Art Felgate

Comments:

• Another interesting thing about “Pride and Prejudice” is I seem to recall the upper middle classes “living on the four percents”, i.e. interest in long-duration government bonds (consuls). Sort of like our modern day 4 percent rule.

  Post: All Hat No Cattle

  Link to comment from August 17, 2024

• I did something similar 2 years ago, but used CDs for years 1 and 2, the US Treasury Notes for year 3. Not sure if this was any better, but wanted the option to sell the Notes, without penalty, if needed. I also maintain about a years worth of expenses in a high yield money market fund.

  Post: Question of Interest

  Link to comment from August 10, 2024

• Interesting. Something I should look into.

  Post: Question of Interest

  Link to comment from August 10, 2024

• I, too, Jonathan underbought my house. And nearly 25 years—and several years paid off—later I am still living in it. Built in 1942, its a “Minimal Traditional” 2 BR, 1BA, just 900 sq ft. But it has a full basement, which I utilized as my work space for my side hustle for 15 years. With even my 15 year mortgage much lower than most of my peers 30 year versions I socked away the extra savings in my taxable brokerage account, leading to early financial independence.

  Post: Turning on a Dime

  Link to comment from August 10, 2024

• Jonathan, What a sudden shock to read this. I have followed your sage financial guidance since your “Getting Going” column at the WSJ. I wish you the best as you face this, and perhaps your prognosis is better than you anticipate right now.

  Post: The C Word

  Link to comment from June 15, 2024

• Excellent advice, Mike. I might suggest a CD ladder instead of a single 5-year CD, though.

  Post: Risk at Every Turn

  Link to comment from June 1, 2024

• I have used the free Empower App (formerly Personal Capital), along with Mint. These have allowed me to not only track my spending but to realize when I have deviated from my averages. Both work best if you mostly use a credit card for spending. Recently Mint was shut down. Empower is not only an excellent spending tracker, it has one of the best Monte Carlo Retirement tools built in. It uses your actual current financial spending as well as current portfolio value along with SS income to project confidence levels.

  Post: Where It Goes

  Link to comment from April 13, 2024

• No, definitely not that significant. For us, it means getting away from brutal Minnesota winter for 6-8 weeks, driving to Gulf Coast, staying in moderately priced hotels and/or AirBNB. We rented an AirBNB for this coming January for $2,833 for the month, including taxes and fees. The type of trip you described would force me to tap my nest egg more, selling some fund shares. I also realize our housing costs are very low, due to such a small house. Low utilities, low insurance, low prop taxes.

  Post: Happily Ever After

  Link to comment from December 16, 2023

• I live in Minnesota and am forecasting my monthly expenses—all, except travel—at ~$2,000. I am turning 60 this month, and have CDs and Treasury Notes and MM to fund my lifestyle until age 63. I was astonished to discover during healthcare open enrollment that I will qualify for MinnesotaCare next year, due to my forecasted low income (interest on those CDs, T Notes, some dividends from index funds in my taxable account—haven’t touched retirement accounts, yet): Zero premiums, and ZERO deductible. You read that right. This year I am paying $602 monthly premium for a $7600 deductible Bronze plan. Next year, ZERO. I own a 1942 2 BR / 1 BA house, no debt. I think it is quite easy to live on below $3,000/month here in the middle west (if you have NO debt!) If I wait until 67 to claim SS my monthly benefit will be just over $3,000. That would cover everything, including significant travel. We do eat out as much as we desire (couple times per week). It might make sense for me to claim SS even earlier.

  Post: Happily Ever After

  Link to comment from December 16, 2023

• David, I don’t blame you for wanting safer and more reliable at this stage. One of the other reasons I decided to fix rather than replace is I have next 4 years of expenses in fixed income in CDs, Treasury Notes, MM. With stocks still down from 2021 highs If I had raided my MM fund to purchase a much newer vehicle it would have left me little emergency fund; I don’t want to sell stocks, yet. So, this was another good reason to pay for a $7657 repair vs a ~$30K newer replacement. But I think in 3 or 4 years I will be replacing it with that newer vehicle. But that gives me time to plan and set aside funds for the larger purchase.

  Post: Parting Ways

  Link to comment from November 27, 2023