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College Education Or Entrepreneurship?

Generation X parents continue to face the challenging uphill climb of saving for their children’s college education.   For a Generation X couple that has their first child here in 2012, the cost for a private college at $50,000 a year will cost over $518,000 of total dollars at a 5% inflation rate.   As crazy as that sounds, a parent would have to save $1,085 per month in today’s dollars to be able to reach that goal.    For most parent’s the thought of saving this much money to pay for the cost of education for just ONE child can be downright daunting.  Many of us believe that the cost of college education cannot defy gravity forever, but to this point there has been no stopping the rising costs for a four year degree. During the formidable teenage years, many parents help guide their children toward getting excellent grades in school, playing some sort of athletic sports, and filling their resume with ...

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Should You Watch The Misery Index?

They say that misery loves company.  The misery index was initiated by economist Arthur Okun, an adviser to President Lyndon Johnson in the 1960’s. It is simply the unemployment rate added to the inflation rate. It is assumed that both a higher rate of unemployment and a worsening of inflation both create economic and social costs for a country. A combination of rising inflation and more people out of work implies a deterioration in economic performance and a rise in the misery index. (source: www.miseryindex.us) When things are going well like they were in the mid 2000’s, we saw our discretionary income rising and it made it feel like we could afford anything that our hearts desired including real estate, cars, and fancy vacations. When we are in the midst of economic times like those of the mid 200’s, it can really feel like nothing can wrong.  Then we saw the downturn of the market in the late 2000’s, stock ...

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Save More For Retirement? – Think Again – 401(k) Limits

In October, the IRS will go about announcing how much you can put in your 401(k) for 2010. For 2009, the maximum contribution is $16,500 for people under 50 years old, and $22,000 for people who are over 50 years old. Generally, the calculation is based upon the 3rd quarter inflation rate vs. the inflation rate one year ago. ...

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