I would really like to figure out a fancy math formula to put everything together into a spreadsheet for the next 5 years.
The economy is pretty bad and may not get better for the next few months but in my humble opinion it will not exceed 24 months (finger crossed).
When I take into consideration the 3.5% raise every year I am taking into consideration the many good economic years which will follow the downturn we are experiencing.
I remember back when the internet giants and the high-tech industry took a beating after the internet bubble burst only to then eventually get back to normal. See for instance Cisco stock during the period was in the $80.00 per share and within a few months it went well into the 20s per share. Yet they are just as strong out there as when they were in their bubble time.
Say 5K to 10K diversified in many different sectors since right now everything is pretty much bottoming out. The question is wait until mid or end 2009? THat is of course up to each of us and our own guts.
When I will do my taxes this year I guess I am going to really start paying a lot more attention to how these things work.
I put only 3% right now into my 401K with a 100% match (max at the 3% I am putting).
When I come up with a dissent calculator I will post it here. I would like to make a little javascript out of this one.
You know I wonder why people haven’t really taken this kind of calculator thinking into consideration. Most people assume home prices will go up and they will not loose their jobs and haven forbids something happens to them. When buying a home I believe you should have something close to 6 to 9 months of your minimum monthly budget put away for to conver this type of disaster.
I am sure though this year San Diego is going to see prices cut another 20% and next year 5% with some superficial ups and down turns.
Riverside: You can negociate a 20% price reduction! LOL
Okay I am just going off and on topic and it is time for me to go take care of my baby boy.
