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This week’s financial blog reading

Kay Bell is on Twitter, tweeting as taxtweet, and also hosts her blog Don’t Mess With Taxes, a pun, as she resides in Texas. I just read her post, Jon and Kate plus 8 divorce tax tips, in which she offers some great advice to folks looking to split up. I’d like to see her offer a part two in which she talks about estate planning. Eight kids, some vey high income (while the shows continues, anyway) and this should be on the Gossellin’s minds as well.

Curtis Ophoven of Pennyjobs.com suggests How To Prepare For a Long Recession, Start Savings 50% of Your Income. While I believe that kicking our saving rate to such unprecidented levels would send the economy into a death spiral, many of the point made were valid. I offer this post as one of the extreme reactions to the mess we are still facing.

ChristianPF hosted Jay Peroni’s What is a Roth 401(k)? 6 benefits you might care about an overview of the Roth 401(k). If your employer offers the Roth 401(k), you should read this article and consider if it’s right for you.

Last, was Kevin of NoDebtPlan who authored 5 Financial Lessons to Learn from Celebrity Deaths. When people die, it’s natural for us to reflect on our own circumstances, and Kevin offers 5 timely lessons after the recent grouping of celebrities who passed on.

Have a great week ahead.
Joe

  • Augustine July 6, 2009, 10:28 am

    I disagree that saving sends the economy in a death spiral. On the contrary, spending just did it.

    If anything, the increased savings will shift the economy to more capital-intensive products away from gadgets and luxury.

    Let’s face it, only the rich can afford boats and European vacations. If one has to go into debt or to quander one’s savings to enjoy such pleasures, one cannot afford them.

    Bottom line, living within one’s means not only only promotes a less stressful living, but also a healthier economy.

  • JOE July 6, 2009, 11:04 am

    You’re responding to my remark on saving 50%, right? I think if we did that starting 50 years ago, we’d be in great shape. I think that any change to the system, whether it’s a new tax, new technology, change in the price of a commodity (oil?), or drastic change in spending habits creates a consequence to the economy. Consider the impact to the economy of a 50% saving rate. You cook 100% at home. No restaurant meals, no take out of any kind. That local restaurant, however reasonably priced, goes out of business, as do all fast food places. Movie theaters? Gone. Don’t get me wrong, I suggest these very ways to cut back, at the same time warning than if every last person took my advice, same as the post I cited, we’d have issues. Thanks again for writing. If I ever figure out how to selectively auto-approve, you’ll be on the list.
    Joe

  • Augustine July 6, 2009, 12:46 pm

    Your list of examples just confirm my statement: the economy would shift from service (disposable income) to capital-intensive products (capital from savings, not from fractional banking).

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