Saving too much… really, is that a possibility that people are even remotely concerned about? Or is it just a meme used to justify an expensive third decade? I love Morningstar, I really do. My respect for the company is one of the reasons I had a particularly exaggerated eye-rolling session upon reading Morningstar’s report […]
A few weeks back we presented one of our signature pieces of original research on what Americans saved based upon their ages. That data used fresh data from the Consumer Expenditure Survey to paint a picture – however imprecise – of savings by income. Today we complete the short lived series with data from the […]
The idea of lifestyle creep is the slow build-up of “necessary” expenses as your income increases. I myself have experienced a bit of it in my career, noticing small purchases that I used to consider luxuries as being more commonplace. What I want to touch on in this article, however, is something I think is […]
We have written about your ideal savings rate. Today, we follow through on what we promised to you – a fully editable ideal savings rate calculator which allows you to put the lessons you learned in our first post into action! The most important inputs to early retirement are your savings rate, and how much […]
When it comes to setting your Retirement or Financial Independence date, the most important variable in your control is your savings rate. Which is fitting, because people often land here after asking “what is the best savings rate?”. Let’s work through the variables and try to come to an understanding of the ideal savings rate. […]
Dave Ramsey is a controversial figure in the Finance realm, at least in blogs, discussion boards, and Twitter. However, Dave Ramsey’s investment advice doesn’t usually cause the controversy. Most of the push-back on Dave comes from his advocacy of a psychological debt payoff method known as the “Debt Snowball”. What is the debt snowball? The […]
I saw this proverb a few years ago through StumbleUpon and I re-discovered it recently. As part of the PF blogosphere, a lot of our attention is focused squarely on attainment of financial independence and eventual retirement. For your reading pleasure, a different take on the rat race: (source) Author Unknown An American tourist was […]
“Oh, I don’t invest in stocks. They’re too risky” said a young (urban) professional friend of mine. Five minutes later he was reconsidering that statement, and you’ll be happy to know he’s now the proud owner of some stock (well, at least some stock mutual funds).
The other day our friend John at Married With Debt hosted a guest post from Rob Bennett of Passion Saving. You might remember John from our collaboration on the relative taxation of Presidents Obama and Bush. Rob, on the other hand, is a bit of an enigma in the Personal Finance world. On the one hand, he has very interesting theories on safe withdrawal rates and buy and hold investing based on market valuations. On the other hand? He weaves a tale which makes the stories of Alexander Litvinenko and Gareth Williams seem somehow tame by comparison. I’m not going to touch that further than describing it (Google around if you care), but there is precedence for disruptive financial theories causing anger. Let’s tackle the merits of Rob’s arguments, shall we?
You’re looking at a graph of the ratio of covered workers paying into the Social Security program (technically OASDI) versus beneficiaries receiving payments. Through 1965, there were always at least 4 workers paying in for every beneficiary. In 1983, the program was overhauled with an eye towards sustainability, which pegged the ratio between 3.2 and 3.7 all the way through 2008.