Interesting Stuff on the Web

Interesting stuff on the web is what I have read through out the week. I read a lot of articles and there is always a few that I feel is worth you reading. Often I have a different opinion than the articles I post on Interesting Stuff On The Web but they are all well written pieces. Here are the links. Enjoy !!

15 Best Retirement Cities in Europe “Retirement is an exciting time of wrapping up your many years of service to society and starting a new adventure in life using all the knowledge and wisdom you’ve acquired over the years. Then comes the question of where to live – where you have your whole adult life? Or moving to an incredibly beautiful, new location?” 

Partying Like It’s 2007 part one/Dividends Diversify “With the financial markets hitting new high after new high, I can’t help but think about the end of the last bull market in 2007.”
Surviving The 2002 -2007 Bull Market Hangover (Part 2)/Dividends Diversified “ I wrote about why today seems a little like the aging bull market of 2007 all over again. And, the effects the 2007 – 2009 bear market had on us. It had lasting effects on us personally, professionally and financially.”

Are you Prepared for Retirement?/ Tony Sagami  How much do you have saved for retirement? Most financial planners recommend a nest egg that is 10 times your annual salary.With the median income in the United States around $57,000 a year, that means the average American needs to save about $600,000 (not including your home’s value) to comfortably retire.”


    • Anytime Tom, both articles where excellent, I remember 2007 like it was yesterday and have similar feelings as you. Thanks for stopping by.

  1. Hi Steve,

    Thanks again for the links. I had a chance to review the link “Are you prepared for retirement?” I’m cautious to use the types of “rules of thumb” the author mentions. X times your salary, 4% withdrawal rate, etc. They can be a useful starting point, but can also lead to false conclusions on retirement readiness.

    I use a spreadsheet to budget and have for many years. I look out on a monthly basis for about 12-18 months. After each month end, I then adjust the budget to actual so I have a record of all expenses by categories that are meaningful to me. I know how much my wife and I spend each month and each year. Having this type of history at my fingertips then allows me to plan long term for retirement or other life changes. I don’t have to rely on retirement planning rules of thumb.

    I’m sure you have considered this topic carefully for your own circumstances.

    • Hi Tom, I am like you and track our expenses monthly and do projections for our investments accounts. I think the 4% rule and X times income is a good rule of thumb and a great place to start. Everybody’s spending and circumstance is different. I am in my 40’s and enjoy working part time so I am not at the stage to start drawing on any investments.

  2. Yeah I was just thinking not generalizing about ‘the rule of thumb’. 10x your annual salary, that doesn’t make so much sense, because what if you live far below your annual salary? What if you make $500K a year, that means you need $5,000,000 to retire?

    I think a multiple of your annual expenses would be more reasonable.

    Or better yet, to have annual dividend income cover your expenses.

    • Hi GYM, I also prefer having enough annual dividend income to cover expenses. I think
      Tony Sagami was generalizing and going with people working till 65 and not retiring early. I was more interested in 1 in 3 Americans have zero saved for retirement. And 23% have less than $10,000. That’s scary.

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