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A Spring Ahead Roundup

I’m surprised that Social Security isn’t a more widely discussed topic than it seems to be. All kinds of investing advice, retirement planning with 401(k) or IRAs, but not as much focus on Social Security. Maybe I’m just not looking hard enough? Either way, it my pleasure to start this week’s roundup with 7 Secrets Social Security Won’t Tell You, an article by Maggie at Square Pennies. One of the ways i judge whether an article is worth a mention is to decide if I learned something new from it. In this case, I learned quite a bit. For example, I didn’t know that one needs to be married for 10 years to collect a benefit on the spouses earnings if they divorce. Nice job, Maggie, and a worthwhile read.

At Money Rates, I read Is inflation making a comeback? I wonder about any premature sightings of inflation. Inflation is measured by rising prices, of course, but its true momentum has to be demand driven. In other words, “too much money chasing too few goods” as classic definition is what I subscribe to.
The rise in oil prices is actually deflationary, as it throttles other activity. Less vacation travel, less pleasure driving, etc. In fact, Walmart statistics show that rising gas costs reduce their store activity. A drop in gas prices to sub-$3 levels could actually be the catalyst for improving consumer confidence that actually does spur more spending and demand driven inflation.

My Money Design asks Is 2 Percent the New Safe Retirement Withdrawal Rate? If so, we are all in some serious financial trouble. Most of us who actually do a bit of planning have used 4% as the safe withdrawal rate when determining our “number.” That number is tough to reach and doubling it means retirement is even further off.

Miranda answers the important question Can You Still Do a Roth IRA Conversion in 2012? And I won’t ruin the punchline, you’ll have to head over and read her article for yourself. The use of IRAs and Roth can help you save quite a bit on your total lifetime taxes, great to understand these accounts.

Ginger at Girls Just Wanna Have Funds (Ha! I love that blog name) wrote 3 Reasons Why Your Home Is A Crappy Investment. I think she got it right, and more so, summarized it in a brief article. I think it would take a book of analysis, 295 pages at least, to come to the same conclusion. Save the $24.95 and read this article.

In the oddest post I read this week, Shawanda Greene discusses the License to…Steal? It’s a strange series of how people rationalize that stealing is okay in certain situations. Me, I’d rather earn every cent, but to each his own. An interesting insight into what others are thinking as they steal.

After looking at all the restrictions there are on the use of your home and property. Kevin at Out of Your Rut asks Do You Ever REALLY Own Your Home? His point is well taken, there are many things you can’t do due to zoning issues, and you still have property tax to pay. In many cases, the property tax alone is over $10,000 per year. So in a sense, sure I own it, but it’s still not ‘free and clear,’ it will always be an expense.

Today’s roundup title come from the fact that in the US, we move the clocks forward an hour during the night (2am to be precise). We lose an hour of sleep, they say, but not me, I’ll sleep an hour later. We do gain an hour of light at night but give it up in the morning. By the way, it’s daylight saving time, not “savings” even though everyone seems to say that.

{ 4 comments… add one }
  • Elle March 11, 2012, 10:21 am

    In the past six months, what I have been paying for several basic items (eggs, canned cat food for my tigers, my gourmet soup, other) has gone up 10%-25%. The increase in the cost of gas hurts as well.

    The Fed freezing interest rates at their historical record lows shows a lack of backbone. A real leader would start inching interest rates up. My stock principal is doing well. I am in retirement so what I add to it is chump change at best. Yet the principal is ahead of where it started around 2003. Company earnings are up, and dividends are up something like 10% for the year to reflect the improving company earnings. My CD income does not exist anymore. I sit on a pile of cash earning pretty much no interest but to keep my portfolio diversified per my risk tolerance.

    The article about a home being a bad financial investment is important. It parallels nicely another I have cited for over a decade now called “Every House Is a Money Pit,” by June Fletcher, Wall Street Journal, 1998. I do not see the full article online anymore. An excerpt appears at http://www.makelifeeasy.com/Resources/Article.asp?ID=980904-01. Google for the article, and a number of other articles citing it, and so re-emphasizing the points in Joe’s citation, come up.

  • Maggie@SquarePennies March 11, 2012, 1:55 pm

    Thanks for including my article on social security. I’m in great company with the other bloggers. Thanks, Joe!

  • Miranda March 11, 2012, 8:13 pm

    Thanks for including me in your great round up, Joe!

  • Mike March 16, 2012, 11:51 am

    Interesting that all the articles regarding owning a home are coming out now. The authors might have delivered some value to their readers if they had written them in 2005!

    Historically the best time to purchase something as an investment is when it is out of favor. Likewise a good time to sell is when it is being touted as a “great investment”.

    Most of the articles in print are lacking context and balance. Hard to get in the media with that type of perspective. Unfortunately, it is exactly what consumers need.

    All in all those who are buying now are likely to do reasonably well. Just need to ignore the late to the game journalists who add little value.

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