CuppaJoe
Moderator Emeritus
Mom was a saint.As much as I reject the 9 - 5 rat race I would never want to be a SAHM.
Mom was a saint.As much as I reject the 9 - 5 rat race I would never want to be a SAHM.
As much as I reject the 9 - 5 rat race I would never want to be a SAHM.
If asked, I'd say the credit card arbitrage is the most dangerous thing to advocate.
Yeah, except that a bunch of Money readers are beginning to reconsider their subscriptions...So we are back to square one.............
Yeah, except that a bunch of Money readers are beginning to reconsider their subscriptions...
Since I post here, does that make me an expert?
it is very rare for me to comment like this, but i have to agree with Ha.What a 29 year old who lives off her husband has to teach anybody about retirement is beyond me.
Ha
First, if you are part of a committed couple and one spouse is working and the other isn't, why draw on your retirement savings? Why not just live off what the working spouse is bringing in rather than leaving your 401k to grow for another 30 years?
Being a SAHM to me doesn't automatically qualify Madison as a FIREd. I can't recall the full contents of the article but didn't it state they could afford to both retire? If so, would that mean they could only do so if they withdraw from their retirement accounts as that is what Madison is doing now?
After spending some time reading Madison's blog, I am more convinced than ever that she is certainly well on her way to FIRE but that, right now, she is no different than the legion of young dreamers (including me) frequenting this board.
Madison goes into the details of her 14 year "dollar plan" and says they are only in year 5 of the plan (the plan expires when her husband turns 40). The plan involves growing their 2003 net worth ("the starting point") by 4560% before the end of 2016. The growth will come from "savings" and "return on investments". Their "starting point" was somewhere between $1 and $1M according to the blog. It seems to me they still rely on healthy contributions to their retirement accounts to achieve their 2016 goal.
2008 Financial Resolution
Our Net Worth Increases: October 2007
Obviously, if they both stopped working and started paying for their own health insurance, it would negatively impact their dollar plan as they would not only stop contributing to their retirement accounts but they would also suffer from lower net returns on investments because of withdrawals.
Also, the last update I could find for her net worth was 08/2008 (she had updated it every month since 01/2008 but the updates seem to stop in 08/2008 ). She had a very ambitious goal of growing her net worth by 20+% in 2008. It seems doubtful that she will achieve anything close to that goal given the net worth growth she posted so far this year. Yet she doesn't seem to acknowledge that this could have a lasting impact on their plan.
Net Worth | My Dollar Plan
And there are a number of funny things in her 29 steps, for example:
1) don't underestimate a college education. With a graduate degree, she probably got out of school at age 24 or 25, so she made use of that valuable degree for... 5 years?
2) save aggressively... "I saved like crazy after I graduated from college, often more than 50% of our salary. Once our money was compounding really well we began decreasing our contribution percentage without much effect on the portfolio.". She graduated from college around 2001. So she basically invested the bulk of her money during the 2003-2007 bull market (like me). I wonder if her money is still "compounding really well" (especially now that is taking money out of her retirement accounts) and if it is, could she give any good investment advice... My wife and I have consistently saved 35-45% of our income since 2001 and we are nowhere near our FIRE goals...
But overall, I think she and I are following similar paths, but I would say I am a bit more conservative in my assumptions.
Maybe YOU should start your own blog..........
I am guessing the access to health insurance is the big reason Madison's husband is still working. For folks in their late 20's, the cost od good qualit health care would be staggering for them...........
Maybe I should!
I should make a correction though. In September 08, she reported a 5.6% drop in her net worth, bringing her cumulative return to 862% from the "starting point" on 2003. I wonder what October did to her net worth. I know what it did to mine and it ain't pretty!
thank you, thank you...you are too kind.On the Internet, EVERYONE'S an expert, EVERYONE...........
thank you, thank you...you are too kind.
i'll pick my own area of expertise...hmmmmm...how about designing a certain type of detector? i'm a FIREd engineer, and engineers DO design ___ detectors (fill in the blank and please PM me if it's crude)
Glad you had a good time! The entire Hawaii Visitors & Conventions Bureau wishes you a speedy return. The state's tourism industry is circling the drain this month with the lowest hotel occupancy in over seven years.BTW Nords Hawaii was utterly amazing. I loved it, and the wife and I are considering selling our home when the housing market turns north a tad, and moving to the Big Island.
I would like to see the other islands though before I make a major change. Would hate to move to one island and then wind up wishing I lived on another.
What really suprised me was that with the inflation we have had here in the mainland, living there as far as food and gas was about the same, with the exception of like milk.
Glad you had a good time! The entire Hawaii Visitors & Conventions Bureau wishes you a speedy return. The state's tourism industry is circling the drain this month with the lowest hotel occupancy in over seven years.
You could do an urban shopping vacation in Waikiki for your next trip, but I'd recommend Kauai or Maui. I think that for a combination of retail outlets (Home Depot, Wal-Mart), manageable traffic, and affordable living, though, the Big Island is easier. If you want really really inexpensive living, though, Molokai land is about to get very cheap compared to the rest of the state. If you need regular visits at a VA facility, though, you're going to want to start on Oahu. Many residents of neighbor islands end up commuting for levels of care that they can't get on their island.
Or you could plan your next trip with the advice of the residents. When the Tennessee winter weather turns really really crappy, you could log on to this discussion board: HawaiiThreads.com - The Hawaii Forum
A shipmate has been planning a Big Island move for years, but he's going to be on the Mainland for some time with his aging parents. I don't remember if he's actually bought land or if he was still in the research stage. PM me if you want to contact him or his realtor.
One of the island's biggest employers, Molokai Ranch, shut down due to flagging tourism and obstacles to their development of a luxury-home community.yea it has been cold and my allergies have drove me insane since I got back. Why is Molokia about to get cheap?