Net worth. Those two little words seem to at some point become a huge part of what we do. That is, unless you’re a bum or something. But as usual, I’m referring to the average worker. On a super high level, it’s just the difference between your assets and liabilities (some of you are walking liabilities..admit it). This number, your net worth, gives you a rough estimate of where you stand financially.

The Fed does a massive survey every few years and one of the reports if the net worth report, divided up by age groups and other factors. The current one is not yet published, but there is one from 2004 that can serve as a general comparison point.
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Buy or Rent? Rent or Buy? It seems everyone you ask gives you some different spin on this, and no one seems to know for sure. I’ve heard a lot of “it’s a great investment..renting is just wasting money.” However, given the current housing market and economy, this may not be the best advice to follow.

In this month’s GQ, there was a pretty insightful article on home buying. If you calculate it, it turns out this whole “equity” and “good deal” thing is a total sham! If you have a giant stash, then sure, buying a home can be a good deal, but otherwise, you may want to think about it a bit more.

A good place to start is the New York Times online rent-versus-buy calculator. With it you can plug in the numbers such as size, zoning, rent, cost of houses, etc..and it will tell you how long you have to live in the house before the costs even out. Depending on your location, the calculator might surprise you. It’s a pretty well written light article and easy to read, so go grab a copy of the Feb GQ and read it. It’s the one with Rachel Bilson on the cover. Yes, there are pictures. Hooya hoo hoos.

Choosing the right investment tool for retirement can seem like a daunting task especially with all the different options you can pick from and it isn’t uncommon to feel lost. Fortunately we’re here to help, and hopefully after reading this post, you’ll feel just a little bit less lost. As promised, here is a crash course on the different types of investment tools and if each is right for you.

CNN Money published a neat slide show article about the most common retirement tools and all the information that you need to know about 401(k)s, Traditional IRAs and Roth IRAs. Read More

One of the most important things to do that most recent graduates put off or neglect is to plan for retirement. Yet, many twenty-some year olds find themselves wondering whether or not they should pay off their loans first or buy that shiny new car instead of planning for retirement. Some haven’t even begun thinking about retirement. After all, retirement is forty years away, why bother now right?

Wrong.

Personally, I feel that planning your retirement by investing in your 401(k) and Roth IRA has never been more important. With the increasingly non-existent social security, your 401(k) and IRA will probably be the only money sources keeping you alive and happy in your old age.
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