New Car Financing: 3%
Average Payment: $ 492 month
Average Term: 60 months
Average Financed: 27,381
Car Value:               % Good                      $492 Invested @ 6%
New                         $ 27,381
Drive off lot 90% $ 24,643
1 year            80%  $ 21,905
2 years         70%   $ 19,167
3 years         60%  $ 16,429
4 years         50%   $ 13,691
5 years         40%   $ 10,952
6 years         30%   $ 8,214                                  $ 6,069
7 years         20%   $ 5,476                                  $ 12,513
8 years         10%    $ 2,738                                 $ 19,353
9 years          5%     $ 1,369                                  $ 26,616
10 years        5%     $ 1,369                                  $ 34,327
Pay for the 2nd car with $34,327 in cash. Never finance another car again!


Retirement Planning

Are you prepared? Try out the attached spreadsheet and let me know of any errors.

Retirement Planner


Below is a nice spin from a recently published article in the Atlanta Business Journal:

Atlantans are charging up a storm again, indicating continued recovery from the Great Recession, according to the latest National Consumer Credit Trends report from Equifax Inc. (NYSE: EFX).

Metro Atlantans’ credit card debt jumped 7.4 percent to $10.9 billion in the second quarter. This echoed the national trend — up 5 percent to $634 billion.

“Every major market has seen increases in credit card debt, even those cities where the housing market issues are not completely resolved,” said Assad Lazarus, interim unit leader of Equifax Personal Information Solutions. “This shows that American consumers are more confident about their financial futures, and that means the U.S. economy has entered an expansion mode… These trends suggest that American consumers are getting on with their lives”

This news is not something to be proud of unless your business is dependent on consumer credit. The average credit card debt per HH is now $15,800. The average credit card interest rate is 15%. Therefore, the average HH is paying $200/month in interest or $2,400 annually. This is approximately 6% of the average HH take-home pay.

On average, our recession happen every 57 months and last for 13 months. As of today, we are at 74 months since the last recession.

Can your HH survive 13 months with no paycheck?

Rising rates erode capital value of fixed income, creating a difficult dichotomy for investors to navigate.

Results from the Edward Jones survey show just how deeply investor confusion runs.

One-third of the 1,008 respondents between the ages of 18 and 34 said they have “no idea” how the changing rate environment will impact their investments.

While understanding grew in older age groups, fully 63 percent said they don’t know how higher rates will affect investment portfolios such as 401(k) plans, pensions and individual retirement accounts.

Edward Jones has cut its long-term allocation in fixed-income portfolios from 35 percent to 25 percent.

When you think about managing your net worth, you’re likely thinking about the assets side of your balance sheet. But net worth is assets minus debt. If you’re focused only on one side of your balance sheet, you may be missing half the picture. The key is to understand your debt-to-Income ratio. Do you know yours?

Start with the household pre-tax annual income. Combine annual expense amounts of mortgage/rent, homeowners/renters insurance, real estate property taxes, and necessary utilities (gas, electric).

The results of dividing annual expenses into annual pre-tax income is your front-end ratio. This ratio should never be above 28%.

Your back-end ratio is calculated using the annual expenses noted above plus credit card payments, car payments, student loans, child support, alimony and any other monthly contractual obligations. This ratio should never be greater than 36%,

Learning to live like no one else, so later you can give like no one else. Give 10%, save 10% and live on the rest. You will never regret it.

Small investors are borrowing against their portfolios at a rapid clip, reaching levels of debt not seen since the financial crisis.

The trend-driven by a combination of rising stock values and rock-bottom interest rates-is sparking a growing debate among market watchers: Is it a sign of investors’ increasing confidence or a warning that the Fed’s easy-money policies are creating a bubble mentality.

This continues to show the irresponsibility of many individuals. Greed is the only description for someone that would use leverage to invest in the stock market.