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Want to teach kids about money? Forget lecturing—and instead tell family stories that illustrate your financial values.

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The Paradox of Wealth

"I’ve been thinking about this since last night, I, too, have facilitated my granddaughter’s doing some special, expensive things. But I wonder if money or even the free time it makes possible, is really key here. Grandparents can take the kids to public parks, help catch fireflies in the backyard, or help them make a cake. One year after flying my granddaughter to NYC to see Annie on Broadway, we spent some time at my kitchen table playing with her plastic ponies. I sort of think the latter might have been more enjoyable for her."
- Marilyn Lavin
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Will Your Death Double Your Spouse’s Tax Bill?

"We actually started the conversions because our kids are likely to be in their prime earnings years when they inherit. But since we’ve started the conversions the money we put into the IRAs has tripled in value — and I doubt we are the most efficient investors. So right now about half of what we would have had in IRAs is in Roths earning excellent tax free returns, while the IRAs continue to grow, but the continuing conversions and liberal use of QCDs are not pushing our RMDs into the stratosphere."
- Marilyn Lavin
Read more »

IRMAA & late filing of tax returns

"Besides jail/fines, be aware, ​unlike private creditors (like credit card companies or medical providers) who must sue you and win a court judgment before they can touch your paycheck or bank account, the IRS does not need a court order to seize your property, freeze your bank accounts, or garnish your income."
- Steve
Read more »

Every Writer Has a Beginning: Organ Transplant Fails

"Thank you William. It means a great deal to hear that. Writing these stories has helped me discover even more about Jonathan, and it’s been wonderful to share those discoveries with the people who appreciated his wisdom and kindness. I’m grateful you’re one of them."
- Andrew Clements
Read more »

About that inflation in retirement

"isn’t the fact that the vast majority of women didn’t work outside the home in 1935 and therefore needed the protection of spousal benefits a demographic fact that now needs to be revisited?"
- Marilyn Lavin
Read more »

Buying a car in retirement

"Although I hope there will be several equally capable self-driving car options when I decide to replace my 10 year old Lexus, the anticipated freedom it will give me to once again drive at night is exciting to think about! Happy to hear that your experience with Tesla has been positive. I chafe at the restriction I’ve felt for the last 7 years. Nothing seems to help my night vision and I can easily become disoriented. It’s a scary look into how it must feel to experience dementia."
- jan Ohara
Read more »

Retirement, One Year On

"Sorry, Laura, I just saw this! I love what you said about the benefits of supporting a spouse’s creative endeavors! It’s definitely on the list of things I want to think about and try out!"
- DrLefty
Read more »

The Making of Jonathan Clements

WHEN READERS THINK of my younger brother Jonathan Clements, they often picture the longtime Wall Street Journal columnist or the founder of HumbleDollar. They remember the clear financial advice, the thoughtful essays and the quiet wisdom that helped millions make better decisions with their money. But every writer has a beginning. As I've been researching Jonathan's life over the past several weeks, I've found myself drawn less to the career everyone knows and more to the people who helped shape it. Before the books, the columns and the countless readers, there was a curious teenager discovering that he loved to write. Jonathan's journey began long before Wall Street, long before Forbes and long before HumbleDollar. It began with a school magazine at Bryanston School in Dorset, England. As a teenager, Jonathan joined the staff of Saga, the school magazine. There he wrote an article criticizing Bryanston's decision to spend money on a new pipe organ while other parts of the school needed attention. Years later, Jonathan looked back on that article with characteristic humor, saying it earned him "the enmity of a host of people." But he also said something far more revealing. That article, he believed, "was my entrée to becoming a journalist." More importantly, Jonathan had discovered not just that he enjoyed writing, but that he enjoyed asking difficult questions. Reading those early Saga articles today, what strikes me isn't simply Jonathan's talent. It's how familiar his voice already sounds. Even as a teenager, he questioned accepted wisdom with humor rather than hostility, weighed competing arguments fairly and cared deeply about priorities. Years later, readers would come to know him for helping them decide what mattered most in their financial lives. Looking back, those instincts were already there. Journalism also ran in the family. Our father began his career as a journalist before becoming an economist, and Jonathan often said his example inspired him to pursue financial journalism. After leaving Bryanston, Jonathan had almost a year before beginning his studies at Cambridge, our father's alma mater. During that time, a family friend, Mrs. Dolezal, helped him secure a reporting job at the Potomac Almanac, a small community newspaper in suburban Washington. For the next eight months, Jonathan did what young reporters often do. One day he covered education. The next, sports. Then police, then business. It wasn't glamorous work, but it taught him the fundamentals of reporting. Years later, Jonathan would describe those eight months as "the most fun and the most educational experience I had in journalism." It wasn't a large newspaper, but it gave a young reporter the opportunity to learn every aspect of the profession. Even more importantly, it introduced him to the paper's editor, Leslie Leven. Decades later, after writing for Forbes, The Wall Street Journal and founding HumbleDollar, Jonathan was asked about the people who had influenced his career. His answer surprised me. Of everyone he had worked with, he singled out Leslie, describing her as "probably the most important mentor I had." Those words say as much about Jonathan as they do about Leslie. No matter how successful he became, Jonathan never forgot the people who had believed in him before anyone else did. Cambridge came next, but by then journalism was no longer simply an interest. Jonathan later admitted that during one term he attended only four lectures because he was so immersed in editing the student newspaper, Varsity. Somewhere along the way, writing had stopped being a hobby and had become the work he wanted to spend his life doing. After Cambridge, Jonathan joined Euromoney in London, his first full-time journalism position. It was another stepping stone that eventually led him to New York and Forbes, where he discovered the world of personal finance writing. The years that followed are well known. After Forbes came nearly two decades at The Wall Street Journal, where Jonathan became one of the country's most respected personal finance columnists. He later spent six years at Citigroup as Director of Financial Education, helping investors better understand their financial lives. But the entrepreneurial spirit never left him. In 2016, he founded HumbleDollar, creating not simply another financial website, but a community built on thoughtful conversation, generosity and the belief that money is ultimately a means to a richer life, not an end in itself. Millions of readers came to trust his judgment and his remarkable ability to explain complicated ideas with clarity, humanity and compassion. Growing up, I don't think any of us could have imagined where Jonathan's curiosity and love of writing would eventually lead. He was simply my younger brother; curious, thoughtful and always eager to learn. Looking back now, the path seems almost inevitable. At the time, it was anything but. But as I've pieced together Jonathan's early years, I've come away with a different appreciation of his career. I always knew where Jonathan finished. Only recently have I begun to appreciate where, and with whom, it all began. Long before Jonathan became a mentor to countless writers and readers, someone had mentored him. A family friend opened a door. An editor patiently taught him his craft. A small community newspaper gave him a chance. We often celebrate the finished product. The successful journalist, the respected author, the trusted voice. Yet behind almost every accomplished life are people whose names are seldom remembered, people who quietly open doors, encourage talent and believe in someone long before the rest of the world notices. Jonathan never forgot them. Perhaps that's why, years later, so many aspiring writers would tell similar stories about him. He answered emails, encouraged new voices, edited with kindness and opened doors for others just as doors had once been opened for him. In the end, Jonathan's story isn't simply about becoming one of the world's most respected financial journalists. It's also about the people who quietly shaped that journey. Mrs. Dolezal opened the first door and Leslie Leven helped Jonathan find his footing as a young reporter. Those early opportunities gave him the confidence to pursue the career that followed. Every accomplished life begins somewhere. Jonathan's began with people who saw potential in a young man long before the rest of the world did.   After spending more than two decades building a successful landscaping business with his twin brother Nicholas, Andrew Clements retired in 2015 with a new appreciation for what matters most. Born in England, his essays draw on a life that has included growing up in England and Bangladesh, entrepreneurship, caregiving, family loss and travel. A regular HumbleDollar contributor, he enjoys tellingstories that remind readers life’s richest lessons often have little to do with money. Andrew is the older brother of HumbleDollar founder Jonathan Clements, whose life and legacy have inspired some of his most personal writing. He lives in Florida with his husband, Joey.
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A Letter 40 Years Later: What Mrs. Dolezal Remembered

"Darelyn, thank you so much. Your words truly touched me. I miss Jonathan every day, and I know many others do as well. If this story reminded readers that the greatest impact we can have is often through simple acts of kindness and by simply being present for one another, then it accomplished exactly what I hoped. Mrs. Dolezdal's letter reminded me of that lesson in a way I'll never forget. Thank you for such a thoughtful and generous comment."
- Andrew Clements
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What Remains: Money and Me

"Thank you Brian for taking the time to write such a thoughtful review. I smiled when you said it felt like Jonathan was personally guiding you through life, that's exactly how so many of us experienced him, whether we knew him personally or only through his writing. Like you, I found the final chapters especially powerful. Knowing what lay ahead, he still chose to write with clarity, honesty and hope rather than fear. That's a remarkable legacy to leave. I'm especially grateful that you're recommending Money and Me to your friends and adult children. If Jonathan could still speak to new readers today, I think that's exactly what he would hope for. Thank you again for keeping his voice alive."
- Andrew Clements
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Frittering away Frugality 

"totally agree, Mr. Quinn. I like to joke with family and friends that "Costco should be call half-paycheck.""
- SCao
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The Paradox of Wealth

"I’ve been thinking about this since last night, I, too, have facilitated my granddaughter’s doing some special, expensive things. But I wonder if money or even the free time it makes possible, is really key here. Grandparents can take the kids to public parks, help catch fireflies in the backyard, or help them make a cake. One year after flying my granddaughter to NYC to see Annie on Broadway, we spent some time at my kitchen table playing with her plastic ponies. I sort of think the latter might have been more enjoyable for her."
- Marilyn Lavin
Read more »

Will Your Death Double Your Spouse’s Tax Bill?

"We actually started the conversions because our kids are likely to be in their prime earnings years when they inherit. But since we’ve started the conversions the money we put into the IRAs has tripled in value — and I doubt we are the most efficient investors. So right now about half of what we would have had in IRAs is in Roths earning excellent tax free returns, while the IRAs continue to grow, but the continuing conversions and liberal use of QCDs are not pushing our RMDs into the stratosphere."
- Marilyn Lavin
Read more »

IRMAA & late filing of tax returns

"Besides jail/fines, be aware, ​unlike private creditors (like credit card companies or medical providers) who must sue you and win a court judgment before they can touch your paycheck or bank account, the IRS does not need a court order to seize your property, freeze your bank accounts, or garnish your income."
- Steve
Read more »

Every Writer Has a Beginning: Organ Transplant Fails

"Thank you William. It means a great deal to hear that. Writing these stories has helped me discover even more about Jonathan, and it’s been wonderful to share those discoveries with the people who appreciated his wisdom and kindness. I’m grateful you’re one of them."
- Andrew Clements
Read more »

About that inflation in retirement

"isn’t the fact that the vast majority of women didn’t work outside the home in 1935 and therefore needed the protection of spousal benefits a demographic fact that now needs to be revisited?"
- Marilyn Lavin
Read more »

Buying a car in retirement

"Although I hope there will be several equally capable self-driving car options when I decide to replace my 10 year old Lexus, the anticipated freedom it will give me to once again drive at night is exciting to think about! Happy to hear that your experience with Tesla has been positive. I chafe at the restriction I’ve felt for the last 7 years. Nothing seems to help my night vision and I can easily become disoriented. It’s a scary look into how it must feel to experience dementia."
- jan Ohara
Read more »

Retirement, One Year On

"Sorry, Laura, I just saw this! I love what you said about the benefits of supporting a spouse’s creative endeavors! It’s definitely on the list of things I want to think about and try out!"
- DrLefty
Read more »

The Making of Jonathan Clements

WHEN READERS THINK of my younger brother Jonathan Clements, they often picture the longtime Wall Street Journal columnist or the founder of HumbleDollar. They remember the clear financial advice, the thoughtful essays and the quiet wisdom that helped millions make better decisions with their money. But every writer has a beginning. As I've been researching Jonathan's life over the past several weeks, I've found myself drawn less to the career everyone knows and more to the people who helped shape it. Before the books, the columns and the countless readers, there was a curious teenager discovering that he loved to write. Jonathan's journey began long before Wall Street, long before Forbes and long before HumbleDollar. It began with a school magazine at Bryanston School in Dorset, England. As a teenager, Jonathan joined the staff of Saga, the school magazine. There he wrote an article criticizing Bryanston's decision to spend money on a new pipe organ while other parts of the school needed attention. Years later, Jonathan looked back on that article with characteristic humor, saying it earned him "the enmity of a host of people." But he also said something far more revealing. That article, he believed, "was my entrée to becoming a journalist." More importantly, Jonathan had discovered not just that he enjoyed writing, but that he enjoyed asking difficult questions. Reading those early Saga articles today, what strikes me isn't simply Jonathan's talent. It's how familiar his voice already sounds. Even as a teenager, he questioned accepted wisdom with humor rather than hostility, weighed competing arguments fairly and cared deeply about priorities. Years later, readers would come to know him for helping them decide what mattered most in their financial lives. Looking back, those instincts were already there. Journalism also ran in the family. Our father began his career as a journalist before becoming an economist, and Jonathan often said his example inspired him to pursue financial journalism. After leaving Bryanston, Jonathan had almost a year before beginning his studies at Cambridge, our father's alma mater. During that time, a family friend, Mrs. Dolezal, helped him secure a reporting job at the Potomac Almanac, a small community newspaper in suburban Washington. For the next eight months, Jonathan did what young reporters often do. One day he covered education. The next, sports. Then police, then business. It wasn't glamorous work, but it taught him the fundamentals of reporting. Years later, Jonathan would describe those eight months as "the most fun and the most educational experience I had in journalism." It wasn't a large newspaper, but it gave a young reporter the opportunity to learn every aspect of the profession. Even more importantly, it introduced him to the paper's editor, Leslie Leven. Decades later, after writing for Forbes, The Wall Street Journal and founding HumbleDollar, Jonathan was asked about the people who had influenced his career. His answer surprised me. Of everyone he had worked with, he singled out Leslie, describing her as "probably the most important mentor I had." Those words say as much about Jonathan as they do about Leslie. No matter how successful he became, Jonathan never forgot the people who had believed in him before anyone else did. Cambridge came next, but by then journalism was no longer simply an interest. Jonathan later admitted that during one term he attended only four lectures because he was so immersed in editing the student newspaper, Varsity. Somewhere along the way, writing had stopped being a hobby and had become the work he wanted to spend his life doing. After Cambridge, Jonathan joined Euromoney in London, his first full-time journalism position. It was another stepping stone that eventually led him to New York and Forbes, where he discovered the world of personal finance writing. The years that followed are well known. After Forbes came nearly two decades at The Wall Street Journal, where Jonathan became one of the country's most respected personal finance columnists. He later spent six years at Citigroup as Director of Financial Education, helping investors better understand their financial lives. But the entrepreneurial spirit never left him. In 2016, he founded HumbleDollar, creating not simply another financial website, but a community built on thoughtful conversation, generosity and the belief that money is ultimately a means to a richer life, not an end in itself. Millions of readers came to trust his judgment and his remarkable ability to explain complicated ideas with clarity, humanity and compassion. Growing up, I don't think any of us could have imagined where Jonathan's curiosity and love of writing would eventually lead. He was simply my younger brother; curious, thoughtful and always eager to learn. Looking back now, the path seems almost inevitable. At the time, it was anything but. But as I've pieced together Jonathan's early years, I've come away with a different appreciation of his career. I always knew where Jonathan finished. Only recently have I begun to appreciate where, and with whom, it all began. Long before Jonathan became a mentor to countless writers and readers, someone had mentored him. A family friend opened a door. An editor patiently taught him his craft. A small community newspaper gave him a chance. We often celebrate the finished product. The successful journalist, the respected author, the trusted voice. Yet behind almost every accomplished life are people whose names are seldom remembered, people who quietly open doors, encourage talent and believe in someone long before the rest of the world notices. Jonathan never forgot them. Perhaps that's why, years later, so many aspiring writers would tell similar stories about him. He answered emails, encouraged new voices, edited with kindness and opened doors for others just as doors had once been opened for him. In the end, Jonathan's story isn't simply about becoming one of the world's most respected financial journalists. It's also about the people who quietly shaped that journey. Mrs. Dolezal opened the first door and Leslie Leven helped Jonathan find his footing as a young reporter. Those early opportunities gave him the confidence to pursue the career that followed. Every accomplished life begins somewhere. Jonathan's began with people who saw potential in a young man long before the rest of the world did.   After spending more than two decades building a successful landscaping business with his twin brother Nicholas, Andrew Clements retired in 2015 with a new appreciation for what matters most. Born in England, his essays draw on a life that has included growing up in England and Bangladesh, entrepreneurship, caregiving, family loss and travel. A regular HumbleDollar contributor, he enjoys tellingstories that remind readers life’s richest lessons often have little to do with money. Andrew is the older brother of HumbleDollar founder Jonathan Clements, whose life and legacy have inspired some of his most personal writing. He lives in Florida with his husband, Joey.
Read more »

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Get Educated

Manifesto

NO. 48: A HOME is a lousy source of capital gains and a great source of imputed rent. The upshot: We should buy a house we can comfortably afford and that’s big enough for our family—but no bigger.

think

ASSET LOCATION. After deciding which investments to buy, we should consider our asset location. What’s that? It involves divvying up investments between taxable and retirement accounts. If investments generate large annual tax bills—think active stock funds and real estate investment trusts—we’ll likely want to hold them in a retirement account.

act

VENTURE ABROAD. Many U.S. investors shy away from foreign shares, leery of the currency swings and the weaker legal protections. But adding overseas stocks can lower the risk of a U.S. stock portfolio, because foreign shares sometimes post gains when U.S. shares are suffering. HumbleDollar’s advice: Allocate a third to half of your stock portfolio to foreign shares.

humans

NO. 22: WE IMAGINE hard work is the key to success, as it was in school and during our career. But if our investment strategy involves hunting for winners and trading frenetically, we’re likely to hurt our results, thanks to the added cost and risk. Instead, the best returns typically accrue to the patient investor who does the least to impede compounding.

Retirement

Manifesto

NO. 48: A HOME is a lousy source of capital gains and a great source of imputed rent. The upshot: We should buy a house we can comfortably afford and that’s big enough for our family—but no bigger.

Spotlight: Charity

Giving Sensibly

WITH DECEMBER FAST approaching, it’s a good time to think about end-of-the-year financial planning. What steps might you take?
A popular strategy is to make charitable gifts, both to support good causes and reap a tax benefit. But before you start writing checks, take a moment to better understand your tax picture. Because of the complexity of tax forms, that’s often easier said than done. Still, you don’t need to decipher every number. Instead,

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Give and Receive

MANY OF MY CLIENTS volunteer to perform chores for religious institutions and other charitable organizations. I remind them that volunteers qualify for tax breaks. Their itemized deductions include what they spend to cover unreimbursed out-of-pocket outlays—though there are limits to the IRS’s generosity.
I caution clients not to count on deductions for the value of the unpaid time that they devote to charitable chores. Let’s say the prevailing rate for the kind of services they render is $100 per hour and they spend 100 hours to render those services during the year in question.

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Give While You Live

MANY FOLKS DELAY financial gifts to family and charity until their death. But I advocate a different approach: giving generously during our lifetime, or what I like to call “giving with a warm heart, not a cold hand.”
This not only transforms the lives of the recipients, but also enriches those who give, making their lives more meaningful and fulfilling.
One of the most compelling reasons to give during your lifetime: You get to see the impact of your generosity.

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Getting Others Going

Want to help a young person get started on a lifetime of investing? Hear all about the Jonathan Clements Getting Going on Savings Initiative on this podcast hosted by Rick Ferri. My fellow guests on the podcast were Morningstar’s Christine Benz and The Wall Street Journal’s Jason Zweig. Please give a listen—and please consider donating. One way to donate: Buy copies of  The Best of Jonathan Clements, a collection of my Wall Street Journal columns.

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Gifts That Give Back

IF YOU’RE IN YOUR 70s or older and you are charitably inclined, it’s time to get acquainted with one of your best financial friends: the qualified charitable distribution, or QCD.
A QCD is a distribution that’s made directly from your IRA to an organization eligible to receive tax-deductible contributions. A QCD counts toward your annual required minimum distribution, or RMD. But unlike a regular RMD, the QCD won’t add to your taxable income for the year—a potentially huge advantage.

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Share What You Know

MOST EVERYONE AGREES financial literacy should be taught to some degree in schools. Even the basics, like how to set up a bank or credit card account, or how to make a budget and avoid debt, should be explained to those soon to enter the workforce.
Another group of newcomers to the U.S. financial system who could use guidance are immigrants, particularly refugees. Jiab and I have been volunteering for a number of years to help refugees get acclimated to American life.

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Spotlight: Wasserman

Riding It Out

IN MID-MARCH, I WENT into lockdown with optimistic thoughts. Perhaps it would give me time to perfect my Spanish, master classical guitar, write more blog posts, start online courses and even begin the book that Jim and I often discuss writing together. I’ve accomplished none of my grand plans. Instead, I’ve been consumed by reading COVID-19 news. I’ve slept poorly and eaten too much. I remain perpetually exhausted. I struggle to focus and lack creativity. Everything takes twice as long as usual. My sense of time and motivation has completely gone out the window. Before I retired in 2018 and we moved to Spain, I worked from home for seven years, so I’m no stranger to spending most of my time in the house. But it’s harder to stay home when you’re retired, without the need to make day-to-day work decisions and interact with colleagues. I’m trying hard not to feel guilty about my mood or lack of accomplishments. Apparently, all this is normal. My feelings of grief are, it turns out, part of a greater collective grief. There have been countless articles about coping with the recent stock market downturn and about how to keep ourselves entertained at home. But very few cover the mental health aspects of today’s stay-at-home orders. The months ahead will be rough on everybody. What to do? Here’s how Jim and I are trying to sustain ourselves through these hard times: 1. Acknowledge loss and grief. According to David Kessler, an expert on grief, understanding the stages of grief is a key place to start. The stages aren’t linear and may not happen in the same order. Jim and I have discussed our emotional responses. As I write this, I flip between sadness and acceptance, while Jim is alternating between anger and acceptance. There…
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When You’re No. 2

WE ALL KNOW financial literacy is important. But it’s especially important if you’re a woman. According to the Gates Foundation, “No matter where you are born, your life will be harder if you are born a girl.” Today is Equal Pay Day—the day when U.S. women finally earn enough to “catch up” with men’s earnings from the previous year. Women in the U.S. earn 82% of what men do for equivalent work and, as a result, suffer a 33% wealth gap. Women also have less access to borrowed money than their male counterparts. All this leaves women with less control over their daily life. Think about a female applicant who is rejected for a new job because of her weak credit report. Or a woman who’s stuck in a relationship because her husband controls the family’s money. More than 50 years ago, Avis ran an advertising campaign that said, “When you’re not the biggest in rent a cars, you have to try harder. We do. We’re only No. 2.” I'm not advocating that women accept today's unfairness. But gender inequality isn’t going away any time soon. In the meantime, women will have to work harder and know more to propel themselves ahead—and financial literacy is one way to compete better on an unequal playing field. Marcus Aurelius, the famous stoic Roman emperor, wrote in his Meditations that “if you submit to the frustration with a good grace, and are sensible enough to accept what offers itself instead, you can substitute some alternative course.” Here are five workarounds that I’ve found have provided “alternative courses” for me: Be a smart consumer and self-advocate. Because of the pink tax, women get hit twice—first with less pay and again when they pay more for products. What to do? Think unconventionally. For instance, there’s no difference between…
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One Day at a Time

JIM AND I RECENTLY moved from Granada, our first home in Spain, to Alicante, a city by the Mediterranean. The move gives us the opportunity to walk along the coast each day. A few weeks ago, we hiked a rugged coastal trail that’s part of a nature preserve, with an ancient Roman dock still partially visible. Along the coastline, you can also see how layers of sand have built up over the centuries, compacting together to form the breathtaking sandstone hills we enjoy today. It’s a reminder of how small acts can have a significant impact over time. I’ve always liked the expression, “In one day, you can’t do much, but over a long period of time you can accomplish a lot.” Small acts can yield a high—and even exponential—return, given enough time. Such returns aren’t just financial. Here are three small acts that, if performed regularly, can help us reap large rewards in the long run. 1. Save and invest every month. Thanks to the gender wealth gap, this is especially important for women. I started saving as soon as I got my first regular job. In 1993, I worked in a public library, where I earned slightly more than minimum wage. The job allowed me to contribute pretax dollars to a 457 plan. When I left the library, my balance was a bit under $2,000. Since then, I transferred it to an IRA and, the last time I checked, the balance was almost $10,000. In all my subsequent jobs in financial services, and as my income increased, I would max out my 401(k) and continue to save regardless of the economic situation, whether it be boom or bust. In fact, recessions and the accompanying stock market decline were the best time to invest, because the same dollar amount had…
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Courting Success

I JUST ATTENDED THE Madrid Open, a major clay court tennis tournament. It’s one of nine Masters series tournaments, ranked just below Grand Slams like Wimbledon and the U.S. Open. It was amazing to witness the players’ speed and agility at such close range. Because it was early in the tournament, most of the matches I saw were part of the first and second round, with top 10 players pitted against contenders outside of the top 100. Despite that, two of the matches went to a full three sets and were narrowly won by the top 10 players. They were exciting from beginning to end. There were many moments when we spectators sat at the edge of our seats, gasping in amazement at the incredible touch, power and athleticism of both players. Although the higher ranked player won each match, I observed that there was little to no difference in athletic ability between top 10 players and those just outside the top 100. Watching the matches, however, gave me a perspective on what it takes, beyond raw talent, to be at the top of one’s game—not just in tennis, but also in personal finance and even life more generally. The case for consistency. While one or two mistakes may not appear to make much difference, every little thing adds up. Top players rarely give anything away. Brilliant moves are impressive. But if they’re too often followed by a thoughtless error, an entire game can be lost. The same is true in life. We’re often not disciplined enough. But if we do the right thing consistently, even if it’s something small, we increase our chances of success—whether it’s reaching our retirement goal, becoming healthier, losing weight or having a happy family life. Want to retire early? It’s more likely to be gained…
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Less Is More

I RECENTLY INJURED my lower back playing tennis. I rested for a day and then decided I was well enough to resume my usual activities. But my haste worsened the pain, extending my recuperation to more than a week. Every move—even sneezing—hurt. Putting on my pants was a major struggle. I was forced to do nothing except rest. Doing nothing was the one of the hardest things I’ve ever done. Ironically, at the time of my injury, I was working with Jim on writing a book on Daoism, and I happened to be focusing on the idea of wu wei or “nonaction.” The notion: We shouldn’t act unnecessarily and instead do so only when we absolutely have to. In the Dao De Ching, Lao Tzu cautions against interfering with the state of things. He sees the world as one of precious balance, where an action that isn’t carefully considered might easily lead to an avalanche of unwanted effects before balance is eventually restored. This got me thinking about the financial world—and about how much better off we’d be if we adopted this kind of cautionary thinking by investing in index funds, keeping costs low and interfering with our portfolio's natural growth as little as possible. History has shown it’s extremely difficult to beat the market averages year in and year out. Sometimes, a rush to action hurts us. As Warren Buffett once observed, "The stock market is a device to transfer money from the impatient to the patient."
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Scope Creep

DURING OUR TIME in Spain, we came to admire the water fountains common in mudejar architecture, the Moorish-style homes of Andalusia. During the lockdown, while I tried my hand at creating art, Jim picked up the hobby of making water fountains using a few basic items, including a small water pump and terra cotta planters that he found around the apartment. As the lockdown dragged on, Jim progressed to building more complex fountains. He built an indoor one in a Zen-like style, with water flowing through bamboo pipes into a big terra cotta bowl. The cats claimed this as their drinking fountain. He built another small tabletop fountain for my office. The water bubbled over rocks, so I could enjoy the sound of flowing water. This was also claimed by the cats. Still, although the cats enjoyed the fountains, I think it’s Jim who got the most joy—from making them. About a month ago, we settled back into our townhome in Dallas. Jim wanted to build a fountain to remind us of our time in Andalusia. We already had a large ceramic planter that I’d purchased for $5 at a garage sale, along with a pump given to Jim as a gift. The pump, however, was too powerful. The simplest solution was to buy a smaller $10 pump from Amazon. With the smaller pump and the ceramic pot that we had, Jim could have built a basic fountain in under 30 minutes for $15. But basic wasn’t the type of fountain he wanted to build. It was a classic example of scope creep—a problem not only in the corporate world, but also in the world of remodeling, as Dick Quinn has written about. Long story short: Jim tinkered with the ceramic pot so much that it ended up damaged. That meant…
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