Inherit

An intersting article from Wall St Journal

( http://online.wsj.com/article/SB10001424052702303990604577370001234970954.html?mod=e2tw) talks about baby boomers (like myself) not inheriting as much as we figured.  Of course, I figured on nothing from my parents, but:

For years now, there's been a lot of talk about boomers getting tremendous windfalls as their parents pass on. Many boomers, in fact, have been lagging behind in their savings, betting on—hoping for—big bequests, especially since many of them suffered big losses in 2008.

But for a growing number of boomers, things aren't going according to plan. The postwar generation is living longer—and many are spending their savings along the way. And, of course, many of them also took a hit in 2008.

The result is that, as a group, boomers likely won't be getting as much of an inheritance as they hoped. Even worse, far from receiving a bequest, a growing number are tapping some of their own savings to help their cash-strapped parents make ends meet.  ....

Ms. Becker, now 63, says she certainly doesn't begrudge her parents for outliving their savings. The Steins built a thriving plumbing and heating business that now employs Ms. Becker and her husband, among other family members. Still, as Ms. Becker's in-laws enter their 90s, she worries that "their money is running out, too."

How kind of her not begrudging her parents living longer!

We hope to leave our kids an inheritance, but if PO gets reelected it will be much less than we hoped!

Love & money Stats

I get a magazine from USAA (called surprisingly enough USAA Magazine) that had some interesting stats on love & money.

3 in 4 single Americans are turned off by excessive credit card debt
46% of Women don't care how much their date spends on a date & coupons are OK
41% of women would pick up the check on 1st date
$116 is the typical amount spent on Valentine's Day  (I spent slightly less, approx. $116 less))
$60 is average monthly amount spend on primping  (not much of a primper)
Typical date costs 30% - <$50, 10% > $100,rest between 50-100
91% women say they would marry for love over money
cost of date $12-drinks,$36-dinner,$16-movie,$5-coffee = $60
managing finances in house - 25%-husband, 20%-share,55%-wife
3% of people with spouse or fiance have pre-nup
$4466 average cost of honeymoon
wedding costs $13370-reception, 1290-dress, 3300-photo, 1430-flowers, 400-cake,1500-rings,5130 - others = $26500
$3250 average amount of engagement ring
2.1 million marriages 2010
900,000 divorces 2010
1 in 3 married Americans say recession has stressed their marriage
22% of divorcees say money was cause of the split
$9.8 billion amount of alimony paid in 2009
30% admit to lying to partner about money
cost of education: $28500 tuition & fees, private,$8240 public (my first year was $324)
what kids cost : $226920 child born in 2010 to 18 (college not included)
$1014 monthly cost to feed family of 4
$4294 cost of raising baby to age 1
Weekly allowance: >$10-15%, 5-10 25%,<5-12%, rest nothing

I'm glad I am already married to a wonderful woman and educated and my kids are on their own!

Debt Level

I receive a email about Thrifty Hints and this was a part of the recent one :

A healthy debt ratio, or at least an average debt ratio, is about 35 percent and below. Ideally your ratio should be about 15 percent, but if you're not above 35 percent then you're in good fiscal shape. Regardless of whether or not you have a lot of money, what you do have is under control and ready to go where it needs to go.
A debt ratio between 36 and 42 percent is where you should start being concerned and figuring out a financial plan so you can start paying some of that off. If your ratio is between 43 and 49 percent start expecting significant financial difficulties in the near future. 
If you can work your debt ratio down to 35 percent or lower then you'll qualify for the loans you want and the interest rates you want as long as your credit score is also in good shape.

We have always spent less than we make.  We live in a paid off house (not a great one by any means) and the only debt we have is our credit card bill which we pay off every month.  So our debt ratio is very small.

I like the last paragraph of the above quote : work your debt ratio down to 35 percent or lower then you'll qualify for the loans you want. 


So they are saying if you get your debt down you can borrow more to get your debt ratio back up!

Maybe this is why everyone is so far in debt, don't save up for what you want, get it now and borrow, borrow, borrow!

Credit Cards

I have had an interesting journey with credit cards.

When we first applied for a credit card, we were rejected. So I wrote one of my very bitter letters to the credit card provider (when I get mad I write very bitter letters telling them how stupid they are but not in those words, case in point the IL IRS letters) asking if we had NO debt & had investments how come we were bad credit card risks; they then gave us a credit card (which I canceled a couple of years later when they tried to impose a fee).

Since then we get numerous invitations to get more credit cards.

For the second time in 2 years someone has stolen my credit card number & we had to cancel the cards & will get new ones in the mail some time soon (hint check your credit card charges daily, it is easy to do on line). Of course, these are the cards we use for various periodic bills. The last time it was canceled just as our YMCA payment was due.

Now P.O. has proposed regulating credit card companies (after all look how well that has worked with Fannie Mae & Freddie Mac). Once again the responsive credit card users will be penalized for the incompetent users!

“You want 21 percent risk free? Pay off your credit cards.” Andrew Tobias “

Money isn't everything - there's credit cards, money orders, and travelers' checks”

“Money is just the poor man's credit card.” Marshall McLuhan

“Modern man drives a mortgaged car over a bond-financed highway on credit-card gas.” Earl Wilson

CREDITOR, (n) One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions. (DD)