Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Miguel and Michele Suarez
Old 11-27-2006, 11:02 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Miguel and Michele Suarez

What do you guys think about this family and the Money Makover recommendations they got? I'm not too crazy about the recommendations.

http://money.cnn.com/magazines/money...ion=2006112709

>First of all, poo-poo on the reducing the retirement contributions. 12% combined (what they do now) is a nice start, but I definitely wouldn't reduce that on account of a college fund!

> Michele needs to sell the condo and perhaps use those proceeds to help pay for college. They both have a job already. Sometimes people get confused over just a meer investment and a job. Renting a condo you own to someone else and being a landlord is a job that has income, not just an investment.

> I'd drop the $350/month in the prepaid tuition, to just $100 each in a 529 plan instead. Prepaid tuition plans lack flexibility (such as not using it for school at all) and you never know how circumstances could change. That frees up $150/month. A little bit is better than nothing.

> IMO, they need to just reevaluate their overall cost of living. Is their house too expensive? Are they driving too expensive of cars? They need to adjust their standard of living to where they can save 15-20% of their income to retirement, not drop it from 12%!

>I agree with the other suggestions by Money. (life insurance, will, emergency fund account change)

__________________

__________________
azanon is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Miguel and Michele Suarez
Old 11-27-2006, 04:03 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Miguel and Michele Suarez

dang, 87 views so far and no one else is interested in this family?
__________________

__________________
azanon is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 04:05 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Miguel and Michele Suarez

Eh, screw them. If they are dumb enough to open the kimono to squadzillions of Money readers, let them roast in their own juices.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 05:11 PM   #4
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 2,091
Re: Miguel and Michele Suarez

Quote:
Originally Posted by Azanon
dang, 87 views so far and no one else is interested in this family?
I guess I'm just desensitized by the occasional stupidity that rears its ugly head by the Money mag "financial planners" that they have evaluate the family in each issue.

I remember one young (early-mid 30s) couple in California that had a house worth $1MM, with maybe $500k-$700k in equity. The 'professional' recommendation? Take out a home equity line of credit/2nd mortgage and invest the money in the stock market.

The home equity made up about 80-90% of the couple's net worth!

And people sometimes pay money for advice like that??!?! If I saw it scribbled on the public restroom stall wall, I'd take the time to scratch it out!
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 05:27 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: Miguel and Michele Suarez

glad i didnt put as much into commodities as they wanted us to do when we were profiled in last march's issue. they also wanted us to increase our small cap holdings by alot. i by design had drawn them down and went big cap just a few months prior.
__________________
mathjak107 is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 05:37 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: Miguel and Michele Suarez

i just read that article and i agree poor advice.

when it comes to college theres dozens of ways the kids can finance college and have 30 years to pay it off. i dont know of 1 loan your getting to finance your retirement. never skimp on retirement savings for college savings if you cant afford both.
__________________
mathjak107 is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 05:48 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Miguel and Michele Suarez

Quote:
Originally Posted by mathjak107
i dont know of 1 loan your getting to finance your retirement. never skimp on retirement savings for college savings if you cant afford both.
I agree with this in theory, but not necessarily in practice. I think there is a way to afford doing something for both in almost all cases provided someone in the family has a job. Granted, sometimes people spend too much on their house, cars, vacations, etc, but the retirement fund and the college fund shouldnt be blamed for these things.

I'd require my son to get a loan/scholarship to pay for all of it, if i could just think of some way to ethically justify not saving at all for him now; while he's growing up. Believe me, if i can justify not paying for something, i'll be the first to do it!
__________________
azanon is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 05:51 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: Miguel and Michele Suarez

well that advice is really for when its to late. its really for those that have spent to much on everything and now are passed that point of no return. they are forced now to scramble for their retirement.
__________________
mathjak107 is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 05:54 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Miguel and Michele Suarez

Yeah, i agree with that. I wouldn't do anything drastic either. I'm just glad i learned about financial management in my 20s and wont be caught by surprise by these sorts of things.
__________________
azanon is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 06:18 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Miguel and Michele Suarez

Quote:
Originally Posted by Azanon
dang, 87 views so far and no one else is interested in this family?
Perhaps it's because a lot of us ignore the "Money Magazine Makeovers"...........

Wonder how many people want to open their finances up to a million folks or so??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 07:05 PM   #11
Full time employment: Posting here.
Alex's Avatar
 
Join Date: May 2006
Posts: 696
Re: Miguel and Michele Suarez

I think the advice is crappy. IMHO, Money magazine (and pretty much all the others) are just "financial porn". The best advice I could give these two is to read books like 'the bogleheads guide to investing", "Work less, Live more", et.al., and educate yourself so you don't fall victim to this kind of bullsh*t advice.
__________________
Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.--Drew Carey
Alex is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 07:57 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: Miguel and Michele Suarez

Quote:
Originally Posted by FinanceDude
Perhaps it's because a lot of us ignore the "Money Magazine Makeovers"...........

Wonder how many people want to open their finances up to a million folks or so??
we had no problem doing it. at first we were opposed to doing the article in money magazine but then we said what the heck.

most of the time its those that pretend to have more than they do that dont want their info published.

its funny how people will be more willing to talk about their affairs than their money

now we have no reservations about doing it,in fact its fun being treated like stars for a day.
__________________
mathjak107 is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 08:11 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Miguel and Michele Suarez

Maybe it's time for a new tv series: Pimp My Portfolio...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 08:43 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jul 2004
Posts: 1,505
Re: Miguel and Michele Suarez

Quote:
Originally Posted by FinanceDude
Perhaps it's because a lot of us ignore the "Money Magazine Makeovers"...........

Wonder how many people want to open their finances up to a million folks or so??
I think we probably have some young dreamers here though that could learn from a discussion about these makeovers. The point of this thread was to point out where they're going wrong so people can learn from it.

I know you charge for your expertise in the real world FD, but here we give guidance for free.
__________________
azanon is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 10:40 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 2,946
Re: Miguel and Michele Suarez

I continue to be amazed that I never hear any of these professional FA's advise using an IRA to fund college. Dependent tuition expense is one of the exceptions for early withdrawal without penalty......normal income tax is due. The IRA can be funded from a 401k if employer permits rollovers. This way the 401k/IRA can support dual purposes. Please note I said "advise", not advocate.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 11:06 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Miguel and Michele Suarez

Quote:
Originally Posted by Azanon
I know you charge for your expertise in the real world FD, but here we give guidance for free.
And I give a lot of free advice on here, as do others..........

It is interesting to note that one of the chief editors of Money Magazine USED to be editor at ROLLING STONE, making one wonder at times what they are reading and WHO edited it.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-27-2006, 11:12 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Miguel and Michele Suarez

Quote:
Originally Posted by jazz4cash
I continue to be amazed that I never hear any of these professional FA's advise using an IRA to fund college. Dependent tuition expense is one of the exceptions for early withdrawal without penalty......normal income tax is due. The IRA can be funded from a 401k if employer permits rollovers. This way the 401k/IRA can support dual purposes. Please note I said "advise", not advocate.
So, you think I should advise people to dramatically decrease their retirement portfolio, when $30 billion plus a year in financial aid is not applied for?? Interesting...........

Most people are lucky to even have an IRA....heck, I recently read that 30% of 20-somethings AREN'T EVEN contributing to a 401K.........and of those that do, 60% is in things like MMF and Stable Value...........

In theory, it is an option...........but if the average IRA in the US has under $25,000 in it, and that's a "nest egg" for somebody........how do you propose they replace those funds?? You're talking to late 30's-mid 40's folks who haven't planned enough for themselves, much less kids........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-28-2006, 03:10 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,408
Re: Miguel and Michele Suarez

i have to agree finance dude, anyone who has to resort to hitting their ira's for college cant afford to do so. they need to sit down early in the game with their children and explain to them that they will need to get financial aid as you just cant afford to pay for school .
__________________
mathjak107 is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-28-2006, 07:48 AM   #19
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
Re: Miguel and Michele Suarez

Quote:
Originally Posted by FinanceDude
And I give a lot of free advice on here, as do others..........

It is interesting to note that one of the chief editors of Money Magazine USED to be editor at ROLLING STONE, making one wonder at times what they are reading and WHO edited it.........
Or, for that matter, what they might be smoking...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Re: Miguel and Michele Suarez
Old 11-28-2006, 10:08 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Miguel and Michele Suarez

Quote:
Originally Posted by mathjak107
i have to agree finance dude, anyone who has to resort to hitting their ira's for college cant afford to do so. they need to sit down early in the game with their children and explain to them that they will need to get financial aid as you just cant afford to pay for school .
I am encouraging my sons to do well in school...........it would make me very proud if they got academic scholarships to go to college. My oldest son is a year ahead in school, so he probably is on that path. My younger son is far beyond his years athletically........the skills he has are staggering...........

That being said, I already told DW I will GLADLY pay 100% of the expenses for them to learn a trade if that is their passion. I know what I pay plumbers, electricians, and carpenters when I hire them...... And as far as the future goes, I don't see the demand of that going away, particularly if people start living in their homes longer..........
__________________

__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 12:08 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.