Despite - or, perhaps because of my plans and activities involved with graduation, a move, and a future overseas trip with my daughter, I seem to find more time lately to read information about money and investments. While reading material represents an escape from various unpleasantries, time spent relaxing with my daughter as we discuss what we've read (and we both love to read) is as enjoyable as anything that we've done so far during this "vacation" time.

In fact, some material that we've read validates our motives and goals, and I'm quite happy about that; however, some other writings are questionable, and when these articles are compared to other online, televised, or printed information (and to our opinions) they seem geared towards marketing rather than unbiased news or information. Our focus includes the May 2005 issue of Money Magazine, with a cover headline that reads, "Getting Rich in America: The strategies that work now?"

My daughter and I both agreed that that title and the word, "now," seems to represent the American taste for immediate gratification, and that is the focus of this particular article. Cora's response to the title? "Wow - I guess people who want to get rich don't care about tomorrow." That statement carries a world of resentment, because Cora and her peers are part of that "tomorrow." Additionally, when we read the article we discovered that the strategies included future goals, but that few of these goals represented a "buy and hold" mentality.

In the "Roads to the Top" article on page 100, Money Magazine listed the following avenues to quick riches based on a telephone poll of 1,019 Americans during 11-15 February 2005. The percentages stand for the number of people who believed that that particular route is the best strategy to climb to the top of the financial ladder. This week we'll cover "Real Estate and Grad School," and next week we'll tackle "Inheritance, Marry Money, Start a Business, and the Stock Market."

1. Real Estate - 26%: Interestingly, Money Magazine published a "Real Estate Guide 2005," special issue about "Your Home" in June 2005, a mere month after this survey was published. While real estate seems a hot investment strategy, Money does create a caveat in their June issue where they pay attention to the high price of the housing market in San Diego. It seems that housing is hitting an all-time high. So, housing as an investment rather than as a home is a hot way to go for many families these days - but only in certain areas. And, the future seems unpredictable.
   
   If you go to the "Best Places to Retire in 2004," an online venue offered by CNNMoney, you won't discover San Diego - yet. Instead, you'll find offerings in other areas where the real estate market is booming. Never mind that one location is along the Hayward Fault in Oakland, California?the point is to move in, wait a bit till the market climbs, sell, and move on. Cora and I both agreed that the buy and hold mentality certainly doesn't exist in this route to riches, but we did agree that it's often best to move on when an entire neighborhood declines. Also, as the price of land continues to increase, we wondered if it might behoove a property owner to accumulate rather than trade real estate.
   
   
2. Grad School - 21%: Money states that people who hold a bachelor's degree make 80% more income than do those with only a high school diploma, and that graduate degree holders make even more. But, they don't expand on information about the degree itself. Lawyers and doctors are mentioned, but nothing is said about artists, teachers, or a thousand other occupations (including lawyers and doctors who perform pro-bono services) that bring in just enough money to survive and to pay off that school loan.
   
   Speaking of school loans, a recent surge of interest in the interest rate increase on school loans sparked my interest, as I owe more than the national average for my education at this point. The deadline to sign up for a fixed interest rate ends on the last day of June. Of course I was interested in lowering my rates, but a TV newscast and a perusal of over 100 pieces of unsolicited snail mail led me to discard this choice.
   
   The TV newscaster wanted to know why "millions" of students were ignoring this consolidation issue. I'll be glad to offer my opinion on just three of many reasons why I avoided this tactic. First, the student must surrender her six-month grace period that normally follows graduation. I would need to readjust my budget immediately to pay a large hunk of money "now" (there's that word again). Secondly, my interest rate is fixed, not variable, and the added 1.93% interest rate hike isn't going to alter my goals. I also know that President Bush intends to do away with fixed rates on student loans in 2006, and that still doesn't alter my plans. I've already accepted the fact that my "fixed" interest rate would probably increase over the next few years.
   
   Finally, the reason none of these future problems ruffle my feathers is because I intend to pay off my school loans within a decade. My decision deflects a "gotta-do-it-now-or-you'll-suffer" public relations campaign (which is how I view this consolidation issue). I have a long-term plan where my investments will - if all goes according to plan - bring in more money than my loans take away. If I added more money to my loan payments, I would detract from my investment strategy.
   
   So, if you didn't take advantage of the school loan consolidation, don't sweat it - especially if you have long-term investment and savings plans that make sense to you. In addition, if you have credit cards that accrue 18% and more in interest (compared to less than 5% in school loans), I'd be more concerned with eliminating those credit cards instead. That last move would be a wiser strategy in my book.

Until Next Week,
Linda Goin