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Old 02-08-2008, 08:09 PM
 
26,591 posts, read 52,344,141 times
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Quote:
Originally Posted by MotleyCrew View Post
Ben Stein said "love the one you're with." He was aiming that statement at the over 50 crowd, because divorce after 50 can be devistating to the pocketbook. Great story normie.

I read somewhere that a key ingredient to financial security in later life is a "Good First Marriage"

Some of the reasons listed are: greater achievement working together as opposed to working against each other... the right spouse can be the motivation to excel as opposed to being mediacore and the synergy created when two people share common goals...

No question about, divorce, alimony, child support and even just the cost of maintaining separate households drains resources away from achieving financial security.
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Old 02-09-2008, 08:34 AM
 
13,323 posts, read 25,582,469 times
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A lot of us never married. Never had the difficulty of splitting a household, never had the advantage of two people pulling together for their shared future. A lot less flexibility.
I told one friend, if we weren't willing to marry for some security, we might have to make even tougher choices for work/finances. She doesn't want to hear that, and rants and raves about not wanting to work full-time. I work full-time, which she calls "working all the time so you can not work later." I call it doing the necessary thing. Sooner or later, I won't be working, by hook or crook, so it seems common sense to work full-time now. I do look forward to a time without full-time work or not working, but hardly consider the necessity of working towards that an imposition. (I guess I know a lot of spoiled baby-boomers, who, oddly, are working-class backgrounds. Don't know where they got the idea that the high life was owed to them).
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Old 02-09-2008, 09:16 AM
 
Location: Upper Midwest
113 posts, read 251,915 times
Reputation: 73
Default Financial Ignorance

It is called Financial Ignorance. I would say 80% of Americans are ignorant financially. I work in the financial sector and the things I see just blow my mind! People buying cars on credit cards! Homes with third mortgages! I have given up on trying to convince people that buying a new car is the WORST possible financial move, they will not listen. So, If you want to live your life in ignorance and bliss, go right ahead!

- Drive a used car
- If you buy a home, stay in it for 15 or 30 years if you can(entire term of the loan)
- No need for more than 1 or 2 credit cards.
- Do not take equity loans or second mortgages.
- Do not spend more than you can afford.
- When you refinance your home, shorten the term if possible, do not extend it!

Just basic common sense, I guess.
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Old 02-09-2008, 09:32 AM
Status: "0-0-2 Game On!" (set 6 days ago)
 
Location: The beautiful Rogue Valley, Oregon
7,311 posts, read 15,366,122 times
Reputation: 9493
Quote:
Originally Posted by condorito View Post
It is called Financial Ignorance. I would say 80% of Americans are ignorant financially. I work in the financial sector and the things I see just blow my mind! People buying cars on credit cards! Homes with third mortgages! I have given up on trying to convince people that buying a new car is the WORST possible financial move, they will not listen. So, If you want to live your life in ignorance and bliss, go right ahead!

- Drive a used car
I think a lot of people go to NEW cars because you can get the really low-rate financing (GM makes more money as a lending company than they do selling cars) plus the worry about repairs. A lot of warranties have been shortened over the years (3 years, 30,000 miles is not that uncommon). My very un-car-person neighbor always buys new, just to make sure that she has a warranty for the entire time she owns the car. In the long run, given depreciation, she'd be better off buying a reliable model used car and taking her chances, but I was never able to convince her of that.
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Old 02-09-2008, 09:42 AM
 
Location: DC Area, for now
3,517 posts, read 12,056,954 times
Reputation: 2141
Quote:
Originally Posted by Ultrarunner View Post
I read somewhere that a key ingredient to financial security in later life is a "Good First Marriage"

Some of the reasons listed are: greater achievement working together as opposed to working against each other... the right spouse can be the motivation to excel as opposed to being mediacore and the synergy created when two people share common goals...

No question about, divorce, alimony, child support and even just the cost of maintaining separate households drains resources away from achieving financial security.
A nice pie in the sky sentiment. Of course it is better if you have a great spouse to share a life and net worth with. But there are a lot of people who are a lot better off without the difficulties of a bad spouse (at least bad for them - good people can bring out the worst in each other). One of the smartest things I ever did was give up on a losing marriage after only a few lousy years. It was amazing how I lost 2/3 of the marital income and suddenly had more money and could start saving, not to mention better health and outlook on life. I have friends who were in the same boat and hung on for decades who are in a much more precarious situation now because of it.

If everyone was perfect, then such a bit of advice would work, but life can hand you a barrel of rotten apples under the seemingly good ones on top. There are liars in this world.

Americans used to be savers and look ahead to the future in the masses. Something happened to the national psyche to change us into foolish rabbits. While individuals can address their own behavior and situations, when the bulk of the population acts like the proverbial rabbit, it pulls down the whole nation. For example, I own my house. When I retire, I want to sell it and relocate. Because of the recent big problems in the economy and fraudulent credit problems, I may not be able to find a buyer to allow me to do that. I've saved, I've lived under my income my whole life, I have excellent credit, but the bigger picture could interfere with my life plans. Big trends affect all of us.
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Old 02-09-2008, 10:15 AM
 
29,789 posts, read 34,889,516 times
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Quote:
Originally Posted by PNW-type-gal View Post
I think a lot of people go to NEW cars because you can get the really low-rate financing (GM makes more money as a lending company than they do selling cars) plus the worry about repairs. A lot of warranties have been shortened over the years (3 years, 30,000 miles is not that uncommon). My very un-car-person neighbor always buys new, just to make sure that she has a warranty for the entire time she owns the car. In the long run, given depreciation, she'd be better off buying a reliable model used car and taking her chances, but I was never able to convince her of that.
How about buying a new QUALITY car and keeping it for 12-14 years? Keep it maintained and it will maintain you.
Buying a new car until the warranty runs out means buying a new care every three years? Yikes. We recycled our new cars to our kids after 4-5 years when they graduated from college. One of them came back to me after they had it a couple of years.
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Old 02-09-2008, 10:26 AM
 
Location: DC Area, for now
3,517 posts, read 12,056,954 times
Reputation: 2141
I bought a new car twice but I kept the first one for 10 years and intend to keep the second one for at least 10 years. Yes, you pay that premium for driving it off the lot, but if you keep it for at least a decade and it is a good car, I don't think it is stupid. Changing cars every 3 years seems pricey to me. Cars last a lot longer now than they used to.

Buying a used car always entails a certain amount of risk. Why was it sold? Because it was a lemon? Because it was in a wreck? Has it been maintained properly? I don't feel knowledgeable enough to really be able to tell a good used car from one that will be a problem, so I decided to go for the new one, get exactly what I want and keep it for a long, long time. I was going to get a new one right before I retire so I wouldn't have to worry about it for 10 years into retirement but realized that the one I have is a good car with low miles. 60k miles on a good car is just getting broken in and it will have a lot of life left in it, so why spend the money?
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Old 02-09-2008, 12:29 PM
 
782 posts, read 3,489,855 times
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Retirement funds is important,but can you have some fun treating yourself once in awhile.IMHO,what the point of working and saving everything.It fills good to buy something that you work hard for.That new car smell puts a smile on my face.Having 4 or 5 plasma TVs,a pool table,texas hold em table,and what ever my heart desire.I don't need these things,but It's what i want.Driving in a muscle car and smelling the sweet aroma of leaded gas.Work hard play hard.IMHO, get some of your needs out your system.

I'm still young at 32,now its time to get serious about retirement.People will not like what i posted, so be it.Yeah, i wasted alot of money over the years.I will not trade the feeling of enjoyment over the years either.I build up some debt,but most of us do.I am at the age now i need to get more serious.I could of invested some money when i was younger and maybe could have alot more savings,but i didn't.I hear old timers saying i lost 60k or 100k in their 401ks.I'm like wow,i glad i spent my money on something i can touch or use.I had a 401k once,but it was losing money.It wasn't much,then they send me a letter saying that it fell below 5k so i have to take it out or switch to an ira,so i took it.I knew then from hearing sob stories and my experience ,that i will only invest in low risk investments.I felt as long as i have a house paid for when i retire everything will be ok.I am planning to invest into a roth IRA also.

I finally got the job(or my case a career)that i wanted.Maybe not a career to some,but it is my dream job.I am a garbageman,i said it ,yes a garbageman.I wanted this job every since i was 21.It can be difficult to get into the private sector,but i have.I feel bless.This career offer pension and free medical.This job is a good start for my retirement.25 years and out,maybe more depends on how i feel.I know companies are trying to get away from pension and paid major medical.How many companies that offer these benefits.That benefit package along is over 10k a year that my employer provide for each employees,along with the hourly pay.

There seems to always be a way out,when you are in financial trouble.Peolpe know that and continue on the same path.Max your credit cards,take out home line of credit,buy all the toys they need and then they will get bail out when it too much to handle.The government rewards the lazy(welfare).They will give you more money when you have more kids.The government offer free college assistant to people who don't work.They offer free daycare to people that sits on their couch watching opera,pretending to look for a job.The government exploits the poor with hope of winning millions (lottery).Will the government bail people out who have these home loans everyone talking about.I work and the government tax me more when i work more than 40 hours.How is that fair.Now they want to give checks to the unemployed.There are people who will overspend,buy a mcmansion,charge it,and will filled bankrupt and still feel good about themselves.Why,maybe if your never had nothing and believe that you will never have anything,maybe it was their chance of living that american dream(temporarily).
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Old 02-09-2008, 12:33 PM
 
Location: southern california
55,668 posts, read 74,663,884 times
Reputation: 48192
denial?..............
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Old 02-09-2008, 01:11 PM
 
Location: Forests of Maine
30,692 posts, read 49,482,998 times
Reputation: 19136
Quote:
Originally Posted by condorito View Post
...
- Drive a used car
- If you buy a home, stay in it for 15 or 30 years if you can(entire term of the loan)
- No need for more than 1 or 2 credit cards.
- Do not take equity loans or second mortgages.
- Do not spend more than you can afford.
- When you refinance your home, shorten the term if possible, do not extend it!

Just basic common sense, I guess.
Good points!

Mostly straight from 'The Millionaire Nextdoor'.

Also one tactic that we have used, is that while we have owned many homes I can count the number of mortgage payments made from my wages on the fingers of one hand. There are always other folks willing to give you money to make mortgage payments with.

Buying Multi-Family-Residences [MFRs] on zero-down loans, already filled with renters, gives you a place to live and folks willing to give you money to make the payments each month.
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