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Life Events

Choosing a CCRC (Life PlanCommunity)

"I practice geriatrics in CT for three decades and watched several “ assisted living” facilities come and go. The biggest issues are financial, or long term viability of the organization. Many of the for profit ones go bankrupt as they start with low fees, care needs increase and so do the fees. Non Profit or church affiliated places are usually a better bet. I would look at staff longevity ( a good employer retains employees and usually runs things well), physical plant ( avoid places that put a lot of money into walnut paneling etc), resident retention ( ask people you meet at the place how long they have lived there). None of them are reliably excellent"
- Concerned
Read more »

Spending

Is an 18% Service Charge a TIP?

"Wherever I am, I try to follow local tipping culture. We spend a good amount of time in the UK (including now) and yet I still feel slightly uncomfortable about tipping. Since a server knows we’re North American, I hope they don’t see what would be normal tipping behavior from a Brit as an indicator that we didn’t appreciate them.  Knowing full well that British tipping culture is as you describe, I squirm a bit at being presented with an option to tip 10, 15 or 20 percent. I must say I’ve also been in establishments where the employee scrolls right past the tip screen before presenting the machine for payment.  Back to the original post - whatever country we’re in, if I see something labeled a service charge and it’s not clear if it’s a gratuity or not, I ask. If it is, that’s the gratuity they get. "
- Michael1
Read more »

Markets

Mid-term bounce?

"Agree 100% David. I just thought it was an interesting read, but I wouldn't act on the information."
- Mark Crothers
Read more »

Taxes

Time to QCD

"I use Fidelity, but i never paid attention to a check book. I just transfer money where i want it to my bank accounts which is rare."
- R Quinn
Read more »

From HumbleDollar Founder Jonathan Clements

Investing

My Investment Sin

I'LL CONCEDE IT'S HARD to justify—but I don’t believe it’s 100% unjustifiable. At issue: my strategy of overweighting stocks during big market declines. I…
Read more »

Taxes

Education Freedom Tax Credit

"I don't think the credit will have any effect on your state taxes. If you live in a state that participates, that will have to be dealt with on your state tax return. In Ohio, you can direct the tax credit to the school of your choice."
- Dan Smith
Read more »

Spending

Great Quote From Jonathan

"Here is another Jonathan quote he gave me for my chapter in My Money Journey I think it captures the essence of everything we talk about on HD. “We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.” "
- R Quinn
Read more »

College

A Million Words to a Million Dollars?

"Mark, congratulations to your grandson! What a wonderful achievement. Your post reminded me that academic success isn't always a reliable predictor of success in life. I struggled academically as a child, particularly during my seven years at boarding school in England. Yet I eventually found my footing, built a successful business with my twin brother, and retired at 55. I've become an avid reader over the years, and I believe reading enriches our lives in ways that go well beyond financial rewards. Perhaps the greatest return on your grandson's million words won't be measured in dollars, but in curiosity, understanding, and the opportunities those words open up for him."
- Andrew Clements
Read more »

Insurance

Life Insurance

EARLIER THIS YEAR, Pacific Life Insurance Company agreed to settle a class action lawsuit brought by policyholders. At issue were marketing materials that its customers argued were misleading. While Pacific Life admitted no wrongdoing, it agreed to a settlement of $58 million. This wasn’t an isolated case. Insurers that sell permanent life insurance policies, including whole life and universal life, are often on the receiving end of lawsuits because of the way that they promote their products. In another recent case, the late race car driver Kyle Busch sued his insurance agent, arguing that he’d sold him coverage costing millions that was billed as a “tax-free retirement plan.” These cases highlight the fundamental issue with permanent life insurance: Unlike term life policies, whole life and universal life policies combine two somewhat separate features in a way that often leads to confusion. On the one hand, they provide life insurance. That part is straightforward. But they also include an investment account—referred to as “cash value”—that sits alongside the insurance. These lawsuits and other criticism of permanent life insurance products stem mostly from the way the investment component is advertised. Because no one can predict how any investment will perform in the future, life insurance salespeople provide prospective customers with illustrations of how the investments might perform over time. The problem, though, is that these are merely projections, and disappointment can result if the reality of the cash value’s growth falls short of those illustrations. It’s for that reason that I don’t recommend permanent life insurance. Instead, my recommendation is to opt for simple term coverage, which provides insurance without the complication of an investment component. If you’re shopping for term coverage, though, there are still some questions to consider, including the following: Should everyone have life insurance? If you aren’t married and have no dependents, then I’d argue you do not need life insurance. Some salespeople will make the case that you should purchase coverage when you’re young, before you have a family, because you’ll receive a better rate, but I’d be wary of that argument. If the insurer is offering you a better price on a product you don’t need, that doesn’t somehow make it a better deal. Another group that typically has no need for life insurance: folks who are financially independent. If you’re retired and living off of your savings, or have assets sufficient that you could retire, then in that case, you likely don’t need life insurance. One exception to the above might be for business owners, where life insurance can help facilitate buy-sell agreements between partners, but that is a narrow use case. How much coverage should you purchase? I suggest the following formula. If you own a home and have a mortgage, I would start with the mortgage balance. While it isn’t necessary to pay off the mortgage when a spouse or parent dies, I’ve found that it can make life much easier for survivors if they aren’t burdened by a mortgage. If you have children, I would total up the estimated cost of all of their future tuition. Depending on their ages, this can be a difficult exercise because college costs vary so widely and because tuition has historically increased faster than inflation. In addition, some children might earn scholarships, while others might attend pricey schools and go on to graduate school. Recognizing these unknowns, I suggest making your best guess, perhaps going with the midpoint of the highest and lowest potential numbers. The next step would be to build an endowment of sorts to fund annual living expenses for your family. For this element, you could approach it the same way you’d think about building a portfolio for retirement. Suppose, for example, you’d like your family to have $100,000 per year. Assuming a 4% or 5% portfolio withdrawal rate, that would translate to a portfolio of $2 to $2.5 million. For the endowment portion, keep in mind that you can subtract your existing savings. If you already have $1 million saved, that would reduce the coverage you’d need by $1 million. The final element in deciding how much coverage to purchase: Be sure to round up. As we’ve seen in recent years, inflation can stretch budgets. And your family’s needs might simply change over time. How long a term should you choose? In working through this formula, you’ll likely notice a wrinkle, which is that some needs are temporary while others will be longer term. Tuition, for example, will have a defined timeframe. The endowment for living expenses, on the other hand, would need to provide for your spouse’s needs indefinitely. Fortunately, term life insurance is flexible, and there are two ways you can cover differing time periods. The first strategy would be to purchase two policies. The first would provide funds for tuition and would be timed to expire when your youngest child is age 22 and likely out of school. The second policy, to meet ongoing expenses, would be timed to expire around the time you expect to reach financial independence—around age 60, for example. An alternative approach would be to purchase a single larger policy. Because it can be difficult to predict both your family’s needs and the growth of your savings over time, the single policy approach can, counterintuitively, provide greater flexibility than committing to two separate policies. That’s because many term policies allow the coverage level to be dialed down at the owner’s request. If you’re married, should each spouse carry their own coverage? In this case, the approach I suggest is to insure each spouse in relation to the income he or she brings in. Even if your family could survive on one income, a reality is that when one spouse dies, the other may not be able to work as much. That’s frequently the case when there are children at home. So I recommend that both spouses carry life insurance until it’s clear you’ve reached financial independence. What if you have group coverage through your employer? On the one hand, this is a nice benefit, but since you might change jobs in the future, I wouldn’t factor in the benefits of any employer-provided coverage. A final point: While life insurance is important, don’t overlook disability coverage, which can be just as important. 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.
Read more »

Health

Your Financial RPE

FOR MORE THAN 20 years, I worked as a personal trainer. Now I’m a financial advisor. On the surface, the two professions look nothing alike. Human behavior makes them far more similar than most people realize. Years ago, one of my fitness clients joined Weight Watchers. At her intake meeting, she asked whether she should cut back on carrots because she’d heard they're high in sugar. The specialist didn't miss a beat. She smiled and said “No one ever comes to us because they eat too many carrots." The money version is just as true. People often fixate on a detail that barely moves the needle. I’ve watched people agonize over choosing this fund or that fund while saving just 3% of their pay. People follow the financial media frenzy for fear of missing out on the next big winner. This is akin to revamping your entire routine every time the latest weight loss trend hits the market.  On and Off the Wagon Over my years as a trainer, I watched the same pattern again and again. People went on an aggressive diet, then off it. They started a workout program, then quit. They joined a gym, then rarely set foot in the door. Plenty of others showed up consistently, but they simply went through the motions. They strolled on the treadmill while reading a magazine or watching TV. They lifted weights that never challenged them. Going through the motions beats going through no motions, but it rarely gets you the result you want. Trainers have a metric for this. It’s called RPE, short for rate of perceived exertion. RPE is a scale used to measure how hard your body works during physical activity based on how you feel. I often asked my clients, “On a scale of one to 10, how hard did that feel?” A one is sitting on the couch, and a 10 is the absolute maximum effort you can handle. Muscles, fitness and health only improve when they’re pushed past comfortable. It’s called overload. Someone who wants to lose 30 pounds needs both better eating habits and workouts hard enough to count. Cutting back on carrots is not the problem to solve. Your Financial RPE It didn’t take long to realize my financial planning clients were displaying similar behaviors. Some experienced a burst of energy to tackle important tasks. Then life got in the way, and the work landed on the back burner, half finished. Others enthusiastically told me all about their early retirement dreams. The minimal effort they were putting in today wasn’t going to get them there. Still others were on track but working at a perceived exertion of a 9 or 10 in their 40s and 50s. They saved so aggressively, or worked so much, that they were missing out on life. I applaud the effort, but it isn’t sustainable. I worry these clients will have regrets later in life. Are they missing out on valuable family time while the children are young? Are they working so much they’re neglecting taking care of themselves? In both fitness and finance, you need to identify what you hope to achieve and make a plan to get there. You also need to reevaluate as the decades pass. What worked in your 30s is likely not the right strategy in your 50s. Every human body gets more complex and delicate with age, and your financial life does, too. The Hard Lifts In the gym, the exercises people avoid are usually the most important and effective ones. Sometimes that’s cardio. Sometimes it’s lunges. These exercises are uncomfortable, so people find reasons to skip them. Money has its own hard lifts. The task you’re avoiding is likely the most important one on your list. You avoid it because it makes you uncomfortable and it’s hard to get started. It’s a 9 or 10 on the financial RPE scale. I see high income earners in their 30s and 40s continue to increase their spending with each raise yet not increase the savings rate along with it. I see completing an estate plan as one of the most delayed, yet extremely important financial lifts we each need to address. First time parents are eager to open their first 529 plan and begin saving for college but life insurance? That can wait. Opening a college fund for an infant feels productive and gratifying. Facing mortality or making tough family decisions is stressful and overwhelming.  My training clients told me they didn’t have enough time. My financial planning clients tell me they don’t have enough time. When will you have time to address your health? When will you have time to address your wealth? Every year you put off your health is a decision you may pay for dearly later in life. Every year you put off saving is a year compounding can’t work in your favor. It raises the risk you can’t support yourself financially or can’t live your later years the way you hope. Check Your RPE Here’s my challenge. Pick a financial goal you’re chasing, or a task that’s been sitting on your list for a while. Rate your effort honestly, from one to 10. Then ask whether that number matches the goal you set for yourself. Health and wealth fuel each other. The money you accumulate is only enjoyable if you’re healthy and happy enough to use it. Ideally, it pays for more adventures than doctor bills. What’s a reasonable financial RPE to strive for? Well, that depends on how financially fit you are. And that’s a topic for a future article.  In the meantime, eat your carrots. Lift the heavy thing. And check your financial RPE.   Annie Garland, CFP®, is a wealth advisor at WealthClarity in Lakewood, Colorado. She spent more than 20 years as a personal trainer before becoming a CFP® professional. She’s a proud mom of two daughters, a wife, and an avid mountain biker.
Read more »

Behavior

Jonathan and me

"Helping, even indirectly, people make decisions is good. Sometimes that isn’t saying what to do, but demonstrating what a person may not want to do."
- R Quinn
Read more »

Update: Jonathan’s Getting Going on Saving Initative

"Elaine, thank you for the update. What a wonderful way to remember an exceptional man."
- Sonja Haggert
Read more »

Life Events

Choosing a CCRC (Life PlanCommunity)

"I practice geriatrics in CT for three decades and watched several “ assisted living” facilities come and go. The biggest issues are financial, or long term viability of the organization. Many of the for profit ones go bankrupt as they start with low fees, care needs increase and so do the fees. Non Profit or church affiliated places are usually a better bet. I would look at staff longevity ( a good employer retains employees and usually runs things well), physical plant ( avoid places that put a lot of money into walnut paneling etc), resident retention ( ask people you meet at the place how long they have lived there). None of them are reliably excellent"
- Concerned
Read more »

Spending

Is an 18% Service Charge a TIP?

"Wherever I am, I try to follow local tipping culture. We spend a good amount of time in the UK (including now) and yet I still feel slightly uncomfortable about tipping. Since a server knows we’re North American, I hope they don’t see what would be normal tipping behavior from a Brit as an indicator that we didn’t appreciate them.  Knowing full well that British tipping culture is as you describe, I squirm a bit at being presented with an option to tip 10, 15 or 20 percent. I must say I’ve also been in establishments where the employee scrolls right past the tip screen before presenting the machine for payment.  Back to the original post - whatever country we’re in, if I see something labeled a service charge and it’s not clear if it’s a gratuity or not, I ask. If it is, that’s the gratuity they get. "
- Michael1
Read more »

Markets

Mid-term bounce?

"Agree 100% David. I just thought it was an interesting read, but I wouldn't act on the information."
- Mark Crothers
Read more »

Taxes

Time to QCD

"I use Fidelity, but i never paid attention to a check book. I just transfer money where i want it to my bank accounts which is rare."
- R Quinn
Read more »

From HumbleDollar Founder Jonathan Clements

Investing

My Investment Sin

I'LL CONCEDE IT'S HARD to justify—but I don’t believe it’s 100% unjustifiable. At issue: my strategy of overweighting stocks during big market declines. I…
Read more »

Taxes

Education Freedom Tax Credit

"I don't think the credit will have any effect on your state taxes. If you live in a state that participates, that will have to be dealt with on your state tax return. In Ohio, you can direct the tax credit to the school of your choice."
- Dan Smith
Read more »

Spending

Great Quote From Jonathan

"Here is another Jonathan quote he gave me for my chapter in My Money Journey I think it captures the essence of everything we talk about on HD. “We can’t control what others do and we can’t stop misfortune from striking. But we can control our own actions. Those who are financially prudent will most likely enjoy success, even if events don’t always go their way.” "
- R Quinn
Read more »

College

A Million Words to a Million Dollars?

"Mark, congratulations to your grandson! What a wonderful achievement. Your post reminded me that academic success isn't always a reliable predictor of success in life. I struggled academically as a child, particularly during my seven years at boarding school in England. Yet I eventually found my footing, built a successful business with my twin brother, and retired at 55. I've become an avid reader over the years, and I believe reading enriches our lives in ways that go well beyond financial rewards. Perhaps the greatest return on your grandson's million words won't be measured in dollars, but in curiosity, understanding, and the opportunities those words open up for him."
- Andrew Clements
Read more »

Insurance

Life Insurance

EARLIER THIS YEAR, Pacific Life Insurance Company agreed to settle a class action lawsuit brought by policyholders. At issue were marketing materials that its customers argued were misleading. While Pacific Life admitted no wrongdoing, it agreed to a settlement of $58 million. This wasn’t an isolated case. Insurers that sell permanent life insurance policies, including whole life and universal life, are often on the receiving end of lawsuits because of the way that they promote their products. In another recent case, the late race car driver Kyle Busch sued his insurance agent, arguing that he’d sold him coverage costing millions that was billed as a “tax-free retirement plan.” These cases highlight the fundamental issue with permanent life insurance: Unlike term life policies, whole life and universal life policies combine two somewhat separate features in a way that often leads to confusion. On the one hand, they provide life insurance. That part is straightforward. But they also include an investment account—referred to as “cash value”—that sits alongside the insurance. These lawsuits and other criticism of permanent life insurance products stem mostly from the way the investment component is advertised. Because no one can predict how any investment will perform in the future, life insurance salespeople provide prospective customers with illustrations of how the investments might perform over time. The problem, though, is that these are merely projections, and disappointment can result if the reality of the cash value’s growth falls short of those illustrations. It’s for that reason that I don’t recommend permanent life insurance. Instead, my recommendation is to opt for simple term coverage, which provides insurance without the complication of an investment component. If you’re shopping for term coverage, though, there are still some questions to consider, including the following: Should everyone have life insurance? If you aren’t married and have no dependents, then I’d argue you do not need life insurance. Some salespeople will make the case that you should purchase coverage when you’re young, before you have a family, because you’ll receive a better rate, but I’d be wary of that argument. If the insurer is offering you a better price on a product you don’t need, that doesn’t somehow make it a better deal. Another group that typically has no need for life insurance: folks who are financially independent. If you’re retired and living off of your savings, or have assets sufficient that you could retire, then in that case, you likely don’t need life insurance. One exception to the above might be for business owners, where life insurance can help facilitate buy-sell agreements between partners, but that is a narrow use case. How much coverage should you purchase? I suggest the following formula. If you own a home and have a mortgage, I would start with the mortgage balance. While it isn’t necessary to pay off the mortgage when a spouse or parent dies, I’ve found that it can make life much easier for survivors if they aren’t burdened by a mortgage. If you have children, I would total up the estimated cost of all of their future tuition. Depending on their ages, this can be a difficult exercise because college costs vary so widely and because tuition has historically increased faster than inflation. In addition, some children might earn scholarships, while others might attend pricey schools and go on to graduate school. Recognizing these unknowns, I suggest making your best guess, perhaps going with the midpoint of the highest and lowest potential numbers. The next step would be to build an endowment of sorts to fund annual living expenses for your family. For this element, you could approach it the same way you’d think about building a portfolio for retirement. Suppose, for example, you’d like your family to have $100,000 per year. Assuming a 4% or 5% portfolio withdrawal rate, that would translate to a portfolio of $2 to $2.5 million. For the endowment portion, keep in mind that you can subtract your existing savings. If you already have $1 million saved, that would reduce the coverage you’d need by $1 million. The final element in deciding how much coverage to purchase: Be sure to round up. As we’ve seen in recent years, inflation can stretch budgets. And your family’s needs might simply change over time. How long a term should you choose? In working through this formula, you’ll likely notice a wrinkle, which is that some needs are temporary while others will be longer term. Tuition, for example, will have a defined timeframe. The endowment for living expenses, on the other hand, would need to provide for your spouse’s needs indefinitely. Fortunately, term life insurance is flexible, and there are two ways you can cover differing time periods. The first strategy would be to purchase two policies. The first would provide funds for tuition and would be timed to expire when your youngest child is age 22 and likely out of school. The second policy, to meet ongoing expenses, would be timed to expire around the time you expect to reach financial independence—around age 60, for example. An alternative approach would be to purchase a single larger policy. Because it can be difficult to predict both your family’s needs and the growth of your savings over time, the single policy approach can, counterintuitively, provide greater flexibility than committing to two separate policies. That’s because many term policies allow the coverage level to be dialed down at the owner’s request. If you’re married, should each spouse carry their own coverage? In this case, the approach I suggest is to insure each spouse in relation to the income he or she brings in. Even if your family could survive on one income, a reality is that when one spouse dies, the other may not be able to work as much. That’s frequently the case when there are children at home. So I recommend that both spouses carry life insurance until it’s clear you’ve reached financial independence. What if you have group coverage through your employer? On the one hand, this is a nice benefit, but since you might change jobs in the future, I wouldn’t factor in the benefits of any employer-provided coverage. A final point: While life insurance is important, don’t overlook disability coverage, which can be just as important. 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.
Read more »

Health

Your Financial RPE

FOR MORE THAN 20 years, I worked as a personal trainer. Now I’m a financial advisor. On the surface, the two professions look nothing alike. Human behavior makes them far more similar than most people realize. Years ago, one of my fitness clients joined Weight Watchers. At her intake meeting, she asked whether she should cut back on carrots because she’d heard they're high in sugar. The specialist didn't miss a beat. She smiled and said “No one ever comes to us because they eat too many carrots." The money version is just as true. People often fixate on a detail that barely moves the needle. I’ve watched people agonize over choosing this fund or that fund while saving just 3% of their pay. People follow the financial media frenzy for fear of missing out on the next big winner. This is akin to revamping your entire routine every time the latest weight loss trend hits the market.  On and Off the Wagon Over my years as a trainer, I watched the same pattern again and again. People went on an aggressive diet, then off it. They started a workout program, then quit. They joined a gym, then rarely set foot in the door. Plenty of others showed up consistently, but they simply went through the motions. They strolled on the treadmill while reading a magazine or watching TV. They lifted weights that never challenged them. Going through the motions beats going through no motions, but it rarely gets you the result you want. Trainers have a metric for this. It’s called RPE, short for rate of perceived exertion. RPE is a scale used to measure how hard your body works during physical activity based on how you feel. I often asked my clients, “On a scale of one to 10, how hard did that feel?” A one is sitting on the couch, and a 10 is the absolute maximum effort you can handle. Muscles, fitness and health only improve when they’re pushed past comfortable. It’s called overload. Someone who wants to lose 30 pounds needs both better eating habits and workouts hard enough to count. Cutting back on carrots is not the problem to solve. Your Financial RPE It didn’t take long to realize my financial planning clients were displaying similar behaviors. Some experienced a burst of energy to tackle important tasks. Then life got in the way, and the work landed on the back burner, half finished. Others enthusiastically told me all about their early retirement dreams. The minimal effort they were putting in today wasn’t going to get them there. Still others were on track but working at a perceived exertion of a 9 or 10 in their 40s and 50s. They saved so aggressively, or worked so much, that they were missing out on life. I applaud the effort, but it isn’t sustainable. I worry these clients will have regrets later in life. Are they missing out on valuable family time while the children are young? Are they working so much they’re neglecting taking care of themselves? In both fitness and finance, you need to identify what you hope to achieve and make a plan to get there. You also need to reevaluate as the decades pass. What worked in your 30s is likely not the right strategy in your 50s. Every human body gets more complex and delicate with age, and your financial life does, too. The Hard Lifts In the gym, the exercises people avoid are usually the most important and effective ones. Sometimes that’s cardio. Sometimes it’s lunges. These exercises are uncomfortable, so people find reasons to skip them. Money has its own hard lifts. The task you’re avoiding is likely the most important one on your list. You avoid it because it makes you uncomfortable and it’s hard to get started. It’s a 9 or 10 on the financial RPE scale. I see high income earners in their 30s and 40s continue to increase their spending with each raise yet not increase the savings rate along with it. I see completing an estate plan as one of the most delayed, yet extremely important financial lifts we each need to address. First time parents are eager to open their first 529 plan and begin saving for college but life insurance? That can wait. Opening a college fund for an infant feels productive and gratifying. Facing mortality or making tough family decisions is stressful and overwhelming.  My training clients told me they didn’t have enough time. My financial planning clients tell me they don’t have enough time. When will you have time to address your health? When will you have time to address your wealth? Every year you put off your health is a decision you may pay for dearly later in life. Every year you put off saving is a year compounding can’t work in your favor. It raises the risk you can’t support yourself financially or can’t live your later years the way you hope. Check Your RPE Here’s my challenge. Pick a financial goal you’re chasing, or a task that’s been sitting on your list for a while. Rate your effort honestly, from one to 10. Then ask whether that number matches the goal you set for yourself. Health and wealth fuel each other. The money you accumulate is only enjoyable if you’re healthy and happy enough to use it. Ideally, it pays for more adventures than doctor bills. What’s a reasonable financial RPE to strive for? Well, that depends on how financially fit you are. And that’s a topic for a future article.  In the meantime, eat your carrots. Lift the heavy thing. And check your financial RPE.   Annie Garland, CFP®, is a wealth advisor at WealthClarity in Lakewood, Colorado. She spent more than 20 years as a personal trainer before becoming a CFP® professional. She’s a proud mom of two daughters, a wife, and an avid mountain biker.
Read more »

Free Newsletter

Get Educated

Manifesto

NO. 29: WHAT MATTERS to long-term stock investors is the market’s dividend yield and growth in earnings per share. Everything else is noise that can bully and seduce us into foolishness.

Truths

NO. 137: AIMING TO WIN means we’re more likely to lose. Yes, there’s some chance we’ll pick market-beating stocks and funds. But in all likelihood, our performance will be dragged down by the investment costs we incur. That failure often looks even worse once we factor in taxes, because active management tends to generate big annual tax bills.

humans

NO. 10: WE ALL HAVE tasks that we dislike. Research suggests hiring others to do chores we don’t enjoy, like mowing the lawn or cleaning the house, is a great way to use money to buy happiness. In fact, paying others to do chores we dislike is a double win. Not only do we avoid the distasteful task, but also we free up time for things that we truly enjoy.

act

DON'T RUSH to roll over your Roth 401(k) to an IRA. Once you’re in your 70s, you used to be required to take distributions from a Roth 401(k)—but not a Roth IRA—but that requirement went away in 2024. Result? Now that a key incentive to roll over Roth 401(k)s is gone, you might opt to leave money at your old employer, especially if the plan offers low-cost funds.

Investing

Manifesto

NO. 29: WHAT MATTERS to long-term stock investors is the market’s dividend yield and growth in earnings per share. Everything else is noise that can bully and seduce us into foolishness.

Spotlight: Advisors

Financial Planning

I suspect like me, most HD members are against paying large yearly fees to investment advisors. I have made all of our investment decisions and have done pretty well. I also do our taxes. While I have no immediate plans to stop, because my wife…
Read more »

Which Brokerage Works Best for U.S. Expats?

I work with US citizens scattered across ~26 countries, so I recently asked my go-to AI which U.S. investment firms handle expats the best. Here’s the short version on Schwab, Fidelity and Vanguard. 1. Charles Schwab — Best for U.S. Expats Schwab is easily the…
Read more »

Investing in Dimensional Funds

My husband and I are considering working with a firm that will develop a strategic financial masterplan that will include tax strategies, Roth IRA conversions, estate planning, charitable giving and gifting among other things . We are also talking with an advisor who invests in…
Read more »

Matters of Trust

WHEN MY WIFE AND I got married, she had a credit card with an outstanding balance. Back then, you could write off the interest on your tax return. Still, I hate debt and I paid off her balance. Ever since, she’s continued to maintain a…
Read more »

Personal Touch

I’M 69 YEARS OLD and so have spent most of my life dealing with people—and businesses—in person. That said, I’ve loved and greatly benefited from the internet revolution and appreciate its marvels in a way that only a person who lived in the “before” period…
Read more »

Finding Flat-Fee Financial Advisors

I noticed that in the post by Dick Quinn - beyond-fees-is-using-a-financial-advisor-advisable , couple of folks had mentioned having flat-fee advisors. I see that it is lot easier to find advisors that charge a % of the assets under management but one that I am not fond…
Read more »

Spotlight: Fourneau

My First Retirement

I LOST A MATCH ON Nov. 12 against my former tag-team partner, Kevin Gutierrez, who wrestles under the colorful name “Corn Boi.” It was a classic Lucha Libre stipulation match. I put my mask on the line, and Kevin would cut his shoulder-length hair if he lost. Mask versus hair—or, as they say in Mexico, mascara versus cabellera. We had…
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My Side Hustle

WHEN I BEGAN MY journey to becoming a professional wrestler in 1994, I didn’t give much thought to the money aspect of the business. Wrestling was a secret organization similar to magicians or, frankly, the Mafia. Information wasn’t readily available on the industry’s economics. I simply had a burning desire to be a part of this crazy circus that I’d…
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Wrestling for Money

IN THE FALL OF 1994, when I was 21, I made the trip south from Iowa down I-35 to Texas. I was starting my wrestling training on Commerce Street in downtown Dallas at Doug’s Gym. What I wasn’t expecting were the financial lessons I picked up from some of the colorful professional wrestlers of that era. Doug’s Gym wasn’t air-conditioned.…
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Why I Won’t Wait

FINANCIAL EXPERTS often advise retirees to delay claiming Social Security. Their actuarial tables and statistics make a compelling case. Still, as soon as I’m eligible, I’ll strongly consider claiming Social Security. Why? I never knew either of my grandfathers. My mom’s dad died of a stroke when she was age 19. One of my favorite photos of my parents’ wedding…
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Hard-Earned Lessons

IN MARCH 1999, I began my job at the chemical plant where I still work today. During the weeklong orientation, I had my 26th birthday. It was the start of a job where I felt I couldn’t make any excuses. I needed to be an adult. I would be making good money. After graduating high school in 1991, I’d averaged…
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Born to Sell

I ONCE DABBLED IN the world of sales. I wasn't very good at it. In 1997, I got a job at Schwan’s, driving one of those yellow trucks you see in neighborhoods all over the U.S. selling frozen treats, ice cream and a variety of food. I thought it would be a delivery and service job. But I found out…
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HumbleDollar · https://humbledollar.com/ · printed Oct 18, 2026

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