"...my parents bought my childhood house for about $22,000 in 1968. I sold the house for $140,000 in 2006. On the face of it, my parents saw a return of more than 600% over 38 years, or $118,000. But if you back out mortgage interest, property taxes, a new roof, new siding, a new furnace, a new kitchen, air conditioning, new carpet and plumbing work, they cleared about $30,000."
Did you factor in the imputed rent, how much your parents would have spent to rent a similar home over those 38 years?
I had a dear aunt and uncle that always sent a check for Christmas. My mother would make me put it into a savings account at the bank earning 5.14%. This started me on a lifetime of saving and investing. So I really got two gifts.
Scott Bessent, the incoming Treasury secretary, made this argument: “Tariffs can’t be inflationary because if the price of one thing goes up, unless you give people more money, then they have less money to spend on the other thing, so there is no inflation.”
I wish the article addressed this in more detail. It doesn't make sense. Won't the other thing go up too? In that case people will have to go without. How is that a good outcome?
Jonathan,
Will you be able to switch your health insurance policy to an ACA Platinum plan or something more comprehensive during the next open enrollment?
nearly three-quarters of actively managed bond funds beat their benchmarks over the past year
That's a pretty short time frame to base a conclusion on. How have actively managed bond funds done over the last 10 years compared to their benchmarks? How much better did they perform?
You can indeed live on 66% of your salary provided you have no mortgage payment. I know someone who lives on 45% in the DC suburbs of Maryland, and says she doesn't have to skimp.
I put every expense I can on a credit card so I can get the reward points and then pay off the entire balance each month. I like the Chase Amazon credit card because there's no annual fee and you can redeem the points for cash. I also pay cash for my cars and carry no mortgage. If a company charges an additional fee for accepting credit cards, I pay cash.
When we buy stocks, we’re ultimately buying a slice of future earnings. Companies distribute a portion of these earnings to shareholders through dividends and share buybacks.
I've often wondered, how does a buy and hold investor make money on a stock that doesn't pay dividends? If the share price rises but you never sell it, then you never make money on it.
Comments:
Post: Home Free
Link to comment from January 18, 2025
I had a dear aunt and uncle that always sent a check for Christmas. My mother would make me put it into a savings account at the bank earning 5.14%. This started me on a lifetime of saving and investing. So I really got two gifts.
Post: Am I the boring aunt?
Link to comment from December 28, 2024
Post: Trading Arguments
Link to comment from December 14, 2024
Jonathan, Will you be able to switch your health insurance policy to an ACA Platinum plan or something more comprehensive during the next open enrollment?
Post: Turned Upside Down
Link to comment from October 5, 2024
Jonathan, I've been reading your work since your WSJ days. You're like an old friend. I'm going to miss you.
Post: On the Clock
Link to comment from August 17, 2024
Post: Question of Interest
Link to comment from August 10, 2024
You can indeed live on 66% of your salary provided you have no mortgage payment. I know someone who lives on 45% in the DC suburbs of Maryland, and says she doesn't have to skimp.
Post: Quinn relents. Apparently you can live on 66% of pre-retirement income.
Link to comment from July 20, 2024
Nothing wrong with using credit cards for rewards unless you start buying things you don't need just to earn the reward points.
Post: Paid in Full
Link to comment from June 19, 2024
I put every expense I can on a credit card so I can get the reward points and then pay off the entire balance each month. I like the Chase Amazon credit card because there's no annual fee and you can redeem the points for cash. I also pay cash for my cars and carry no mortgage. If a company charges an additional fee for accepting credit cards, I pay cash.
Post: Paid in Full
Link to comment from June 19, 2024
Post: Invested in My Opinion
Link to comment from June 15, 2024