People in their twenties and thirties know where they are going to retire? That's scary and assumes little to no opportunities for growth or, a financial plan executed on dreams.
"then you can rent it when you're not there and let the place pay for itself" I thought this notion was dispelled about 30 years ago. Maybe I'm getting too old and the current generation of home buyers/defaulters know better.
Does the author have any idea how expensive it is to own, operate and maintain two homes? I've been there more than a few times and certainly can afford it but, as a way to save or make money, not a chance.
Life insurance has never been a good investment. It may have its uses but savings is not one of them. Just look at the overhead inherent in running an insurance company and the resulting abysmal returns. As long as their estate is below the taxable limit you may as well just give them the money, let them invest it and will it back to you. That does not make much sense but it makes more than life insurance.
Sorry that's it as I could not go to page 2. Happy planning.
Eye Forget9:30AM July 20, 2011
Bought property in Cabo San Lucas, @ a reasonable price yet it seems the resort got bought out trying to see what are my options.... Can't think of the company 's name who do i turn to?
tony blakelyof CA5:04PM July 10, 2011
1. OK, I will buy a $550,000 TIME SHARE vacation home as soon as possible. They are selling like hotcakes!
2. Take out LIFE INSURANCE on your parents? So they are worth more dead than alive? Is Casey Weade related to Casey Anthony?
3. OMG!INEEDANOTHERCREDITCARD!
Bobof NJ2:51AM July 09, 2011
We paid for our house in 15 years and then we bought a summer home. We rented it out during the summer, keeping two weeks for ourselves. We took a 15 year mortgage and the house has been paid for for 3 years. We paid $170,000 and it's worth $550,000, even in this depressed market. It is part of our retirement plan.
Debof MA8:47PM July 07, 2011
It seems that the down-sides listed under each of these ideas is extreme and significant. Each one basically says "this probably won't work, but there's a 2% chance that it will."
These just don't seem like financially sound ideas to me.
Brettof DC1:50PM July 07, 2011
To clarify, saving more and spending less is repeated ad nauseum because it is the way that works. Wearing your seatbelt is repeated ad nauseum because it saves your life. Saving more and spending less can save your finances. Buying a beach house, on the other hand, is not a wise move.
Brittanyof GA11:25AM July 07, 2011
Its great to see people thinking a little bit out the box. Its time to look at the reasons why we do things in a different light. Understanding that what drives spending is not only our need for something, it also includes psychological, emotional and genetic elements that we dont know actually affect us.
Savings is definitely a means to empowering personal financial situations however when it is done for the fear of the future it is the wrong approach to savings. Savings should be seen as a means to create value in your life. Save in order to shift your psychology to that of plenty as opposed to that of not enough.
Matheo Galatis6:33AM July 07, 2011
I do #4 every year. I'd rather give an interest free loan to the government than miscalculate and OWE the government money. Part of this is that my income has been so unstable I'd rather err on the side of caution. I even had the state deduct income tax from my UI benefits.
This year the tax refund gave me an emergency savings fund (which was extremely useful now that I'm unemployed)
Last year I used part of it to pay off my auto insurance premium and a credit card
The year before I bought a new laptop while in grad school (which I would not have been able to do as I was pretty much living paycheck to paycheck)
veronicaof NH2:56PM July 06, 2011
You can do #4 without overpaying your taxes. Siphon off a bit of each pay check through a direct deposit into a savings account, you'll still never see it and atleast it will accrue some interest!
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Eye Forget 9:30AM July 20, 2011
tony blakely of CA 5:04PM July 10, 2011
Bob of NJ 2:51AM July 09, 2011
Deb of MA 8:47PM July 07, 2011
Brett of DC 1:50PM July 07, 2011
Brittany of GA 11:25AM July 07, 2011
Matheo Galatis 6:33AM July 07, 2011
veronica of NH 2:56PM July 06, 2011
Jill of FL 11:19AM July 06, 2011