Debt-free Robertsons!

Our Memphis neighbors, the Robertsons, are debt free!! How's that for being 12 months out of optometry school, raising 5 kids, and only spending $15 per week on groceries??!? Great job, you guys!

Check out Lee's story and Ruth's story.

No High-Five to the WI 529!

I (Ashley) am alone this morning. Katie is sleeping, Shadow is sleeping, and I'm nursing sore feet from last night's party. No one is around to give me a high five or thumbs-up, so I'm going to high-five myself with this post!!

Here's the story: beck in December, Bryan and I were debating whether to open a 529 or ESA for Katie's college savings. A 529 would usually be the better answer because you can deduct the contributions from your state income taxes. Both a 529 and ESA would grow Katie's money tax free.

Since I'm the researcher, I requested the manuals, booklets and prospectus for the WI 529 program, which is managed by Wells Fargo. I analyzed the different funds available, including the investments strategies, account management fees and expense ratios.

I thought the management fees were unusually high--they ran from .75 to over 1% per year! The fees would certainly cut into any anticipated growth we would earn. Sure enough, this was high, especially compared to the Vanguard S&P Index Fund, which is 0.15%.

My final recommendation to Bryan: Let's go with an ESA.

Here's the exciting part: I just learned that Consumer Reports agrees with me: they rank Wisconsin's 529 to be the WORST 529 fund in the COUNTRY!

That ESA looks better and better!

Stock-Picking: GE?

I, Ashley, do not own any single stocks; but I'm thinking of diving in to 1) learn about the process; 2) buy low; and 3) make long-term gains in my tax-free, Roth IRA portfolio.

I'm researching GE right now. Here's what some people are saying about the company:

Jim Cramer: "General Electric can now dividend up to its commercial finance business and the company will be out of the woods. That's why it is rallying."

Stamford Advocate: "Consider General Electric Co.'s recent pounding in the stock market as one bad round in a 12-round fight that this heavyweight is still favored to win."

GE High in April 2008: $38.52
GE cost at yesterday's closing: $9.65

Drink of Choice

Consumer Reports shares its best cup of coffee...8 O'Clock Coffee! I'd also like to add that I buy this coffee for about $1/bag due to Pick N Save specials and double-coupon Wednesday. Also, the company that sells the coffee offers Accumu8 Rewards (similar to frequent flyer miles).

Money Tips from 1948

We got a kick out of watching this video this morning. Nanna, Ruth--I think you'll enjoy this 10 minute clip. Mom--you need to click on the video twice to make it run.

Bryan encourages everyone to check out the sweet camera at the end. In our story, a new MacBook Pro is the camera.



(HT: Get Rich Slowly)

"Stuff" Insurance

Read about a Stuff Replacement Fund to simplify your life
What a great idea for all the stuff we keep for that "one day" we will use it!

Millionaires at what cost?

According to conventional wisdom, Bryan and I are doing the “right” things to retire millionaires: we invest monthly in our Roth IRAs, we live by a budget, and we buy groceries on sale with coupons (just last week, for example, I bought a box of Hamburger Helper for 33 cents). But since we “moved” to the lake house, I wonder if we’re missing something in our financial plan.

Since we’re going into business with the homeowners, we know their financial stakes and they live a frugal lifestyle. Can we speed our way to millionaire status by adopting a frugal lifestyle?

1. Eat anything and everything. In recent years, Mr. and Mrs. P have moved their parents into assisted living facilities. In doing this, they cleaned out their parents’ pantries. Now…they have 60-ish boxes of jello, boxes quick pearled barley, and a box of Dream Whip cake additive with the price tag typed on the box. But hey, if it's still good, what not eat it??

2. Save what's not eaten. When we initially “moved,” I was asked if we drank milk. We love milk but I will not freeze the partially-empty container if we don't finish it. On our first day here, I nosily checked the freezers' contents. My wishes of frozen pizza and mozo sticks were replaced with containers holding a tablespoon of enchilada sauce, 8 frozen egg yolks, and multiple bags of partially eaten bread loaves waiting to be made into bread crumbs.

3. Collect…and save to sell. When I had my c-section, Bryan borrowed a firm desk chair for me to use. As it turned out, Mr. P had multiple carbon copies of this chair (they're really nice!!). If you walk into his basement, you will find 8 organs (the musical kind), a case of baby formula (remember, no kids=no grandkids), tools galore, a set of wicker chairs, piles of 2x4 wood, and etc, etc, etc! Upstairs is more storage and 5 or 6 computer monitors, broken printers, stereos from 1980, and 15 year-old sports gear.

My question of the moment: how frugal is too frugal?