The more successful a fund manager, the harder it is for the manager to keep winning—because new investor dollars come flooding in.
A LITTLE WHILE back, a friend—let’s call him Paul—recommended a book with an unusual title: How Not to Die. As you might guess, it’s about health, nutrition and longevity. Since Paul is a cardiologist and knows a thing or two about what can land people in hospital, I took his recommendation seriously and immediately ordered a copy.
When the book arrived, I learned that the prescription for not dying isn’t so simple.
IS THAT BUNDLE of joy really a source of joy? Lots of parents—myself included—think so. But the data suggest otherwise. Numerous academic studies have found that parents tend to be less happy than the childless. The latest HumbleDollar newsletter delves into this thorny issue.
The newsletter also includes our usual list of recent blogs. Our next newsletter—the final one of 2018—is slated for Saturday, Dec. 22.
Follow Jonathan on Twitter @ClementsMoney and on Facebook.
WANT TO CUT your tax bill for this year and next? The main thing is to act—or not act—before Dec. 31, while there’s still time to take advantage of tax angles that can generate dramatic savings.
Once we’re beyond Dec. 31, it’s generally too late to do anything but file Form 1040 on the basis of what took place the preceding year. There are a few exceptions. For instance, in early 2019, you can still make deductible contributions to some tax-deferred retirement accounts,
FINANCIAL SECURITY is within your reach. Don’t believe me? Here’s a roadmap that demonstrates it’s possible for most Americans.
Sam is a 22-year-old college graduate. He begins working right after college, earning $50,000 a year. He saves 20% of his income the first year, equal to $10,000. Each year, he gets a 2% raise. This raise is over and above inflation, which we’ll assume is zero to keep things simple. In addition to saving $10,000 a year,
AFTER YOU’VE become successful and accumulated wealth, what comes next? Americans are facing this question more often than ever before. CNBC notes that the number of millionaire U.S. households grew by more than 700,000 in 2017. This affluence can create a disconnect between parent and child: One generation created the wealth, while the other grows up surrounded by it.
As a financial planner, I’ve learned the younger generation has two options: They can either destroy the wealth or they can add to the family’s legacy.
LABOR FORCE participation among men ages 65 to 69 has increased from 25% in 1985 to 37% in 2016, according to a Wellesley College researcher. Among women ages 65 to 69, participation has climbed from 15% in 1980 to 28% in 2016.
DO CHILDREN BRING happiness? As someone who has invested heavily in small people over the years—I have two children and two stepchildren—I want to believe the answer is “yes.” But the evidence suggests otherwise.
This, I realize, is a touchy subject, so let me offer a few crucial caveats before you fire off that fiery email. The studies cited here offer conclusions based on broad averages. Your experience could be entirely different. Moreover, it may be that children give special meaning to our lives,
NO. 95: WEALTH ISN’T driven solely—or even largely—by investment returns. Divorce, ill-health, unemployment, the cost of raising children and caring for parents, and—most important—your savings habits will likely have a far greater impact on your wealth. The good news: While some of these factors can’t be controlled, some are firmly within your grasp.
FIND A WELL-RUN CHARITY. There’s a host of sites that can help you identify top-notch charities, including CharityNavigator.org, CharityWatch.org, GiveWell.org, GuideStar.org and MyPhilanthropedia.org. The most efficient charities spend less than 10% of their donations on administration and fundraising, so more ends up with the folks they aim to help.
VOLATILITY. A volatile portfolio isn’t just nerve-racking. It also hurts compounding. Suppose portfolio No. 1 gains 10% this year and next, while No. 2 climbs 30%, only to lose 10% in the second year. The portfolios might appear to have the same return. But in fact, No. 1 would have a 21% cumulative gain, vs. 17% for No. 2. Want to reduce volatility? Diversification is the key.
HumbleDollar is edited by Jonathan Clements, author of From Here to Financial Happiness.
A LITTLE WHILE back, a friend—let’s call him Paul—recommended a book with an unusual title: How Not to Die. As you might guess, it’s about health, nutrition and longevity. Since Paul is a cardiologist and knows a thing or two about what can land people in hospital, I took his recommendation seriously and immediately ordered a copy.
When the book arrived, I learned that the prescription for not dying isn’t so simple.
IS THAT BUNDLE of joy really a source of joy? Lots of parents—myself included—think so. But the data suggest otherwise. Numerous academic studies have found that parents tend to be less happy than the childless. The latest HumbleDollar newsletter delves into this thorny issue.
The newsletter also includes our usual list of recent blogs. Our next newsletter—the final one of 2018—is slated for Saturday, Dec. 22.
Follow Jonathan on Twitter @ClementsMoney and on Facebook.
WANT TO CUT your tax bill for this year and next? The main thing is to act—or not act—before Dec. 31, while there’s still time to take advantage of tax angles that can generate dramatic savings.
Once we’re beyond Dec. 31, it’s generally too late to do anything but file Form 1040 on the basis of what took place the preceding year. There are a few exceptions. For instance, in early 2019, you can still make deductible contributions to some tax-deferred retirement accounts,
FINANCIAL SECURITY is within your reach. Don’t believe me? Here’s a roadmap that demonstrates it’s possible for most Americans.
Sam is a 22-year-old college graduate. He begins working right after college, earning $50,000 a year. He saves 20% of his income the first year, equal to $10,000. Each year, he gets a 2% raise. This raise is over and above inflation, which we’ll assume is zero to keep things simple. In addition to saving $10,000 a year,
AFTER YOU’VE become successful and accumulated wealth, what comes next? Americans are facing this question more often than ever before. CNBC notes that the number of millionaire U.S. households grew by more than 700,000 in 2017. This affluence can create a disconnect between parent and child: One generation created the wealth, while the other grows up surrounded by it.
As a financial planner, I’ve learned the younger generation has two options: They can either destroy the wealth or they can add to the family’s legacy.
LABOR FORCE participation among men ages 65 to 69 has increased from 25% in 1985 to 37% in 2016, according to a Wellesley College researcher. Among women ages 65 to 69, participation has climbed from 15% in 1980 to 28% in 2016.
FIND A WELL-RUN CHARITY. There’s a host of sites that can help you identify top-notch charities, including CharityNavigator.org, CharityWatch.org, GiveWell.org, GuideStar.org and MyPhilanthropedia.org. The most efficient charities spend less than 10% of their donations on administration and fundraising, so more ends up with the folks they aim to help.
NO. 95: WEALTH ISN’T driven solely—or even largely—by investment returns. Divorce, ill-health, unemployment, the cost of raising children and caring for parents, and—most important—your savings habits will likely have a far greater impact on your wealth. The good news: While some of these factors can’t be controlled, some are firmly within your grasp.
VOLATILITY. A volatile portfolio isn’t just nerve-racking. It also hurts compounding. Suppose portfolio No. 1 gains 10% this year and next, while No. 2 climbs 30%, only to lose 10% in the second year. The portfolios might appear to have the same return. But in fact, No. 1 would have a 21% cumulative gain, vs. 17% for No. 2. Want to reduce volatility? Diversification is the key.
DO CHILDREN BRING happiness? As someone who has invested heavily in small people over the years—I have two children and two stepchildren—I want to believe the answer is “yes.” But the evidence suggests otherwise.
This, I realize, is a touchy subject, so let me offer a few crucial caveats before you fire off that fiery email. The studies cited here offer conclusions based on broad averages. Your experience could be entirely different. Moreover, it may be that children give special meaning to our lives,
HumbleDollar is edited by Jonathan Clements, author of From Here to Financial Happiness.