Wednesday, June 04, 2008

Green Backs

I don't know if anyone has noticed but the interest rates have gone up across the board. In this area the lowest mortgage rate as of yesterday was 6.3%. I am getting a 6.0% on my home I am purchasing, but had I applied two weeks earlier I probably could have gotten one around 5.3%. So in the big picture what does that mean? It means that I will if I keep the loan for its life I am looking at about sixty-five thousand dollar difference. That is a lot.
On other news, my TSP (Thrift Savings Plan) which in a way is my retirement savings, took a big hit this last quarter and my gains equated to about 3%. That is pretty crappy. I did some moving around (with my money) and this next quarter I hoping for a minimum of a increase of 6%. Last year all my investments, gained an average of 8%. So overall, I am on track. (My goal is to not have to work after the age of 50.) I wish I would have started investing when I was 20, but we all know how that goes. (Originally, my goal was 45. I was aiming too unrealistically.)

This is actually the second year in a row where our (military) money is worth less. We, in theory, were supposed to have an inflation increase every year above the inflation for six years to "catch up" with the rest of the civilized world and it was extended for four more. This was Congress' fault last year and it was the President's this year. Don't get me wrong, I make decent money now, but it took me ten years to get there. If I was married and had kids, I would be struggling and probably would have to have a second or third income.