ANY DEBT, “GOOD DEBT,” OR “BAD DEBT,” LONG-TERM DEBT OR SHORT-TERM DEBT, SHOULD BE USED TO PURCHASE AN ASSET OR SERVICE WHICH WILL, IN TURN, GENERATE REVENUE OR AN INCOME THAT WILL BE USED TO PAY OFF THAT DEBT.

Everything we purchase can be construed as helping us to make more revenue and income. For instance, buying lunch gives you energy to go back and do 4 more hours of work. However, should lunch be a credit card expense? If the answer is, “No,” then pay cash for lunch. If a car is primarilyContinue reading “ANY DEBT, “GOOD DEBT,” OR “BAD DEBT,” LONG-TERM DEBT OR SHORT-TERM DEBT, SHOULD BE USED TO PURCHASE AN ASSET OR SERVICE WHICH WILL, IN TURN, GENERATE REVENUE OR AN INCOME THAT WILL BE USED TO PAY OFF THAT DEBT.”

WE HAVE BEEN TOLD DRAMATICALLY INCOMPLETE, IF NOT INCORRECT, INFORMATION ALL THESE YEARS. IN ORDER TO RETIRE COMFORTABLY, WE DO NOT NEED TO SAVE, THEN INVEST, JUST 10-20% OF OUR PRE-TAX INCOME DURING OUR 30-40 YEARS OF EMPLOYMENT. WE REALLY NEED TO SAVE AND INVEST 75% OF OUR INCOME FOR THE FIRST 10 OR 15 YEARS WHEN WE START MAKING MONEY (“Ma, I’m moving back into the basement!). THIS AMOUNT IS INVESTED INTO A PRE-TAX, LOW COST S&P INDEX FUND UNTIL WE RETIRE. I CALL THIS FRONT-LOADING OUR SAVINGS AND INVESTMENTS.

What we actually SAVE, even if our cost of living is much less when we retire, will not be even close to what we need in order to retire for the typical 20-30 years of retirement. We need the additional money brought in by LONG-TERM INVESTMENTS. During our working years, we will be adding fundsContinue reading “WE HAVE BEEN TOLD DRAMATICALLY INCOMPLETE, IF NOT INCORRECT, INFORMATION ALL THESE YEARS. IN ORDER TO RETIRE COMFORTABLY, WE DO NOT NEED TO SAVE, THEN INVEST, JUST 10-20% OF OUR PRE-TAX INCOME DURING OUR 30-40 YEARS OF EMPLOYMENT. WE REALLY NEED TO SAVE AND INVEST 75% OF OUR INCOME FOR THE FIRST 10 OR 15 YEARS WHEN WE START MAKING MONEY (“Ma, I’m moving back into the basement!). THIS AMOUNT IS INVESTED INTO A PRE-TAX, LOW COST S&P INDEX FUND UNTIL WE RETIRE. I CALL THIS FRONT-LOADING OUR SAVINGS AND INVESTMENTS.”

WE CAN LEARN FROM SALESPEOPLE, MANY OF WHOM ARE PAID 100% ON COMMISSION, HOW THEY BUDGET AND SPEND WHEN THEIR INCOME IS SO OFTEN UNSTABLE.

Charles Tadros, MD September 22, 2021 Saint Louis, Missouri

THE TRUTH IS THAT A CERTAIN LEVEL OF SOCIAL STABILITY (decreased stress), INCOME (cash flow), AND WEALTH (assets) DO MORE FOR QUALITY OF LIFE, PUBLIC HEALTH AND LONGEVITY THAN OUR NEWEST AND MOST EXPENSIVE MEDICINES OR OUR FANCIEST MEDICAL PROCEDURES.

Charles Tadros, M.D. September 12, 2021 Saint Louis, Missouri

UNLESS ONE INHERITS MONEY OR RECEIVES A MONETARY GIFT, ALL CURRENT AND FUTURE PERSONAL FINANCES ARE DEPENDENT ON YOUR CURRENT INCOME.

A portion of current income generates cash flow used to pay current bills. A portion of current income is saved to pay for emergencies. A portion of current income is used to pay insurance premiums, which in turn, are used to prevent catastrophic loss of income and wealth. A portion of current income is investedContinue reading “UNLESS ONE INHERITS MONEY OR RECEIVES A MONETARY GIFT, ALL CURRENT AND FUTURE PERSONAL FINANCES ARE DEPENDENT ON YOUR CURRENT INCOME.”