1. My total indebtedness went down $822.48 in February. Considering that it only went down $55 in January, I'm pretty satisfied with this month's results.
2. I've now received both my state and federal tax refunds, a little over $1700. So I should be in good shape and set to pay off a bunch of debts, right? Dream on! I spent $359 for 100 gallons of heating oil. I spent $350 for pest control. (Yep, not only have ants discovered my kitchen but at least two rats have as well. I probably should be embarrassed about that, but it turns out that the rats are a neighborhood problem. So the neighbors are banding together to attack the problem both in our homes and outdoors.) I also brought my baby-steps emergency fund up to $1000 by depositing $226. And I paid the homeowner's insurance for my rental. Then there were birthdays for three grandkids--makes me wonder what it is about that leads to all these February births. Or is it just my family?
Good-bye $1700! I hardly knew ye!
3. The 298th Carnival of Personal Finance is up at Savings to Invest. My post on being a "Go To Person" is there, as are a number of great posts covering many aspects of personal finance.
Monday, February 28, 2011
Thursday, February 24, 2011
Notes on Being the "Go To" Person
Linda P. left a note on my last blog post about the money I expect to need in retirement. The part of her comment that really caught my attention was this: "We were also the go-to people for our extended family when life dealt them financial blows. . . A fragile family member depends on our financial stability, so we must provide not only for ourselves but provide some backup for that other family member."
Sigh.
I relate to Linda only too well.
I am the "Go-To" person in my family. I am not the only one with a job, but I am the only one with any financial savvy. (THAT speaks volumes! When Grace is considered financially savvy, the family in definitely in trouble!)
I have five adult children, all adopted as older children from foster care, most of whom have permanent organic or emotional disorders that get in the way of education, employment, and (sometimes) common sense.
I am the person they all turn to when they run into problems, especially money problems.
I, in turn, use my newly-retired sister as my "Go-To" person. But unlike my children, I hesitate to hit my sister up for cash unless it's an emergency. (My darling kids would tell you the same thing about themselves, but with them, it's ALWAYS an emergency!)
A close friend of mine with a n'er to well son has actually borrowed money to have it available for him. I have never done that nor can I see myself doing it. But I do understand where she's coming from.
I have learned over time to set certain limits. My kids have figured out that they are better off asking me to directly pay bills rather than give them cash--they get more that way. The two daughters with children discovered early on that asking me to pay for things for my grandchilren (books, clothes, pre-school, college) was a sure bet.
If all of this sounds like a whine, it's not intended to. I am a grown-up, and I can turn off the money spigot any time I want.
It's just different when it's family.
I have no better explanation.
Sigh.
I relate to Linda only too well.
I am the "Go-To" person in my family. I am not the only one with a job, but I am the only one with any financial savvy. (THAT speaks volumes! When Grace is considered financially savvy, the family in definitely in trouble!)
I have five adult children, all adopted as older children from foster care, most of whom have permanent organic or emotional disorders that get in the way of education, employment, and (sometimes) common sense.
I am the person they all turn to when they run into problems, especially money problems.
I, in turn, use my newly-retired sister as my "Go-To" person. But unlike my children, I hesitate to hit my sister up for cash unless it's an emergency. (My darling kids would tell you the same thing about themselves, but with them, it's ALWAYS an emergency!)
A close friend of mine with a n'er to well son has actually borrowed money to have it available for him. I have never done that nor can I see myself doing it. But I do understand where she's coming from.
I have learned over time to set certain limits. My kids have figured out that they are better off asking me to directly pay bills rather than give them cash--they get more that way. The two daughters with children discovered early on that asking me to pay for things for my grandchilren (books, clothes, pre-school, college) was a sure bet.
If all of this sounds like a whine, it's not intended to. I am a grown-up, and I can turn off the money spigot any time I want.
It's just different when it's family.
I have no better explanation.
Monday, February 21, 2011
The Exaggerated Cost of Retirement
It really IS in how one looks at things.
Take, for example, the statistical data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal in this article on Boomer retirement.
The statistics themselves are not encouraging:
The median 401(k) plan for folks ages 60 or 61 holds only $149,400, including plans from previous jobs. To figure the annual income from that level of savings, analysts looked at what the family would get from a fixed annuity. They found that $149,400 would generate just $9,073 a year.
The median income for the folks surveyed was $87,700.
Wow! And I thought I was behind!
In fact, the survey found that only 8% of near-retirees had saved the $636,673 necessary to generate 85% of their prior income that the analysts thought necessary for a comfortable retirement.
But that's where I part company with the analysts.
I agree with Morrison at All Doors Considered, who first brought this survey to my attention. I just don't see that I or most other retirees will really need 85% of their prior income.
I know, for myself, that I currently pay for a mortgage, and I put away a third of my income in my 401(k) as part of a belated attempt to pump up my retirement savings. Both of these expenses will be gone by the time I retire.
I also note that the analysts posit that folks will have to retire later, whereas I wonder if that is more of a "want to" than a "have to." Again, for myself, my work is an important part of who I am. Right now I do have to work until age 69 to attain the savings I think I will need. But I strongly suspect I would stay employed at least part-time past age 62 or 65 even if I didn't have to.
Morrison thinks retirees won't travel as much as they believe they might in the first days after retirement. I don't know that I fully agree, but I do know that as a retiree, I'll be able to take advantage of last-minute discounts that I currently cannot as a working woman with an employer who wants to know well in advance as to when and how long I'll be gone.
One place where she's wrong is when she says seniors willingly give up their gourmet coffee. NOT THIS SENIOR! But I do buy the coffee in bulk and make it at home most days.
There are a ton of interesting comments made on Wall Street site--good reading.
Take, for example, the statistical data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal in this article on Boomer retirement.
The statistics themselves are not encouraging:
The median 401(k) plan for folks ages 60 or 61 holds only $149,400, including plans from previous jobs. To figure the annual income from that level of savings, analysts looked at what the family would get from a fixed annuity. They found that $149,400 would generate just $9,073 a year.
The median income for the folks surveyed was $87,700.
Wow! And I thought I was behind!
In fact, the survey found that only 8% of near-retirees had saved the $636,673 necessary to generate 85% of their prior income that the analysts thought necessary for a comfortable retirement.
But that's where I part company with the analysts.
I agree with Morrison at All Doors Considered, who first brought this survey to my attention. I just don't see that I or most other retirees will really need 85% of their prior income.
I know, for myself, that I currently pay for a mortgage, and I put away a third of my income in my 401(k) as part of a belated attempt to pump up my retirement savings. Both of these expenses will be gone by the time I retire.
I also note that the analysts posit that folks will have to retire later, whereas I wonder if that is more of a "want to" than a "have to." Again, for myself, my work is an important part of who I am. Right now I do have to work until age 69 to attain the savings I think I will need. But I strongly suspect I would stay employed at least part-time past age 62 or 65 even if I didn't have to.
Morrison thinks retirees won't travel as much as they believe they might in the first days after retirement. I don't know that I fully agree, but I do know that as a retiree, I'll be able to take advantage of last-minute discounts that I currently cannot as a working woman with an employer who wants to know well in advance as to when and how long I'll be gone.
One place where she's wrong is when she says seniors willingly give up their gourmet coffee. NOT THIS SENIOR! But I do buy the coffee in bulk and make it at home most days.
There are a ton of interesting comments made on Wall Street site--good reading.
Thursday, February 17, 2011
A Class of One's Own
Morrison has an interesting post regarding the appearance of wealth on her blog "All Doors Considered."
I admire her skill at maintaining her family's appearance of having money while living on a limited income. I also agree that often that appearance can be enhanced due more to careful shopping and a high degree of cleanliness than an actual expenditure of dollars. As Morrison herself put it, she has done a remarkable job of marketing her family.
I guess my question comes down to "market to whom?" and ultimately, "Why?"
I am reminded that most of the millionaires interviewed for Thomas Stanley and William Danko's book, "The Millionaire Next Door" didn't worry nearly so much about the appearance they projected. They wore clothes off the rack and drove mid-range vehicles.
I think it comes down to the 'why'--if one is a fashionista, then buying a pair of expensive Italian shoes on sale in Milan and taking good care of them for years makes sense. It goes to one's confidence, and the image one wants to project.
But if the only point is to impress in-laws that one rarely sees? I don't quite get that.
Then again, I'm the last person to talk about style. Let's just say that when the fashion genes were handed out, my sister got my share. (In fact, if you see me wearing anything the least bit fashionable, it's a good bet it was a gift from my sister.)
Still, I enjoy many activities that appear to be aimed at the wealthy--I go to the local Art Museum; I attend the symphony and the opera; I love the various lecture series offered throughout my city. It's just that I never buy season tickets. Instead I'm dependent on friends (Always make friends with doctors' spouses--they have season tickets to everything and their spouses are often unavailable to go.) and Groupon and waiting in lines for last minute empty seats. Once I'm sitting in the audience, no one really knows how (cheaply!) I got there.
Morrison's final observation is that "It is better to look good than to feel good."
I can't relate to that one either. I'm much more attracted to the idea of feeling good, whether it's about clothes, money, or lifestyle.
I admire her skill at maintaining her family's appearance of having money while living on a limited income. I also agree that often that appearance can be enhanced due more to careful shopping and a high degree of cleanliness than an actual expenditure of dollars. As Morrison herself put it, she has done a remarkable job of marketing her family.
I guess my question comes down to "market to whom?" and ultimately, "Why?"
I am reminded that most of the millionaires interviewed for Thomas Stanley and William Danko's book, "The Millionaire Next Door" didn't worry nearly so much about the appearance they projected. They wore clothes off the rack and drove mid-range vehicles.
I think it comes down to the 'why'--if one is a fashionista, then buying a pair of expensive Italian shoes on sale in Milan and taking good care of them for years makes sense. It goes to one's confidence, and the image one wants to project.
But if the only point is to impress in-laws that one rarely sees? I don't quite get that.
Then again, I'm the last person to talk about style. Let's just say that when the fashion genes were handed out, my sister got my share. (In fact, if you see me wearing anything the least bit fashionable, it's a good bet it was a gift from my sister.)
Still, I enjoy many activities that appear to be aimed at the wealthy--I go to the local Art Museum; I attend the symphony and the opera; I love the various lecture series offered throughout my city. It's just that I never buy season tickets. Instead I'm dependent on friends (Always make friends with doctors' spouses--they have season tickets to everything and their spouses are often unavailable to go.) and Groupon and waiting in lines for last minute empty seats. Once I'm sitting in the audience, no one really knows how (cheaply!) I got there.
Morrison's final observation is that "It is better to look good than to feel good."
I can't relate to that one either. I'm much more attracted to the idea of feeling good, whether it's about clothes, money, or lifestyle.
Thursday, February 10, 2011
Miscellany
1. It's time to say Good-bye to Sra. Dog (at The Dog Ate My Finances) and Florence at Ruminations. I've removed them both from my bloglist but please, if either of you starts a new blog, let me know. In the meantime, I'm glad you each made a final post--I get so annoyed at blogs that just peter out and fall off the radar (hmm--two cliches in the same sentence--not bad!)
2. I've rarely met a contest I didn't like, particularly when the prizes involve writing materials. Hence this note about a journal giveaway at Notebook Stories. These are elegant promotional books produced by Brandbook-de, and I want to win one of them. If you go to the Brandbook.de website, it helps if you read German!
In four years of blogging and entering blogger giveaways, I've won exactly twice, once a book on finance and once a book from the Orange Prize list. But both were terrific, so I keep entering.
2. I've rarely met a contest I didn't like, particularly when the prizes involve writing materials. Hence this note about a journal giveaway at Notebook Stories. These are elegant promotional books produced by Brandbook-de, and I want to win one of them. If you go to the Brandbook.de website, it helps if you read German!
In four years of blogging and entering blogger giveaways, I've won exactly twice, once a book on finance and once a book from the Orange Prize list. But both were terrific, so I keep entering.
Sunday, February 6, 2011
Are Women STUPID?
I came of professional age in the early '70's. I have always proudly identified myself as a feminist. I have worked and supported myself and my family for the past 38 years.
So, no, I don't generally think of women as stupid.
That is, until I read an article like this one. Where on earth did Wells Fargo find these women?
Even my eighth grade algebra (in which class I got a D+--that plus being for perfect attendance!) tells me that one cannot withdraw 11% a year from one's retirement accounts and expect it to last any time at all.
I'm a little more forgiving of women who think $200,000 in retirement savings is the minimum needed for a comfortable standard of living, though I fall squarely in the men's camp because my minimum goal has always been $400,000. (I'm a little over half way there, but I've also got another 8 years to accumulate funds.)
What IS encouraging is that women are more likely to ask for help. (What is it about that Y chromosone that makes men think they don't need to ask for assistance with anything, including driving directions?)
What I wonder is if we're going to take the advice when we get it.
My hope is that women are simply uneducated financially, NOT that they are less bright than men.
But honestly?
Who, in their right mind, thinks they can reduce their assets by 11% (never mind the 30% that a few posited!) a year?
So, no, I don't generally think of women as stupid.
That is, until I read an article like this one. Where on earth did Wells Fargo find these women?
Even my eighth grade algebra (in which class I got a D+--that plus being for perfect attendance!) tells me that one cannot withdraw 11% a year from one's retirement accounts and expect it to last any time at all.
I'm a little more forgiving of women who think $200,000 in retirement savings is the minimum needed for a comfortable standard of living, though I fall squarely in the men's camp because my minimum goal has always been $400,000. (I'm a little over half way there, but I've also got another 8 years to accumulate funds.)
What IS encouraging is that women are more likely to ask for help. (What is it about that Y chromosone that makes men think they don't need to ask for assistance with anything, including driving directions?)
What I wonder is if we're going to take the advice when we get it.
My hope is that women are simply uneducated financially, NOT that they are less bright than men.
But honestly?
Who, in their right mind, thinks they can reduce their assets by 11% (never mind the 30% that a few posited!) a year?
Tuesday, February 1, 2011
Tax Time--For Me If Not For the IRS
I was so proud of myself--I got my taxes done and e-filed by January 31st (a personal speed record for me, even knowing that I was getting money back). Furthermore, I went with TaxAct, which allowed free preparation and filing with no income restrictions. (Most of the sytems that let one prepare and file for free have a top income level of $58,000.)
And just to sweeten the pot, I entered TaxAct through My Points and got an additional 400 points.
Mine is not a complicated tax return, but I do itemize my deductions, and I have to file a Schedule E for my rental income. Not a problem for TaxAct.
But the IRS is apparently having some issues.
I just got a notice that my return won't actually be e-filed until February 14th because the IRS isn't sure how certain tax reforms will affect returns. ARRGH! None of the reforms affect me, so I would like it if they would just go ahead and give me back my money.
Which, by the way, is some $1500 this year. (I am a tad confused by that since my income and deductions are pretty much the same this year as last, and yet I got only $500+ back last year--not, mind you, that I'm arguing with that!)
How come the one year I get my act together early is the one year the IRS is late????
Good thing I'm not a conspiracy theorist!
And just to sweeten the pot, I entered TaxAct through My Points and got an additional 400 points.
Mine is not a complicated tax return, but I do itemize my deductions, and I have to file a Schedule E for my rental income. Not a problem for TaxAct.
But the IRS is apparently having some issues.
I just got a notice that my return won't actually be e-filed until February 14th because the IRS isn't sure how certain tax reforms will affect returns. ARRGH! None of the reforms affect me, so I would like it if they would just go ahead and give me back my money.
Which, by the way, is some $1500 this year. (I am a tad confused by that since my income and deductions are pretty much the same this year as last, and yet I got only $500+ back last year--not, mind you, that I'm arguing with that!)
How come the one year I get my act together early is the one year the IRS is late????
Good thing I'm not a conspiracy theorist!
Sunday, January 30, 2011
Frugality: Temporary, Tenuous, and Not Really Our Style
The folks at The Hartman Group, a consulting and reseach firm out of Washington state that monitors consumer spending with a jaundiced eye, aren't impressd with our collective rush to frugality. In fact, they already see us moving away from it as economic times get better. [A synopsis of their report is here. There's also a link to download the entire report.]
I wish I could disagree with them. I would certainly like to think that the consumer spending lessons I'm learning now because I have to will hold over in more stable times.
Alas, these consultants don't believe it.
And for good reason. As they so succinctly wrap it up:
"We knew it was coming. It always does.
With the start of every recession comes
a deluge of media and analyst reports
highlighting the American consumer's
sudden conversion from foolish, Godless
consumer to wise spendthrift.
They always call it the "New Frugality."
The report is dry and academic but contains flashes of humor, as when one researcher notes a Time magazine article on newfound frugality he came across during his research. "The Simple Life: Goodbye to Having It All," was published in March 1991. That, of course, preceded the era of excess in which consumers spent with wild abandon, turning to their homes' equity for cash when the credit cards maxed out.
I'm scrimping and saving right now. But with more economic stability (and less debt) I can scrimp more, save more, and feel the effects less. This is my goal, but as history (both this country's history and my personal history) can attest, learning from experience doesn't always work that way.
I wish I could disagree with them. I would certainly like to think that the consumer spending lessons I'm learning now because I have to will hold over in more stable times.
Alas, these consultants don't believe it.
And for good reason. As they so succinctly wrap it up:
"We knew it was coming. It always does.
With the start of every recession comes
a deluge of media and analyst reports
highlighting the American consumer's
sudden conversion from foolish, Godless
consumer to wise spendthrift.
They always call it the "New Frugality."
The report is dry and academic but contains flashes of humor, as when one researcher notes a Time magazine article on newfound frugality he came across during his research. "The Simple Life: Goodbye to Having It All," was published in March 1991. That, of course, preceded the era of excess in which consumers spent with wild abandon, turning to their homes' equity for cash when the credit cards maxed out.
I'm scrimping and saving right now. But with more economic stability (and less debt) I can scrimp more, save more, and feel the effects less. This is my goal, but as history (both this country's history and my personal history) can attest, learning from experience doesn't always work that way.
Friday, January 28, 2011
More Miscellany
1. I refuse to do an end-of-the-month report this January. Because if I did, I would have to admit that I have reduced my overall debt by a mere $55. January is always an impossible month--not only are there Christmas bills to catch up with, but my homeowner's insurance comes due on both my residence and my rental, as do my property tax payments. In my state, there is no sales tax (YAY!) but we get hit hard with property taxes (OUCH!). I feel lucky to have had any debt reduction at all.
2. My 401(k) has hit an all-time high of $216,000. Financial Engines says it is "very likely" that when I retire, I will have an annual income of $57,000 per year (including Social Security). I feel good about that. Although my current income is higher, I live on less than $57,000 a year because I pay $1050 per month (pre-tax) into my retirement funds.
3. I'm in love with my new, very cheap Tracfone. It cost me a whopping $9.99 and came with free "Double Minutes." The double minutes card usually sells for $49.99 though it is currently on sale for $19.99. Either way, I got quite the bargain at less than ten bucks. Then, it turns out that promo codes still work, so with the 200 minute card my sister put in my Christmas stocking, I got a total of 460 minutes. I figure that will last me all year. I don't like talking on cell phones, so I use mine just to check in with my kids, when I'm running late, and for the feeling of safety it gives me to know that I can summon help if I need to. Of course my kids laugh at me because my phone is just a phone--I can call or text. But there's no e-mail, there's no camera, and it doesn't make my morning coffee. For $9.99, I'm not complaining, especially when I see THEIR cellphone bills!
2. My 401(k) has hit an all-time high of $216,000. Financial Engines says it is "very likely" that when I retire, I will have an annual income of $57,000 per year (including Social Security). I feel good about that. Although my current income is higher, I live on less than $57,000 a year because I pay $1050 per month (pre-tax) into my retirement funds.
3. I'm in love with my new, very cheap Tracfone. It cost me a whopping $9.99 and came with free "Double Minutes." The double minutes card usually sells for $49.99 though it is currently on sale for $19.99. Either way, I got quite the bargain at less than ten bucks. Then, it turns out that promo codes still work, so with the 200 minute card my sister put in my Christmas stocking, I got a total of 460 minutes. I figure that will last me all year. I don't like talking on cell phones, so I use mine just to check in with my kids, when I'm running late, and for the feeling of safety it gives me to know that I can summon help if I need to. Of course my kids laugh at me because my phone is just a phone--I can call or text. But there's no e-mail, there's no camera, and it doesn't make my morning coffee. For $9.99, I'm not complaining, especially when I see THEIR cellphone bills!
Monday, January 17, 2011
The Carnival of Personal Finance is Up
I've got a post in The Carnival of Personal Finance, hosted this week by "My Personal Finance Journey."
Lots of good financial information in this carnival, along with envy-producing photos of how some of the richest folks in the world live.
Lots of good financial information in this carnival, along with envy-producing photos of how some of the richest folks in the world live.
Sunday, January 16, 2011
Miscellany
Small stuff to report:
1. My monthly housing payments are going down by $79 a month beginning February. Yay! I'm making immediate arrangements to apply that money automatically to my debt snowball. (The reason is a reduction in my homeowner's insurance, which has been skyhigh since my garage fire 2.5 years ago--this should keep going down annually for the next couple of years.)
2. Is there something wrong with my math? I am a member of My Points and periodically redeem the points for gift cards. Usually I get a $10 Starbucks card in trade for 1550 points. But when, as I did over Christmas, I accumulate a lot of points, I spring for a $25 Starbucks giftcard for 3600 points on the assumption I'm getting a better deal.
But guess what? The math doesn't work!
It turns out that, by a minute fraction, it is actually cheaper to keep getting $10 cards. (.00645 cents per point for the $10 card, and .00694 cents per point for the $25 card.)
Who'd've thunk?
3. There's a good article on how to prepare for retirement as a single woman. Thanks to Rhea at Boomer Chronicles for calling it to my attention.
1. My monthly housing payments are going down by $79 a month beginning February. Yay! I'm making immediate arrangements to apply that money automatically to my debt snowball. (The reason is a reduction in my homeowner's insurance, which has been skyhigh since my garage fire 2.5 years ago--this should keep going down annually for the next couple of years.)
2. Is there something wrong with my math? I am a member of My Points and periodically redeem the points for gift cards. Usually I get a $10 Starbucks card in trade for 1550 points. But when, as I did over Christmas, I accumulate a lot of points, I spring for a $25 Starbucks giftcard for 3600 points on the assumption I'm getting a better deal.
But guess what? The math doesn't work!
It turns out that, by a minute fraction, it is actually cheaper to keep getting $10 cards. (.00645 cents per point for the $10 card, and .00694 cents per point for the $25 card.)
Who'd've thunk?
3. There's a good article on how to prepare for retirement as a single woman. Thanks to Rhea at Boomer Chronicles for calling it to my attention.
Friday, January 14, 2011
Finally! Some Good News about Retirement!
Thanks to this post at "My Retirement Blog," I discovered a survey that says Baby Boomers are enjoying their retirement in ways that previous generations didn't. I do have some concerns about the way the survey was conducted--maybe folks who are pleased with their current condition are more likely to respond to a voluntary online poll?
But the results are in line with how I expect to answer when I finally retire. I fully expect to enjoy myself, to be engaged in my community, to travel, and to generally participate in life. I expect that even if I have financial or health concerns.
I think Baby Boomers are more used to setting specific goals, having "5 year plans," and generally planning for the future.
I say that even though the evidence is we haven't been so great about our financial planning.
I know that I have given my life plans--the career path I chose, the children I adopted, the places I've lived--far more thought than my parents did theirs. Life seemed to happen TO them, while I feel like I have been more in charge of the life I have led.
Naturally, not all those decisions, however well thought out, have actually worked out. And, along the way, I forgot to plan for some of the details, like exactly how I was going to fund my retirement.
But hey--I'm working on a plan for that NOW!
But the results are in line with how I expect to answer when I finally retire. I fully expect to enjoy myself, to be engaged in my community, to travel, and to generally participate in life. I expect that even if I have financial or health concerns.
I think Baby Boomers are more used to setting specific goals, having "5 year plans," and generally planning for the future.
I say that even though the evidence is we haven't been so great about our financial planning.
I know that I have given my life plans--the career path I chose, the children I adopted, the places I've lived--far more thought than my parents did theirs. Life seemed to happen TO them, while I feel like I have been more in charge of the life I have led.
Naturally, not all those decisions, however well thought out, have actually worked out. And, along the way, I forgot to plan for some of the details, like exactly how I was going to fund my retirement.
But hey--I'm working on a plan for that NOW!
Wednesday, January 12, 2011
Life--Could Use Some Perspective There, Too
Sharon, over at Musings of a Midlife Mom, has a thoughtful post on being grateful.
She's been doing great on her budget and determination to save, but Murphy has been just as determined to bring her down. In a prior post she admitted to going on a mild spending spree, even in the face of (or maybe because of) Murphy.
Some readers, including moi, chided her a bit.
But just when we get to whining about our financial situations, sometimes reality sets in. For Sharon, it was Haiti.
For me, it's thinking about the fact that even factoring in inflation, I make far more than my parents ever made per year. If a single person, including a single person with expensive adult kids, cannot make it on $75,000 a year, something is very, very wrong.
And to then whine about it?
I gotta get me a life!
And I'd better smarten up about the gratitude. My life could be so much worse.
She's been doing great on her budget and determination to save, but Murphy has been just as determined to bring her down. In a prior post she admitted to going on a mild spending spree, even in the face of (or maybe because of) Murphy.
Some readers, including moi, chided her a bit.
But just when we get to whining about our financial situations, sometimes reality sets in. For Sharon, it was Haiti.
For me, it's thinking about the fact that even factoring in inflation, I make far more than my parents ever made per year. If a single person, including a single person with expensive adult kids, cannot make it on $75,000 a year, something is very, very wrong.
And to then whine about it?
I gotta get me a life!
And I'd better smarten up about the gratitude. My life could be so much worse.
Monday, January 10, 2011
Bonds--Trying to Get Some Perspective
I often read that if one doesn't understand what a proposed investment is or does, one shouldn't invest in it. But if I followed that rule, I'd have no investments at all. The truth is, when the talk goes to stocks and bonds, my eyes glaze over. The best I can do is stick with mutual funds, cross my fingers and hope for the best.
That worked well for me in 2010. In 2008 and 2009, not so much.
But at age 61 and 8 years from retirement, I need to get a lot more serious about bonds and bond funds. (Will the blogger at Living Almost Large please stop smirking and muttering "I told you so" under her breath!)
So far, I have almost a 10% stake in bonds. That's up from 7% in 2008 but it needs to be at least 25% so I have reallocated more of my future deposits in my 401(k) to get me up to that mark.
As usual, my timing is impeccably bad. Grace is buying bonds when everyone else is--never a good sign when it comes to investments. Money Magazine has been warning its readers for months now that we are in the midst of a bond bubble and that it is due to burst soon.
But what do I do? Clearly, my retirement funds are still top-heavy with stocks, and my stomach (not to mention my bank account) cannot take another couple of years like the last ones. I need bonds so I have to buy them. Just my luck that I'm buying them at the top of the market.
My solution, if you can call it that, is NOT to reallocate the monies or funds I already have, but to put new contributions mostly into a bond index fund, and a smidge into an international index fund where I'm a bit low at the moment.
While I was at it, I increased my 401(k) contribution by another $10 a month. Don't laugh. My wages are frozen for three years, so I wasn't planning to make any increases. But since my payroll taxes are going down, I tossed in another $10 toward my future retirement.
That worked well for me in 2010. In 2008 and 2009, not so much.
But at age 61 and 8 years from retirement, I need to get a lot more serious about bonds and bond funds. (Will the blogger at Living Almost Large please stop smirking and muttering "I told you so" under her breath!)
So far, I have almost a 10% stake in bonds. That's up from 7% in 2008 but it needs to be at least 25% so I have reallocated more of my future deposits in my 401(k) to get me up to that mark.
As usual, my timing is impeccably bad. Grace is buying bonds when everyone else is--never a good sign when it comes to investments. Money Magazine has been warning its readers for months now that we are in the midst of a bond bubble and that it is due to burst soon.
But what do I do? Clearly, my retirement funds are still top-heavy with stocks, and my stomach (not to mention my bank account) cannot take another couple of years like the last ones. I need bonds so I have to buy them. Just my luck that I'm buying them at the top of the market.
My solution, if you can call it that, is NOT to reallocate the monies or funds I already have, but to put new contributions mostly into a bond index fund, and a smidge into an international index fund where I'm a bit low at the moment.
While I was at it, I increased my 401(k) contribution by another $10 a month. Don't laugh. My wages are frozen for three years, so I wasn't planning to make any increases. But since my payroll taxes are going down, I tossed in another $10 toward my future retirement.
Sunday, January 2, 2011
Redecorating the Blog
Oh.
Maybe you thought from the header that I'd finally decided to get rid of all the PINK???
Nah!
Maybe someday, but in the meantime. . .
I've run through my blog list and made some additions and subtractions.
I gave Fighting Foreclosure--Getting Nine Hundred nine months to start posting again but it was not to be. I hate it when some of my favorite bloggers fall off the face of the blogosphere, but I can't keep clicking on their site forever.
Tony Cassise died. Though his blog remains online, I'm removing it from my list. It was a pleasure to have known him, even if only via the internet.
The young veteran and newly minted CPA at "$647,000 in Debt" has taken his blog private, having encountered real-life consequences to the airing of his financial information. That's one of the unfortunate hazards of blogging, but I will continue to wish him well as he recovers from the pre-recession euphoria and gets himself on a stable financial footing.
I'm going to hang onto Oh, My Aching Debts" for another couple of months. Ditto Betty at ""Bouncing Back from Bankruptcy" who assures her faithful readers she will be blogging again--This reader is waiting most impatiently.
I've added some new blogs, most of them related to retirement, like the view from Australia in "Towards Retirement With Debt," and Texas with Frugal Texas Gal.
Then there's "Grumpy Rumblings of the Untenured" wherein Nicole or Maggie or both wax eloquent on various topics. It is certainly NOT a retirement blog, nor exactly a financial blog though both topics come up. As do shoes, academic cheating, science fiction and whatever is on these two academics' minds. Plus, of course, they are prone to leaving comments on MY blog.
If you have seen some blogs (or are the author of some blogs) that I should know about, let me know.
Maybe you thought from the header that I'd finally decided to get rid of all the PINK???
Nah!
Maybe someday, but in the meantime. . .
I've run through my blog list and made some additions and subtractions.
I gave Fighting Foreclosure--Getting Nine Hundred nine months to start posting again but it was not to be. I hate it when some of my favorite bloggers fall off the face of the blogosphere, but I can't keep clicking on their site forever.
Tony Cassise died. Though his blog remains online, I'm removing it from my list. It was a pleasure to have known him, even if only via the internet.
The young veteran and newly minted CPA at "$647,000 in Debt" has taken his blog private, having encountered real-life consequences to the airing of his financial information. That's one of the unfortunate hazards of blogging, but I will continue to wish him well as he recovers from the pre-recession euphoria and gets himself on a stable financial footing.
I'm going to hang onto Oh, My Aching Debts" for another couple of months. Ditto Betty at ""Bouncing Back from Bankruptcy" who assures her faithful readers she will be blogging again--This reader is waiting most impatiently.
I've added some new blogs, most of them related to retirement, like the view from Australia in "Towards Retirement With Debt," and Texas with Frugal Texas Gal.
Then there's "Grumpy Rumblings of the Untenured" wherein Nicole or Maggie or both wax eloquent on various topics. It is certainly NOT a retirement blog, nor exactly a financial blog though both topics come up. As do shoes, academic cheating, science fiction and whatever is on these two academics' minds. Plus, of course, they are prone to leaving comments on MY blog.
If you have seen some blogs (or are the author of some blogs) that I should know about, let me know.
Friday, December 31, 2010
2010--The Final Wrap-Up
The last quarter of 2010 made the rest of the year finally look good. My net worth is up $10,921. This is primarily due to my 401(k) which is still stock-heavy, increasing over $20,000 in three months. It is certainly not due to the real estate market in the Pacific NorthWest--both my home and my rental have decreased in value for the fourth straight quarter. But my rental is paid for, and my residence will be in three and half years.
So, my current net worth is $565,851.
I do love the sound of that--Hey there! Grace is worth over half a million!
Of course, Grace still has much too much debt and not enough in her retirement funds.
I managed to stick to my Christmas budget so I also managed some minor debt reduction during December.
Hmm, minor, indeed! A whole $317! But at least it was moving in the correct, downward direction.
As for 2011--I've made the usual resolutions, and I'm hoping for better than usual results.
I want to reduce my debt by at least $10,000;
I want to increase my savings, both for retirement and my emergency fund.
Speaking of which, I'd like 2011 to be the year I actually keep a baby emergency fund. Right now, it's there, but contains only $700.
Here's Grace, raising her cup to all of you, and wishing everyone a truly great and enriching (in every sense of the word) new year.
So, my current net worth is $565,851.
I do love the sound of that--Hey there! Grace is worth over half a million!
Of course, Grace still has much too much debt and not enough in her retirement funds.
I managed to stick to my Christmas budget so I also managed some minor debt reduction during December.
Hmm, minor, indeed! A whole $317! But at least it was moving in the correct, downward direction.
As for 2011--I've made the usual resolutions, and I'm hoping for better than usual results.
I want to reduce my debt by at least $10,000;
I want to increase my savings, both for retirement and my emergency fund.
Speaking of which, I'd like 2011 to be the year I actually keep a baby emergency fund. Right now, it's there, but contains only $700.
Here's Grace, raising her cup to all of you, and wishing everyone a truly great and enriching (in every sense of the word) new year.
Wednesday, December 29, 2010
Some Thoughts on the Christmas Season
Christmas was quiet but pleasant this year. The best part was that I stayed within my budget.
1. My very best Christmas bargain was at The Body Shop. First, I purchased a $40 Groupon for $20. Then, when I went to the store, they were having a special promotion. If I donated $5 to their "Stop Sex Trafficking" charity, they gave me a small bag. Anything I put in the bag was 50% off. The end result was that I purchased $70 worth of stocking stuffers AND donated $5 to a worthy charity, all for a grand total of $20. That may be the best deal I got all year.
2. I broke with the "Grandma provides Christmas dinner and feeds everyone" tradition. This year, I made a ham rather than a turkey, and set up a buffet. Family could come by whenever they wanted. It went so well, I may do it again next year.
3. There are so many free events and things to do during the Christmas season. I made a special effort with my grandkids to check these out. We drove around looking at 'over the top' Christmas decorations. We went to the Zoo to ride the Zoo Train and look at all the lights they put out (free with my annual pass). We hit every church Christmas concert within half a mile of my home. I did get a tad overdosed on frosted sugar cookies, but the kids and I had a blast.
4. I caught a post-Christmas cold from one of my grandkids. You'd think that was the bad news, but it has allowed me to stay on my couch, away from work and away from people, watching all the bad television I want. Rather a nice Christmas present actually!
1. My very best Christmas bargain was at The Body Shop. First, I purchased a $40 Groupon for $20. Then, when I went to the store, they were having a special promotion. If I donated $5 to their "Stop Sex Trafficking" charity, they gave me a small bag. Anything I put in the bag was 50% off. The end result was that I purchased $70 worth of stocking stuffers AND donated $5 to a worthy charity, all for a grand total of $20. That may be the best deal I got all year.
2. I broke with the "Grandma provides Christmas dinner and feeds everyone" tradition. This year, I made a ham rather than a turkey, and set up a buffet. Family could come by whenever they wanted. It went so well, I may do it again next year.
3. There are so many free events and things to do during the Christmas season. I made a special effort with my grandkids to check these out. We drove around looking at 'over the top' Christmas decorations. We went to the Zoo to ride the Zoo Train and look at all the lights they put out (free with my annual pass). We hit every church Christmas concert within half a mile of my home. I did get a tad overdosed on frosted sugar cookies, but the kids and I had a blast.
4. I caught a post-Christmas cold from one of my grandkids. You'd think that was the bad news, but it has allowed me to stay on my couch, away from work and away from people, watching all the bad television I want. Rather a nice Christmas present actually!
Tuesday, December 21, 2010
Retiring with Debt
The Christmas season is probably NOT the best time to bring this up (or maybe, it's the perfect time!) but a surprising number of seniors are retiring notwithstanding the fact that they have not paid off their credit cards. In fact, according to this article in USA Today, some seniors are accumulating debt during retirement that they have no way or intention of paying.
I do find this shocking.
My general scenario (barring job loss or crippling health issues) is that one pays off the house, credit cards, etc. BEFORE retiring.
It's not like retirement is likely to bring in EXTRA income--that pie we spent our working lives accumulating is being sliced into ever-smaller pieces once we retire.
I will say that the part of the article I don't have a lot of sympathy with is the failure of retirees to leave an inheritance for their children. While I want to give my children something, and do expect to, it is NOT my children's right to expect that I will. My retirement funds are meant to fund MY retirement, not anyone else's.
Right now, working is important to me, both emotionally and financially. I could not fund my current lifestyle (meaning, my current debt payments!) on what I will have during retirement even counting Social Security and my 401(k). In fact, I've always wondered about folks who expect to rent throughout their retirement. Having my mortgage paid off (which it will be in 3.5 years) is a major factor in my ability to retire.
I wonder if this has to do with being a Baby Boomer? Do we just consider credit cards and credit card payments and mortgages part of life--that lasts until we die?
And beyond?
I do find this shocking.
My general scenario (barring job loss or crippling health issues) is that one pays off the house, credit cards, etc. BEFORE retiring.
It's not like retirement is likely to bring in EXTRA income--that pie we spent our working lives accumulating is being sliced into ever-smaller pieces once we retire.
I will say that the part of the article I don't have a lot of sympathy with is the failure of retirees to leave an inheritance for their children. While I want to give my children something, and do expect to, it is NOT my children's right to expect that I will. My retirement funds are meant to fund MY retirement, not anyone else's.
Right now, working is important to me, both emotionally and financially. I could not fund my current lifestyle (meaning, my current debt payments!) on what I will have during retirement even counting Social Security and my 401(k). In fact, I've always wondered about folks who expect to rent throughout their retirement. Having my mortgage paid off (which it will be in 3.5 years) is a major factor in my ability to retire.
I wonder if this has to do with being a Baby Boomer? Do we just consider credit cards and credit card payments and mortgages part of life--that lasts until we die?
And beyond?
Sunday, December 19, 2010
What to Give the Person You Love But Don't Like
Suppose there is someone--a family member, or, maybe, a longtime friend--with whom you've had a strong and loving relationship and to whom you have to give Christmas gifts.
Then suppose that for some valid reason--addiction, mental illness, criminal behavior--it's become impossible to like this person even though you still love them.
What IS the perfect gift for the person you care about, but no longer care for?
Sadly, some of us get to contemplate that question this year.
My second daughter, whom I adopted when she was 11, has had a chaotic life. Too many truly evil things happened to her in her first 10 years to make the next 25 years easy. In addition to a high level of continued emotional disturbance, 2010 was the year she turned to methamphetamines. That led to the state removing her children and placing them with their fathers.
She has yet to address her addictions.
Right now, she is angry at the judicial system, angry at the world in general, and, in particular, angry at me.
Needless to say, I'm not very happy with her, either.
But she IS my daughter. And I've never NOT given my children Christmas presents.
So--what to give her?
She could use a good pair of shoes, but the last time I bought her a pair of Nikes, she turned around and sold them. Ditto for any electronics.
I could save my money and skip the gifts for her.
Or I could be snarky and donate money in her name to some treatment program.
In the end, I got her socks, underwear, pajamas and a robe. My thought was that these were quintessential 'mother' gifts, having the requisite intimacy that befits a loved family member without spending a fortune or making it easy for her to come up with money for drugs.
Next year I hope to do better for her. But first, she has to do better herself.
Then suppose that for some valid reason--addiction, mental illness, criminal behavior--it's become impossible to like this person even though you still love them.
What IS the perfect gift for the person you care about, but no longer care for?
Sadly, some of us get to contemplate that question this year.
My second daughter, whom I adopted when she was 11, has had a chaotic life. Too many truly evil things happened to her in her first 10 years to make the next 25 years easy. In addition to a high level of continued emotional disturbance, 2010 was the year she turned to methamphetamines. That led to the state removing her children and placing them with their fathers.
She has yet to address her addictions.
Right now, she is angry at the judicial system, angry at the world in general, and, in particular, angry at me.
Needless to say, I'm not very happy with her, either.
But she IS my daughter. And I've never NOT given my children Christmas presents.
So--what to give her?
She could use a good pair of shoes, but the last time I bought her a pair of Nikes, she turned around and sold them. Ditto for any electronics.
I could save my money and skip the gifts for her.
Or I could be snarky and donate money in her name to some treatment program.
In the end, I got her socks, underwear, pajamas and a robe. My thought was that these were quintessential 'mother' gifts, having the requisite intimacy that befits a loved family member without spending a fortune or making it easy for her to come up with money for drugs.
Next year I hope to do better for her. But first, she has to do better herself.
Thursday, December 16, 2010
Asking How You Feel May Not Give You the Right Answer
Three months ago, after being on diabetic medications for eleven years, I moved to insulin. Instantly, my glucose numbers went down--which is good. But the question I most often get is "Do you feel better?" Well, given that I didn't feel particularly bad when the numbers were high, and given that there hasn't been much of a change in my vision and some mild neuropathy, the truthful answer is "No, I don't feel any better." That's how I feel. But medically, things are much, much better for me. That's the real truth, never mind how I feel.
I was thinking of this while reading PoltiFact's take on President Obama and the state of the economy. I love these folks, and their 'plague on both your houses' approach to monitoring what politicians tell us for the truth (or NOT!) in their statements. Democrats and Republicans are equally irresponsible when it comes to saying what's on (in?) their minds, notwithstanding the actual facts.
Questions like "Are you doing better this year than last?" seem simple enough, but like questions about my diabetes, the answer is more complicated. Yes, I'm doing better, but No, I can't really tell that I am. I don't FEEL any better financially this year than last. I don't FEEL like the economy is getting better.
Yet, in significant ways, it is. While housing and jobs lag, the economy IS growing. That's not clear if one listens to the 'Obama is the devil-incarnate and nothing he says or does will ever be right' types.
Sometimes, it's good to remind ourselves to take a good look at the facts, and not just let our personal feelings be the gauge of what is actually happening.
That's true when it comes to our personal lives, and our financial lives, not to mention our political lives.
I was thinking of this while reading PoltiFact's take on President Obama and the state of the economy. I love these folks, and their 'plague on both your houses' approach to monitoring what politicians tell us for the truth (or NOT!) in their statements. Democrats and Republicans are equally irresponsible when it comes to saying what's on (in?) their minds, notwithstanding the actual facts.
Questions like "Are you doing better this year than last?" seem simple enough, but like questions about my diabetes, the answer is more complicated. Yes, I'm doing better, but No, I can't really tell that I am. I don't FEEL any better financially this year than last. I don't FEEL like the economy is getting better.
Yet, in significant ways, it is. While housing and jobs lag, the economy IS growing. That's not clear if one listens to the 'Obama is the devil-incarnate and nothing he says or does will ever be right' types.
Sometimes, it's good to remind ourselves to take a good look at the facts, and not just let our personal feelings be the gauge of what is actually happening.
That's true when it comes to our personal lives, and our financial lives, not to mention our political lives.
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