Its refreshing, and rare, to see an article wholly devoted to reality. I know more people than I should who can't save even 10 percent even though it would be a paltry sacrifice. Ideology should never get in the way of dispassionate analysis, but unfortunately, a lot of humans succumb to their emotions.
I've had very much the same experience when trying to get a home loan. EVEN with OWNING (no mortgage)my current home, and funds 4X the cost of the price range of homes I am looking for in my retirement account, the "formula" for getting a loan in the amount that I could EASILY handle precluded me from getting the loan. No wonder we had a housing crash in 2007 - apparently people who make loans can only plug numbers into formulas, and canNOT think at all. The fact that I had not withdrawn ANY money from my retirement account, even though I have been retired for 8 years also worked against me. Reminds me of bizarro superman...
So I have been retired 8 years now (how fast it goes). I did not withdraw any money from my IRA for several years, and even though I had an employer match, I was surprised to find out that when I looked at the dividends and interest of my IRA account, more money is NOW being put into (reinvested) that account than in any year that I worked. Einstein supposedly said that compounding was the eight wonder of the world. I say the easiest way to make money is with money...
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Its refreshing, and rare, to see an article wholly devoted to reality. I know more people than I should who can't save even 10 percent even though it would be a paltry sacrifice. Ideology should never get in the way of dispassionate analysis, but unfortunately, a lot of humans succumb to their emotions.
Post: Myths That Won’t Die
Link to comment from February 16, 2023
I've had very much the same experience when trying to get a home loan. EVEN with OWNING (no mortgage)my current home, and funds 4X the cost of the price range of homes I am looking for in my retirement account, the "formula" for getting a loan in the amount that I could EASILY handle precluded me from getting the loan. No wonder we had a housing crash in 2007 - apparently people who make loans can only plug numbers into formulas, and canNOT think at all. The fact that I had not withdrawn ANY money from my retirement account, even though I have been retired for 8 years also worked against me. Reminds me of bizarro superman...
Post: Show Me the Cash
Link to comment from June 4, 2021
So I have been retired 8 years now (how fast it goes). I did not withdraw any money from my IRA for several years, and even though I had an employer match, I was surprised to find out that when I looked at the dividends and interest of my IRA account, more money is NOW being put into (reinvested) that account than in any year that I worked. Einstein supposedly said that compounding was the eight wonder of the world. I say the easiest way to make money is with money...
Post: What It Takes
Link to comment from March 24, 2021