Quote of the day

Loading Quotes...

A Poor Rich Millionaire Roundup

Let’s start this week’s roundup with Financial Samurai’s Things Totally Worth Splurging Money On. Sam has a nice splurge list, and the one item I agree with most is the home theater system. I agree with Sam, when you have a nice size TV (Sam stops at 40″, ours is 50″) you find the appeal of the movie theater to go down, and the $50 or so savings for every movie not seen in the theater will pay for your system. I’m not really a sport fan, but when friends are over and we watch a game,  there’s nothing like surround sound.

Last month, I discussed how stores were about to get a Swipe Fee Windfall. Young money broke the latest in swipe fee news in Fed Raises Limit on Debit Card Swipe Fees. The limit which was 12 cents per transaction, is now raised to 21 cents. These fees are still a crazy percent when we pull our cards out for tiny purchases, the newspaper or can of soda. (No link as original article is no longer available)

At GenX Finance, Jon listed 5 Reasons to Not Borrow From 401(k). Here’s the problem, more than any other – if you lose your job, the loan is due in full within a few months of leaving the company. For all the tinkering congress does with everything, this needs fixing. Even if I change jobs, I don’t know of a simple way to transfer the 401(k) with the loan in tact. My suggestion is two-fold; since the money is the employee’s anyway, upon separation, the payments are suspended. Once a new job is found, the new employer’s 401(k) simply transfers the remaining funds along with the loan outstanding. The rest of the loan objections are mostly valid, but this one can and should be fixed.

I read 7 Life Lessons from the Very Wealthy at FreeMomey Finance. My favorite? ‘Don’t become “cash rich” and “time poor.”’ I often find myself saying that I’m at a point in my life that I have more money than time. I’ll take a few extra vacation days over a monetary bonus any time.

Back on the topic of 401(k)s, my tweep, Roger Wohlner wrote What To Do With Your 401(k) When Leaving Your Job. Leave it at the old company? Take it with you? Roll to an IRA? Roger explains the whys and hows of this decision.

Jason at Redeeming Riches caught the Fidelity survey that concluded 42% of millionaires won’t feel wealthy unless they have more than $7 million. Jason’s reaction? “Dear God, Save Us From Ourselves.” I guess what tips this survey to absurdity for most of us is that it was a survey of millionaires. I imagine that most people view wealth as being some level higher that where they are today.

Jeff Rose at Good Financial Cents answers How Much Should You Really Save For College? While nearly half of college students paid less than $9,000 per year for tuition and fees, private 4 year colleges often cost above $35,000 per year, quite a spread. Jeff gives some great advice how to navigate the path to paying for your child’s education.

And to wrap up this week’s roundup, at Get Rich Slowly, JD Roth asked his readers, But HOW Do You Track Every Penny You Spend? He asked not whether you use a notebook or spreadsheet, rather, what level of granularity do you achieve? Does a $50 supermarket bill get broken into the magazine purchase, take out meal, etc?


  • Financial Samurai July 10, 2011, 8:40 am

    Howdy Joe! I kinda feel you about more money than time every year I live. Kind of scary how ephemeral everything is. I have a NY resolution of taking 6 weeks off every year for the rest of my working career, and I’m determined!

    BTW, the Yakezie Gamma Class sign-up sheet is going live on Yakezie.com July 11. Love to get you on the list as an official Member now that the Challenge is done and read your Member Post story! I always appreciate your tax advice feedback. Cheers, Sam

Leave a Comment