Monthly Archive: September 2018

Turning Student Loan Payments into Credit Card Rewards

This article will show how to earn credit card rewards from student loan payments. This technique is especially useful for someone who is aggressively paying down their debt resulting in payments of several thousand dollars over only a few short months. One disclaimer is that there is a nominal fee associated with this strategy. The fee is charged by the 3rd Party Service that makes this strategy possible. Therefore, this method should only be employed when the credit card rewards are more valuable than the transaction fee. The good news is that this is almost always the case when using this strategy to get the sign up bonus on a new credit card. Background Info I have had student loan debt for just over a…
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WILL You be Prepared for Death?

If you are like me, you haven’t given this question much thought if any at all. It wasn’t until recently that I considered it either as all of my personal finance focus has been on gaining and building assets. I never thought about what would happen to them when I pass away. I was reading an article last week about a celebrity who passed away with an estate of $80 million and no Will to help distribute it. I thought to myself: “What kind of idiot wouldn’t have a Will, especially someone with significant assets?” I quickly realized that I AM THAT IDIOT! Although my monetary assets are miniscule in comparison, I have some $$$ saved up and I also have two small children who…
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Does the 4% Rule Work for Early Retirement?

The 4% Rule is a very common topic when it comes to Early Retirement. I would even say that most in the Financial Independence/Retire Early community use it as the basis of determining their “FI Number”. For those not familiar with the term FI Number, this is the number that an individual would need to save to support their lifestyle in retirement. Usually this number is calculated by determining their annual monetary needs and then multiplying that number by 25 (or dividing by 4%). 4% Rule History The 4% Rule is based on a study by financial advisor William Bengen in 1994. The study reviewed market (stocks and bonds) returns over a 50 year period from 1926 to 1976. The goal of the study was…
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How to Become a Millionaire

This post will walk through the ridiculously simple math behind becoming a millionaire. Let me start off by saying that a million dollars isn’t what it used to be (sorry no yachts or private jets). However, having a million dollars is the bank still puts you in elite status when it comes to retirement savings. Savings Stats The median retirement age American (65-74), has $126,000 saved for retirement. The average retirement age American is doing better, but they still only have $358,000 saved. So having a million dollars in the bank would give you 8x the amount the median has saved and almost 3x the amount the average has saved. From a cash flow standpoint, a million dollars can generate $40,000 per year using the…
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