Izzie
[转帖]25 Rules to Grow Rich By
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2006-10-20 23:52:00
1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.
The return on investment on a mid-range bath modernization is 102% of its cost. Kitchens can add about 90% of their costs to the home's value.
Good rules to live by! Thanks for sharing.
Point #1 got me thinking – Is it really true that upgrading an old bathroom gets the better return on investment than upgrading a kitchen? I always had a perception that upgrading a kitchen is a better choice.
I guess that it all depends on how long you intend to stay in that house, the location of the house and the level of remodeling project. If you are just looking for short-term return (i.e. turn around and sell the house within a year), minor kitchen remodels such as changing appliances, resurfacing cabinet doors, replacing floors may be better. These projects normally enable the owners to recoupe approximately 80% of cost because these improvements stand out, even though the cost is relatively low.
However, if you plan to live in your home for years, the monetary return on investment does not really matter. After all, you get to enjoy the home improvements you make, and that is priceless.
Thanks for the input.
Another point that I wanna make is that if there is unfinished basement, make it done. It also helps increase the value of the house.
If there is no basement, don't make one! (duh,,,,,,,)
The cost will be far greater than the return.
6. All else being equal, the best place to invest is a 401(k). Once you've earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA.
One of the keys to saving for the long run is keeping as much money as possible shielded from taxes. A 401(k) gives you that and more: You also get an immediate tax break, because contributions come out of your paycheck before taxes are withheld. And there's the possibility of a matching contribution from your employer ?that's free money.
The federal limit on annual contributions has been increasing gradually, and is $15,000 in 2006. If you're 50 or older, you may contribute an additional $5,000.
With a Roth IRA, you get no immediate tax break, but withdrawals in retirement will be tax-free. You can make at least a partial contribution to a Roth if your modified adjusted gross income is less than $110,000, if you're single, or less than $160,000, if you're married and filing jointly.
I don't understand this one, why should put Roth IRA on a higher priority than 401K?
I always thought it's better the max out 401K first to lower the taxible income, the tax break is immediately. Especially when you are around 30's you may be in the highest tax bucket, so the tax break becomes even more appealing.
Step #1: Contribute to your 401(K) the maximum amount that your company provides a match. For example, your annual salary is $100K, the company matches 50% of every dollar you contribute to your 401(K) up to 10% of your annual salary. So the maximum amount that the company match is based on is $10K. So invest $10K in your 401(K) plan to earn the max. company match of $5K, the free money! Of course you don’t get taxed on this $10K either.
Step #2: Max out your Roth IRA or Roth 401(K) due to the fact that your earnings in investment will be tax free when you withdraw them when you retire. Just think about average return rate of 8%-10% per year, compounding, the earnings over the next 30 years can be significant!
Step #3: The Roth IRA annual contribution limit is $4000 for 2006. In the example that I have provided earlier, assuming that you have contributed $10K to 401(K), $4K to Roth IRA, and you still wish to invest….you still have a $5000 remaining amount that you can contribute to max out your 401(K) to get the tax break.
Hope it helps clarify a little bit.
If there is no basement, don't make one! (duh,,,,,,,)
The cost will be far greater than the return.
We did the basement ourselves, except for the bathroom. And thanks to the cheap labor, I think it's break-even.
Talking about being handy!!! Truly impressive!!
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