I recently read this article and was blown away by the truth it portends. Banks control the world. Read and educate yourself:
http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine
Thursday, July 16, 2009
Tuesday, June 30, 2009
Investing Your Money Without Gambling: The Numbers
The core principle of a financially free person is “unearned income.” This means that you have money that makes more money without requiring you to put in any labor. Meanwhile, you can sit back with your hands behind your head and watch your wealth grow. Your goal should be to turn your earned or salaried income into investments that bring in more and more streams of unearned income. The key to this process is choosing smart, reliable investments with a decent rate of return.
The Numbers
In planning for your retirement, you decide that you would like $100,000 a year to live comfortably. How long will it take you to have enough investments or savings so that you live off of the “unearned income” that they produce each year?
If you save or invest $1000 every month, here are the rates you need to achieve your goal:
1) A 6.00% rate of return after 37.25 years will equal $1,666,660, which is the amount needed to provide you with $100,000 per year if you continue to earn 6.00% on it.
2) An 8.00% rate of return after 28 years will equal $1,250,000, which is the amount needed to provide you with $100,000 per year if you continue to earn 8.00% on it.
3) A 12.00% rate of return after 18.70 years will equal $835,00 which is the amount needed to provide you with $100,000 per year if you continue to earn 12.00% on it.
4) A 15.00% rate of return after 14.90 years will equal $666,667, which is the amount needed to provide you with $100,000 per year if you continue to earn 15.00% on it.
5) A 20.00% rate of return after 11.25 years will equal $500,000, which is the amount needed to provide you with $100,000 per year if you continue to earn 20.00% on it.
The Numbers
In planning for your retirement, you decide that you would like $100,000 a year to live comfortably. How long will it take you to have enough investments or savings so that you live off of the “unearned income” that they produce each year?
If you save or invest $1000 every month, here are the rates you need to achieve your goal:
1) A 6.00% rate of return after 37.25 years will equal $1,666,660, which is the amount needed to provide you with $100,000 per year if you continue to earn 6.00% on it.
2) An 8.00% rate of return after 28 years will equal $1,250,000, which is the amount needed to provide you with $100,000 per year if you continue to earn 8.00% on it.
3) A 12.00% rate of return after 18.70 years will equal $835,00 which is the amount needed to provide you with $100,000 per year if you continue to earn 12.00% on it.
4) A 15.00% rate of return after 14.90 years will equal $666,667, which is the amount needed to provide you with $100,000 per year if you continue to earn 15.00% on it.
5) A 20.00% rate of return after 11.25 years will equal $500,000, which is the amount needed to provide you with $100,000 per year if you continue to earn 20.00% on it.
Thursday, June 25, 2009
Are Energy Efficient Roofs Worth the Price?
Average Non-Energy Efficient Cost: $5,000 (common roof consisting of asphalt shingle materials)
Average Energy Efficient Cost: $15,000 - $1,500 stimulus money = $13,500 (metal or reflective shingles)
Benefits: Lifespan of 50 years vs. normal roof lifespan of 15 years. It will also reduce electricity bills through its reflective/insulation capabilities, which are most noticeable in hot, sunny climates with high levels of air conditioning usage. Attics that are well-insulated will reduce the benefits of a metal roof.
Estimated Monthly Electricity Savings: $15 ($25 in places with constant heat and sun)
Estimated Yearly Electricity Savings: $180 ($300 in places with constant heat and sun)
Analysis: If you pay for a non-energy efficient roof, you will need a replacement in 15 years, which equals a total cost of $10,000 over a 15 year timeframe with no electricity bill savings. If you buy an energy efficient roof for $15,000, you will only have paid $5000 extra over a 15 year timeframe for a roof that will last 35 more years than a common asphalt shingle roof. You will also realize an electric savings of $4,500 in ideal conditions and $2,700 in normal conditions, effectively reducing the difference between the price of energy efficient roofs and non-energy efficient roofs over a 15 year time span to $500. That means in ideal conditions you will break even on your roof investment in 15 years, and in normal weather environments it may take as much as 30 years to break even.
Recommendation: If you plan to stay in your home for 15 years or more and live in a hot and sunny location, definitely invest in an energy-efficient roof the next time you need a roof replacement. If you don’t live in conditions that will allow you to take full advantage of the metal/reflective roof, you probably will not want to invest in an energy efficient upgrade unless you plan on staying in the home for more than thirty years.
Average Energy Efficient Cost: $15,000 - $1,500 stimulus money = $13,500 (metal or reflective shingles)
Benefits: Lifespan of 50 years vs. normal roof lifespan of 15 years. It will also reduce electricity bills through its reflective/insulation capabilities, which are most noticeable in hot, sunny climates with high levels of air conditioning usage. Attics that are well-insulated will reduce the benefits of a metal roof.
Estimated Monthly Electricity Savings: $15 ($25 in places with constant heat and sun)
Estimated Yearly Electricity Savings: $180 ($300 in places with constant heat and sun)
Analysis: If you pay for a non-energy efficient roof, you will need a replacement in 15 years, which equals a total cost of $10,000 over a 15 year timeframe with no electricity bill savings. If you buy an energy efficient roof for $15,000, you will only have paid $5000 extra over a 15 year timeframe for a roof that will last 35 more years than a common asphalt shingle roof. You will also realize an electric savings of $4,500 in ideal conditions and $2,700 in normal conditions, effectively reducing the difference between the price of energy efficient roofs and non-energy efficient roofs over a 15 year time span to $500. That means in ideal conditions you will break even on your roof investment in 15 years, and in normal weather environments it may take as much as 30 years to break even.
Recommendation: If you plan to stay in your home for 15 years or more and live in a hot and sunny location, definitely invest in an energy-efficient roof the next time you need a roof replacement. If you don’t live in conditions that will allow you to take full advantage of the metal/reflective roof, you probably will not want to invest in an energy efficient upgrade unless you plan on staying in the home for more than thirty years.
Subscribe to:
Posts (Atom)
Posts
