Variable annuities offer everyday investors the unique opportunity to pay hedge-fund-like fees.
Adam M. Grossman is the founder of Mayport, a fixed-fee wealth management firm. Sign up for Adam's Daily Ideas email, follow him on X @AdamMGrossman and check out his earlier articles.NO. 53: STRIVING toward our goals is usually more satisfying than achieving them. Yes, we should think hard about our goals—but we should also ask whether we’ll enjoy the journey.
NO. 96: IF YOU HAVE children, you will retire later. The all-in cost of raising kids through age 18 can run to hundreds of thousands of dollars, with college costs and financial help to adult children on top of that. That doesn’t mean you shouldn’t have kids. But there’s a financial tradeoff involved—and one result of having children is you’ll likely retire later.
FOCUSING ILLUSION. Those with high incomes or significant wealth are more likely to say they’re happy. But this could be a focusing illusion. When asked about their happiness, the well-to-do ponder their good fortune—and that prompts them to say they’re happy. But are they? Research also suggests high-income earners suffer more stress and anger during the day.
NO. 18: WATCH OUT for crowds. Popularity is typically a good sign when picking a movie, cellphone or restaurant. But it’s bad when selecting investments. If an investment is highly popular, the eager buying likely means it's overpriced. Why do we favor popular investments? They’re comfortable to own because we get validation from those around us.
NO. 53: STRIVING toward our goals is usually more satisfying than achieving them. Yes, we should think hard about our goals—but we should also ask whether we’ll enjoy the journey.
A FEW MONTHS AGO, my retirement account hit a milestone—$250,000. I’d been looking forward to achieving “quarter-millionaire” status for a while, so when it finally happened, I decided to announce it on social media. I took a photo of my computer screen, with the value of my account highlighted, and uploaded the photo. Just as I prepared to make the post public, I decided to obscure the actual balance and edit the text to say my account had reached a “new personal record,” instead of revealing the specific amount.
I’M ALL IN FAVOR of striving. But I’ve also belatedly come to see the appeal of acceptance.
Should we strive for more, or should we accept what we currently have and what’s currently on offer? As I’ve noted in earlier articles, there’s great pleasure in striving. We love the feeling of making progress, even if our achievements don’t make us happy for long. It’s an instinct we no doubt inherited from our hunter-gatherer ancestors.
MY PARENTS AND grandparents were forever affected by the Great Depression of the 1930s. They shunned debt, paid cash for everything, never invested in stocks and kept their modest savings in the bank, mostly in a checking account.
Following the 2008-09 Great Recession, many Americans also changed their financial ways, at least temporarily. We increased our savings rate immediately after the recession. But a few years later, we returned to our high spending ways.
As one saying goes, there are three things that should not be talked about in polite company: money, politics, and religion. Here at HumbleDollar, we are given license to discuss (politely) the first topic. And have we ever discussed money here! Pretty much any aspect of personal finance you can think of has been addressed thoroughly and intelligently somewhere on this website.
When the conversation has veered into the second topic, politics, the discourse can get a bit chippy.
WE FIGHT ABOUT MONEY all the time. Politicians argue over how to spend the stuff and who should pay. Couples argue about why there isn’t enough and who’s to blame. And nerdy folks—that would include me—bicker over which investments to buy, when to claim Social Security, the virtues of homeownership and countless other topics.
These debates may amuse others, but I often find them frustrating—because they’re never just about facts and logic. Instead, far too many people come to these arguments with baggage that borders on cargo.
From the outset let me be clear I am not a religious person for several reasons, one being my personality. My personality is the type that has to see something to believe it. However there is song Walk On by U2 which has some of the most poignant lyrics in music history. There is a phrase that goes, “
“You’re packing a suitcase for a place none of us has been.
A place that has to be believed to be seen.”
Why am I quoting U2?
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- The points relate to a mortgage to buy, build or improve your principal residence
- Points were reasonable amount charged in that area
- You provide funds (at or before closing) at least equal to the points charged
- The points clearly show on the settlement statement
In general, points to get a new mortgage or to refinance an existing mortgage are deducted ratably over the term of the loan. Note that the deductible points not included on Form 1098 (the mortgage interest form) should be entered on Schedule A (Form 1040), Itemized Deductions, line 8c “Points not reported to you on Form 1098.” 2. Property taxes Property taxes can be deducted on your tax return if you itemize deductions. The total amount of taxes (including state and local income taxes) is capped at $40,400 for 2026. This cap is temporary and will increase by 1% annually through 2029 before reverting to $10,000 in 2030. If you make between $500k to $600k of modified adjusted gross income, the $40.4k deduction is reduced by 30% for each dollar you make. At $600k MAGI, the deduction drops to $10k, potentially raising marginal tax rates to 45.5% (!) for singles due to “SALT torpedo” if you are in the $500-600k range. If you are at that range, it’s recommended to mitigate this by lowering AGI/MAGI by maximizing pre-tax 401(k)/403(b), HSA, FSA contributions, timing RSU sales, tax loss harvesting, or deferring income/accelerating expenses for business owners. 3. Improvements Improvements are significant enhancements made to your home that increase its value. Many people overpay on taxes when they ultimately sell their house because they don’t keep track of these improvements. Here are some examples provided by the IRS: > Putting an addition on your home > Replacing an entire roof > Paving your driveway > Installing central air conditioning > Rewiring your home > Building a new deck > Kitchen upgrades > Lawn sprinkler system > New siding > Built in appliances > Fireplace Now, these costs aren’t deducted, but they are added to your home’s cost basis. This could lead to lower capital gains taxes when you sell your property (more on this later). Repairs, on the other hand, don’t impact your basis and don’t affect your taxes (e.g. repairing a broken fixture, patching cracks, etc) You will need to document every improvement, as this can help you save money on taxes. Keep your receipts and invoices (upload them to Google Drive) and record the dates and descriptions of the work done. Taxes when selling your house When you sell your house, here’s the formula: Selling price > Selling expenses (like realtor fees) > Adjusted cost basis (how much you purchased it for + all these capital improvements I talked about above + any closing costs you paid when you acquired the home (legal fees, recording, survey, stamp taxed, title insurance) = Gain/Loss You will need to pay capital gains tax if there is a gain, but, luckily there is a gain exclusion (Section 121 exclusion) that can also help you save on taxes: 4. Gain exclusion If you sell your primary residence, you may be able to exclude up to $250,000 ($500,000 for married) of the gain from taxes if you meet some conditions. > Ownership (must have owned the home for at least 24 months within the 5 years prior to sale. For married couples only one spouse needs to meet this requirement) > Residence (you must have used the home as your main residence for at least 24 non-consecutive months during the 5 years before the sale. For married couples both spouses must meet requirements. > Look-back (you must not have claimed the exclusion on another home within the 2 years before this sale) Now, many people don’t know this but there is actually a partial exemption. 1. Work related move (i.e. you started a new job at least 50 miles farther from home) 2. Health related move (you moved to obtain, provide, or facilitate care for yourself or a family member) 3. Unforeseeable events (casualty, divorce, death, financial difficulty) 4. Special circumstances So, instead of claiming the full exclusion, you can exclude a prorated portion of the $250,000/$500,000 limit based on how long you owned and lived in the home. By the way, you can rent out a home for 2 years and still qualify for the exemption, as long as you lived there for the required period before selling (many people do this). 5. Tax example selling a home You bought a home for $200,000 (including all other costs) in 2018. You built a new deck, new roof and siding totaling $50,000. You now sold your home for $500,000. You are single. Selling costs are $20,000 (agent fees, etc) Sale price: $500,000 -$20,000 of selling costs (200,000 + 50,000) = -$250,000 (adjusted basis) Total Gain = 230,000 Exclusion = $250,000. Total taxes paid = $0. But what if you didn’t keep track of all your renovation costs like new siding or a deck? You would’ve had to pay taxes on $20,000 of capital gains! Overall, knowing how these things work can literally save you thousands in taxes. Do you have any tips with homeownership? Share some in the comments!What is the best way to donate to charity in 2026?
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