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Americans and their credit cards

R Quinn | Aug 24, 2026

"Most people are underpaid. Many are trapped paycheck to paycheck. This includes many people who would otherwise be responsible if they could just have an opportunity to dig out of their debt. It's easy to say, well they should have rented a smaller apartment, but maybe that's not an available or realistic choice. A lot of people have to own cars. It's not a choice to have to buy new tires and gasoline. Even with Obamacare, a huge amount of debt and bankruptcy are due to medical costs. In most cases, the need for medical care is bad luck, not problems caused by personal responsibility. (And why is medical care so much more expensive in the US than other wealthy nations, like across Europe?) People should not be blamed for situations truly out of their control. I'm not saying that a lot of people don't handle finances well or that some need of medical care isn't due to self-destructive behavior. But looking at the systems we have to negotiate, as capitalism gets less regulated, more individuals need to scramble to pay their way. Credit cards are designed by our corporate overlords to make a profit. We own stock in banks and credit card companies. Why? Because we expect them to have high revenue streams of interest and fees and to grow. This is proof that the system is designed to suck money from creditcard holders and that we are well aware of this."

- Cammer Michael

Traditional or Roth

ArticleRichard Connor | Aug 29, 2026

THE CHOICE BETWEEN a traditional retirement account or a Roth is a frequent topic on HumbleDollar. The choice is generally framed as a choice between paying taxes up front (a Roth), or deferring taxes until withdrawal (traditional). I thought it would be interesting to evaluate a real-life example of how this choice might work out. In December of 2016 my wife and I had an opportunity to each open a Roth IRA. My wife took a partial sabbatical that year, and that, combined with maxing out our 401k accounts, gave us a chance to each open a $4,500 Roth IRA. The maximum allowable contribution that year was $6,500 for those 50 and over. Up until then we had assumed that our marginal tax bracket would likely be lower in retirement, and focused on contributing to our employer’s traditional 401k plans. Despite that, we decided to move forward with opening a Roth IRA. I thought it would give us some tax diversity, and the opportunity to do Roth conversions when, and if, it made sense in the future. In December of 2016 we opened Roth IRAs at Vanguard and invested the $4,500 in their S&P 500 Index Fund. Those initial funds have been invested for almost 10 years. Over that decade we have added some additional funds, and have done a few conversions. I recently did a quick analysis to see how my Roth experience would have compared to investing in a traditional IRA. In 2016, our marginal tax bracket was 28%. To contribute the $4,500 required $6,250 of pre-tax income. Due to some financial engineering over the last year, including selling our second home in late 2025, I expect our 2026 marginal tax bracket to stay within the 12% bracket. I’ve been looking at this closely because I’m considering doing a Roth conversion later this year. The table below shows the comparison between the Roth performance, and what a traditional IRA would have produced. The annual rate of return was determined using Nick Maggiulli’s S&P 500 Historical Return Calculator. Roth vs Traditional

The table shows that the Traditional IRA would have been the better choice, producing about $3,500 more in available funds, or about 22% more. This demonstrates that the primary driver in choosing between a Roth and a traditional qualified account is a consideration of the tax rates at the time of contribution and at the time of distribution. There have been a number of changes to the tax code in the last decade that have contributed to the result, but I certainly didn’t predict any of them. If you guess wrong, you pay the price in a higher tax bill. In the example above, the extra $1,750 invested in the traditional account produced an additional $6,143.31 in earnings. The lower tax rate at the distribution of the traditional IRA results in the $3,500 in extra funds. Even though the Roth IRA had tax free earnings growth, the initial larger tax rate overcame that advantage, when compared to the traditional IRA. Because of my pension and my wife’s social security benefit, 85% of her social security benefit is taxable income, so that is not a consideration in our tax calculation. I used Dinkytown’s 1040 Calculator to run a series of estimates of our 2026 tax return to assess if we want to execute a Roth Conversion this year. We are still 4 years from taking RMDs, and I will start my Social Security in a year when I turn 70. My current thinking is a conversion of about $40,000 will keep us in the 12% bracket. There would also be a small NJ state tax impact. My simple analysis reinforces what I’ve been taught. Roth contributions make the most sense when you think your current tax bracket is lower than when you expect to withdrawal the funds. There are secondary considerations, like no tax diversification, no RMDs, and uncertainty about future tax rates. If you intend to pass the funds to heirs, it might make sense to perform Roth conversions today at the 22% tax bracket if you intend to pass these accounts to heirs who may be in their peak earnings years. Not sure? I believe I recall several HumbleDollar contributors write something about splitting the difference? Richard Connor is a semi-retired aerospace engineer with a keen interest in finance. He enjoys a wide variety of other interests, including chasing grandkids, space, sports, travel, winemaking and reading. Follow Rick on Twitter @RConnor609 and check out his earlier articles.

The Wrong-Sided Man

Dennis Friedman | May 8, 2025

"I too walk early in the morning and now I carry a small can of pepper spray. It might be a vicious dog, wrong-way man as you describe, or a wayward hobo looking for an easy roll."

- art winslow

How Did You Find Paid Work After Retiring from Your Primary Career?

Jeffrey Chan | Jul 31, 2026

"After years in the workforce, I came home to raise our twins and eventually homeschooled them through middle school. During that time, I worked part-time for a nonprofit for nine years before "retiring" to help care for my mother in her mid-90s. Along the way, I managed several family estates, including a complex probate estate, as well as my mother-in-law's and my mother's affairs. After my mother's death, my sister, an RN, and I were asked to help an older woman in our hometown navigate aging-related challenges. We helped her remain safely in her home for several years and later assisted with her transition to skilled care after a serious fall. Through those experiences, I gained firsthand insight into the gaps in support available to older adults and their families. Around the same time, I managed the estate of my best friend after she died of cancer during COVID, deepening my exposure to end-of-life planning and estate administration. I thought I was retired. My husband and I traveled, and while we were financially comfortable, I wasn't planning to draw Social Security until age 70. Then a financial planner friend asked if I could help some of her older clients. The idea intrigued me. With a CPA, MBA, and a career that included commercial real estate, construction management, relocation, and a wide range of financial responsibilities, I realized I had skills that could make a meaningful difference. What began as a part-time venture became a growing Daily Money Management practice. Today, three of us help clients manage their day-to-day finances and navigate life's transitions. The work is challenging and rewarding, and it gives me the flexibility to enjoy regular travel and time with family. Best of all, it has allowed us to preserve our retirement savings while continuing to do work that genuinely improves people's lives. There's nothing wrong with knitting or other retirement hobbies (I tried knitting and was terrible at it), but I find deep satisfaction in helping clients solve problems, maintain independence, and face life's challenges with greater confidence."

- cynthiahoffman

This would be a great posting on a web site with the name “HaughtyDollar.”

R Quinn | Aug 28, 2026

"t"

- Mick

You Heel!

Michael Flack | Aug 24, 2026

"Counterpoint- I purchased a brand new pair of Bostonian oxfords, maroon in color for about $20, about 25 years ago. I liked them so much I bought a black pair, but they were only reduced to $35. The black ones were go to shoes for my work environment for a couple decades. I spent ~$150 combined to replace the leather soles and rubber heels multiple times. I wondered if it was a prudent decision to keep spending so much more than the original cost. Then I shopped for equal quality and comfort in new shoes, and I found they were around $250 and could not be re-soled due to the rubber soles. I therefore succeeded in exercising my frugal muscle and got the maximum value out of a relatively paltry investment. And I supported small local businesses, making a modest living for their family. I call that a win-win. I've trashed the black shoes as I felt they were no longer worth repairing, or needed for work. I'll be wearing the maroon ones (original heel/sole) later this year in my son's wedding."

- John Verlautz

The Intentional Spendthrift

Mark Crothers | Aug 21, 2026

"This article really hit home for me. We’ve been retired since 2013 and started off somewhat “frugal” as well. My wife got cancer (twice) in 2016 and 2017 but recovered. This was the first wake up call for me. When we were able to travel again in 2019, that frugality disappeared (within reason). However, I realized that it was mostly while we traveled. I had not realized that until I just read this article. We have always enjoyed traveling but the “getting to the destination” part was the challenging part (flying economy, for example). Now we fly first class and book suites on cruises. At the same time, I think it is funny that I still peruse the menu and may shy away from a dish that costs $3 more or that I will drive out of my way to save $0.05 on a gallon of gas (does anyone else get that paranoid on gas prices). On the other hand, I feel no remorse spending $1,000 on an excursion to Iguazu Falls. Another factor has recently entered my thought process. Now that we are in our mid-to-late 70s, it is apparent that our go-go years will be waning at some point and traveling will lose more of its appeal (as walking up 300 steps to reach the castle or shrine entrance might entail). One way I have mentally “justified” spending more is to say to myself “this is the last trip will be taking.” The reality has been that I’ve been mentally saying that since 2019, while taking typically three international trips per year since (avoiding 2020 and 2021 for Covid). We are booked through 2027, so far. As far as spending limits, our RMDs are fully available for vacation, since we have sufficient income to cover all other expenses. As half our portfolio is in Roth, we have established twice our RMD as the upper end of our discretionary spending plan. This should allow us to spend while still enabling long-term growth."

- snak123

A Place At The Table

Andrew Clements | Aug 26, 2026

"Thank you, William. I’m glad you enjoyed it. The Philippines has taught me quite a bit, and often it’s the small, everyday experiences that have left the biggest impression on me."

- Andrew Clements

Inflation Hedge

ArticleAdam M. Grossman | Aug 29, 2026

THE OPEN KITCHEN restaurant has been a fixture in Charlotte, North Carolina for 75 years. The restaurant has an old-time feel, with memorabilia, including menus from years gone by, lining its walls. Those old menus provided David Enna, a financial journalist, with a laboratory for examining the effects of inflation. What did Enna find? The oldest menu on display is from 1963. To state the obvious, today’s prices make those from the 1960s look quaint. Back then, spaghetti and meatballs cost just $1.10. Today, it’s $15.50. But, as Enna points out, that was more than 60 years ago, so increases are to be expected. Over the past 60 years, the Consumer Price Index (CPI) has averaged 3.8% per year. That isn’t unreasonable, especially since that average includes the 1970s, when inflation sometimes topped 10%. What’s of more concern, though, is what consumers have experienced more recently. Since 2020, prices across the economy have risen 29%. And though those increases have slowed, the Fed is still struggling to ratchet inflation back to its preferred 2% level. This has given investors renewed interest in strategies to defend against inflation. At first glance, this doesn’t seem like it should be such a difficult problem. The U.S. Treasury offers an investment specifically designed for this purpose: Treasury Inflation-Protected Securities (TIPS). These are bonds that are guaranteed by the federal government to increase in value with inflation. And though I hesitate to use the words “bond” and “exciting” in the same sentence, today many investors are finding the return on TIPS compelling. The 30-year TIPS is now paying close to 3% on top of inflation. If inflation averages 2.5%, for example, over the next 30 years, this bond will end up returning a total of 5.5% per year, and with minimal risk. That sounds good in theory, but do these bonds make sense for your portfolio? It’s worth taking a closer look. The first thing to note is that this seemingly attractive 3% yield only applies to 30-year TIPS. Yields on shorter-term bonds are lower. So unless your investment horizon happens to be exactly 30 years, these bonds may be of limited practical value. Putting aside the yield question, though, a more fundamental challenge with individual TIPS—and individual bonds in general—is that they’re a cumbersome way to build a portfolio. Even if you didn’t mind the process of buying bonds one by one, which can be tedious, there’s the fact that it’s hard for most people to be able to forecast their cash flow needs each year into the future. That’s a problem because choosing maturity dates is the foundation on which bond portfolios are built. Ideally, if you can align the maturity dates of the bonds in your portfolio with your future cash needs, then you can hold bonds to maturity, which is when the issuer would promise to pay you back in full. But that redemption value is guaranteed only at maturity. Buy a 20-year bond and sell it after just 10 years, and there are no guarantees. A bondholder could easily lose money selling an individual bond before maturity. Given these challenges, would a TIPS fund be a better choice? To be sure, bond funds are much simpler to purchase and to manage, but they typically offer even less protection from losses than individual bonds. Most recently, shareholders in TIPS funds were disappointed by how they performed in 2022, when inflation spiked to 9%. Investors expected that to be the year when TIPS rewarded investors, but instead, diversified TIPS funds such as the Vanguard Inflation-Protected Securities Fund (ticker: VAIPX) lost nearly 12%. Why did funds like this fare so poorly when inflation was running so high? The problem is that, at the end of the day, TIPS are still bonds. And though they receive a bump in value when inflation rises, a countervailing force is that they lose value when interest rates rise. In 2022, the Federal Reserve raised interest rates aggressively to fight inflation. The negative impact from those rate increases far outweighed the benefit TIPS received from inflation being higher. That puts investors in a difficult position. If TIPS provide inflation protection in theory, but both individual TIPS and TIPS funds carry limitations, what other options are there? The good news is that not all TIPS funds are the same. Some hold only short-term bonds, and they have historically held up much better than more broadly diversified TIPS funds because short-term bonds are more resilient when interest rates rise. Over the past five years, a fund like Vanguard’s Short-Term Inflation-Protected Securities ETF (ticker: VTIP) has outperformed a comparable fund (ticker: VGSH) holding standard short-term Treasury bonds every year, as well as this year to-date. It’s important to note, though, that this is relative performance. In 2022, when the entire bond market was under pressure, even short-term TIPS funds like VTIP did still lose money. They just lost less than funds holding conventional bonds. The bottom line: We should never become too wedded to any one strategy. No investment can promise reliable and complete protection against inflation in every market scenario. That said, I do still recommend TIPS and would specifically recommend a short-term fund like VTIP. But I also suggest taking a diversified approach to inflation protection. Here are other steps to consider. If you’re in your 60s and considering when to claim Social Security, that decision offers a powerful lever. Because Social Security benefits increase with inflation and also increase with each year you delay claiming, it’s maybe the most effective way to build additional inflation protection into your plan. What else can you do? Fortunately, you may already own one of the most effective—and underappreciated—inflation-fighting instruments: stocks. While rising prices in recent years have been frustrating for consumers, the result has been that companies have been able to maintain their profit margins. That, in turn, has helped to support their stock prices through this period of inflation. To be sure, some companies have more of an ability to raise prices than others, but overall, stocks are, in my view, a good way to keep pace with inflation. The one thing I wouldn’t do is to buy gold. Despite its reputation, various studies have confirmed that gold really isn’t a reliable inflation hedge. In a paper titled “The Golden Dilemma,” researchers wrote: “Over practical investment horizons, gold is an unreliable inflation hedge,” though they acknowledge that it may be more reliable over longer timeframes—“if the investment horizon is measured in centuries.” 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.

Bad Maths, Good Fire.

Mark Crothers | Aug 28, 2026

"Thanks for another nice read over morning coffee, Mark. Reading this took me back to the early 1970's when the oil embargo contributed to heating oil prices skyrocketing and the availability of the oil spotty at times in New England. The wood stove in our house became the primary source of heat during that time and for years after the crisis had abated. We were blessed with virtually unlimited access to firewood on the property and adjoining properties. I have great memories of both sitting in front of the stove (sometimes open like a fireplace or closed to run for hours on a armload of wood) and of the many hours working in the woods with my dad cutting, splitting and stacking wood for the coming seasons."

- Dunn Werking

Blood Money

Michael Flack | Mar 28, 2026

"I agree with you about KO but XOM is involved in climate deception since it knew about global warming risks 60 years ago and ranks as one of the top global greenhouse gas polluters."

- Nick Politakis

Feeling TIPSy?

ArticleSanjib Saha | Aug 22, 2026

NOT TOO LONG ago, Treasury Inflation Protected Security (TIPS) was a relatively obscure investment for safe long-term fixed-income investments. For the first twenty years of the new century, consumer prices were mostly stable or rising at a too-slow-to-notice rate. Why bother with anything related to inflation? Sadly, persistently low inflation made us complacent on the biggest long-term risk of bond investments -- the insidious unexpected inflation that robs us of the purchasing power of our “safe” investments. Yes, let’s not forget that the biggest risk of bond or bond-like investments is unexpected inflation. Any bond or CD with a maturity beyond a few years must either offer a sufficiently high interest rate to compensate for sudden bouts of inflation, or have its principal adjusted for the inflation actually realized. The former is nearly impossible to find without sacrificing safety. The latter is what TIPS is for. To be clear, the market and investors always expect some level of inflation. Therefore, a bond’s effective interest rate - measured by its YTM (Yield to Maturity) - must be high enough to not only compensate for “expected” inflation and the uncertainties around it but also provide a meaningful increase in the purchasing power of the original principal. A concrete example might help. Consider a 10-year US Treasury nominal bond with a face value of $1,000, selling at $1,000 and paying 5% annual interest. The interest rate reflects the expectations about inflation and other factors over the next 10 years. The rate would be lower if market expected lower inflation, and higher if market expected the opposite. The omnipresence of inflation means we’re likely to lose some purchasing power when we get our $1,000 in 10 years. It won’t buy what $1,000 buys today. By how much? That’s the thousand dollars question (pun intended). There isn’t a readily available number that explains why that 10-year Treasury Bond yields 5% instead of 3% or 7%. Investors essentially take a leap of faith that annual inflation stays low enough over the 10-year period for the interim interests to compensate for the purchasing power loss, plus some changes. Most of us are perfectly comfortable assuming that inflation won’t be as high as 5% for 10 years. But are we fooling ourselves? I suggest using an inflation calculator to see for ourselves. Spoiler alert: Late 1960s through early 1980s can be an eye-opening period. How’d we feel if the next 10 years turn out to be something similar? Think about how you might feel when you safekeep your money in a so-called secure investment, give up higher returns available from risky investments, and then encounter an inflationary regime. Your minimum expectation was that your purchasing power would remain intact and perhaps improve a little by the time your bond matures. Instead, unforeseen inflation erodes your purchasing power and compromises the financial goal the fund was supposed to cover. Your “safe” investment fails you completely. You realize that it wasn’t safe at all. If unexpected inflation is so devastating, why are we so lax about it? I can think of two reasons. First, our minds haven’t adapted to the reality that, unlike to a “real” asset like a bag of rice or a gallon of gasoline, money in its current form is inherently self-eroding. It slowly loses its worth over time. A hundred dollars sitting around will still be a hundred dollars next year, but it won’t buy the same amount. We don’t intuitively perceive the continuous loss of purchasing power. Even when we do internalize it with some effort, we get used to the “pace” of the loss. In other words, we view inflation as steady and unexpected inflation as highly unlikely. Alas, all it takes is a single prolonged inflationary period to change that perception. By then, however, the damage to existing fixed income investments may already be done. Frankly, I’d be very wary of keeping my long-term “safe” money -- fund that I need to preserve beyond a three-year horizon - in any form that isn’t protected against unexpected inflation. For bond investments, the most meaningful option would be TIPS. Why? Because, in addition to being secured by the full faith and credit of the US Government just like any other Treasury securities, TIPS provides three important assurances upfront. First, it provides protection against unexpected inflation, which is a realized inflation that differs from what we expected when purchasing it. If the actual inflation averages 12% instead of the expected 2%, the principal is automatically adjusted to reflect the actual inflation. No guesswork or unexpected risk involved. Second, it provides a “real interest rate” upfront that tells us how much the purchasing power of the investment will increase over time, regardless of what the actual inflation turns out to be. Buying a 10-year TIPS with real 2% annual interest means the investment’s purchasing power will grow 2% per year over the holding period, before considering taxes and other factors. The third aspect is more nuanced. It involves the possibility of inflation being lower than expected, or even negative inflation (aka deflation). Let me elaborate. If a regular nominal 10-year Treasury Bond offers 5% annual yield and an equivalent TIPS offers a real annual interest rate of 2.75%, the market-implied inflation, the breakeven inflation rate, is roughly 2.25% (5% minus 2.75%). Actual inflation, of course, will be known only after 10 years when the bond matures. Suppose the actual inflation turns out to be only 1.25%. The nominal Bond investor would end up with more purchasing power than the TIPS investor because the TIPS principle would be adjusted by only the actual 1.25% inflation rate. The primary objective of the TIPS investor would still have been met: preserving and improving purchasing power by about 2.75% annually. But there would be a “missed opportunity”. The nominal Treasury investor would end up with even greater purchasing power. Does it mean that a TIPS investor can face an unlimited opportunity cost if inflation turns out to be negative? What happens if the actual inflation is, hypothetically speaking, negative 5%, in a severely deflationary period? Does the TIPS investor get back proportionately reduced principal at maturity? Thanks to the third assurance of TIPS, the answer is NO. TIPS guarantees that the principal returned at maturity will never fall below the original face value. During periods of deflation, the inflation-adjusted principal can fall below its face value and the interim interest payments will decline accordingly. But at maturity, the principal is floored at the original principal amount. Therefore, the breakeven inflation rate, the difference between the yield of a nominal Treasury bond and the real yield of an equivalent TIPS, represents the maximum annual yield advantage that the nominal bond can have over TIPS in an unexpectedly low inflation regime. To summarize, a TIPS investor gets unlimited protection against unexpectedly high inflation, while accepting a limited opportunity cost should the actual inflation be low or even negative. The magnitude of that trade-off is reflected in the breakeven inflation rate at the time of the TIPS purchase. An aside: given the destructive impact of deflation on economy and society, policy makers are generally more concerned about preventing prolonged deflation than about preventing modest inflation. Therefore, prolonged deflation is usually considered less likely. Still, we cannot ignore deflation risk altogether and should be prepared for the possibility that TIPS can underperform a nominal bond if inflation runs low. Therefore, the decision to favor TIPS over an equivalent nominal Bond hinges in part on the current breakeven inflation rate. If it’s low enough, favoring TIPS can be an easy decision. Getting unlimited protection against unexpectedly high inflation is worth accepting the relatively small opportunity cost if inflation comes below the breakeven rate. There is, however, a cautionary note about buying TIPS bonds in the secondary market, especially older issues. Consider a 30-year TIPS bond issued 20 years ago and a 10-year TIPS issued within last 6 months. Both might appear to be valid choices if they mature within a few months of each other and offer similar yields. But beneath the surface, one may be more favorable than the other. The older TIPS will likely have a much higher inflation-adjusted principal because it accumulated 20 years of inflation adjustments. But the protection against unexpected deflation applies only to the bond’s original face value, which is typically $1,000. In a prolonged deflationary period, the older bond has much more room for its inflation-adjusted principal to decline before reaching the $1,000 floor. The newer issue, whose adjusted principal is much closer to the $1,000 face value, has less exposure to this risk. Therefore, all else being equal, I’d favor a TIPS with a low inflation-adjusted factor when buying in the secondary market. All things considered, my vote goes to TIPS for long-term “safe” investments, provided the break-even inflation is reasonably low. For secondary market purchases, however, a high inflation-adjustment factor would give me pause. Sanjib Saha retired early from software engineering to dedicate more time to family and friends, pursue personal development and assist others as a money wellness mentor. Self-taught in investments, he passed the Series 65 licensing exam as a non-industry candidate. Sanjib is the president and cofounder of Dollar Mentor, a 501(c)(3) nonprofit organization offering free investment and financial education. Follow his nonprofit on LinkedIn, and check out Sanjib’s earlier articles.

Americans and their credit cards

R Quinn | Aug 24, 2026

- Cammer Michael

Traditional or Roth

ArticleRichard Connor | Aug 29, 2026

The Wrong-Sided Man

Dennis Friedman | May 8, 2025

"I too walk early in the morning and now I carry a small can of pepper spray. It might be a vicious dog, wrong-way man as you describe, or a wayward hobo looking for an easy roll."

- art winslow

How Did You Find Paid Work After Retiring from Your Primary Career?

Jeffrey Chan | Jul 31, 2026

- cynthiahoffman

This would be a great posting on a web site with the name “HaughtyDollar.”

R Quinn | Aug 28, 2026

"t"

- Mick

You Heel!

Michael Flack | Aug 24, 2026

- John Verlautz

The Intentional Spendthrift

Mark Crothers | Aug 21, 2026

- snak123

A Place At The Table

Andrew Clements | Aug 26, 2026

"Thank you, William. I’m glad you enjoyed it. The Philippines has taught me quite a bit, and often it’s the small, everyday experiences that have left the biggest impression on me."

- Andrew Clements

Inflation Hedge

ArticleAdam M. Grossman | Aug 29, 2026

Manifesto

Aug 28, 2026

NO. 34: FIGURING out what we ought to do with our money is relatively easy. Getting ourselves to do it is hard. Victory goes not to the smartest, but to the most disciplined.

act

Aug 29, 2026

HIRE OTHERS TO do chores you dislike. For each of us, time—not money—is the ultimate limited resource. Research has found that those who use their money to buy time—by, say, hiring others to clean or do yardwork for them—report greater happiness. Why? These folks feel less time stressed, while also freeing up extra hours for activities they love.

Truths

Aug 28, 2026

NO. 97: IT’S HARD to say “no” to our adult children if they get into financial trouble—which is why we should try to raise money-savvy kids. But how? Set a good example. Talk regularly about your own finances. Tell your kids about your lean early adult years. Involve them in family financial decisions. Encourage them to save up for larger purchases.

think

Aug 27, 2026

HABIT FORMATION. To improve our behavior—financial and otherwise—we need to turn our desired good behavior into habits. That might require doing the right thing daily for perhaps two months. To get through this transition period, helpful strategies include sharing our resolutions with others, visualizing our goals and automating our savings program.

Money Guide

Manifesto

Aug 28, 2026

NO. 34: FIGURING out what we ought to do with our money is relatively easy. Getting ourselves to do it is hard. Victory goes not to the smartest, but to the most disciplined.

Spotlight: Houses

Coming Home

steve abramowitz | Oct 23, 2024

There’s a world where I can go
And tell my troubles to
In my room, in my room
The Beach Boys, 1963
Alberta and I just returned from what for me was a restorative and emotionally powerful two-week trip to New York. No, not because she got to see seven movies at the International Film Festival in the Hamptons or four shows in the city. But she took pictures of me standing in front of five of the commercial buildings my family owned some fifty years ago.

Model Behavior

Jonathan Clements | Dec 21, 2024

I’M WRAPPING UP MY final big investment. Going into it, I knew it would lose money, unleash unwanted disruption and chew up time when it’s never been more precious—and yet I still went ahead.
As readers might recall, last year, Elaine and I remodeled the kitchen in our Philadelphia home. This year, we decided we’d revamp the upstairs bathroom, despite my cancer diagnosis and the forecast that I might live just 12 more months.

One Last Book

Elaine M. Clements | Mar 6, 2025

During his final months, my husband Jonathan worked tirelessly to complete his last book, Money and Me. The book is now available for pre-order and will be released in May 2026.
What’s so special about this book? This book features Jonathan’s best and most personal HumbleDollar articles. The articles are curated in such a way to teach everyone about personal finance through Jonathan’s own money journey. And sadly, his terminal cancer diagnosis is part of this journey about which he candidly writes.

When You Can’t Take Care of Yourself

Dennis Friedman | Mar 19, 2025

I don’t believe I’ve ever enjoyed life more than I do now. What is there not to like about my life? I have my health, financial stability, plenty of free time to do the things I want, and I have a companion to share my journey with. I wish this stage of my life was never-ending.
But at age 73, I know my life could be turned upside down tomorrow. Lately, I’ve been thinking about what Rachel and I should do if we can’t take care of ourselves.

Home Tax Tips

Bogdan Sheremeta | Mar 7, 2026

IF YOU OWN a home or are planning to buy one, there are a few things you need to know from the tax standpoint that could save you money:
1. Mortgage Interest
If you have a mortgage, you can typically deduct the interest you pay on the loan up to $750,000 ($1,000,000 if taken before December 16, 2017) but only if you itemize your deductions (schedule A)
You can also deduct points you paid if you itemize.

Home Free

Douglas W. Texter | Jan 16, 2025

TWELVE PERCENT. THIS is a pivotal number in my financial life.
What does it refer to? Is it the average annual return on my investments? I wish. Is it the percentage of my pre-tax income that I dedicate to retirement savings? No. That number, including pension and 403(b) contributions, is closer to 25%.
Instead, that 12% is the slice of my pre-tax income reserved for housing. When picking a place to live, I’m a cheapskate.

Long-Term Care? Who Has It?

Jeff Bond | Aug 10, 2024

I'm curious about how many HD readers have arranged for long term care in some way, shape, or form. My policy seems overly complicated, unsurprising since it is an insurance policy. I know it was explained to me at the time. In the year I turned 60 I used the cash value from a whole life insurance policy to purchase a long term care plan. I no longer needed that life insurance. The actuaries computed a maximum total long term care benefit, spread monthly over six years. Over the 11 years since, the monthly benefit that at the time seemed so very large, is still large, but not excessively so. If I need long term care this policy should help keep my head above water, considering it in combination with RMDs, Social Security, and my investment account. If I never use the benefit or I don't use all of the benefit, then there is an insurance payout to my beneficiary. I'd be interested to hear what others have planned for LTC. Thanks.

Whole Life Insurance Worked for Me

Jeff Bond | Jan 22, 2025

Many people are convinced that buying term life insurance is the best option from the standpoint of both affordability and coverage. However, I bought whole life insurance a long time ago. The agent represented MONY, and at the time MONY was a very highly rated insurance company. I got married (first time) in 1978. My employer at the time provided bare minimum benefits, and I thought insurance to protect my young wife, who was still in school, was a good idea. It was a small policy for either $10K or $20K. In 1978 that was real money. Then in 1986 I called the agent to tell him there was a baby on the way and wanted to talk about additional protection. The following discussions resulted in my rolling the original policy into a larger one for $150K. My first son was born in early 1987. Son number two arrived in late 1989. I do not remember the amount of my monthly payments for this new policy, but they were not insubstantial. I also remember that as young parents we rarely had much money left over at the end of each month. In retrospect, the purchase of the whole life policy resulted in an enforced savings plan. Even though it was not a great investment, both my insurance coverage and cash value increased each year. Our family went on with our lives. I continued to make payments on the policy, but the various employers I had during that time provided life insurance in multiples of my salary. I even had disability insurance. I saw no reason to increase my policies with MONY, even though the agent checked-in several times a year. In addition to his life insurance credentials, he also became a financial advisor and wanted to administer my Vanguard IRA.…

Another HD Post About Cars

Jeff Bond | May 27, 2025

Here’s another car-themed Forum post. Last June I wrote a Humble Dollar article about vehicle ownership and longevity. I ended that article with a description of the most recent major repair required for my 2011 Subaru Forester when the clutch assembly failed and required replacement. Those of you wishing to revisit that article can view it here. I mentioned at the end of that article it might be time to search for another Subaru. At the end of 2024 I read about the introduction of a Subaru Forester option in the new model year - a hybrid. I dropped by my closest dealership to test drive a non-hybrid Forester with the features I wanted, explained I wanted a hybrid and they agreed to maintain contact. I wanted the most up-to-date safety features. In March the salesperson texted with tentative hybrid deliveries and MSRP information. I told them that I would not purchase a vehicle if it was subject to tariffs. In April they texted with information about available colors, features, and availability. Two weeks ago, I bought one. The biggest surprise of the whole negotiation was that they took my old Subaru in trade for a value I considered acceptable. When I thought about cleaning/detailing it for sale, posting on sale sites, negotiating, simultaneous insurance for two vehicles, purchasing duplicate license tags, and other factors, their offer seemed reasonable. Then we found that the trade-in value reduced the sale price of the new Subaru, which in turn reduced the NC sales tax charged on the transaction. It was worthwhile to accept their offer. I’m still reading about and experiencing new features. Some things are on by default, while others need to be turned on/off by the driver. I'm still enjoying the new-car smell. I’ve only reached for the nonexistent manual…

Rolling Right Along

Jeff Bond | Jun 4, 2024

I BEGAN MY CAREER as a part-time employee for an engineering consulting firm. At the time, I was working on my master’s degree in mechanical engineering. I shifted to full-time when I’d wrapped up my coursework but before completing my research and oral defense. Over the next four years, I finished that degree and passed the national exam to become a registered professional engineer. I also got married, and bought a dog, a second car and a house. In other words, I jumped straight into middle class life. I was the company’s seventh employee. The firm grew and I progressed. When I turned age 30, I opened IRAs for both me and my wife, thinking we’d never work for companies that provided pensions. An acquaintance recommended I choose Vanguard Group’s S&P 500-index fund (symbol: VFIAX) and Windsor Fund (VWNDX). At the time, an individual’s annual IRA contribution was limited to $2,000. In the early 1980s, my employer introduced a 401(k) plan and I immediately joined. The plan was administered by a bank and the fund offerings were less than stellar, but it allowed me to contribute more than $2,000 a year. Meanwhile, after some years of success, the company started to struggle. A slowdown in our core business led to shrinking paychecks for principals like me, so I ceased contributions to the 401(k). Everyone else did, too. I found out the company hadn’t made all the plan contributions for months, even though the money had been withheld from our paychecks. We later learned that the same was true for state and federal tax withholding. The chief financial officer monitored the mail for checks every day. One day, he received a check large enough to cover all missed contributions to the 401(k). When he returned from the bank, he turned in…

Racking Up the Miles

Jeff Bond | Jun 28, 2024

AS AN ENGINEER and a believer in keeping things running, I haven’t owned many automobiles during my lifetime. Instead, my focus has been on extending each one’s longevity. Among the maintenance and repairs I’ve undertaken: oil changes, spark plug and wire replacements, carburetor cleaning and adjustment, belt and hose replacements, distributor and timing settings, brake replacements (disk and drum), master and slave brake cylinder repairs, clutch adjustment, alternator repair, radiator repair, heater core repair, radiator fluid replacement, tire repair, motor mount replacement, engine and cabin air-filter replacements, wiper replacement, bulb and lens replacements, shock absorber replacement, wheel bearing renewal, tracing various electrical gremlins, and radio replacement. Doing these myself has saved significant money. An example: One winter, when the brakes on our second Dodge Caravan started to make noise, I got a quote for the repair. A mechanic said the car wasn’t safe to drive and a repair would cost more than $800. This was in the 1990s, and $800 was a huge expense for us. The van wasn’t unsafe. The brakes were just worn. This was a job I could do; I just didn’t want to. Over the following weekend—one that was cold and rainy—I put the van up on jack stands outside, because we had no garage. I replaced the front and rear brakes, rebuilt the brake slave cylinders, lubricated the rear wheel bearings, and flushed the brake fluid. The total cost for parts was less than $100. Here are the cars I’ve owned over the past half-century, all of which were bought new or almost new. 1973 Mercury Capri. This was my first car, and I paid cash for it. I bought it used, but it was only nine months old. I loved that car and it served me well while in college, as a newlywed, and…

How Did You Announce Your Retirement?

Jeff Bond | Aug 13, 2024

Ken Cutler’s question about his retirement status made me think about how my retirement started. I’m curious about what path you all followed. As I approached retirement in 2020, I considered how much notice to give my employer. I had worked for the company for 20 years. I was not a manager, but I was an expert technical professional and had carved out a very specialized niche within the organization. Substantial organizational changes were implemented during the first three months of the calendar year and as a result I had three different managers over a very short span of time. Because I had questions about exit benefits, vacation pay, 401(k) handling, and other details, I decided to discuss my thoughts with HR. My HR contact set a time for a confidential discussion. I told her I planned to provide notice three to four months in advance, and leave on the last Friday of June 2020, which would be the 26th. I was very surprised to hear her response. She said I did not owe my employer that kind of notice. I should give notice two weeks before I plan to leave. Employee loyalty was misplaced for anyone not working in the executive suite. The company could choose to lay me off at any time with no warning. Performance and salary reviews would occur during that span of time, and I would lose the incremental increase if they knew I was leaving. She also recommended I wait one more week, because leaving on July 3rd meant I would be paid for the July 4th Holiday on the following Monday. I scheduled knee replacement surgery to happen very early in the year. The pandemic put that on hold, but I was still able to get the surgery done in May. I was…

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This would be a great posting on a web site with the name “HaughtyDollar.”

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Americans and their credit cards

Traditional or Roth

The Wrong-Sided Man

How Did You Find Paid Work After Retiring from Your Primary Career?

This would be a great posting on a web site with the name “HaughtyDollar.”

You Heel!

The Intentional Spendthrift

A Place At The Table

Inflation Hedge

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Long-Term Care? Who Has It?

Whole Life Insurance Worked for Me

Another HD Post About Cars

Rolling Right Along

Racking Up the Miles

How Did You Announce Your Retirement?