A 12% Fantasy Roundup

This was quite a week, not really sure why, but I seem to have a lot to share today.

We start with a quiz at Business Insider. 5 questions, multiple choice, no tough math. See If You Can Ace Personal Finance Quiz That 86% Of Americans Could Not. The article went on to say that A new survey by the FINRA Investor Education Foundation found that 75% of U.S. adults say they’re pros at managing their finances. In the end, we all think we are above average, but, no offense, only half are. For the record, I did get all five correct. In the interest of full disclosure, I am no long in the top half of drivers. I was, but somewhere in my 40’s, that ship sailed.

At the Empowered Dollar, Stephanie shared her Super Nerdy Award-Winning Poetry: Ode to the Roth IRA. I have to say, this was the best Roth IRA poem I’ve read this year. And it may inspire you, to open a Roth, write poetry, or both.

Remember about a year or so ago, Suze Orman had some nasty tweets after the Personal Finance Blogging community criticized her expensive debit card?  Well, this week was Dave Ramsey’s turn. Dave was kind enough to tweet “I help more people in 10 min. than all of you combined in your ENTIRE lives.” This was in response to people questioning his claim the market will return 12% long term. An article at Motley Fool said it best – Dangerous Retirement Planning Advice From Financial Guru Dave Ramsey, and fellow blogger Phil Taylor wrote The Financial Planning Community Wants a Real Conversation with Dave Ramsey. In April I wrote Average Return vs Compound Annual Growth, and it seems that’s what Dave is missing.

Evan at My Journey to Millions has Another Reason I Hate my 401(k). The fees are high, his large cap fund sporting a 1.21% fee, ouch, but Evan also shared that even the cash option costs .95% per year. He does get a match of up to 6% of his income, but I hope he doesn’t deposit a penny more.

At Consumerism Commentary, one of the blogs I’ve followed the longest, Luke Landes wrote 5 Tips for Protecting Your Windfalls. Amazing how many people are worse off than before they came into some big money.

Is 4% the Correct Safe Withdrawal Rate at Retirement?  That’s the question, and Jason Hull offers an analysis you shouldn’t miss at Hull Financial Planning. Whatever your age, this withdrawal rate is important, it’s the key to calculating your number. The amount you’ll need for a lifetime of withdrawals in retirement.

Northern Cheapskate told us When A Gift Card Isn’t Really a Gift. But if anyone ever send me a gift card to Home Depot, I’m happy to get it.

Last, at my companion sire, RothMania, my take on what I’ve dubbed Roth 401(k) Double Jeopardy. I describe how I view the fees in 401(k) accounts as being even more harsh when they are charged against a Roth 401(k). It make take a second read to get my point, but depending on your age and how you’re investing, it’s worth understanding this quirk.