Comments on: 2 Worst Financial Tools http://evolutionofwealth.com/2009/12/2-worst-financial-tools/ Helping People Find, Keep and Enjoy Their Money Tue, 20 Dec 2011 16:21:36 +0000 hourly 1 http://wordpress.org/?v= By: Evolution Of Wealth http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-572 Evolution Of Wealth Fri, 19 Mar 2010 04:00:10 +0000 http://evolutionofwealth.com/?p=544#comment-572 Billy: I agree with both of your points. The problem isn't saving via retirement vehicle or owning a home. The problem is if that's all you do. Too many people only save for retirement or they only pay off their mortgage. People have trouble with the full picture. If all your money is in retirement funds couldn't that create a big problem? If all your money is in your house, couldn't that be a huge problem? My point isn't so much to say don't do it, it's instead to help people realize that you shouldn't commit and rely on one thing. Billy:

I agree with both of your points. The problem isn’t saving via retirement vehicle or owning a home. The problem is if that’s all you do. Too many people only save for retirement or they only pay off their mortgage. People have trouble with the full picture. If all your money is in retirement funds couldn’t that create a big problem? If all your money is in your house, couldn’t that be a huge problem? My point isn’t so much to say don’t do it, it’s instead to help people realize that you shouldn’t commit and rely on one thing.

]]> By: Bill Gassett http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-571 Bill Gassett Fri, 19 Mar 2010 03:25:46 +0000 http://evolutionofwealth.com/?p=544#comment-571 How can you think that not saving via retirement vehicles is not important? Who gives a darn if they are not liquid...that is not the point of why you have them. I would also disagree with not owning a home especially if you are in it for the long haul. There are not many better investments than a home both from an appreciation and tax standpoint. If it is a short term thing that is another story. .-= Bill Gassett´s last blog ..<a href="http://feedproxy.google.com/~r/MassachusettsRealEstateNews/~3/CxEYtiDtpl0/" rel="nofollow">Buying a Massachusetts Bank Owned Home</a> =-. How can you think that not saving via retirement vehicles is not important? Who gives a darn if they are not liquid…that is not the point of why you have them. I would also disagree with not owning a home especially if you are in it for the long haul. There are not many better investments than a home both from an appreciation and tax standpoint. If it is a short term thing that is another story.
.-= Bill Gassett´s last blog ..Buying a Massachusetts Bank Owned Home =-.

]]> By: Ryan @ Planting Dollars http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-334 Ryan @ Planting Dollars Thu, 07 Jan 2010 03:55:57 +0000 http://evolutionofwealth.com/?p=544#comment-334 I agree with Junkie... looks like that position really hurts! Anyways, I'm a skeptic of the 401k as well. It seems like such an average financial tool that is used for an average life. Average meaning work 30-40 years, retire, die. But what if you're someone who doesn't believe in retirement? Why even use a 401k then? The house is also a horrible tool for flexibility and like to refer to the large money eating monstrosities as McPrisons. Big houses don't really add any value and just consume time, energy, and resources. Kind of like someone on parole with an ankle bracelet, your house keeps you stuck in one location. .-= Ryan @ Planting Dollars´s last blog ..<a href="http://www.plantingdollars.com/uncategorized/how-to-win-through-quitting/" rel="nofollow">How to Win Through Quitting</a> =-. I agree with Junkie… looks like that position really hurts!

Anyways, I’m a skeptic of the 401k as well. It seems like such an average financial tool that is used for an average life. Average meaning work 30-40 years, retire, die. But what if you’re someone who doesn’t believe in retirement? Why even use a 401k then?

The house is also a horrible tool for flexibility and like to refer to the large money eating monstrosities as McPrisons. Big houses don’t really add any value and just consume time, energy, and resources. Kind of like someone on parole with an ankle bracelet, your house keeps you stuck in one location.
.-= Ryan @ Planting Dollars´s last blog ..How to Win Through Quitting =-.

]]> By: Evolution Of Wealth http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-268 Evolution Of Wealth Sat, 19 Dec 2009 05:02:20 +0000 http://evolutionofwealth.com/?p=544#comment-268 Thank you for the comment and good words. Isn't it amazing how people just believe in something they are told with no or very little real proof? Maybe I'm naive or just an optimist but I believe that you can truly get a good, positive return off of the combination of your house and your mortgage. I believe that you need both a house and a mortgage to make this work. Having both will also give you a big advantage in regards to flexibility. Thank you for the comment and good words. Isn’t it amazing how people just believe in something they are told with no or very little real proof?
Maybe I’m naive or just an optimist but I believe that you can truly get a good, positive return off of the combination of your house and your mortgage. I believe that you need both a house and a mortgage to make this work. Having both will also give you a big advantage in regards to flexibility.

]]> By: Evolution Of Wealth http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-267 Evolution Of Wealth Sat, 19 Dec 2009 04:58:19 +0000 http://evolutionofwealth.com/?p=544#comment-267 Well said and thank you for the correction. Well said and thank you for the correction.

]]> By: Wojciech Kulicki http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-266 Wojciech Kulicki Sat, 19 Dec 2009 04:04:37 +0000 http://evolutionofwealth.com/?p=544#comment-266 I loved this post for several reasons--I'm a big fan of "giving yourself options," which is just another word for flexibility, and I love the way you've defined it. Secondly, I'm always curious to see how a mantra ingrains itself in people so deeply that they don't even question it--with the case of homes and 401(k)'s, it's been going on for so long that no one even remembers what life was like when everyone didn't want a house. I think it was Wise Bread that pointed out something that has stuck with me for a few weeks--a home is not a financial decision, it's a lifestyle decision. Based on the numbers, I couldn't agree more (and yes, we probably WILL buy a home--when we're good and ready, but we don't expect it to be an investment). Awesome, awesome post. .-= Wojciech Kulicki´s last blog ..<a href="http://feedproxy.google.com/~r/FiscalFizzle/~3/5dgpOzmds1Y/" rel="nofollow">Alternatives to Traditional Christmas Gifts</a> =-. I loved this post for several reasons–I’m a big fan of “giving yourself options,” which is just another word for flexibility, and I love the way you’ve defined it.

Secondly, I’m always curious to see how a mantra ingrains itself in people so deeply that they don’t even question it–with the case of homes and 401(k)’s, it’s been going on for so long that no one even remembers what life was like when everyone didn’t want a house.

I think it was Wise Bread that pointed out something that has stuck with me for a few weeks–a home is not a financial decision, it’s a lifestyle decision. Based on the numbers, I couldn’t agree more (and yes, we probably WILL buy a home–when we’re good and ready, but we don’t expect it to be an investment).

Awesome, awesome post.
.-= Wojciech Kulicki´s last blog ..Alternatives to Traditional Christmas Gifts =-.

]]> By: Weekly Personal Finance Roundup | BudgetPulse Blog | Personal Finance Tips and News http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-262 Weekly Personal Finance Roundup | BudgetPulse Blog | Personal Finance Tips and News Fri, 18 Dec 2009 02:35:35 +0000 http://evolutionofwealth.com/?p=544#comment-262 [...] Evolution of Wealth wants to help you financially in the upcoming year. 2 Worst Financial Tools [...] [...] Evolution of Wealth wants to help you financially in the upcoming year. 2 Worst Financial Tools [...]

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]]> By: Investor Junkie http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-257 Investor Junkie Wed, 16 Dec 2009 17:48:35 +0000 http://evolutionofwealth.com/?p=544#comment-257 Re: Income Limits: In 2010, that is no longer is true. Take a regular IRA and convert to a Roth IRA. http://online.wsj.com/article/SB126004888014078557.html For the most part, I also like Roth IRAs but there is some political risk (just like 401Ks and putting all dem eggs in the same basket) For me, at least, I look at investing at a much larger macro level. It look at it as an entrepreneur and investor in my assets. Government sponsored retirement options while not awful, shouldn't be your only options for the more advanced investor. Cheers! Re: Income Limits: In 2010, that is no longer is true. Take a regular IRA and convert to a Roth IRA.

http://online.wsj.com/article/SB126004888014078557.html

For the most part, I also like Roth IRAs but there is some political risk (just like 401Ks and putting all dem eggs in the same basket)

For me, at least, I look at investing at a much larger macro level. It look at it as an entrepreneur and investor in my assets. Government sponsored retirement options while not awful, shouldn’t be your only options for the more advanced investor.

Cheers!

]]> By: Evolution Of Wealth http://evolutionofwealth.com/2009/12/2-worst-financial-tools/comment-page-1/#comment-256 Evolution Of Wealth Wed, 16 Dec 2009 16:50:15 +0000 http://evolutionofwealth.com/?p=544#comment-256 I'm also a big fan of the Roth IRA. I'm actually a bigger fan of either IRA than either 401k. The problem with the Roth IRA is that not everyone can contribute. Unfortunately, with the Roth 401k you give up a lot of the benefits of the Roth IRA you mentioned. I’m also a big fan of the Roth IRA. I’m actually a bigger fan of either IRA than either 401k. The problem with the Roth IRA is that not everyone can contribute. Unfortunately, with the Roth 401k you give up a lot of the benefits of the Roth IRA you mentioned.

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