Forever stamp as an investment?

Once you buy the forever stamps, they can be used to mail one-ounce letter regardless the future postage rate.

Should you stock up forever stamps for future uses?

No. It's because the future increase of postage rate will always be at the rate of inflation. It's better to put the money in an ivestment that beats the inflation.

You should just buy enough forever stamps to avoid the hassle of finding make-up stamps for next rate increase.

Putting it down on paper

From WSJ

Just in case something happen to you ...

With more and more of your financial records are available only online, the following should still be written down on papers:

1) Where is the will?

2) Where is the safe deposit boxes?

3) List of banking, brokerage, and insurance accounts. Also, list of credit card and loan accounts.

4) List of lawyers, accountants, and insurance agents.

Personal debts - how much is too much?

Source: "Keep the Debt Monkey Off Your Back" By JACLYNE BADAL

My comment:

Too bad that this artice didn't discuss about student loan debts

Credit-card debt

-- Tally the balances on all your consumer debt, like credit cards and car loans (but not home loans). Divide the total by your annual gross income. You want that figure below 30%.

Housing debt

-- No more than 28% of gross monthly income should go toward house-related debt (including taxes and insurance).

-- Some financial planners even suggest to limit total debt payments to 20% of pretax income, so you have a buffer for surprise expenses.

Margin debt

-- Margin debt is regulated by strict rules from the Federal Reserve, the NASD and the NYSE. Investors can't borrow more than 50% of the price of the stock. And their equity in the account can't fall below 25%.

-- However, investors can get pummeled using margin debt and, unlike with other types of debt, the situation can implode in a matter of days or even hours.

A $1 Million retirement fund

Source: A $1 Million Retirement Fund - How to Get There From Here By JONATHAN CLEMENTS

Goal

Let's say, in addition to Social Security, you've determined that you will need $45,000 annually from your retirement fund when you retired.

To generate that $45,000 annually, you will need a $1 million portfolio in your retirement fund (let's use a 4.5% annual portfolio-withdrawal rate).

You may wonder how you will ever accumulate enough money to retire?

First few steps

1) Always save 10$ to 15% of your pretax income every year.

2) Ensure your diversified portfolio earn the annual return of 6% - 8% (2 x rate of inflation) or more.

3) Aim to accumulate savings that equal to two times your annual income as soon as possible.

The milestone of 2 x income is when the biggest driver of your portfolio's growth is investment earnings, not the actual dollars that you're saving.

Once you hit that milestone, the financial wind will be on your back; and reaching your $1 million savings goal should be a breeze!

It may take people 12 to 15 years. But if you're close to the milestone of 2 x pay by your early 40s, you're in pretty good shape.

Boost your credit score

Source: Money.com

Your total balance should not exceed 30 percent of your total credit limit across all your credit cards.

The bigger your balance as a percent of your credit limit , the lower your score will be.

Consider increasing your credit limit by open a few more credit cards but use them sparingly.

However, newer credit accounts may lower your score in the short term.

Don't close any unused older credit accounts.

Closing accounts would lower your total credit limit; and older accounts count more than newer ones in your credit score.

Don’t send in your loan or credit card payments late.

On average past delinquencies that were resolved might still cost you 15 to 20 points of credit score.

Order a free credit report once a year from each of the three major credit bureaus, and make sure they're accurate.

Order a report from one of the three credit bureaus every four months. Free report by going to annualcreditreport.com or calling 877-322-8228.

Planning your retirement - DIY or hire a pro?

From Money.com

Whether to hire a financial adviser to oversee your investments really comes down to a realistic assessment of whether you could manage your money on your own or not.

If you don't feel comfortable doing it on your own - whether because you don't have the time, the confidence or you're just uneasy about going solo - then hiring an adviser makes sense.

It's certainly a better way to go than just picking investments on a whim or relying on the latest recommendations of some magazines or TV pundits.

Finding a financial adviser

1) The first thing you'd want to discuss with the adviser is when you expect to retire and what sort of risks you're comfortable taking.

2) After the discussion, the adviser should be able to recommend a portfolio of stocks and bonds that makes sense for your situation - and ideally should show you how the mix has performed historically in different types of markets.

3) I'd also want to be sure is the amount you'll paying in fees. Generally, a fee of 1 percent to 2 percent is a reasonable range to pay the adviser for his or her time and expertise.

4) What services other than investing your money can you expect for that fee?

5) Will you receive monthly or quarterly reports on your portfolio's progress? What will those reports tell you? (Ask for a sample.)

6) Will you have access to the adviser for periodic updates on your accounts? If so, how often will those updates occur, and will they be face-to-face or by phone? And will you talk to the adviser or another staffer?

Explore other options

1) The first thing you'd do is to see if your 401(k) offers some sort of investing and planning advice. The kind of advice can range from meetings with advisers to manage account programs that invest your 401(k) funds to online programs that can help you build a portfolio. In some cases, the advice can also consider money held in outside accounts like IRAs.

2) Another alternative you might consider is to see if your 401(k) offers target-retirement funds. A target-retirement fund will give you a coherent investment strategy for your retirement savings. Essentially, you choose a target fund with a date that roughly corresponds to the date you intend to retire - say, 2025 - and you get a completely diversified portfolio of stocks and bonds. The fund becomes more conservative as you approach retirement age by gradually shifting its asset mix more toward bonds.

How much student loan debt is too much?

Source: ON THE MONEY by Gail MarksJarvis on April 29, 2007

According to the College Board, borrowing to pay for college generally makes sense because education builds earning potential.

The typical college graduate earns about 73% more than the typical high school graduate, and the higher pay covers the cost of four years of tuition and fees by the time the graduate is 33 years old.

The higher cost of private colleges adds an extra burden. But by age 40 students typically have covered those costs too.

However, debt levels might be too high if students are not likely to complete college or if they plan a career in a low-paying profession.

If you make this much per year	Then you can handle this much debt*	Annual payment	Portion of income
$10,000	$0	-	-
$20,000	$7,680	$1,060	5%
$30,000	$22,160	$3,060	10%
$40,000	$36,640	$5,060	13%
$50,000	$51,120	$7,060	14%
$75,000	$87,330	$12,060	16%
$100,000	$123,540	$17,060	17%
$150,000	$195,950	$27,060	18%
	*Interest rate at 6.8%

Top four computer upgrades

1) Install broadbrand connection for Internet

2) Add more RAM

3) Replace or add a bigger hard drive

4) Replace or add a graphic card


Upgrades that are not worth the time and money

1) Replace CPU with a faster processor

2) Upgrade to a new operating system