Money And Investing  -

8 8 | § ¶Food Drive
   --

The Holiday Season reminds us of being thankful for what we have, and of sharing with the people who need.  On most supermarkets and on some workplaces you will see boxes collecting food for the local food bank.

I have been taking a look at the content of those boxes, and they have luxury food items on them:  Uncle Bens and Far East seasoned rice boxes, Progresso Soups, and Cheerios.  In my opinion, those willing to spare some of their money to help those that are less fortunate should maximize their goodwill (feed as many people as possible with the same amount of money).

6 6 | § ¶Are you there yet?
   --

My 401k plan open enrollment reminder e-mail just arrived.  I took a glance at it, and decided that I wouldn’t have to change anything at this time.  A reminder for me that such plans provide a sensible strategy to retire in comfort, with minimal effort.

It also reminded me that next year (2005) the federal government (and on most situation state governments) is allowing us to shield from taxes $14,000 USD (up from $13,000 this year) in 401k plans.  Most of my friends work for companies that offer 401k plans, and some of them even match some of the contributions (making the real maximum you can contribute around $17,000).

10 5 | § ¶Retirement Strategies
   -- Irony

For those of us living in the USA, I see three options for retirement:

• Option 1:  You live a sensible life, and save as much as you can in your 401k, IRAs, Brokerage Accounts, Real Estate, and other investment vehicles.  It is hard.  For example:  a 401k contributing $14,000 USD a year (tax sheltered) is a reduction of about $800/month of after tax money that you would not see on your expendable income, but will surely give you a comfy life in the future.
• Option 2:  You pray to god and to your political party of choice that they save the Social Security system.  In such a case you will ONLY need to work until you are 67 years old (or any other age they decide to save the system).  You will receive a small check that hasn’t even been properly adjusted for inflation that will help you pay for a very small apartment, an old car, and very basic food – and not too much more.
• Option 3:  You start having kids.  10 or 15 kids would be a good number, just like in the old days.  Teach them very sound financial practices and they may be able to support you. 

I prefer to stick to Option 1.  Hope is not a strategy.