How To Prevent Your Wealthy Man From Straying

Kissing During Sunset

A female friend asked me over a drink one day whether I had any tips on how she can lock down her husband forever. I immediately started imagining her throwing her hubby in a dark cage after sunset and maniacally laughing as she twisted a thick key to keep him hidden from the world. Her husband is a wealthy fella who is charming enough to have a whole lot of extracurricular fun if he wanted to. She’s attractive and successful as well, but still she has fears.

My friend’s situation reminded me of a UC Berkeley study that found wealthier people are more prone to cheating, taking candy from children, and failing to wait their turn at four-way stops. This is pretty obvious if you think about the correlation. When you’ve got more money, you’ve got more options. When you’ve got more options, you’ve got more temptations. When you’ve got more temptations, the chances of fulfilling those temptations goes up.

Men who know you’re the best thing they’re ever going to get are much less likely to cheat. They’ll probably appreciate you much more, be more attentive to your needs, wash the dishes, do the laundry, vacuum the floor, take out the trash, keep the bathrooms clean, give you foot massages, buy you flowers every week, take you on romantic trips to Target, and maybe even let you go out for drinks with your handsome physical trainer. Nirvana right?

I’m always on the lookout for any type of correlation between relationships and money because the topic is so fun! Several years ago a blogging buddy sold his personal finance site for $4 million dollars. Soon after, he divorced his wife and decided to travel the world with another woman. Coincidence? Or did money give him the courage to break free? It’s like Obamacare allowing millions of Americans to no longer be tethered to a job they despise anymore. Screw you boss! I’m outta here!

Let’s discuss three strategies women can deploy to lock down their men and create happier relationships. 

The Maximum 401k Contribution Limit: What You Could Have If You Max Out Every Year

Mega yacht in HawaiiThe government has blessed us with the ability to max out our 401k to $18,000 a year starting in 2015, up from $17,500 in 2014. If you are 50 or older, you can add up to $6,000 extra per year from $5,500 in 2014. Although $500 isn’t that big of an increase, it’s still better than a sharp stick in the eye!

I always recommend trying to max out your 401k as fast as you can. Once you get into a max habit you’ll rack up some nice bucks in no time.

So many people don’t even bother to try because they don’t feel like it’s possible. But once they try, they kick themselves for wondering why they didn’t max out sooner. Remember, the contribution to your 401k is pre-tax so an $18,000 contribution is more like $13,500 less from your paycheck a year if we use a 25% effective tax rate.

Here’s a simple chart to see how much you can accumulate in your 401k by age or years worked if you contribute $18,000 a year starting today. The chart is obviously more helpful for younger folks, given older folks had lower maximum contribution limits in the past. For example, when I first started maxing out my 401k in 2000, the contribution limit was only $10,500.

I’ve also included my high-end 401k target amount by age based off continued maximum contributions plus a constant 4-8% annual return. My high-end 401k savings target can also be considered your overall total savings target, which includes after tax savings as well. The numbers are for “ideal” conditions. We all know that life, recessions, and buying things we don’t need get in the way of savings and returns all the time.

Should I Buy A Fixer-Upper Property?

Home Remodeling Gut Job

Breathe in fresh sawdust air

“Forget money. Remodeling is the number one cause for divorce.” – Anonymous

Before my current house, I had never bought a fixer-upper before. The most I did in the past was build a new bathroom out of a closet, put up a wall to create an en-suite bathroom, and remodel my ground floor by adding a shower and blowing out a center divider so one could fit a bed. Oh, I also changed all of my windows, which wasn’t so bad.

After my remodeling activities, I swore never to do another remodel project again because it kinda feels like hell on earth. But that was almost 10 years ago.

After getting ferociously outbid on a particular piece of property ($1.2 million ask, went for $1.8 million), I decided to look away from nicely done properties. There seems to be a massive embedded premium for new or recently remodeled properties that I wasn’t willing to pay. All I really wanted was a view, gosh darnit it. The property itself almost seemed secondary!

Invest With Investors You Respect And Trust: I’m Following USAA’s Lead

US Military - Fallen Soldier MemorialWhen the Japanese bombed Pearl Harbor, my grandfather was there to serve as a Captain in the Army. During the Vietnam War, my father also served in the Army and was sent overseas to be a stockade prison guard in nearby Thailand. Then there’s me. A man who did not carry the family tradition of serving one’s country. I felt unworthy.

I wanted to join the US Foreign Service to help America in a more diplomatic way, but I felt too stupid to pass the Foreign Service Exam, so I did not try. One of the duties my father had while serving at the State Department in Washington D.C. was to be an oral exam examiner. He shared with me stories of the difficulties in making it through.

I’ve discussed a lot about having money guilt in the past, and I think part of my guilt comes from not being able to serve our country as my father and grandfather have done. A part of me is driven to make up for my lack of contribution by helping people with their personal finances. Money is a means to a better life, and I hope to make some sort of difference.

It’s an atrocity that there are homeless veterans in America. The government needs to do more to make sure that every single veteran finds a job when they come home. The private sector has to take the lead as well. If there are veterans out there who would like to share their story or become a writer for Financial Samurai, shoot me an e-mail.

The Best Place To Rent A Vacation Property In Lake Tahoe – The Resort At Squaw Creek

Lake Tahoe Summer At The Resort At Squaw CreekWinter is coming and I’ve just renewed my season pass at Squaw Valley, Lake Tahoe! One of my favorite activities in the world is writing for a couple hours in front of a fireplace in the early morning, hitting the slopes for four hours in the middle of the day, and then relaxing in an outdoor hot tub with a couple cold beers. One for me, one for you.

Lake Tahoe, California is one of my favorite places in America. The other two favorites are San Francisco and anywhere in Hawaii. Lake Tahoe is situated roughly 205 miles away from San Francisco and it’s a place I’ve been going to for amazing skiing/snowboarding during the winter and golfing, hiking, swimming, biking, and fishing during the summer since 2001.

Most people think of Lake Tahoe as a winter destination given the 1960 Winter Olympics were hosted in Squaw Valley USA. Squaw is one of the largest mountains with a 2,850 foot vertical; a top elevation of 9,050; 4,000 acres of skiable area and 270 trails after joining forces with Alpine Meadows in 2012. The mountain is so big that even during peak holiday weekends, there’s hardly ever a wait for the lifts when they are all open. Squaw is great for beginners and advanced skiers alike.

But if you’re a summer lover, summer in Lake Tahoe is even more beautiful! Every year I spend 4-5 weeks up at my place during the summer and fall for a writing retreat. I love to hike and there are scenic trails all around.