I received some insightful letters from readers after I wrote an issue of Cabot Wealth Advisory last week about managing your money. Here are two of them:
“Figure out how much money you feel you will need and then multiply that number by two.
“Remember to take into account your federal income tax which may be about $25,000 plus your real estate taxes which could run about $500 per month or $6000 per year. That’s an extra $31,000.
“I tell my grand kids when they get married there are three simple rules for a happy and successful happy life:
“1. Stay close to God.
2. Invest ten percent.
3. Tithe ten percent.
“Try it, it will bring great things in your life.”
B.
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“I started in banking in 1972, in the south where more people believed in saving than investing. Some of our largest deposit accounts were people that had the discipline to save some of what they earned in every paycheck or just a percentage of what they earned from whatever they did. They did not trust the stock market so they put their money in insured savings accounts only. Sometimes several different banks. They also did not have the option of all of the different investment plans available now and since many of them had grown up during the depression they were very cautious. This could go on forever but my point is they had two of the most important things anyone needs to accumulate wealth. They had a plan and they had discipline and they stuck to their plan. Imagine if their plan had been to invest in the stock market with the same discipline that they used investing in bank savings accounts and certificate of deposits.”
G.L.
As always, send us your comments, questions and suggestions!
The bailout plan MUST be approved as the only way to avoid financial disaster affecting all. The so called socialist and inflationay aspect i a red herring. The Treasury will have unlimited time to dispose of the assets and, highly likely at a profit, in addition to gaining equity stakes.
What do I think of the bailout plan….the original proposed bailout plan from Treasury Secretary Paulson should have been immediately approved with no strings and bipartisan support as promised by Nancy Pelosi, Harry Reid and other Congressman on Friday a week ago. There would have been an immediate vote of confidence by everyone and other issues could have been left for another day . This major problem required an immediate fix to avoid the steamrolling effect of investor confidence and some of the major banks and S&L’s could have been saved….this politicizing has cost US citizens and enterprised billions unecessarily….shame on Congress for creating the problem with deregulation and encouraging Fannie and Freddie to issue marginal loans and then not acting in good faith to save the country when the chips were down….Rocco Spaccio