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The Dollar Stretcher

The Dollar Stretcher blog will explore people and money.

Real Simple

I think that those of us who are into frugal living are blessed with a lot of fine resources. Among them is a magazine and website called "Real Simple." Their main focus is on simple living (with a modern interpretation). They had contacted me about an article they were working on awhile back. Just published it the other day. You can find it here 

The concept of simple living seems a little strange. Especially when we discuss it in a blog wired to the net. I'm sure that it doesn't mean the same thing that it did years ago. Back then living simply meant a return to a less mechanized, more rural life. Supporters tended to be self-reliant. The live off of the land types.

But like so many things you don't have to go all the way to benefit from the concept. You don't have to leave civilization behind to simplify your life. Depending on your lifestyle it could be something as simple as getting rid of some of the clutter in your home. I suspect that if we did more of that there would be fewer people looking for bigger homes (did you know that the average home is about 50% bigger than it was 30 years ago?).

It might be time for you to simplify your finances. I don't know the statistics, but I bet a lot of people have more than one IRA. That's ok if there's a specific investment reason for each one. But if they're both doing the same thing it would be simpler to only have to monitor one of them.

I remember watching westerns on TV. Occasionally you'd see one that included a wagon train heading west. Often, if they ran into trouble, they'd leave behind the things that they felt that they could live without. Sometimes those things had traveled with them for many, many difficult miles. It must have been hard to do that. 

It could be that our lives are a little like that wagon train. Look around your world and see if there aren't some things that are not adding anything to your life. If you find something like that it's time to give serious consideration to leaving it behind. Even if it's been part of your life for years.

In case you'd like to find out more about the simple living lifestyle you might like to check out an email newsletter called Simple Times A good friend of ours, Debi Taylor-Hough, has been sharing great ideas with her readers for years. Might be a good way to get a start on a simple, more fulfilling life.

Keep on stretching those dollars (and other resources!)

Gary

Comments

 

Beatriz said:

Hi Gary,  

I have wondered about this issue of consolidating IRAs into one company--isn't this the equivalent of putting all your eggs in one basket?  For example, I already have an IRA and a 401b account with Tiaa-Cref.  I want to open a Roth IRA account but I was hesitating to open it with the same company.  Wouldn't it be better to have some money in another company's fund?  Just in case?  I know Tiaa-Cref is a reliable company with a long history but you never know, right?  I would really like to hear your opinion about this, pro or con.

Thanks,

February 24, 2008 12:31 PM
 

Gary said:

Beatriz,

It depends on what you mean by 'one company'. If that one company is just the one's who administer your IRA, then it's no big deal. For instance, if you have just one IRA with a mutual fund company. And then you own many stocks or bonds or different mutual funds. Yes, you're with one company (as the administrator). But, you're invested with many companies (different stocks, etc.).

Remember that the administative company does not own your IRA. So even if they went out of business it should not effect the value of your account.

The only time that you need to be concerned is if all of your IRA investments are with one company (i.e. in just one company's stock).

February 25, 2008 7:40 AM
 

Beatriz said:

Gary,

Thanks for clearing that up for me!  I had some type of mental block but now I understand.  I guess all I have to worry about is if the administrating company offers me the type of funds I want to investin for a Roth IRA.

February 26, 2008 10:15 AM
 

Gary said:

Beatriz,

Right you are!

Hope that you build a comfortable retirement!

Gary

February 26, 2008 2:49 PM
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