Skip to comments.Dave Says $300,000 to Replace a Wife
Posted on 10/26/2011 7:58:10 AM PDT by Kaslin
Im 21 and make $45,000 a year. Ive heard about your 100 percent down plan to buy a house. Id like to know more about this, and where I should put the money Id be saving.
I like the way you think! But theres really no big plan to what Im talking about. Its not rocket science. Its just a matter of saving like crazy and living on rice and beans for a few years, so you can save up the cash to buy your home outright.
If youre looking at buying a place in less than five years Id put it in a money market account. In this case, youre not going to be saving long enough for interest to be a huge factor. Your best buddy is going to be a low-key lifestyle.
If your timeframe is more like 15 or 20 years, then you should look into mutual funds. Most people dont stretch the idea out over that period of time, but if you do youll get some great help from a friend named compound interest.
I dont beat people up for taking out a 15-year, fixed rate mortgage. But Im always for people living like no one else so that later they can live like no one else!
Ive heard you recommend having seven to 10 times your income in life insurance. How much would you suggest having on a policy for a stay-at-home mom when theres no direct income involved?
Id say somewhere in the $300,000 to $400,000 range, because financially-speaking its going to take $35,000 to $40,000 a year to replace all the things she does.
Your wife may not bring home an actual paycheck right now, but theres a ton of personal and economic value attached to everything she does every day. That lady works hard. What she does is very important and would be very difficult to replace!
Im interested in your opinion regarding buying a maintenance agreement on a new treadmill. It covers repairs, and an annual visit to check and lubricate all moving parts. Is a maintenance agreement ever worth the money, especially if youre not the handyman type?
You know why they sell those agreements? Because theyre huge moneymakers!
No, I wouldnt do that. We have exercise equipment in our home, and we dont have any maintenance agreements. Lots of folks decide at some point to start working out and get in shape, but very few see it through to the end. A high percentage of expensive workout equipment turns into very expensive coat hangers in a short amount of time.
I dont recommend maintenance agreements or extended warranties. I self-insure by having money saved up!
I’ve got one I might let go for $250,000.
—Ive got one I might let go for $250,000.—
Do I have to give you my license for a test drive?
More feminazi pap. If each and every thing that is included in this phony number were done every day and all day (that's what most jobs are . . . not just "at the moment" jobs) then it might be accurate, perhaps.
But to pile on a bunch of things that a wife does, slap on 2080 yearly hours (that's what a work year entails) per job, would be a bit silly.
Yes, a wife has a high value, but if the man and woman are married, and are indeed working together as "ONE", then the argument is stupid.
If the husband takes out the garbage weekly should he be worth a year's pay as a garbageman . . . if he replaces a lightbulb once in a while, should he be worth a year's pay as an electrician?
This arguement crops up every so often, but completely dismisses the things that a man does around the house too. And if they're married and act as one, they'll never carp about it.
Louis L’amoure talks about the old west quite a bit in his biography and as a prelude to many of his books. He mentions that in the 1800’s a farmer/rancher with a wife had a HUGE leg up on the competition and went on to explain why. It is not just the work she does. It is the freedom he has to focus on his work when she does it, coupled with the psychological advantage of being part of a committed couple, as opposed to being alone. It increases incentive to prevail.
It’s one of the things families do not realize they are giving up when both spouses work. It is one of the main hidden costs of a dual income, drastically reducing the value of the second income.
Can someone explain how 30-year mortgages originated? After 30 years you have paid $300,000 for a $100,000 house.
Perhaps it was during the era when families expected to stay in the same home for life.
Absolutely! My garbage man gets $150/year from me, and he doesn't just take it out of the house, he drives it clear to the city dump!
When mine divorced me for a guy 14 years younger, it only cost me about half that.
When mine divorced me for a guy 14 years younger, it only cost me about half that, not counting the distribution of property.
After reading your sign-on name, ya' got me worried: goodwithagun
What I'm trying to say, basically, is that my wife and I don't put things in boxes that are "hers" and "mine." We share everything, including household responsibilities. Mine are mostly repair and outside stuff (and teaching), and she does most of the inside stuff (like cooking and laundry . . . and she works fulltime at Dillards) . . . plus we help with each task if necessary . . . We've never put a dollar amount on anything. She doesn't earn "her" money, nor do I earn "my" money . . . we earn "our" money.
I feel that couples that have "his" and "her" labels on everything are missing out on a lot.
Because they’re worth it.
Every penny, my friend, every penny...
We actually have a $350,000 life insurance policy on my wife, because we have gone through all these calculations.
The license not so much, but I would require proof of insurance.
I’ll warn you that she’s somewhat of a high-miler and can be a little hard to start.
Also I don’t recommend trying to kick-start her as the compression kick-back could be pretty painful.
Just find a woman you hate, and buy her a house, it’s the same thing.
Made good sense to me...
“More feminazi pap”
I disagree. If feminists were to give a number on a stay at home Mom it would be low. To a feminist, breeders who take care of the children and home (like me) have no value to society. We are “kept prostitutes with wombs” so to speak. Women of worth are only women with careers and keep their maiden name. Try finding a full time person who can take care of the children, cook, clean, be available 24/7 for a fever, a diaper change, a hug, who drive this one to football and that one to CCD, picks up new clothes, mends the old ones, bakes yummies for school lunches, and is available at the drop of a hat to stop every toddler, pre-teen, and teen crisis on demand. As for my hubby... there isn’t enough money in this world for me to replace him.
Yeah I was going to post, but then you posted so now I don’t have to post. :)
I wouldn’t trade you for all the money in the world either, BenKenobi!
Who do I pay? Is there a long waiting list?
Who do I pay? Is there a long waiting list?
I did one times my annual salary. Because I figured that would be about how much if would cost me to buy a new wife.
I had a lot more insurance on myself, because I figured if I died, she’d need it for the party.
Thanks ma’am. Unfortunately most gals would disagree.
My wife showed me one of these articles once, which alleged her services were worth $80k a year or something like that. We worked out how much she’d be left with if I paid her that out of my salary, but then required her to pay a pro rata share of the mortgage and other bills. Turns out she is getting a MUCH better deal as an unpaid housewife.
Completely left out of this discussion is the issue of inflation. You end up paying your mortgage with dollars that are increasingly less valuable.
If you bought your home in 1990 you'd be paying off your mortgage with dollars that are worth much much less. It's a hedge against inflation.
Scott Peterson had $250,000 on wife Stacy. If something happens to a $400,000 wife it will look bad. What’s the cost of that following someone around for the rest of their life?
Also in 30 years a $100,000 house might be worth $200,000, or $300,000 if the neighborhood wasn't taken down by Section 8 housing.
I wish I could get a 30 year fixed rate on commercial real estate, but the banks don't do those. Once Barky is gone commercial real estate will likely take off.
I take that back after googling. You can get a 30 year fixed on commercial.
Depending on ages and number of kids, replacing a stay at home mom is $5-25K in childcare costs alone per year.
I'm glad he doesn't "beat people up" for that because that's exactly what we did on our last home purchase, then we paid it off in about 8 years, saving a bucketful of interest.
My wife and I and the tax assessor own this home.
I've changed my share of poopy diapers in my life time, including my own 4 kids and then 1 of our 13 grand children occasionally, all my g/kids are long out of diapers by now and we have 4 great grand kids and I have drawn the line and have retired from the diaper changing business.
By the way, when my first child was born, K-Mart had Pampers for 88¢, for a box of 30. Yes, I'm ancient. The following picture was taken in 1945, it's me and the kind of diapers my parents had to deal with:
Correction, I still have one grand daughter in diapers but I haven't changed one for her.