AboutKindred Beisinger penname K D Elizabeth Beisinger Expertise I can answer questions pertaining to budgeting, savings, debt reduction, and total freedom from debt. I can assist in prioritizing expenses and obligations. I am willing to share and offer guidance in realistic money management, modest investments, and financial freedom. I am not an investment counselor, broker or accountant, I am a missionary that does not do fund raisers or ask for donations.
Experience I live comfortably and have been debt free since I was 40.
Question I am 41-years-old, have no debt other than a home equity loan instead of a mortgage($460 a month, fixed at 5.75%, for 30 years--no balloon, no surprises), pay for used cars in cash after driving them until they literally die, and save, on average, more than $1,600 from my take home pay each month after I pay bills and other expenses. I have a 403b retirement account and a company match and the money is in an investment vehicle called a "stability of principle fund" or something like that--no losses, though the interest is quite small. I don't trust or like the stock market and have never invested in stocks or anything with any risk attached. If I continue to put at least $1,000-$1,800 per month in a money market savings account, for example, and don't touch it for the next 30 years (barring MAJOR emergencies such as replacing a major appliance or a car),could I retire? Of course, I won't earn a lot of interest and inflation will strike, but I've learned to live below my means. Also, I may sell my house in the next six years, does it make sense to pay more toward the principle to lower what is owned on the HEL more quickly? I only owe $73,000 and can easily sell to pay off the loan and make a small profit.
Answer Dear Dee,
I think you are on a very good plan, but I would want to remind you that there is no such thing as "no surprises" in the American economy. Although I think trusting your own savings plan is much wiser than stocks and mutual funds, I have a concern that is not really being discussed right now, but I believe it is a possibility. The idea that our savings accounts could become worthless at the demise of the American currency is a real possibility. I applaud your lifestyle and plan, but I would also suggest that you "invest" in some self-sufficiency implements. GM has recently proven, no company is fail proof. I'm not talking survivalist plans, but gardening implements, etc. I would pay down the note on your home, if possible, more quickly. That would get you closer to being completely debt free and if you still decide to sell, there would just be that much larger check at the time of sale. Debt free and minimal risk is definitely the way to go in this economy.
I wish you well and much success.
Kind Regards,
KD
www.eingedi.us
