Comments on: Building Wealth Using Other People’s Money http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: kingkobra85 http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-428762 kingkobra85 Sun, 05 Jul 2009 22:36:59 +0000 http://allthingsfinancialblog.com/?p=1263#comment-428762 #1: January-June, if your birthday falls here send ten dollars to dee207@yahoo via paypal. If your birthday is after June, send to kingkobra85@yahoo via paypal, both with the message: HERES A 10 DOLLAR GIFT FOR YOU. After that, put your e-mail that corresponds with your paypal BUSINESS account in the place of the e-mail address u sent the money 2 and repost this to 50 different message boards and in 1 months time, you’ll have an impressive amount of money in your paypal account. –kingkobra85 #1: January-June, if your birthday falls here send ten dollars to dee207@yahoo via paypal. If your birthday is after June, send to kingkobra85@yahoo via paypal, both with the message: HERES A 10 DOLLAR GIFT FOR YOU. After that, put your e-mail that corresponds with your paypal BUSINESS account in the place of the e-mail address u sent the money 2 and repost this to 50 different message boards and in 1 months time, you’ll have an impressive amount of money in your paypal account. –kingkobra85

]]> By: AllFinancialMatters » Blog Archive » Another Way to Build Wealth http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-65174 AllFinancialMatters » Blog Archive » Another Way to Build Wealth Sun, 21 Jan 2007 21:04:54 +0000 http://allthingsfinancialblog.com/?p=1263#comment-65174 [...] Building Wealth Using Other People’s Money [...] [...] Building Wealth Using Other People’s Money [...]

]]> By: Posts of Note for 10-29-2006 at the Money & Investing Dogberry Patch http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-37395 Posts of Note for 10-29-2006 at the Money & Investing Dogberry Patch Mon, 30 Oct 2006 00:52:45 +0000 http://allthingsfinancialblog.com/?p=1263#comment-37395 [...] Building Wealth Using Other People’s Money @ AllFinancialMatters JLP points out that once you have at least $10,000 in your emergency fund you can increase your auto and homeowner deductibles. He does not say how high to raise them, but $1000 would not be a bad place to start. The other recommendations I do not have a (tags: finance, investing, money, retirement, taxes) [...] [...] Building Wealth Using Other People’s Money @ AllFinancialMatters JLP points out that once you have at least $10,000 in your emergency fund you can increase your auto and homeowner deductibles. He does not say how high to raise them, but $1000 would not be a bad place to start. The other recommendations I do not have a (tags: finance, investing, money, retirement, taxes) [...]

]]> By: fivecentnickel.com http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-34979 fivecentnickel.com Mon, 23 Oct 2006 02:30:33 +0000 http://allthingsfinancialblog.com/?p=1263#comment-34979 <strong>Weekly Roundup - 10/20/06</strong> Here’s a quick look at posts that caught my eye over the past week (better late than never)… JLP has a nice post on building wealth with other people’s money. Jim gives us the skinny on paying estimated taxes on a quarterly basis. F... Weekly Roundup – 10/20/06

Here’s a quick look at posts that caught my eye over the past week (better late than never)…

JLP has a nice post on building wealth with other people’s money.
Jim gives us the skinny on paying estimated taxes on a quarterly basis.
F…

]]> By: Lazy Man and Money http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-34089 Lazy Man and Money Thu, 19 Oct 2006 18:28:41 +0000 http://allthingsfinancialblog.com/?p=1263#comment-34089 There's a nice <a href="http://www.smartmoney.com/retirement/401k/index.cfm?story=howmuch" rel="nofollow">article and 401k calculator</a> at SmartMoney.com. Sadly, I can't follow a lot of this advice since I moved to California. My company doesn't offer a 401k plan. The press is talking a lot about NOT buying a home in this market - average house in my town is probably around $1M, while my rent is under $2000 for a two-bedroom. As for the emegency fund, I preferred to use a HELOC when I owned my home in Boston. That frees up my 10K to earn that 10-12% in Vanguard 500 instead of the 4-5% in ING. If I do have a real emergency, I'll be paying, but I think there will be more time with no emergency than time with emergency and I'd want my money working at it's maximum for the maximum amount of time. Also, it's not like the Vanguard 500 is going to drop to 0 or I can't get my money out of it. There’s a nice article and 401k calculator at SmartMoney.com.

Sadly, I can’t follow a lot of this advice since I moved to California. My company doesn’t offer a 401k plan. The press is talking a lot about NOT buying a home in this market – average house in my town is probably around $1M, while my rent is under $2000 for a two-bedroom.

As for the emegency fund, I preferred to use a HELOC when I owned my home in Boston. That frees up my 10K to earn that 10-12% in Vanguard 500 instead of the 4-5% in ING. If I do have a real emergency, I’ll be paying, but I think there will be more time with no emergency than time with emergency and I’d want my money working at it’s maximum for the maximum amount of time. Also, it’s not like the Vanguard 500 is going to drop to 0 or I can’t get my money out of it.

]]> By: Foobarista http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-33978 Foobarista Thu, 19 Oct 2006 09:18:50 +0000 http://allthingsfinancialblog.com/?p=1263#comment-33978 As for the efund/high deductible strategy, we're big fans. We basically carry high liability and high deductible insurance for wealth preservation purposes. In general, you have two strategies with insurance: cashflow preservation or wealth preservation. Cashflow preservation, ie low deductible insurance with lots of bells and whistles, is quite expensive. Wealth preservation, ie high liability and expense capping, is typically much cheaper, but you need a bigger efund to handle the occasional knock to your cashflow. As for the efund/high deductible strategy, we’re big fans. We basically carry high liability and high deductible insurance for wealth preservation purposes.

In general, you have two strategies with insurance: cashflow preservation or wealth preservation. Cashflow preservation, ie low deductible insurance with lots of bells and whistles, is quite expensive. Wealth preservation, ie high liability and expense capping, is typically much cheaper, but you need a bigger efund to handle the occasional knock to your cashflow.

]]> By: JLP http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-33940 JLP Thu, 19 Oct 2006 04:34:45 +0000 http://allthingsfinancialblog.com/?p=1263#comment-33940 Thanks everyone for your comments. I have been gone all evening. Walt, I think the 401(k) is a good choice, especially if you get a company match. The Roth IRA is also a good deal. For a young person, it may be the best solution since they have a long time until retirement. Thanks everyone for your comments. I have been gone all evening.

Walt,

I think the 401(k) is a good choice, especially if you get a company match.

The Roth IRA is also a good deal. For a young person, it may be the best solution since they have a long time until retirement.

]]> By: Dus10 http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-33939 Dus10 Thu, 19 Oct 2006 04:25:36 +0000 http://allthingsfinancialblog.com/?p=1263#comment-33939 Walt, tax diversity is your friend... Roth it up. I have a Roth IRA and a Roth 401(k). That means no taxes on withdrawals when I retire. Employer match is in a traditional setup where it is taxed at withdrawal. However, we never know what will happen... who is to say that Roths won't become taxed, too. I really don't think we will see FICA go up... the people just won't have it. However, if we get a bunch of bed-wetters in Washington, you never know. Walt, tax diversity is your friend… Roth it up. I have a Roth IRA and a Roth 401(k). That means no taxes on withdrawals when I retire. Employer match is in a traditional setup where it is taxed at withdrawal.

However, we never know what will happen… who is to say that Roths won’t become taxed, too.

I really don’t think we will see FICA go up… the people just won’t have it. However, if we get a bunch of bed-wetters in Washington, you never know.

]]> By: Walt http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-33926 Walt Thu, 19 Oct 2006 03:34:49 +0000 http://allthingsfinancialblog.com/?p=1263#comment-33926 Does anyone think that contributing to a 401k might not be the best option now? Considering tax rates are at close to all time low, and eventually SS and medicare will implode ergo most likely raising taxes higher later in our lives? Does anyone think that contributing to a 401k might not be the best option now? Considering tax rates are at close to all time low, and eventually SS and medicare will implode ergo most likely raising taxes higher later in our lives?

]]> By: prlinkbiz http://allfinancialmatters.com/2006/10/18/building-wealth-using-other-peoples-money/comment-page-1/#comment-33894 prlinkbiz Thu, 19 Oct 2006 00:19:04 +0000 http://allthingsfinancialblog.com/?p=1263#comment-33894 JLP- great to see real estate leverage included! That's a powerful one! JLP- great to see real estate leverage included! That’s a powerful one!

]]>