Even though workers are aware the U.S. retirement system is changing, many are not adapting in ways that are likely to leave them with a comfortable retirement.
That's according to the 17th annual Retirement Confidence Survey (RCS). The survey is sponsored by the nonpartisan Employee Benefit Research Institute (EBRI) and Mathew Greenwald & Associates, a survey research firm.
Key findings of this most recent survey include:
• Pension-plan changes by employers have left nearly half of workers less confident about the benefits they will receive from a traditional pension plan. However, those experiencing a decline in retirement benefits often fail to react constructively. Among workers who have personally experienced reductions in the retirement benefits offered by their employer, nearly two in five indicate that they have done nothing in response to these reductions.
• Many workers are counting on employer-provided benefits in retirement that are increasingly unavailable. Forty-one percent of workers indicate they or their spouse currently has a defined benefit pension plan, while 62 percent say they are expecting to receive income from such a plan in retirement.
• Almost half of workers saving for retirement report total savings and investments (not including the value of their primary residence or any defined benefit plans) of less than $25,000. The majority of workers who have not put money aside for retirement have little in savings at all: Seven in 10 of these workers say their assets total less than $10,000.
"We have known for decades that major changes were taking place in the U.S. retirement system," said Jack VanDerhei, a Temple University professor, EBRI fellow, and co-author of the 2007 Retirement Confidence Survey. "This year, we found that a substantial number of workers realize that the shift from traditional pensions to 401(k) plans affects them personally. Unfortunately, only 24 percent of those affected indicate that they will save more on their own, and only 8 percent indicate that they will save more in the employer's plan as a result of these changes."
EBRI research suggests that the vast majority of employees are likely to need some type of additional savings if they hope to end up with the same amount of retirement savings they would have expected prior to the change.
"Workers need to consider all the possible ways they can save for retirement," says Paul Schott Stevens, president of the Investment Company Institute (ICI), an underwriter of the survey. "A workplace plan like a 401(k) makes it easy, because all the research shows that automatic payroll deductions are the most painless way to save. But even if your employer doesn't offer a 401(k), you can set up an Individual Retirement Account and make steady contributions." ICI is the national trade association for mutual funds, which hold nearly half the assets in 401(k) plans and IRAs.
The RCS, begun in 1991, is the country's most established and comprehensive study of the attitudes and behaviors of American workers and retirees toward all aspects of saving, retirement planning and long-term financial security.
By: Stacey Moore
Wednesday, April 18, 2007
Friday, March 23, 2007
Quick Unsecured Loans - At The Speed Of Light
A loan not secured by an underlying asset or collateral is an unsecured debt. This implies that the borrower is free from the risk of repossession of the asset by the lending institution. But, as it is said, there is nothing like free lunch on this earth. Every offer comes with terms and conditions. In case of unsecured loans, the rate of interest charged by the borrower is much higher than that on secured loans. In fact, the difference between the two is enormous. At present, the current APR on secured loans starts from 6.2% and that on unsecured loans is from 13%. And the base rate decided by the Bank of England is 5.25%. So, that explains all.
Still, as the UK loan market trends reveal, borrowers prefer to pay more APR on unsecured debts than pledge their home as security. There are many reasons as to why borrowers prefer fast unsecured loans to secured ones, which usually require prolonged procedures. Some of them are cited below.
Fast processing of loan- Loans that don't require any security are quick unsecured loans. They take less time in processing and approval as well. In case of secured loans, it generally takes around two to three months for the loan money to actually get transferred to the borrower's account. So, when in need of quick cash, apply for unsecured personal loans.
No risk of repossession- The major drive that forces Brits to go for unsecured loans. A secured loan would put collateral against the value of a loan, guaranteeing that the borrower's home, car, or any other asset will be handed over to the creditor, in the case of default. If one seeks a fast unsecured loan, property is not attached to the value of the loan. This relieves the borrower's mind from tension and uncertainty.
Most Britons already in debts- Latest study by one of the leading financial websites reveal that most Britons are in debt from head to toe. This also refers to the increase in personal insolvencies that multiplied extensively last year. So, most Britons either have lost their homes due to defaults on their secured loans, or already incurred so many debts against their homes that they are left with no equity in their homes.
There are many other factors that incline borrowers towards quick unsecured loans, less and easy documentation is another one. Then, there is no need of property evaluation and other related legal formalities. So, apply for unsecured personal loans when your financial requirements are immediate and short-term.
By: henryneal
Still, as the UK loan market trends reveal, borrowers prefer to pay more APR on unsecured debts than pledge their home as security. There are many reasons as to why borrowers prefer fast unsecured loans to secured ones, which usually require prolonged procedures. Some of them are cited below.
Fast processing of loan- Loans that don't require any security are quick unsecured loans. They take less time in processing and approval as well. In case of secured loans, it generally takes around two to three months for the loan money to actually get transferred to the borrower's account. So, when in need of quick cash, apply for unsecured personal loans.
No risk of repossession- The major drive that forces Brits to go for unsecured loans. A secured loan would put collateral against the value of a loan, guaranteeing that the borrower's home, car, or any other asset will be handed over to the creditor, in the case of default. If one seeks a fast unsecured loan, property is not attached to the value of the loan. This relieves the borrower's mind from tension and uncertainty.
Most Britons already in debts- Latest study by one of the leading financial websites reveal that most Britons are in debt from head to toe. This also refers to the increase in personal insolvencies that multiplied extensively last year. So, most Britons either have lost their homes due to defaults on their secured loans, or already incurred so many debts against their homes that they are left with no equity in their homes.
There are many other factors that incline borrowers towards quick unsecured loans, less and easy documentation is another one. Then, there is no need of property evaluation and other related legal formalities. So, apply for unsecured personal loans when your financial requirements are immediate and short-term.
By: henryneal
Friday, March 9, 2007
Explain To Me How Much Debt Is Too Much
So how can someone tell if they have too much debt? In this article we will try to explain just how much debt is too much. Although you would think it would be easy to tell if you have too much debt, but unfortunately many people do not know until they are close to financial ruin because of their debt problems.
If you are not missing any bill payments, this does not mean that you have your debt under control. You may be only paying the minimum payments to your creditors, but in this way you could be paying too much money in interest. A great way of seeing just how much interest you are accumulating over the next couple of years on say your credit cards if you just make the minimum payment is to use a debt calculator.
One way of knowing if you have too much debt is if you find that you are unable to pay the bills each month. But what you should never do is choose to pay one bill instead of another and it is vital that all the bills coming in do not exceed what you are actually earning (after tax). If you find yourself in this situation then the first thing that you need to do is cut costs wherever you can immediately. This may mean that you no longer go out every night with your buddies or that you cut back on the amount of times you go out to dinner each month.
Another way of realizing how much debt is too much is if you are denied credit. Often a person will be turned down for credit if they are considered to be a high risk. A great way of seeing what the problem is if you are denied credit is to get hold of your credit report immediately and see what is wrong.
Above we have provided just a number of ways of finding out how much debt is too much where your personal finances are concerned. So if you are worried at all that you may have too much debt then the first thing you should do is look at what your monthly expenses are and see any ways in which they can be reduced.
There are many ways to scale back so you can have more cash to pay your bills with. You need to really look at your lifestyle and make appropriate cutbacks. This may be hard and it may be painful but if you have too much debt there may not be any alternative.
By: Douglas Taylor
If you are not missing any bill payments, this does not mean that you have your debt under control. You may be only paying the minimum payments to your creditors, but in this way you could be paying too much money in interest. A great way of seeing just how much interest you are accumulating over the next couple of years on say your credit cards if you just make the minimum payment is to use a debt calculator.
One way of knowing if you have too much debt is if you find that you are unable to pay the bills each month. But what you should never do is choose to pay one bill instead of another and it is vital that all the bills coming in do not exceed what you are actually earning (after tax). If you find yourself in this situation then the first thing that you need to do is cut costs wherever you can immediately. This may mean that you no longer go out every night with your buddies or that you cut back on the amount of times you go out to dinner each month.
Another way of realizing how much debt is too much is if you are denied credit. Often a person will be turned down for credit if they are considered to be a high risk. A great way of seeing what the problem is if you are denied credit is to get hold of your credit report immediately and see what is wrong.
Above we have provided just a number of ways of finding out how much debt is too much where your personal finances are concerned. So if you are worried at all that you may have too much debt then the first thing you should do is look at what your monthly expenses are and see any ways in which they can be reduced.
There are many ways to scale back so you can have more cash to pay your bills with. You need to really look at your lifestyle and make appropriate cutbacks. This may be hard and it may be painful but if you have too much debt there may not be any alternative.
By: Douglas Taylor
Wednesday, February 21, 2007
Replace your debts with debt consolidation loans for a brighter financial future
Sometimes, our dreams and desires cost us quite dear, especially when we forget to put leashes on them. There is an abundance of sources of easy credit around us that makes it really difficult for people to resist the temptation surrendering to the dreams and desires. Credit cards have nearly invaded our financial lives. They are usually termed as 'plastic money' as they can be used in place of 'money' to purchase various things "on credit". The allure of credit card is difficult to resist.
Personal loans are also quite easily available in the UK loan market. So, personal loans sell like hot cakes among the Brits.What people fail to see beyond the gleam of these easy sources of finance is the latent financial trouble (when these credit sources are used indiscriminately) that may arise in future.
Credit cards and unsecured personal loans carry a high rate of interest on them. Nowadays, it is commonly seen that people keep as much as 4-5 credit cards with them. In addition, there may be a few personal loans existing against their names. Managing multiple debts is not easy. There are many instances when people miss repayments of one or more debts as they are unable to keep track of so many repayments. In addition, too many high-interest debts drain a large chunk of the income of a person.
So, it is essential to streamline your debt situation before it goes out of control. Debt consolidation is quite effective in helping a person to reduce his/her debt burden. Debt consolidation loans can be used to merge all the pending debts into a single loan.
Cheap debt consolidation loans are devised with the purpose of enabling people to replace their costly debts with a single cheap consolidation loan. The cost of a particular loan product not only depends upon the quoted interest rate but also upon the various other costs, fees and penalty charges associated with the loan product. The overall cost of these loans is comparatively lower as compared to the other types of debt consolidation loans in the market.
by Jake Nathan
Personal loans are also quite easily available in the UK loan market. So, personal loans sell like hot cakes among the Brits.What people fail to see beyond the gleam of these easy sources of finance is the latent financial trouble (when these credit sources are used indiscriminately) that may arise in future.
Credit cards and unsecured personal loans carry a high rate of interest on them. Nowadays, it is commonly seen that people keep as much as 4-5 credit cards with them. In addition, there may be a few personal loans existing against their names. Managing multiple debts is not easy. There are many instances when people miss repayments of one or more debts as they are unable to keep track of so many repayments. In addition, too many high-interest debts drain a large chunk of the income of a person.
So, it is essential to streamline your debt situation before it goes out of control. Debt consolidation is quite effective in helping a person to reduce his/her debt burden. Debt consolidation loans can be used to merge all the pending debts into a single loan.
Cheap debt consolidation loans are devised with the purpose of enabling people to replace their costly debts with a single cheap consolidation loan. The cost of a particular loan product not only depends upon the quoted interest rate but also upon the various other costs, fees and penalty charges associated with the loan product. The overall cost of these loans is comparatively lower as compared to the other types of debt consolidation loans in the market.
by Jake Nathan
Tuesday, February 6, 2007
Dangers Of Home Equity Loans
A home equity loan is very attractive to home owners since it can help increase immediate cash on hand, provide a way to fund repairs or renovations of the home, and offer an extended line of credit. A fixed rate equity loan can reduce monthly payments, and an extended line of credit can help pay down high-interest credit cards or personal debt. Still, there are some dangers of home equity loans.
Some lenders and brokers can promise a lower interest rate or lower monthly payment, but the payment can go up if the borrower's credit score decreases. Homeowners who are not able to meet the demands of the change can put their house at risk of repossession if they cannot repay the debt in time. Consolidating debts or refinancing a home in this way is not a good idea if the borrower ends up instead with a larger loan that they cannot pay off easily.
Even when money is saved on the home equity loan or line of credit itself, some borrowers may end up overspending in other areas. If credit cards are paid off, they may start buying things on credit again and end up making monthly payments beyond what is affordable. Plus what happens when the funding estimated for a project the loan was obtained for - house repairs, college expenses, unforeseen medical emergencies - exceeds the initial funding amount? Borrowers may find themselves spending more money than they sought to save.
Some mortgage companies might charge excessive fees that the homeowners don't know about until they sign the final papers. This is becoming increasingly common, and it's important to know all of the terms and final costs well before hand. Other poor lender practices include equity stripping, loan flipping, and over borrowing. Equity stripping is when a lender will inflate the income on an application to secure the loan. This results in the borrower not being able to pay back the amount. Loan flipping is when a lender increases the loan amount by increasing the current mortgage. This results in an overextended amount that the borrower cannot pay. Over borrowing involves extending a loan for more than the house is worth. This borrower cannot receive a tax deduction on this amount and may not be able to keep up with the payments.
Although there are many advantages of a home equity loan, there are some dangers and pitfalls to look out for. Sensible budgeting and financial practices are important to stay ahead of payments, no matter how small or large the amount may be.
by Patricia Lewis
Some lenders and brokers can promise a lower interest rate or lower monthly payment, but the payment can go up if the borrower's credit score decreases. Homeowners who are not able to meet the demands of the change can put their house at risk of repossession if they cannot repay the debt in time. Consolidating debts or refinancing a home in this way is not a good idea if the borrower ends up instead with a larger loan that they cannot pay off easily.
Even when money is saved on the home equity loan or line of credit itself, some borrowers may end up overspending in other areas. If credit cards are paid off, they may start buying things on credit again and end up making monthly payments beyond what is affordable. Plus what happens when the funding estimated for a project the loan was obtained for - house repairs, college expenses, unforeseen medical emergencies - exceeds the initial funding amount? Borrowers may find themselves spending more money than they sought to save.
Some mortgage companies might charge excessive fees that the homeowners don't know about until they sign the final papers. This is becoming increasingly common, and it's important to know all of the terms and final costs well before hand. Other poor lender practices include equity stripping, loan flipping, and over borrowing. Equity stripping is when a lender will inflate the income on an application to secure the loan. This results in the borrower not being able to pay back the amount. Loan flipping is when a lender increases the loan amount by increasing the current mortgage. This results in an overextended amount that the borrower cannot pay. Over borrowing involves extending a loan for more than the house is worth. This borrower cannot receive a tax deduction on this amount and may not be able to keep up with the payments.
Although there are many advantages of a home equity loan, there are some dangers and pitfalls to look out for. Sensible budgeting and financial practices are important to stay ahead of payments, no matter how small or large the amount may be.
by Patricia Lewis
Saturday, February 3, 2007
Im Broke, How Can I Afford...
I'm still amazed every time someone comes to me complaining that they don't have any money to put into their business and that they're broke.
I mean what have you been doing with your money man?!?
Plain Truth: If you don't have any money you won't make it my friend? it's that simple. You have to at least have some money. Say $200-$500. I don't care what the self-styled slick gurus tell you. If you're flat out of cash your dead in the water before you can even start.
Now let me tell you another thing?. I DO NOT BELIEVE THAT YOU ARE BROKE! You're a liar and a self deluded one at that if you think you are.
I mean how many Starbucks or soda do you drink a day?
How many beers a week do you drink?
How many cigarettes do you smoke?
How much meat do you eat?
How many new clothes have you bought in the last month?
How many "gifts" have you just had to buy?
How many magazines or newspapers have you bought this month?
How many CD's?
How many snacks?
How much candy do you eat a week?
How many TV dinners?
How much fast food have you been eating?
How much did you spend on the lottery?
How much did your TV cost you?
How much money do you give to your church?
How much are your monthly car payments?
So these are really essential to living are they??. No they're not, they're self-indulgent habits! Nothing wrong with that if you can AFFORD them. But you tell me you're broke! Wake up! Ding-dong!
I used to walk the streets with no-more than $3 bucks in my pocket to last me the day. Yes I did that for months on end until something happened. I got mad, real mad. Not at the world but with myself.
You see I have always had a dream of being personally free, being self-reliant, totally in charge of my time and cash flow, beholden to no-one... not government, not masters, not gurus.
Now walking around with $3 bucks aient much fun. It hurts in the pit of your stomach. And when I only had $7 a day to feed my family (yup there were others my pathetic state was impacting) I can tell you, I felt at times of doing something pretty dumb to my body and mind? and occasionally did.
If you live in the Western world, you live in the richest part of the planet with the most opportunities the world has ever seen at any point in the history of the human race.
If you want to see poverty take a trip to India or any other developing country. I have, and what I saw made me realize my $3 a day "poverty-trap" was simply an ego-trip. Kids working from 5am to 10pm every day for crumbs of bread. Rags and bones. So please don't tell me you're broke and poor, you don't know the meaning of the word.
But now I'm not broke, now I'm not looking like a tramp feeling sorry for myself.
How did I change it, and get the money to start my information publishing business. I'll tell you. It's real simple? and I want you to do it too:
Every single time you buy something, I don't care how many cents or pennies or bucks it might have cost? you MUST ASK FOR AND KEEP THE RECEIPT!
At the end of the day in a small note book or on a scrap of paper, total up what you spent your money on. Now ask yourself: "Was what I bought today absolutely essential?" If not, take it back for a refund, you have the receipt after all.
Now put that refunded money in a pot or a jar and label the jar "My Business Building Fund". Better still, don't buy the goodie, treat or trinket in the first place and save the cash.
If you really want to get in control of your finances you absolutely, positively must raise some working capital, and the only way to do that is to stop buying crap and investing the money in yourself.
I mean do you really need that coffee or will water do? Do you really need that steak or will beans or rice suffice along with some healthy cheap vegetables thrown in?
"But I want to have a coffee, beer, steak" I hear you say. Well don't tell me that you're broke then. All you've done is exchange what little cash you have for something else other than investing in your business building fund.
No-one forced you. No-one but yourself is to blame for where you are right now.
You are in the situation you find yourself because of the choices and decisions you have made during the course of your life ?. Stop pointing your fingers outside yourself?. You are the problem, and as such YOU ARE THE SOLUTION!
So stop spending money on useless trinkets, and superfluous goodies and snacks.
Bread, water, vegetables? you don't need anything else to eat. Chances are you have a wardrobe full of clothes already so you don't need anymore of those... correct? Sell your TV it spews lies anyway. Use TV time to learn, surf the web looking for opportunities etc. Sell your car? Either take public transport, which in the long term is cheaper than a car or get a bicycle. And yes it's gonna pop your skull with frustration.
But use that frustration to get your act together and absolutely commit to get with the program and learn how to become a self-reliant cash generating human being. And when that day comes, you'll be able to walk into your bosses office, smack a cream pie in his/her face and walk off to the beach knowing you are, at the end of the day, an immensely and supremely powerful individual?. You simply forgot!
About The Author
Rob Taylor has been marketing online since 1996. He's sold anything from books, debit cards, security products to art prints. Take advantage of his battle tested marketing strategies that could quietly make you five figure cash profits every single month. Subscribe free to his Internet Marketing Strategies newsletter.
I mean what have you been doing with your money man?!?
Plain Truth: If you don't have any money you won't make it my friend? it's that simple. You have to at least have some money. Say $200-$500. I don't care what the self-styled slick gurus tell you. If you're flat out of cash your dead in the water before you can even start.
Now let me tell you another thing?. I DO NOT BELIEVE THAT YOU ARE BROKE! You're a liar and a self deluded one at that if you think you are.
I mean how many Starbucks or soda do you drink a day?
How many beers a week do you drink?
How many cigarettes do you smoke?
How much meat do you eat?
How many new clothes have you bought in the last month?
How many "gifts" have you just had to buy?
How many magazines or newspapers have you bought this month?
How many CD's?
How many snacks?
How much candy do you eat a week?
How many TV dinners?
How much fast food have you been eating?
How much did you spend on the lottery?
How much did your TV cost you?
How much money do you give to your church?
How much are your monthly car payments?
So these are really essential to living are they??. No they're not, they're self-indulgent habits! Nothing wrong with that if you can AFFORD them. But you tell me you're broke! Wake up! Ding-dong!
I used to walk the streets with no-more than $3 bucks in my pocket to last me the day. Yes I did that for months on end until something happened. I got mad, real mad. Not at the world but with myself.
You see I have always had a dream of being personally free, being self-reliant, totally in charge of my time and cash flow, beholden to no-one... not government, not masters, not gurus.
Now walking around with $3 bucks aient much fun. It hurts in the pit of your stomach. And when I only had $7 a day to feed my family (yup there were others my pathetic state was impacting) I can tell you, I felt at times of doing something pretty dumb to my body and mind? and occasionally did.
If you live in the Western world, you live in the richest part of the planet with the most opportunities the world has ever seen at any point in the history of the human race.
If you want to see poverty take a trip to India or any other developing country. I have, and what I saw made me realize my $3 a day "poverty-trap" was simply an ego-trip. Kids working from 5am to 10pm every day for crumbs of bread. Rags and bones. So please don't tell me you're broke and poor, you don't know the meaning of the word.
But now I'm not broke, now I'm not looking like a tramp feeling sorry for myself.
How did I change it, and get the money to start my information publishing business. I'll tell you. It's real simple? and I want you to do it too:
Every single time you buy something, I don't care how many cents or pennies or bucks it might have cost? you MUST ASK FOR AND KEEP THE RECEIPT!
At the end of the day in a small note book or on a scrap of paper, total up what you spent your money on. Now ask yourself: "Was what I bought today absolutely essential?" If not, take it back for a refund, you have the receipt after all.
Now put that refunded money in a pot or a jar and label the jar "My Business Building Fund". Better still, don't buy the goodie, treat or trinket in the first place and save the cash.
If you really want to get in control of your finances you absolutely, positively must raise some working capital, and the only way to do that is to stop buying crap and investing the money in yourself.
I mean do you really need that coffee or will water do? Do you really need that steak or will beans or rice suffice along with some healthy cheap vegetables thrown in?
"But I want to have a coffee, beer, steak" I hear you say. Well don't tell me that you're broke then. All you've done is exchange what little cash you have for something else other than investing in your business building fund.
No-one forced you. No-one but yourself is to blame for where you are right now.
You are in the situation you find yourself because of the choices and decisions you have made during the course of your life ?. Stop pointing your fingers outside yourself?. You are the problem, and as such YOU ARE THE SOLUTION!
So stop spending money on useless trinkets, and superfluous goodies and snacks.
Bread, water, vegetables? you don't need anything else to eat. Chances are you have a wardrobe full of clothes already so you don't need anymore of those... correct? Sell your TV it spews lies anyway. Use TV time to learn, surf the web looking for opportunities etc. Sell your car? Either take public transport, which in the long term is cheaper than a car or get a bicycle. And yes it's gonna pop your skull with frustration.
But use that frustration to get your act together and absolutely commit to get with the program and learn how to become a self-reliant cash generating human being. And when that day comes, you'll be able to walk into your bosses office, smack a cream pie in his/her face and walk off to the beach knowing you are, at the end of the day, an immensely and supremely powerful individual?. You simply forgot!
About The Author
Rob Taylor has been marketing online since 1996. He's sold anything from books, debit cards, security products to art prints. Take advantage of his battle tested marketing strategies that could quietly make you five figure cash profits every single month. Subscribe free to his Internet Marketing Strategies newsletter.
Saturday, January 27, 2007
5 Ways to Absolutely Destroy Your Finances!
Ben Stein has a book called How to Ruin Your Finances. To be honest, I'm not sure an entire book is needed on the subject-there are some fairly quick and easy ways to accomplish the task. (Before continuing, let me be clear that I do not actually recommend such activities-This is a reductio absurdum argument, meant to spur an opposing realization.)
#1: Buy everything, yes, everything
You never know when a neighbor may come over to use your dish towels, so make sure they are Ralph Lauren, less than six months old, and all the same color. While you're at it, buy things that you don't need now, but may need in the future, such as eleven new sweaters, a top-of-the-line treadmill, and some bestselling novels (just in case you ever read the 38 already on your bookshelf).
#2: Charge all purchases
That way you can itemize all your spending, which is sort of like budgeting. When the bill comes each month, be consistent-pay only the minimum. If there's anything left at the end of the month, see #1.
#3: Don't be concerned about retirement
That's what Social Security is for! Our country is run by intelligent economists, and they'll make certain there's enough for you in 25 years.
#4: Buy a $4 million home, with 1% down, and a 30-year mortgage
Then, spend your entire working life paying it off. Don't worry if you haven't invested in anything else-you can sell the home when you reach 65, rapidly adjust your lifestyle to match your new one-bedroom condo, and live off the difference.
#5: Start being frugal 'tomorrow'
Please, finish your $7 mocha latte and go about your day. After all, this article was obviously written for the other guy!
© 2005 Matthew S. Clement, All rights reserved
Matthew S. Clement is a financial planner and investment advisor representative with Financial Network Investment Corporation, member SIPC. He provides holistic wealth management and retirement planning to individuals and businesses. He can be reached in New York at (845) 942-8578, or by email: ClementM@FinancialNetwork.com
#1: Buy everything, yes, everything
You never know when a neighbor may come over to use your dish towels, so make sure they are Ralph Lauren, less than six months old, and all the same color. While you're at it, buy things that you don't need now, but may need in the future, such as eleven new sweaters, a top-of-the-line treadmill, and some bestselling novels (just in case you ever read the 38 already on your bookshelf).
#2: Charge all purchases
That way you can itemize all your spending, which is sort of like budgeting. When the bill comes each month, be consistent-pay only the minimum. If there's anything left at the end of the month, see #1.
#3: Don't be concerned about retirement
That's what Social Security is for! Our country is run by intelligent economists, and they'll make certain there's enough for you in 25 years.
#4: Buy a $4 million home, with 1% down, and a 30-year mortgage
Then, spend your entire working life paying it off. Don't worry if you haven't invested in anything else-you can sell the home when you reach 65, rapidly adjust your lifestyle to match your new one-bedroom condo, and live off the difference.
#5: Start being frugal 'tomorrow'
Please, finish your $7 mocha latte and go about your day. After all, this article was obviously written for the other guy!
© 2005 Matthew S. Clement, All rights reserved
Matthew S. Clement is a financial planner and investment advisor representative with Financial Network Investment Corporation, member SIPC. He provides holistic wealth management and retirement planning to individuals and businesses. He can be reached in New York at (845) 942-8578, or by email: ClementM@FinancialNetwork.com
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