I am not sure if there is an “Occupy Windhoek” movement, but there should be. Windhoek is the financial capital of Namibia, which has a Gini Index rating of 70.7, giving it the largest gap in the world between its wealthiest 1% and the rest of its citizens. The Gini Index is a measure of statistical dispersion. A value of zero represents absolute equality, while 100 indicates absolute inequality (such as one person having all the income).

Based on the Occupy Wall Street folks, one would expect the U.S. to be close behind Namibia in income inequality. This is from an “Occupy” website: “We are getting nothing while the other 1 percent is getting everything. We are the 99 percent.”

But according to the CIA World Factbook 2011, the U.S. Gini Index rating is 45.0, exactly what it was in 1929. That puts us slightly above the global median, which is 41.0. The worst 30 countries have ratings of 48.0 to 70.7.

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Most people with Individual Retirement Accounts open them with a bank or brokerage firm (the custodian) that limits what investments can go into the account. These custodians typically limit your investments to stocks, bonds, and mutual funds with whom they have distribution agreements.

A little-known option that allows owners of an IRA to have unlimited control of the investments they can hold is the self-directed IRA. Assets permitted in self-directed IRAs include real estate, promissory notes, mortgages, tax lien certificates, US gold coins, and private placement securities.

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“Even the checkbook-challenged, filing system-deficient and perpetually messy can take steps to shore up their finances without undergoing a major personality overhaul.”

In a January 18 article at CNBC.com titled “How the Financially Disorganized Can Budget and Save,” financial writer Dinah Wisenberg Brin has some suggestions for keeping track of your spending without a detailed budget. She cites Rick’s suggested strategy to “remove everything of importance — taxes, insurance, car and house payments, vacation and emergency savings, retirement funds — from the paycheck before it hits the bank.”

You can read the entire article here.

Jannie Wu wanted a better life.

I met Jannie on a recent trip to China. After earning an undergraduate degree in English, she took a teaching job paying 1000 Renminbi, or RMB, ($150) per month. In China, obtaining a student loan is not an option. Her parents funded her education, which cost 40,000 RMB ($6,500), and one of her goals was to pay them back.

Jannie’s lifestyle didn’t include eating out much, going to movies, or buying the latest clothes. “My rent was 300 RMB, my food was 300 RMB, I spent 100 RMB on other necessities and a few pleasures, so I was able to save the rest.” That was 300 RMB a month or $45. Still, repaying her parents would take about seven years. Jannie found a better way, moving 100 miles from her small village to Beijing and becoming a tourist guide. While it was hard leaving her family and the move ended her relationship with the man she was dating, it was worth it to her.

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“South Dakota, with its chilly winters and long stretches of desolate land, may be pretty far down on your list of places to retire. But with the average married boomer facing a retirement savings shortfall of $30,000, advisers say the Mount Rushmore State is worth a look, given its low prices on everything from real estate to food.”

That was the opening paragraph of a January 12 article by Catey Hill at SmartMoney.com. The magazine is currently running a series, “Retire Here, Not There,” featuring affordable retirement alternatives in various states. This week’s article featured South Dakota and recommended four retirement destinations: Rapid City, Sioux Falls, Pierre, and Hill City.

Rick was among the sources interviewed for the article, which you can read here.

After all the Christmas giving and end-of-year donations, January might come as a welcome breath of fresh, cold air. We can take advantage of the break from charitable solicitations and appeals.

Or maybe we can take advantage of the opportunity to consider ways to give more consciously and deliberately in the coming year. One organization that is a strong example of conscious giving is Black Hills Area Habit for Humanity.

Most of us probably know at least vaguely that Habitat’s mission is to build houses for low-income families. What we may not be aware of is the relatively high success rate for Habitat homeowners. Continue Reading »