Save for Retirement Week Oct 21 - 27

Here it is again. Save for Retirement Week.

You might recall, last year we were starting to look for a house to buy. Obviously, that didn't happen. Yet. And we're okay with that.

And here's why: a house is a place to live. It really isn't a very great investment. Sure you get to leverage other people's money (i.e. the bank) and there may be growth in your market, but there is a pretty big expense called interest. In addition, house prices average a much lower return than other investments. Not to mention property taxes, maintenance and improvements.

I recently heard that there is no economic advantage to owning a house. None. Zero. There is, however, a behavioral advantage. While owning a house does not necessarily make you richer, the act of paying down the mortgage so that at the end of 30 or 15 years you own an asset does. So, if you're a renter, but you don't want to end up like most, you need to make sure your behavior is like that of an owner.

When we've gone to look at homes, we've grabbed the disclosure forms and the financing information. You know the kind I mean, the ones that show how much the average electric bill, heating fuel, garbage, sewer, property taxes, etc. along with the monthly payment based on different downpayments and mortgages.

We've taken this information home, added a percentage for improvements and compared them to our current expenses. We are saving/investing the difference each month. Originally, we started doing this so that when we do buy a house our budget will shift easily to paying for all the expenses of homeownership. Now I know that this practice is actually protecting us from our renting selves as well. 

Of course, I've got no source for where I heard the above economic information. So, take what you will from it. Just don't forget to Save for Retirement!

Save for Retirement Week: Oct 16 - 22

Have you looked at your account statements lately? Read a good book about finances?
Did you know that the IRS raised the contribution limit to $17,000 for 401(k), 403(b), and 457 plans for 2012?

Take some time this week to look at your retirement savings picture.

What I am doing: I ran some retirement calculators and found that we are "done" saving for retirement. We don't believe it and won't stop saving (especially since Mr. X wouldn't mind an early retirement, like tomorrow), but I know that means we can start looking at other things to invest in. Like a house.

Last week we went house shopping and hope to get serious about buying something in the near future. Maybe. We've done this before so I'm not sure how serious we'll be.

No One Cares More about Your Retirement Than You Do

Check out this great retirement post by Robert Brokamp of the Motley Fool. The post is at Get Rich Slowly.

National Save for Retirement Week Oct 18 - 25

Don’t forget this is National Save for Retirement Week. Do something this week to celebrate! Some ideas:

• Check your pay stub to see what, if any, is being put aside for retirement
  
• Find out what your plan options are and if there have been any changes since last year. Determine whether you should make a change for 2010.
  
• Pull out your latest plan statement and see where you are.
  
• Read a book about personal finance, preferably one which includes a section on retirement investing.
  
• Find out if your employer is offering any retirement/investment education this week (Alaska PERS/TRS is. Find out what’s available here)

Before anyone says, “But I’m a SAHM,” remember that 80% of women outlive their husbands – make sure you know what YOUR retirement will look like.