, The Simple Dollar is doing a five part series on financial topics that scare me just a bit. Researching and then writing about them will (hopefully) alleviate some of that fearĀ  Other fears include buying a car. Even when I was at the worst of my overspending habits, I always contributed enough to …

Categories: Retirement