by Joe
on August 20, 2008
A regular reader of my blog kindly pointed me to an article in Smart Money titled “401(k) Debit Cards Can Put Retirement at Risk” in which we are introduced to a debit-card like product which taps your 401(k) instead of your checking account. Although I wrote back in May’s “401(k) Loan bad for your (financial) health?” that loans were not absolutely bad, it depended on many factors, I think that such easy access is the flip side of the coin, almost certainly a bad thing. There are times I walk the fine line between wanting ‘big brother’ to establish just enough regulations to protect people from their own irresponsibility and wanting no such laws at all, caveat emptor still applying. Here, I’ll make the distinction between a one-time 401(k) loan used to help with the purchase of a first home, bridge the gap of income for an unemployed spouse, or a refinance of credit card debt combined with a change in lifestyle. Of course, paying off the cards with the loan, then charging up the cards again is no better than using a 401(k) debit card in the first place.
As the post title suggests, my feeling on this product is that it gives the consumer just enough rope to hang themselves.
Joe
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by Joe
on August 18, 2008
A while ago, the New York Times offered an interactive graphic,
which allows you to enter all the variables you need to determine whether you come out ahead buying vs renting. You are able to enter the price for the house, rent of a similar house, down payment, interest rate on your mortgage, along with the assumed increase in home value or monthly rent. Note: you may click on the image above to be taken to the Times’ web site.
Joe
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by Joe
on August 17, 2008
I’ve been thinking about getting a professionally designed logo for my blog and feature article site. I am curious what experience anyone has with companies such as Logoworks, Logocare, or similar. I frequent the financial blogs out there and wonder how many have designed their own, vs getting one from one of these design houses. I think it may be time to retire the current one and pull out my wallet.
Joe
(Update – I’ve since gotten my logo, and am very happy with it. Link to the artist appears at the bottom of my posts.)
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by Joe
on August 15, 2008
I’ve recently added another link to my List of Lists, this one for 40 Great Minds Share Their Money Lessons a CNNMoney article that offers the “Smartest advice I ever got” from a wide range of people. Enjoy.
If you have a suggestion for a new addition to my list, please submit a comment. As always, thanks for reading my blog.
Joe
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by Joe
on August 14, 2008
I enjoy the public radio show This American Life, hosted by Ira Glass, and listen to the podcast, but having fallen a bit behind, I just heard the May 9th show, titled “The Giant Pool of Money.”
It offers yet one more view on the subprime mess, this story centers around a lot of investment money looking for a home. The episode is no longer available as a podcast, but may still be streamed on line. It’s worth listening to. (And I will add it to my list of subprime links page.)
Joe
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