Free Money Finance

Top Posts in 2008, Posts 6-10

Here is the next set in my series of Free Money Finance's top posts for 2008. This time it's posts #6 through #10, in countdown format, along with may reasons for including each post. Enjoy!

• #10 -- Small Cities Better at Growing Net Worth -- I know many people don't like it when I bring up the fact that some places are cheaper to live in than others, but I think it's a critical personal finance issue which should be considered. As such, this post cracks the top ten.

• #9 -- What I Learned from Almost Buying a House -- I was so very close to buying a new home this year. We ended up calling it off, but we did learn a lot in the process.

• #8 -- I Apply My Own Advice -- I think it's important for FMF readers to know that I actually do what I say I'm doing and that it's been successful for me so far (based on my net worth versus the stated averages.) I'm telling you what's worked for me based on 20 years of managing my personal finances -- not dishing out advice that I hope will work as I figure out what personal finances are all about.

• #7 -- How to Have Half a Million Dollars at Retirement by Controlling Wedding Costs -- A very provocative piece. With so much being spent on weddings these days, imagine how much better off people would be if they pocketed most of that money instead.

• #6 -- All You Need To Make Ends Meet: Just a Little More -- Unfortunately, most people think all they need to balance their budget is to earn a bit more. In reality, the more they earn, the more they spend. What they really need is a bit of discipline.

That's it for today. Come back in a few days to see the top five posts of 2008.

Top Posts in 2008, Posts 11-17

Well, 2008 is over. I posted over 1,700 pieces last year and I thought it would be fun to look at what I consider to be the best of the best. These aren't the posts that necessarily got the most traffic, comments, etc., but they are the articles that I feel were my best for the year (because of their topics, insight, quality of the comments, and various other factors.) I had started by wanting to list the "top 10" posts, but after reviewing all 1,700+ posts, I found 17 pieces that I felt were excellent and worthy of review. I'll list them in countdown order over three different posts, including a bit of explanation from me on why I think they deserve being in the top posts for 2008. Hope you enjoy them.

• #17 -- How I Easily Improved My Investment Returns Using Vanguard Admiral Shares -- A simple tip, but one that can earn you a bundle if applied over a 30 to 40-year investment horizon.

• #16 -- Tricks of the Trade: An Insider's Look at Saving Money at Grocery Stores -- I'm a sucker for "insider tips" and this is the first of three such posts in this section. Good stuff!

• #15 -- How I've Grown My Income -- I think it's important for FMF readers to know that I practice what I preach, and this article shows I've done so on the "earning" side of my finances.

• #14 -- When to Hire a Tax Professional -- Good, solid, basic advice.

• #13 -- Why You Should Take Practice Interviews -- Practicing interview questions before you have an interview is VITAL to your success -- as highlighted in this post.

• #12 -- A Salesman Tells How to Negotiate for the Best Price on Electronics -- Another insider piece. Hopefully I can use it this year as I buy a new TV.

• #11 -- A Real-Life Example of How to Save $1,300 in Less than Two Hours by Shopping Around for Car Insurance -- Final insider piece. It ranks as the best because 1) everyone can take advantage of it, 2) the savings can be huge, and 3) it doesn't take a lot of time and effort to do.

That's it for today. Come back in a few days to see posts #6 through #10.

Best of Free Money Finance: The College Pay-Off

I particularly like This Year's Graduate's Destined to Earn Millions in Their Lifetimes; Average Graduate Can Earn $25 Million if Career is Managed Correctly because it shows the impact a college education can have on a person's finances. We've all read stories about how expensive college is and how much debt people are racking up because of it, yet this piece gives the numbers on how much more people are making because of college. And the numbers are HUGE! That's why I think it's among the best here at Free Money Finance.

Vacation

I'll be back from vacation tomorrow and going full speed ahead as usual then. For today, please enjoy these posts. All of them have been labeled as among the best of Free Money Finance:

• My Best Financial Advice

• Why I Use a CPA to Do My Taxes

• Why I Like Index Funds, Part 3

• How to Get Rich in Three Easy Steps

• Poverty to Prosperity

Best of Free Money Finance: The 10 Best Money Moves You Can Make

My post titled The 10 Best Money Moves You Can Make is one of the best I've written, IMO. It's really a simple summary of most of my personal finance thoughts, suggestions, etc. encapsulated into one post. That's why I love it! ;-)

Best of Free Money Finance: Maximizing Your Greatest Asset: Why Your Career is So Important

I think Maximizing Your Greatest Asset: Why Your Career is So Important is one of my best posts ever because it highlights the enormous impact your career can have on your personal finances. Using simple calculations, I show how maximizing your career income can mean millions and millions of dollars to you throughout a career -- much more than if you simply put it on auto-pilot and hope for the best. It's one of the top few fundamental issues that can make a gigantic impact on whether you're rich or just barely getting by.

Best of Free Money Finance: Why I Use a CPA to Do My Taxes

I think Why I Use a CPA to Do My Taxes is one of my best posts ever because it lays out the specific reasons some people should get expert tax advice. I'm usually more of a do-it-yourselfer when it comes to personal finances, but this is one area where I leave it to professionals, and this post tells why. It's often one of my most referred-to posts -- especially during tax time.

Best of Free Money Finance: Why I Like Index Funds, Part 3

Though this post isn't very old, Why I Like Index Funds, Part 3 is already one of my favorites here. Why? Because it's a solid compilation of all the reasons index funds are great investments. Sure, it's likely that there will be part 4, part 5, and so on, but for now this is the king of the hill for me when it comes to my thoughts on "how to invest."

Best of Free Money Finance: How to Get Rich in Three Easy Steps

I think How to Get Rich in Three Easy Steps is one of the best posts I've ever written here at Free Money Finance. Why? It's simple, easy to implement, and lists steps that anyone can take to significantly improve their net worth. That's it -- not much glamour, but very effective. That's why I like How to Get Rich in Three Easy Steps and think it's one of my best.

Best of Free Money Finance: Move, Save Money, Become a Multiple Millionaire -- All in One Step

Many people hate my post Move, Save Money, Become a Multiple Millionaire -- All in One Step, but I think it's one of the best I've written here. People dislike it because they don't want to move away from family, friends, a job, and the like -- something I can certainly understand. And, after all, it's their choice how to spend their money. That said, there is a definite financial impact associated with where you live and it can be very, very meaningful to your net worth. Move, Save Money, Become a Multiple Millionaire -- All in One Step points this out (along with numbers) and shows how much where you live impacts your financial well-being. That's why I think it's one of my best posts.

Best of Free Money Finance: My Best Financial Advice

My Best Financial Advice: Spend Less than You Earn is one of my favorite posts of all time for a couple of reasons.

First of all, I like it because it gets to the heart of what I believe leads to financial success. Spending less than you earn is the foundation of growing your net worth. If you can do it, you'll be wealthy (as long as you're disciplined in other areas too). If you can't do it, you're doomed to financial failure.

Second, I like it because it's a creative post -- each letter in "spend less than you earn" is a link to a different post on the subject. Cute, huh? ;-)

Best of Free Money Finance: What Do You Splurge On?

What Do You Splurge On? is one of my favorite posts of all time because it reverses the normal flow of conversation here. Instead of dealing with SAVING money, we're talking about SPENDING money. Now who can't have fun with that???!!!!! ;-)

I'm working on a very big splurge that I'll be sharing with all of you if and when it comes about (anyone want to guess what I'm planning?) but until then, check out What Do You Splurge On? -- it's one of my favorites here.

Best of Free Money Finance: Poverty to Prosperity

I simply love the piece Poverty to Prosperity because it includes two key points I've come to believe about personal finances:

1. It doesn't matter where you start out financially...

2. ...if you apply good principles and take it step by step, you will end up well-off. You may not be as wealthy as Bill Gates, but you'll be much, much better off than you would have been if you'd done nothing.

That's why I think it's one of the best pieces I've ever written. For those of you who haven't read it, stop by, check it out, and let me know what you think.

Best of Free Money Finance: Even a Small Leak Can Empty Your Money Bucket Quickly

Here's another article pulled out of the archives that I consider one of my best. It's titled Even a Small Leak Can Empty Your Money Bucket Quickly and the reason I like it is that it illustrates a simple but true principle -- if you don't control your spending and watch where your money goes, a little bit lost here, a little lost there and so on can add up to big, big money.

This piece highlights ATM fees -- which seem ridiculous to me (people paying to get their own money) -- but the example holds true with any sort of spending that is out of control. It could be entertainment expenses, eating out, picking up a little something here and there, whatever. If you have a consistent, leak in your finances, no matter how small, you need to plug it up or it can really cause you trouble down the road.

That's the message of Even a Small Leak Can Empty Your Money Bucket Quickly and the reason I like it so much.

Best of Free Money Finance: The Richest Man in Babylon: Seven Cures for a Lean Purse

Here's a series that's definitely worth reviewing again and certainly worth being named one of the Best of Free Money Finance.

I ran this seven-part series last April and May. It's from the great book The Richest Man in Babylon and is just full of simple and practical but powerful thoughts on how to make the most of your money. Here are the links to each of the posts:

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 1, Start Thy Purse to Fattening

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 2, Control Thy Expenditures

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 3, Make Thy Gold Multiply

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 4, Guard Thy Treasures from Loss

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 5, Make of Thy Dwelling a Profitable Investment

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 6, Insure a Future Income

• The Richest Man in Babylon: Seven Cures for a Lean Purse Part 7, Increase Thy Ability to Earn

Top Five 2006 Money Topics on Free Money Finance

Last year I did a countdown of my top money tips of 2005. I was going to skip doing one for 2006, but was then enticed by ProBlogger's latest group writing project. As such, I give you the top five topics discussed here on Free Money Finance in 2006 (in countdown order):

#5 The Bible and Money

This was my first full year of writing on this subject (every Sunday) and it has developed quite a following. As you can imagine, the issue of religion and money is a "hot" one, and my post on this subject each week is one of my most commented on every single week. A few posts from this past year that I especially like are:

• Pay Yourself Second

• Does God Want You To Be Rich?

• Tithe or Pay Off Debt -- Which One Should You Do First?

#4 Investing

I write about this topic every week, though it's not about what most people imagine. I tend to focus on simple, easy-to-understand and apply methods of investing that earn good results -- like investing in index funds. I certainly don't cover "hot stock tips" and the like. A few of my favorites this past year:

• Why I Like Index Funds (Updated)

• Costs Matter If You Want to Maximize Investment Returns

• Some People Think a 100% Return on Your Investment Isn't Enough

#3 Career

This was a hot topic for the first few months of 2006 where I wrote about it almost every day. Since then, I hit it once a week or so, but it's still extremely important. As I always say: "Your career is your most valuable financial asset, offering you many financial benefits. You can make the most of it by getting a college degree and managing your career to its full potential. Doing this well can earn you millions of dollars in extra income throughout your lifetime." A few of my favorite posts from this category include:

• More Education Equals More Pay

• What is a Job You Love Worth?

• How to Know When It's Time to Quit Your Job

#2 Spend Less Than You Earn

Probably my favorite topic of all time (certainly the best piece of advice I could give anyone), this category will likely always be in my top five as long as I'm writing Free Money Finance. A few top posts of note:

• Spending Less Versus Earning More: Which is More Important to Financial Success?

• Secrets of the Wealthy: Five Lessons from the Rich

• It's Not What You Make, It's What You Spend, Part 437

#1 Saving Money

Even I didn't realize how many posts I'd written on saving money until I complied them all for 301 Saving Money Posts -- Hundreds of Ideas on How to Save Money, so there's no doubt that it's been my "topic of the year." Some saving money posts from 2006 for your review:

• Move, Save Money, Become a Multiple Millionaire -- All in One Step

• Save 30% or More on Antiques and Collectibles at Estate Sales

• Smoking is Costing You a Fortune

Best of Free Money Finance

A few months ago I wrote several posts that listed what I considered to be my best posts on certain topics up to that time. I listed the topics/posts individually, but never did one big, collective post on them all, so here they are, finally, all together:

• Best of Free Money Finance: Investment Posts

• Best of Free Money Finance: Retirement Posts

• Best of Free Money Finance: Debt Posts

• Best of Free Money Finance: Credit Card Posts

• Best of Free Money Finance: Career Posts

• Best of Free Money Finance: College and Education Posts

• Best of Free Money Finance: Real Estate Posts

• Best of Free Money Finance: Tax Posts

• Best of Free Money Finance: Insurance Posts

The Best Place to Manage Your Retirement Income

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best place to manage your retirement income:

The Best Place to Manage Your Retirement Income: Fidelity

Whatever your age, start with Fidelity's Retirement Income Planner to estimate your retirement income and expenses and to plan your investment strategy. It's free to anyone by phone (800-343-3548) or in person, and it's available to Fidelity customers online. Once you are retired, open a Fidelity Income Management Account to handle your cash flow. You can consolidate your sources of income, get investment advice and create a regular "paycheck."

"Hello? Is this Kiplinger's? Yes, I'm from Fidelity and I'd like to place an ad for my retirement services, but I'd like to disguise it as a recommendation from you. Can you make this happen? Oh, yeah, and can you call us 'the best'?"

I'm not buying this one. I've had two retirement plans with Fidelity in my work career (I have one now -- my 401k) and I've also had several accounts with Vanguard. Without any reservations I can say that I prefer Vanguard because of their low costs and great customer service.

And no, Vanguard didn't pay me to do a commercial for them, though I wouldn't mind having them as an advertiser here. It would be one company I could recommend whole-heartedly.

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Most Tax-Friendly State for Retirees

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the most tax-friendly state for retirees:

The Most Tax-Friendly State for Retirees: Delaware

People tend to focus on states with no income tax, such as Florida, Texas and Nevada. But for many retirees the biggest burden is property taxes and sales tax. That's why Delaware is a first-class bargain. There's no state sales tax, property taxes are relatively low, and homeowners 65 and older qualify for a tax credit on half of their school taxes, up to $500. Delaware does have a maximum state income tax of 5.95%, but Social Security benefits are exempt, and so is up to $12,500 of investment and pension income for residents 60 and older.

Yeah, but you have to live in Delaware. ;-)

Ok, all of you readers who live in Delaware -- don't write me. I was only kidding.

If you want to see where your state compares, check out this map that lists tax burdens across the U.S. Some (warmer) places with low tax burdens: Tennessee, Alabama, and South Carolina.

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

Free Money Finance Top 10 Most Hated Posts/Themes: #1 The Cost of Pets

Here's my most-hated theme of all time: the cost of pets.

As many of you know, I have a whole category devoted to the cost of pets. Some of the posts that make this category a loser in most people's minds are as follows:

• How Much Would You be Willing to Spend to Save Your Pet's Life?

• Calculating the True Cost of a Pet

• Comments: Sell Your House to Save Your Pet's Life

• Annual Pet Costs and A Money Saving Tip (Get a Cat)

• Annual Pet Costs and A Money Saving Tip (Get a Bird)

• Cost of Pets According to the SPCA

• Annual Costs of Pets

• Are Pets Really that Expensive?

• The True Cost of a Pet Dog

• Cost of a Dog = Cost of a Car

• You Choose -- Pets or College for the Kids

I think the reason that people don't like this topic is that most pet owners consider their pets part of the family (similar to a child) and to try and put a monetary value on the pet seems reprehensible to them. I can sympathize with this position a bit. Others try to argue that pets aren't really that expensive -- despite facts from pro-pet organizations like the SPCA. I think these people are simply in denial.

Of course it's your money and you can spend it on whatever you like. But here are a few thoughts you should consider as you think about this issue:

1. Pets are an expense. My best guess is that a medium-sized dog costs $1,000 per year on average. That's a good chunk of change you're committing to over 10-15 years when you pick up a puppy.

2. Considering the issue of the cost of pets isn't a slam on Rover and Fluffy -- it's simply a recognition that there are expenses that go along with them.

3. I've had pets all my life and I love them. So don't get mad at me when I bring up the issue -- I'm just the messenger. ;-)

Free Money Finance Top 10 Most Hated Posts/Themes: #2 Moving to Save Money

Now we're getting to the topics people REALLY hate! ;-)

Virtually no one likes my advice regarding saving money by moving. For examples of what I mean, see these posts:

• Move, Save Money, Become a Multiple Millionaire -- All in One Step

• Yes, Moving to a Cheaper Cost-of-Living City Can Make You Rich

• How Moving to a Cheaper Cost-of-Living City Can Make You Rich

• 8 Cheap Places You'd Want to Live (And How to Find More)

• Top Jobs: Where the 6-Figure Jobs Are

Now let me make a few comments that will hopefully make my position a bit clearer as well as make this topic a bit less hated:

1. It's your life and your money. If you want to spend it living in an expensive city, that's your choice.

2. It's a LOT more expensive to live in some cities than others -- there's no way to argue with the math. And, yes, the salaries may be higher in these cities, but they are no where near being high enough to make up for the big cost-of-living differences. (If you don't believe me, read through my posts listed above.)

3. There are other, non-financial reasons to live in one city rather than another. Maybe you want to be able to buy a cheeseburger at 3 am. Maybe you like the "culture." Maybe your family lives there. These all may be worth something that you can put a dollar amount on. And whether or not you've thought about it, that's what you're doing -- saying it's worth paying more to get these benefits of living in a certain city.

4. You may "like" living in one area of the country or one city and think you won't like living elsewhere. Then again, maybe you will like it elsewhere. I've lived in rural Iowa, Indianapolis, Cincinnati, Washington DC, Pittsburgh, Nashville, and Grand Rapids.  They've all been different, but I've liked living in each one (for different reasons.) I think when people say they couldn't live outside a certain city that the real story (for most people at least) is that they really just haven't tried very many alternatives.

5. In the end, it's just an idea -- just like all my other posts. You can take it or leave it. However, if you do open your mind a bit to the possibility and if you run the numbers, you'll see how much you can truly save by moving to a less expensive city.

The Best Place for IRA Rollovers

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best place for IRA rollovers:

The Best Place for IRA Rollovers: T. Rowe Price

Whether you have decades to go before retirement or just a few years, T. Rowe Price's Advisory Planning Services will provide personalized financial advice if you roll over money from a 401(k) or from another IRA. The new service charges a one-time fee of $250, which includes annual reviews. The fee is reimbursed if you roll over at least $100,000.

I'm going to have to disagree with them on this one. First of all, many readers of this blog won't need (and won't want to pay for) the Advisory Planning Services that seem to be the key to their recommendation here. It sounds as if T. Rowe Price paid Kiplinger's for this mini-commercial. Strange. Second, I prefer Vanguard because of their low costs and great customer service. I've rolled over a few IRAs with them and they are great to work with.

And no, Vanguard didn't pay me to do a commercial for them. ;-)

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

Free Money Finance Top 10 Most Hated Posts/Themes: #3 MND Formula for Net Worth

My #3 most hated theme here at Free Money Finance is the net worth formula from the Millionaire Next Door that determines whether or not your net worth is as high as it should be. Here are a few of the select comments about this lovely post:

I have read this book, I'm wondering if the formula must be adjusted, however for the earlier years in your life... For example, mid to early 20's. Most people in their twenties still have no positive net worth, when factoring in a car payment, student loans, and especially the newly found MORTGAGE on the house they buy. I, for example, have a negative net worth of around 180,000 - yet I am supposed to have a net worth positive of around 100,000. I don't think I've even made 100,000 total in my entire life yet!... There should be a way to adjust the formula for the younger years in life, when debt accumulation happens due to schooling and purchasing a home!

And as if that weren't enough:

I have to agree that this "rule of thumb" is more offbase than most "rules of thumb," especially for those towards the beginning or end of their careers...

And more:

I have to agree with the folks who question the validity of the rule of thumb for people early in their careers. It's especially problematic for young professionals. Take a young lawyer, for example. Three years out of law school, she might make $150K/year, at around age 30. Because she spent time in law school, she probably had no net worth built up when she started her job. But according to the rule of thumb, her net worth should be $450,000, or three times her current salary. That's just not realistic. The rule of thumb may only work once you've hit 35, or been working for some number of years (like 7-10).

And more:

The book formula is a poor rule--unless it was designed to use a biased rule to 'shock' people into saving.

Using misleading information to cause (scare) people into behavioral changes because one thinks s/he knows what is best for all people is risky as one solution does not fit everyone's unique circumstances. Even if that behavior is considered most reasonably to be a "good" one.

Makes me wonder what else from the book is misleading.

And on and on. Apparently, it's not a favorite of most people. ;-)

However, there is good news on the net worth calculation front. I've recently posted How to Compute Your Net Worth and Check Your Financial Progress and How to Compute Your Net Worth, How High Your Net Worth Should Be, and Be Sure to Do It Once A Year which have both received positive comments on the net worth formulas they include.

The Best Low-Cost IRA

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best low-cost IRA:

The Best Low-Cost IRA: Scottrade

With one of the lowest minimum investments around -- $500 -- and no set-up fees or annual maintenance fee, Scottrade is a great place to open an IRA for yourself or a custodial IRA for your child. As long as children have earned income -- from flipping hamburgers, mowing lawns or babysitting -- they can contribute up to $4,000 a year or up to their total earnings, whichever is less.

A few thoughts on this:

1. I've never used Scottrade, but I've heard good things about them.

2. I prefer Vanguard, but I believe their minimums are a bit higher, so that's probably why Kiplinger's goes with Scottrade.

3. It's a great idea to set up an IRA for your child as early as possible -- doing so could make them wealthy when they retire.

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Best Charity-Rating Site

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best charity-rating site:

The Best Charity-Rating Site: Charity Navigator

Look up one of the more than 5,000 charities on this site and you'll find a breakdown by percentage of how much an organization spends on program costs, administrative expenses and fund-raising. Charities that spend less than one-third of their total budget to carry out their mission get a zero for efficiency. Charity Navigator also rates an organization's donor privacy policy, compares the charity's overall efficiency rating with its peers, and gives an example of an executive-level salary.

I LOVE Charity Navigator and use it quite frequently to do research on various charities I'm thinking of giving to. Here are some of my favorite four-star charities:

• Samaritan's Purse

• Compassion International

• World Vision

The Best All-Around Retirement Account

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best all-around retirement account:

The Best All-Around Retirement Account: Roth IRA

A Roth IRA lets you stockpile tax-free savings for retirement with plenty of escape hatches for other financial goals, such as paying for college or buying a first home. You can contribute up to $4,000 in 2006 ($5,000 if you're 50 or older) as long as your income doesn't exceed $110,000 if you're single or $160,000 if you're married. And you can withdraw your contributions (but not your earnings) tax- and penalty-free at any time.

Ok, I'm going to get a lot of flack for this, but I wouldn't rate the Roth as #1 for people who have access to a 401k, especially for those who have a 401k where the employer matches part of the employee's contribution. The 401k gives you a tax deduction this year (in that it lowers your taxable earnings), gives you an instant, strong return on your investment (when the employer matches), allows you to save much more than the Roth IRA, and isn't subject to the income limits that the Roth IRA is. Yes, the Roth allows for tax-free withdrawals, but I don't think that outweighs the 401k's benefits. As such, I'd rate the 401k the best all-around retirement account.

That said, my recommended strategy for people who have a 401k and can contribute to a Roth IRA is as follows:

1. Contribute to the 401k to get the full employer match.

2. Contribute to the Roth IRA as much as you have left over -- to the limit, if possible.

3. Contribute any remaining retirement savings funds to the 401k (without the employer match at this point.)

For more thoughts on retirement, see Best of Free Money Finance: Retirement Posts.

The Best 401k Plan

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best 401k plan:

The Best 401k Plan: It could be yours.

There's a good chance your plan will get better as a result of a new law that allows plan providers to give one-on-one investment advice. Or you may be able to participate in a managed 401(k) account, in which financial professionals make investment decisions for you for a flat fee. More 401(k) plans are expected to adopt target-date retirement funds -- which invest in a mix of mutual funds that grow more conservative as you near retirement -- as their default investment.

I am a huge fan of 401k's -- especially when the employer matches a portion of your contribution. There's nothing better than FREE MONEY, huh?

My employer matches the first 3% of my contribution dollar-for-dollar. That's a 100% return on 3% of my salary even before the money gets invested into a mutual fund (where it will earn even more.) I don't know about you, but anything that gives me a 100% return is a good thing!

I think 401k's should be used in conjunction with Roth IRAs to maximize your retirement savings. To see my thoughts on this issue as well as a whole host of information on retirement, review Best of Free Money Finance: Retirement Posts.

The Best Site for Auto Insurance Quotes

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best site for auto insurance quotes:

The Best Site for Auto Insurance Quotes: InsWeb

InsWeb provides instant quotes from up to six companies (the number varies by state), including big names such as AIG and Liberty Mutual, plus quotes by phone or e-mail from American Family, Nationwide and MetLife. (For rates from other major insurers, including Progressive, Geico and Esurance, you'll have to go directly to the companies' sites.) To get an accurate price, you'll need to provide your Social Security number and let the insurer look up your driving record and credit history.

I've written before that a great way to save on car insurance is to shop around for it (FYI, see Money Saving Tips: Save on Car Insurance, Again for more car insurance saving tips) and this site is one way to do that. In the past, we've simply done it the old-fashioned way -- we've called several places and asked for a quote -- but this would make it a whole lot easier. The Social Security number requirement is a bit concerning though as I don't like to give out my number (you never know who is seeing it.)

Free Money Finance Top 10 Most Hated Posts/Themes: #4 Evil House Loans

My #4 most hated theme here at Free Money Finance is evil house loans.

Ok, so what do I mean by evil house loans? Here are some examples:

• 50-Year Mortgages

• Interest-Only Mortgages

• No Money Down Mortgages

• Other risky loans

But no matter how much I show that these are dangerous (as well as not financially sound) ways to buy a house for the vast majority of people (even though a large percentage of people use them), people still give examples of how great these loans are for them, how they've made so much on their house using them (paper gains, not actual gains), how they couldn't have afforded a home without one of these (which is exactly my point, by the way, they can't afford that home), etc. Why is this? Are people just in denial? Or maybe I'm missing it somehow? I just don't see it.

Yet there is a light at the end of the tunnel for me on this issue. My guess is that with the current state of the real estate market, a lot fewer people will be hassling me about these posts. ;-)

The Best Sites for Life Insurance Quotes

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best sites for life insurance quotes:

The Best Sites for Life Insurance Quotes: Insure.com, AccuQuote.com

Insure.com asks all the right questions about factors that can affect your premiums, and it provides quotes from 40 companies quickly without alerting insurers who you are. A bonus: The site posts underwriting criteria for each policy, so you know what standards you'll have to meet to qualify for a particular rate. Want personal help, or have a medical condition that could affect your purchase? Call AccuQuote.com at 800-442-9899 and speak with an agent.

Here's what I did a few years ago when I updated my life insurance. I checked prices online and got a good quote from a great company. I then called an insurance agent friend and told him that if he could match the price, I'd go with him. He called the company and got the same rate from them, so I bought from him. Now I have the convenience and service of an agent at the competitive cost of the web. Good deal!

Free Money Finance Top 10 Most Hated Posts/Themes: #5 My Formula for Buying a House

Ooooooooooooo! Now I'm getting into your biz-ness!!!!!! ;-)

If you've been reading Free Money Finance for any amount of time, you've probably seen My Formula for Buying a House. This formula is based on my experience buying and selling houses for 20 years. This is what's worked for me and hence it's what I recommend to others.

But people hate this formula. Specifically, they hate two parts of it:

1. Live in (or move to) a cheaper area of the country. This topic is a real argument-starter and thus deserves its own place in our top ten list. Stay tuned to future posts in this series where I'll talk about it more in-depth.

2. Buy a house you can easily afford. Here's what people hate about this advice:

If you're not yet wealthy but want to be someday, never purchase a house that requires a mortgage that is more than twice your household's total annual realized income.

As soon as I say that I get "that can never be done," "this is impossible in my area," and on and on.

A couple thoughts on this:

1. This is what's worked for me -- I've done it. I assure you, it can be done, so don't say it can't. No, it probably can't be done on a 3,000 square-foot home on a golf course in New York, but that's just the point -- if your income's not high enough, you shouldn't be buying a place like this.

2. Note that it says that the MORTGAGE shouldn't be more than twice your household's income, not the VALUE of the house. Maybe it means you need to save more up front as a downpayment to get to the point where your mortgage is low enough to meet the criteria.

I think this is good advice and if followed, it will help you grow your net worth. That said, people still don't like my formula and hence it makes #5 on my most hated list.

Free Money Finance Top 10 Most Hated Posts/Themes: #6 The Need for Discipline

Ok, now we're really getting to issues people hate!!! ;-)

The "need for discipline" isn't found in one post or category here at Free Money Finance, but is usually a part of my other posts on a regular basis. It's usually stuck in towards the end where I say something like "if these people only had some discipline" or "but to make this work, you need discipline -- something most people don't have." Then in the comments I hear about how it's not really discipline that's the issue, but that it's just some people simply make too little to afford all the necessities of life (like cable TV, high-speed internet, and weekly manicures.) Ok, so maybe I am a bit over-the-top sometimes, but you have to allow me a little fun, don't ya? ;-)

My main points are these:

1. Discipline is a vital ingredient in anyone's financial plans. Without it, you can read, study, and understand all you want to about personal finances, but it won't do you any good. The undisciplined part of your life will keep you from growing (or at least maximizing) your net worth.

2. Most people don't want to hear #1. Yes, they understand that it's true, but they don't want to hear it -- from me or from anyone else. That's why it's #6 on the list of most hated topics.

The Best Salary-Rating Site

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best salary-rating site:

The Best Salary Rating Site: Salary.com

This site lets you search by job category and zip code, then zoom in on the description that most closely matches the job you're looking for. Personalized reports cost $30 to $80, but the free basic service gives you a median salary for your position to help you judge potential offers. You can also see how bonuses and benefits sweeten the deal and get a net paycheck estimate -- which lets you calculate actual take-home pay after taxes and deductions.

I've used this site before and agree that it's a good one. I'm not sure if it's "the best" or not because I can't remember ever using any others. But this one will certainly give you a good check on what your salary should be and provide enough information for you to act appropriately (such as ask for a raise or negotiate a salary to a new job.)

Free Money Finance Top 10 Most Hated Posts/Themes: #7 Debt in America

People hate being told that they (and others) have a lot of debt and need to get rid of it. Hence the topic of "debt in America" ranks as my #7 most disliked issue covered here at Free Money Finance.

For a few examples of negative reactions to this issue, read the comments on these posts:

• The State of Debt in America

• The Borrower Becomes The Lender’s Slave

• Pay Off All Your Debt in Less than One Year

• Good Debt versus Bad Debt

• How the Middle Class Can Get Back on Solid Financial Ground

Maybe it's the topic people hate -- or maybe it's just my snooty attitude on the issue. ;-)

The Best Way to Avoid ID Theft

Here's the next item I wanted to cover from Kiplinger's "The Best List". Today, we're highlighting the best way to avoid ID theft:

The Best Way to Avoid ID Theft: Fellowes P-57Cs Shredder

The most popular shredders cut paper into thin strips that a determined thief could reassemble. Your identity will be safer if you choose a "cross cut" shredder, which turns paper into unreadable confetti. Our top pick is the Fellowes P-57Cs, which showed its chops by dicing credit cards and stapled bills without jamming. We also liked the easy-empty wastebasket. And the price is right -- $60 starting this fall at OfficeMax and other retailers.

I shred religiously -- even stuff that probably doesn't need to be shredded (it doesn't hurt to be safe, does it?) To me, it's the first (and a great) defense against ID theft that's simple and not time-consuming. I think protecting my ID is certainly worth the time and effort.

For more on the topic of identity theft, see these posts:

• What to Do If Your Identity is Stolen

• How Long Does It Take to Clear Your Name if Your ID is Stolen?

• Identity Theft Statistics, Part 1, How Much Money Does the Typical Victim of Identity Theft Lose?

• 10 Ways to Stop Identity Theft Cold

Free Money Finance Top 10 Most Hated Posts/Themes: #8 Paying Off Your House Early

I currently do not have a mortgage. We paid it off on our last house several years ago and then bought our current house with cash (when we moved and sold the old one.) I'm a big believer in having no debt and write about it on a regular basis. Unfortunately, not everyone's on the same page with me on this one.

Most financial authors, writers, and bloggers would say NOT to pre-pay your mortgage if the interest rate (adjusted downward for the tax savings from having a mortgage) is below what you could earn investing the money instead. They say you'll be better off in the long run doing this, and technically, they're right. If a person has a mortgage at 5% and if they earn 6% on their investments and if they do actually invest the money they would otherwise be using to pay the mortgage (rather than spending it) then they will be better off financially. But to me, that's a lot of ifs.

Here's my main reasoning for pre-paying a mortgage from Should You Prepay Your Mortgage?:

1. You SHOULD be able to beat the cost of the loan [if it's low]. But paying off the loan is guaranteed, the return is not.

2. What if the interest rate increases? For holders of variable-rate loans, the interest rates can (and do) go up.

3. There is a HUGE difference between a philosophical answer and the practical execution of that answer. What I've seen most people do is not pre-pay their mortgage, then spend (not invest) the extra amount each month. It's a rare person who actually invests the amount as planned.

4. There's a great feeling to being totally debt free. I've been without debt for several years now, so I'm speaking from experience.

All that said, most people still don't like it -- hence, this topic gets position #8 on my most disliked list.