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/moneymag/moneymag_archive/2006/12/01/8395189/index.htm?postversion=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)
http://money.cnn.com/magazines/moneymag/moneymag_archive/2006/12/01/8395189/index.htm?postversion=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)