If it’s an effort to set up the coffeemaker the night before, maybe it’s no surprise folks struggle to save for goals that are decades away.
THE MOST WIDELY read book of all time, the Bible, has a lot to say about money. According to biblical scholars, money and wealth are mentioned more than 2,000 times. Out of the roughly 40 parables Jesus told, nearly half speak of money.
Why does the Bible make such a big deal about money? The answer belongs in a Sunday sermon, not here. Still, I believe there’s a great deal to be learned from what the Bible says about money.
INCOME ANNUITIES are a simple, cost-efficient way to generate guaranteed retirement income, and yet they account for just 5% of overall annuity sales. My contention: They can play a unique role in a portfolio—and deserve serious consideration by anyone planning for retirement.
Full disclosure: I’m co-founder of Saturday Insurance, an online company that offers income annuities and other insurance products directly to consumers. I also know that, when most people hear the word “annuity,” they cringe,
THE FINANCIAL site MarketWatch has been running a series about the lives and budgets of Americans who retire abroad. My wife Jiab and I—who moved from Texas to Spain—were one of the first couples featured, along with a husband and wife who now live in Chile. Both articles made clear there were plusses and minuses to such a move—experiencing new things, but also being away from family—and that we weren’t advocating this for everyone.
A NEW FIRM called Life + Liberty Indexes has created what it calls the Freedom 100 index of emerging markets stocks. Unlike other indexes, which typically weight stocks by their market value, the Freedom 100 weights countries by measures of freedom. These include freedom of religion, freedom of the press and freedom of assembly, among others. In short, the Freedom 100 looks like it could have been created by the authors of our Declaration of Independence.
CALL IT THE NEW conventional wisdom: Forget trying to spend less—and instead focus on earning more.
This change in thinking is no great surprise. We have endless opportunities to make an extra buck, thanks to all the “side hustles” available in our “gig economy.” Meanwhile, many folks bristle at the admonitions to spend less on lattes, happy hours and avocado toast. Let’s face it, will eliminating such expenses really put us on the fast track to financial freedom?
I HAVE LONG admired my good friend Nick for his generosity with friends—but also for his inspiring ability to pinch a penny. The man can pinch so hard he makes Lincoln cry, so I knew the world was changing fast when he installed a Ring video doorbell. Really? Pinch me.
A decade ago, new technologies inspired fantasies of living in a Jetsons-style “smart home.” There was a nascent market for internet-connected products,
Take Vanguard Target Retirement 2050 Fund, which invests its assets in four Vanguard index funds and is geared toward those retiring in 2050 or thereabouts. The 2050 fund has a $1,000 investment minimum and charges just 0.15% a year, equal to 15 cents for every $100 invested. What does that get you? Pretty much the entire world: 55% U.S. stocks, 35% foreign stocks, 7% U.S. bonds and 3% foreign bonds.
On my recommendation, my daughter owns that fund in her Roth IRA. I've also bought Vanguard target-date funds for my son and two stepdaughters. But I don't own target-date funds myself, except in two small accounts, where I'm trying to keep things simple.
Still, I'm tempted. Which funds are tempting me? One-stop shopping index funds fall into two camps. First, there are target-date retirement funds, which become more conservative as they approach the year specified in their fund name. Here are three of the lowest-cost providers, with their funds' annual expenses shown in parentheses:
AFTER THE U.S. SUCCESS of How to Think About Money, I struck a deal with Harriman House in the U.K. to publish an international edition, which will be available everywhere in October, except the U.S. and Canada. Look below to see the original U.S. cover—and to the right to see the new cover created by Harriman. The book can now be preordered from Amazon in the U.K. and directly from Harriman.
As I revamped the book for an international audience, I looked at the index funds on offer around the world and reviewed other personal finance issues. My surprise: While tax laws, government retirement benefits, the social safety net and the investment products available vary from one country to the next, the similarities are greater than the differences—and hence the rules of smart financial behavior don't change all that much, no matter where you live.
HERE ARE THE SEVEN most popular blogs that HumbleDollar published last month:
CONSUMERS with credit card debt outspend those without card debt in seven out of nine discretionary spending categories, including dining out, clothes and accessories, and entertainment, according to a CreditCards.com survey.
NO. 20: FRUGALITY isn’t just the key to financial success. It’s also no great sacrifice, because spending often brings only fleeting happiness—and sometimes even pangs of regret.
NO. 44: GOOD COMPANIES are often bad stocks. Why? Investors bid up the value of widely admired, fast-growing companies—and the companies often end up disappointing investors. Meanwhile, investors shun troubled, slower-growing companies, so even so-so corporate performance can result in strong market returns.
CHECK YOUR portfolio percentages. In 2019, stocks have outpaced bonds, U.S. growth companies are ahead of bargain-priced value shares, real estate stocks have sparkled and foreign stock markets have fallen behind. All this may have pushed your portfolio away from your target asset allocation—and it could be time to rebalance.
ASSET LOCATION. After deciding what investments to buy, we should consider asset location. What’s that? It involves divvying up investments between taxable and retirement accounts. If investments generate large annual tax bills—think taxable bonds and actively managed funds—we’ll typically want to hold them in a retirement account.
THE MOST WIDELY read book of all time, the Bible, has a lot to say about money. According to biblical scholars, money and wealth are mentioned more than 2,000 times. Out of the roughly 40 parables Jesus told, nearly half speak of money.
Why does the Bible make such a big deal about money? The answer belongs in a Sunday sermon, not here. Still, I believe there’s a great deal to be learned from what the Bible says about money.
INCOME ANNUITIES are a simple, cost-efficient way to generate guaranteed retirement income, and yet they account for just 5% of overall annuity sales. My contention: They can play a unique role in a portfolio—and deserve serious consideration by anyone planning for retirement.
Full disclosure: I’m co-founder of Saturday Insurance, an online company that offers income annuities and other insurance products directly to consumers. I also know that, when most people hear the word “annuity,” they cringe,
THE FINANCIAL site MarketWatch has been running a series about the lives and budgets of Americans who retire abroad. My wife Jiab and I—who moved from Texas to Spain—were one of the first couples featured, along with a husband and wife who now live in Chile. Both articles made clear there were plusses and minuses to such a move—experiencing new things, but also being away from family—and that we weren’t advocating this for everyone.
A NEW FIRM called Life + Liberty Indexes has created what it calls the Freedom 100 index of emerging markets stocks. Unlike other indexes, which typically weight stocks by their market value, the Freedom 100 weights countries by measures of freedom. These include freedom of religion, freedom of the press and freedom of assembly, among others. In short, the Freedom 100 looks like it could have been created by the authors of our Declaration of Independence.
CALL IT THE NEW conventional wisdom: Forget trying to spend less—and instead focus on earning more.
This change in thinking is no great surprise. We have endless opportunities to make an extra buck, thanks to all the “side hustles” available in our “gig economy.” Meanwhile, many folks bristle at the admonitions to spend less on lattes, happy hours and avocado toast. Let’s face it, will eliminating such expenses really put us on the fast track to financial freedom?
I HAVE LONG admired my good friend Nick for his generosity with friends—but also for his inspiring ability to pinch a penny. The man can pinch so hard he makes Lincoln cry, so I knew the world was changing fast when he installed a Ring video doorbell. Really? Pinch me.
A decade ago, new technologies inspired fantasies of living in a Jetsons-style “smart home.” There was a nascent market for internet-connected products,
CONSUMERS with credit card debt outspend those without card debt in seven out of nine discretionary spending categories, including dining out, clothes and accessories, and entertainment, according to a CreditCards.com survey.
NO. 20: FRUGALITY isn’t just the key to financial success. It’s also no great sacrifice, because spending often brings only fleeting happiness—and sometimes even pangs of regret.
CHECK YOUR portfolio percentages. In 2019, stocks have outpaced bonds, U.S. growth companies are ahead of bargain-priced value shares, real estate stocks have sparkled and foreign stock markets have fallen behind. All this may have pushed your portfolio away from your target asset allocation—and it could be time to rebalance.
NO. 44: GOOD COMPANIES are often bad stocks. Why? Investors bid up the value of widely admired, fast-growing companies—and the companies often end up disappointing investors. Meanwhile, investors shun troubled, slower-growing companies, so even so-so corporate performance can result in strong market returns.
ASSET LOCATION. After deciding what investments to buy, we should consider asset location. What’s that? It involves divvying up investments between taxable and retirement accounts. If investments generate large annual tax bills—think taxable bonds and actively managed funds—we’ll typically want to hold them in a retirement account.
Take Vanguard Target Retirement 2050 Fund, which invests its assets in four Vanguard index funds and is geared toward those retiring in 2050 or thereabouts. The 2050 fund has a $1,000 investment minimum and charges just 0.15% a year, equal to 15 cents for every $100 invested. What does that get you? Pretty much the entire world: 55% U.S. stocks, 35% foreign stocks, 7% U.S. bonds and 3% foreign bonds.
On my recommendation, my daughter owns that fund in her Roth IRA. I've also bought Vanguard target-date funds for my son and two stepdaughters. But I don't own target-date funds myself, except in two small accounts, where I'm trying to keep things simple.
Still, I'm tempted. Which funds are tempting me? One-stop shopping index funds fall into two camps. First, there are target-date retirement funds, which become more conservative as they approach the year specified in their fund name. Here are three of the lowest-cost providers, with their funds' annual expenses shown in parentheses:
AFTER THE U.S. SUCCESS of How to Think About Money, I struck a deal with Harriman House in the U.K. to publish an international edition, which will be available everywhere in October, except the U.S. and Canada. Look below to see the original U.S. cover—and to the right to see the new cover created by Harriman. The book can now be preordered from Amazon in the U.K. and directly from Harriman.
As I revamped the book for an international audience, I looked at the index funds on offer around the world and reviewed other personal finance issues. My surprise: While tax laws, government retirement benefits, the social safety net and the investment products available vary from one country to the next, the similarities are greater than the differences—and hence the rules of smart financial behavior don't change all that much, no matter where you live.
HERE ARE THE SEVEN most popular blogs that HumbleDollar published last month: