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Stock Market Contest

"Mark, thanks to you and AI, I now know what a ‘tuck shop’ is. It seems that the UK is ahead of the US in both the teaching of financial literacy to our young students, as well as the appreciation of full flavored beer among our adults. It would be interesting to see how the financial habits of recent graduates of each country compare.  That’s all for now, I’ll be faffing about in the garage if anyone needs me. "
- Dan Smith
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Simplify Everything

"My wife also is not the techie in our house. I'm her local go to help desk technician for any issue she runs into. It's only fair as I rely on her for so many things in my life. Although I have pulled together and organized all of the documents and information that would be needed by my spouse or children upon either of our passing, I have not yet put together a formal document that ties everything together. That is on my to-do list. It is great that you have that completed. We also have not yet updated our wills and other end of life documents since 1998. Since our children are now adults and have children of their own, there are considerable changes that we would like to make (although what is now in place is still adequate). That too is on our list of things to get done in the near future."
- Doug C
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Blood Money

"Jim Burrows, I want to keep the option to convert my 401(k) to an IRA using NUA and since NUA is only useful for the XOM shares with the lowest cost basis, I am selling shares with the largest cost basis first."
- Michael Flack
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Any concern?

"100% of our retirement is in "guaranteed money"...Social Security & Annuities. Portfolio is 100% in VTI and VXUS (80/20) since it is not used for income. We can just watch it recover over the next 9-10 months or 1-2 years, whichever course the market decides to take. I am a Bogle disciple. "Stay the Course." Our retirement plans have not changed, so neither has our portfolio."
- Mike Lynch
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Lent, Chocolate, and the Art of Retirement

"Great article, Mark! My bride of 52 years gave up all sweets for Lent. I have a GIANT Easter basket full of all the "good stuff" hidden in my office closet, including a Roche Easter Bunny for myself nd a LARGE Reese's Peanut Butter Chocolate one for her. Me? I gave up Coffee for Lent. After the first 3-4 days of headaches, it has been manageable. It's not really the coffee that gets to me... It's the Sweetner and the Carnation Hazelnut Cleamer that I crave. Only two and a wake-up!"
- Mike Lynch
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A Big Little Move (by Dana/DrLefty)

"There is not a legal reason. My issue in not doing so currently is there would now be the additional legal expense to re-title and record the deed transfer to the RLT (in addition to the legal cost to initially create the revocable living trust (RLT) which we do not currently have) and it is also my understanding that the particular, mostly unused, large home equity line of credit (HELOC) that we have would also have to be re-established and I worry that since I have stopped working and my earned income has ended I do not know if I would be able to get a new HELOC with the high limit and terms that my current HELOC loan has. I expect that if my spouse dies first I would downsize my residence by moving and my wife would certainly have to move because of her current limited mobility should I die first. Thus when either of us dies or I become unable to maintain our current home a move is in our future. Where Dana lives, in California, I believe she can choose to include a transfer on death provision as part of the titling in a deed in lieu of using a RVT but my state currently does not allow for TOD provisions in deeds. Fortunately my state intestacy provisions currently matches our bequest intents when including post death transfers via beneficiary designations and joint ownership. In the unlikely event that my wife and I die at the same time I expect the probate process is not so onerous in my state for what assets I will expect will be left as my state allows for a simplified administration process for small estates."
- William Perry
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Giving Up on Owning a Home

"Yeah, I remember those mortgage rates."
- Dan Smith
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Social Security Spousal Benefits

"This is a great description of the rules involved with figuring social security benefits when coordinating with a spouse. I know it has been mentioned before, but I think the Open Social Security calculator is worth mentioning here again in helping to strategize when to claim benefits."
- Doug C
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Quinn’s super frugal experiment. Are you up for a challenge?

"Ed, yes, thank you for asking. Everything went through fine, I updated in my guardianship post from December. Spouse will have to do a report to the court every 2 years. We were also very relieved that the bond we thought we would have to post, was waived by the judge. The “big” things like the house and car sale have closed. We are sleeping better. C"
- baldscreen
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Stock Market Contest

"Mark, thanks to you and AI, I now know what a ‘tuck shop’ is. It seems that the UK is ahead of the US in both the teaching of financial literacy to our young students, as well as the appreciation of full flavored beer among our adults. It would be interesting to see how the financial habits of recent graduates of each country compare.  That’s all for now, I’ll be faffing about in the garage if anyone needs me. "
- Dan Smith
Read more »

Simplify Everything

"My wife also is not the techie in our house. I'm her local go to help desk technician for any issue she runs into. It's only fair as I rely on her for so many things in my life. Although I have pulled together and organized all of the documents and information that would be needed by my spouse or children upon either of our passing, I have not yet put together a formal document that ties everything together. That is on my to-do list. It is great that you have that completed. We also have not yet updated our wills and other end of life documents since 1998. Since our children are now adults and have children of their own, there are considerable changes that we would like to make (although what is now in place is still adequate). That too is on our list of things to get done in the near future."
- Doug C
Read more »

Blood Money

"Jim Burrows, I want to keep the option to convert my 401(k) to an IRA using NUA and since NUA is only useful for the XOM shares with the lowest cost basis, I am selling shares with the largest cost basis first."
- Michael Flack
Read more »

Any concern?

"100% of our retirement is in "guaranteed money"...Social Security & Annuities. Portfolio is 100% in VTI and VXUS (80/20) since it is not used for income. We can just watch it recover over the next 9-10 months or 1-2 years, whichever course the market decides to take. I am a Bogle disciple. "Stay the Course." Our retirement plans have not changed, so neither has our portfolio."
- Mike Lynch
Read more »

Lent, Chocolate, and the Art of Retirement

"Great article, Mark! My bride of 52 years gave up all sweets for Lent. I have a GIANT Easter basket full of all the "good stuff" hidden in my office closet, including a Roche Easter Bunny for myself nd a LARGE Reese's Peanut Butter Chocolate one for her. Me? I gave up Coffee for Lent. After the first 3-4 days of headaches, it has been manageable. It's not really the coffee that gets to me... It's the Sweetner and the Carnation Hazelnut Cleamer that I crave. Only two and a wake-up!"
- Mike Lynch
Read more »

A Big Little Move (by Dana/DrLefty)

"There is not a legal reason. My issue in not doing so currently is there would now be the additional legal expense to re-title and record the deed transfer to the RLT (in addition to the legal cost to initially create the revocable living trust (RLT) which we do not currently have) and it is also my understanding that the particular, mostly unused, large home equity line of credit (HELOC) that we have would also have to be re-established and I worry that since I have stopped working and my earned income has ended I do not know if I would be able to get a new HELOC with the high limit and terms that my current HELOC loan has. I expect that if my spouse dies first I would downsize my residence by moving and my wife would certainly have to move because of her current limited mobility should I die first. Thus when either of us dies or I become unable to maintain our current home a move is in our future. Where Dana lives, in California, I believe she can choose to include a transfer on death provision as part of the titling in a deed in lieu of using a RVT but my state currently does not allow for TOD provisions in deeds. Fortunately my state intestacy provisions currently matches our bequest intents when including post death transfers via beneficiary designations and joint ownership. In the unlikely event that my wife and I die at the same time I expect the probate process is not so onerous in my state for what assets I will expect will be left as my state allows for a simplified administration process for small estates."
- William Perry
Read more »

Giving Up on Owning a Home

"Yeah, I remember those mortgage rates."
- Dan Smith
Read more »

Free Newsletter

Get Educated

Manifesto

NO. 35: OUR ODDS of beating the market averages over a lifetime of investing are so small they’re hardly worth considering. Overconfident investors insist on trying. Rational investors index.

Truths

NO. 30: TO MAKE money, investors must overcome the triple threat of costs, taxes and inflation. Suppose your investments climb 6% over the next year. If your advisor charges 1% and you buy funds that charge 1%, you’ll be left with 4%. If you lose a quarter of your gain to taxes, that 4% becomes 3%. What if inflation is 3%? Your effective gain is zero.

think

SOCIAL PROOF. We take our cues from others, assuming what’s popular is also good. That’s a smart strategy with movies, cars, restaurants and electronic gadgets. It’s often a terrible strategy with investments, because we find ourselves buying into stocks and market sectors that have already been bid up—and will likely have modest future returns.

act

CONSIDER A TARGET-date fund. Financial advisors push the notion that every investor needs a customized portfolio—and, indeed, we all like the idea that we have an investment mix specially designed for us. Yet most of us, whether we’re investing on our own or through an advisor, would likely fare just as well by buying a single target-date retirement fund.

Portfolio builder

Manifesto

NO. 35: OUR ODDS of beating the market averages over a lifetime of investing are so small they’re hardly worth considering. Overconfident investors insist on trying. Rational investors index.

Spotlight: Happiness

Any Seat Will Do

WHEN OUR CHILDREN were little, we had season tickets to the Children’s Theatre in Minneapolis. We started taking our older child, and then brought his brother along when he was old enough to enjoy the show. We had tickets in the front row of the balcony.
Before my youngest son’s first show, he looked over the balcony railing at all of the people below. He asked why we were clear up here, when there were all of those people below us.

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A Happy Retirement

AS I MENTIONED IN an earlier article, I’ve been writing for HumbleDollar since 2017. Along the way, I set a personal goal of writing 100 articles, not counting the 36 shorter blog posts I’ve penned. This is my 99th article. I’m almost there.
It may not seem like a lofty goal to many people, but to me it’s been a challenge. After I wrote my first article, it took me a year to write another one.

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Introverted Me

NOW THAT I’M RETIRED—and living in a warm desert climate—walking has become one of my favorite activities. Most days, I log between six and eight miles trekking around our neighborhood. I usually listen to a podcast during my journey, but it just serves as background noise. My real focus is contemplating dog training strategies or the subject matter of my future HumbleDollar posts.
Some days, I play the “what if” game.

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If money were no object, what would you NOT change?

I thought it might be interesting to ponder the things about our lives we are perfectly content with and would not change regardless of money.
If you received an unexpected inheritance of $20 million, would you move to a different house/location?  Would you drive a different vehicle?  Would you eat or dress differently?  I don’t think I would.  I’m living exactly where and how I want to live.  Of course, this is easy to say now. 

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Our Good Fortune

HOW DO WE MEASURE societal wealth? And what triggered this thought?
I started pondering the issue early last year. I had a total left knee joint replacement in January 2023. Not long after, I was sitting in my living room with an ice pack on my knee, having just completed a strenuous set of stretches and exercises.
The room was being warmed by a modern gas fireplace, lit by a remote control. No wood to split,

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Runner’s High

I’VE RECENTLY BEEN reading and listening to health experts who study the brain chemical known as dopamine. I’m no health expert and I don’t claim any specialized knowledge on the subject, but I’ve learned dopamine is widely considered to be the “pleasure chemical.”
Think about the feeling in between bites of chocolate cake, when we know just how good that next bite is going to be. As we anticipate our reward, our dopamine spikes,

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Spotlight: Gartland

Stop the Fussing

BILLY JOEL WROTE a song that declares, “I love you just the way you are.” But as parents, sometimes it isn’t easy to say those words about our children. We’re supposed to train them to succeed in life. We all probably think we’re excellent trainers, so—when our children don’t get it—it must be their fault. We did our part, so why don’t they learn? For parents of special needs children, things are different, but also similar. We also have to train our children for life. But they don’t learn or perform as “typical” children do. But good parents persevere, training their children in different ways or with more intensity. We all need to get to the finish line, so we can say, “I did my part.” But what happens if we never get to the finish line? What happens if the usual events that parents enjoy—graduations, marriages, grandchildren—never happen? That’s what I was facing. Luckily, in recent years, I’ve been able to look at my life differently. I’ve accepted my son for who he is, not for what he could be. I was afraid I’d feel I was giving up, but the opposite happened. I started to look at him as complete—that he couldn’t be anything more than what he is. I believe we all want to be better. Take our finances. We read books, try to save more, buy things when they’re on sale and take out loans when it makes sense. But when do we stop trying to make our finances better, and instead accept them for what they are? To me, the goal of accumulating money and having wealth is to live a comfortable life. We do it so that, at some point, we can stop struggling. Thinking we can always improve our finances—or always improve our children—can…
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Seeking Answers

I LEARNED OF MY brother’s death by Googling his name. I always wondered whether his family would let me know if he was ill or had died. After Google led me to his obituary, I had my answer. My brother and I were co-executors and co-beneficiaries of my mother’s estate. From the start, we couldn’t agree on how to settle her affairs. I wanted to sell everything and divide by two, but he wanted to hold off selling my mother’s house. Why? My mother passed away in 2007, when home prices were down sharply, and my brother thought we should wait for the real estate market to recover. But there was another reason my brother didn’t want to sell: He, his wife and one of his adult sons were living in the place. Thus began a difficult estate settlement. In 2021, the house was finally sold and the proceeds divided, but we still hadn’t finished settling the estate when my brother died the following year. The disagreement over the estate caused a rift between my brother and me. In the years before his death, the only information I received came from his lawyer and the mortgage company. Not being notified of my brother’s deteriorating health or his death didn’t surprise me, but it did bother me. I believe in divine intervention. I’ve recently felt spurred to seek out information about how my brother died. My parents both had heart conditions. I assumed my brother and I would suffer the same fate, but I wanted to know for sure. I guessed the location where my brother likely died, and requested a death certificate from two local townships. I lucked out, and one of the towns sent along his death certificate. It didn’t show a heart condition as my brother’s cause of…
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Health Is Wealth

A FEW YEARS AGO, I came across an announcement for a blueberry festival in Hammonton, New Jersey. My wife is always up for doing something different, so we made our way there one summer day. It turned out to be a great way to spend the day and learn the history of New Jersey’s blueberry industry. The industry was founded by a woman looking to expand the crops on her family’s farm around the turn of the 20th century. What I learned that day has changed my life—or, at least, what I eat for breakfast. First, the history: Elizabeth White was the oldest daughter of a cranberry farmer in the Pine Barrens section of New Jersey. She came across an article from the U.S. Department of Agriculture discussing what would be needed to turn blueberries from a wild species into a farmed crop. Elizabeth volunteered her family farm as the test site. It turned out that the sandy, acidic soil of coastal New Jersey was well-suited for blueberries. She cultivated several new blueberry varieties and then developed methods to boost production. Heavily populated New Jersey is still among the top six states for blueberry growing, producing more than 22,000 tons in 2022. What do blueberries have to do with personal finance? They’re considered a superfood, one that’s jam-packed with nutrients. This means that, from an efficiency standpoint, eating blueberries provides a large percentage of the daily nutrients our bodies need. The cost of health care in the U.S. is staggering. The older we get, the more our bodies tend to break down. The less money we spend on doctor visits and prescriptions, the more we have to invest or spend. Blueberries are my means to a healthier, wealthier life. I sprinkle blueberries on my cereal every morning. It may not…
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Charging Ahead

I GREW UP DURING the muscle car era. That was when Detroit automakers became aware of the baby boomers’ buying power. The boomers, of whom I’m a proud member, didn’t live through the Great Depression. We had television, frozen foods, Mattel toys and a car in every driveway. Prosperity is what we were used to, and we loved it. It seemed everyone had jobs, so there was money to spend. My friends and I felt that having a nice car was the key to getting that special girl. This led boys to modify their jalopies to become hot rods. Seeing all this tinkering under the hood, Detroit decided to deliver fast cars right out of the showroom. No mechanical modifications were required to smoke your tires. The muscle car era had begun. What made these cars pop? In the beginning, it was simple: bigger V-8 engines. But these engines were gas guzzlers. When gas prices surged in 1980 to $1 a gallon and higher, car buyers still wanted speedy cars, but with more miles per gallon. The auto industry came up with two ways to increase horsepower without increasing the engine size—turbocharging and supercharging. With turbocharging, a fan blade spins more air into the engine’s cylinders, while another blade sucks out combusted fumes. More air going in draws more gasoline, resulting in a bigger bang and more horsepower. It doesn’t take any power from the engine to produce this increase in horsepower. The second way is supercharging. A blower forces more air into the engine. A pulley belt is attached to the engine to run the blower. It takes power from the engine to produce more horsepower. That makes it less efficient than turbocharging, but it can be faster off the line in short bursts. What does all this have…
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Learning for Life

I HATED SCHOOL. There, I said it. From reading the bios of other HumbleDollar contributors, it appears most, if not all, enjoyed their academic experience. Many have gone on to acquire advanced degrees. I, too, went on to acquire post-college education, but only when my employer paid. But the best education I received wasn’t found in the classroom, but in day-to-day life. It came from observing what others did or didn’t do. This was my greatest source of knowledge. Everyone in my immediate family went to college, but no one earned a degree. Throughout my childhood, I kept hearing, “If only I’d finished my education, my life would be better.” I saw my father struggle at work. He was a white-collar worker without a college education. He attended Purdue University for chemical engineering, but left before earning a degree. He was surrounded by people with degrees who had more rewarding jobs. That taught me that, if I got a degree, I was more likely to enjoy my work, even if I didn’t enjoy every day. I was the person least qualified in my family to earn a degree, but what I did possess was perseverance. I could endure whatever it took to get that piece of paper. My education has continued ever since. A good friend of mine only had two jobs during his adult life. The first job was at an insurance company I worked at, and the second was at a Lowe's home-improvement store. The insurance company offered him early retirement at age 61, with a pension which could be taken as a lump sum or as an annuity. He took the lump sum. But he had strong feelings about helping less fortunate people from his native country, and he proceeded to donate the entire amount. Immediately after…
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Retirement Ready

THE LAST TIME I HAD a job where I was eligible for a pension was 1994. People with pensions seem to count the days till they’re eligible to collect their monthly check. That makes sense: They know there’s gold at the end of their working life. I didn’t have this sort of “golden parachute.” If I didn’t save, I couldn’t retire. From 1994 on, funding my 401(k) and IRA were my only paths to a comfortable retirement. I never had a target amount. I just kept setting aside a portion of my salary in my 401(k) until I left that particular job. I’d then roll over the money to my IRA, being sure to advise the human resources department what I was doing. The first job I left, I didn’t make it clear to HR that I wanted to roll over the money to an IRA, rather than spend it, and a big chunk was withheld for taxes. Lesson learned. Based on my history of getting laid off, I knew the day would arrive when I couldn’t get another decent job and I’d need to accept retirement. This was a scary thought. I knew having enough money for retirement was important, but what would I do with my time? I kept a look out for articles that described the cost of retirement, places to live and things to do. They all sounded great for people with pensions. But what about people like me, who needed to rely on their savings? Then I found a quirky book titled The Joy of Not Working by Ernie J. Zelinski. There’s joy in not working? I never allowed myself that luxury. Working and making money were all I wanted and all I knew. I wasn’t that good at either, but it was what I…
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