AUTHOR: 1PF on 6/26/2024 FIRST: Jonathan Clements on 6/27/2024 | RECENT: David Powell on 6/30/2024
Comments
Of course, we never know the troubles in someone's life that would explain the situation. For the sake of privacy I omitted mention of hers. That she could overcome them and even arrange for her education, let alone excel, to me that was mind-boggling.
Good question! Here's a case of "she didn't know what she didn't know": A younger colleague was surprised her school loan balance was going down so slowly despite making hefty automatic monthly payments. She finally asked me to help figure out what was going on. It turned out she had set her payments to go out from her bank ON the loan servicer's due date. So they arrived at the loan servicer a couple days AFTER the due date. Thus every month a late fee was being charged, nudging up the balance somewhat and slowing her progress. To make sure the payment arrived on time, she changed the bank autopay date to a few days earlier and with no more late charges immediately began seeing the loan balance drop faster.
And her credit score eventually soared.
All three quotes are great choices. Warren Buffett said Jack Bogle "did more for American investors as a whole than any [other] individual I've known." In his 2016 annual letter, Buffett wrote: “If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle. For decades, Jack has urged investors to invest in ultra-low-cost index funds. In his crusade, he amassed only a tiny percentage of the wealth that has typically flowed to managers who have promised their investors large rewards while delivering them nothing – or, as in our bet, less than nothing – of added value. In his early years, Jack was frequently mocked by the investment-management industry. Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me.” Note: I think the second quote is slightly different: "Don't just do something, stand there"
— worded so it would echo more closely the more familiar "Don't just stand there, do something."
Thanks, Dan. That's different from what I saw in an online search, but I hadn't found a way to ask FreeTaxUSA directly. If it also e-files the returns, maybe I'll try it next year...
3. I decided on new tax software for this year...FreeTaxUSA. I would try FreeTaxUSA if it could do the local (school district) tax return along with the state tax return. Sadly, online info says it generally does not. Nor does H&R Block. TurboTax, the online version of which I've been using since 2015, does handle the local return nearly seamlessly with the state return. Thanks to other HD comments about TurboTax Desktop version and its "what-if" feature, I decided to try it this year. When I looked yesterday, Amazon happened to have the downloadable Federal+State Premier version on sale, which I figured bodes well. While I can't say I'm ever exactly eager to do my tax returns, I am looking forward to seeing what this can do. 🤞
I looked at the clock for the fifth time: 3:26am. This is what has worked for me now that I'm retired: Since I don't need a morning alarm, if I wake in the middle of the night I've trained myself NOT to look at the clock. Instead, I push off the covers for a few minutes, just until I cool down and get drowsy again. If my mind is really racing, I do controlled breathing (e.g., 4-7-8 or 4-4). Before I retired, I would silently count backwards from, say, 500 by 7s (just enough to take my mind off the worry). Some people find it helpful to get up, go to a different room, and do reading or something; that didn't help me. And yes, I think this is important financially: it is nearly impossible to make good decisions the next day if so low on sleep! Sending you good sleep wishes! 🥱
If that mortgage was your only loan of that type, then it's likely that eliminating it dropped your score at least for a while. Scores take into account the different types of loans you use — installment (mortgages, auto, student, personal) and revolving (credit cards, retail accounts, HELOCs) — not just how many different credit cards you use. So when you pay off one type, that contribution to your score is gone.
That $20k likely puts your credit utilization (usage divided by credit limit) higher than usual. If it's too high (especially if over 30%), your score gets dinged. Assuming you have the funds available, you might want to pay it off immediately after the down payment appears in your transactions, instead of waiting until the due date. Credit scores are usually calculated around the closing date (not the due date), so paying it off a couple days before the closing date will likely prevent the score drop.
Comments
Of course, we never know the troubles in someone's life that would explain the situation. For the sake of privacy I omitted mention of hers. That she could overcome them and even arrange for her education, let alone excel, to me that was mind-boggling.
Post: I got the call
Link to comment from February 7, 2026
Good question! Here's a case of "she didn't know what she didn't know": A younger colleague was surprised her school loan balance was going down so slowly despite making hefty automatic monthly payments. She finally asked me to help figure out what was going on. It turned out she had set her payments to go out from her bank ON the loan servicer's due date. So they arrived at the loan servicer a couple days AFTER the due date. Thus every month a late fee was being charged, nudging up the balance somewhat and slowing her progress. To make sure the payment arrived on time, she changed the bank autopay date to a few days earlier and with no more late charges immediately began seeing the loan balance drop faster. And her credit score eventually soared.
Post: I got the call
Link to comment from February 6, 2026
All three quotes are great choices. Warren Buffett said Jack Bogle "did more for American investors as a whole than any [other] individual I've known." In his 2016 annual letter, Buffett wrote: “If a statue is ever erected to honor the person who has done the most for American investors, the hands down choice should be Jack Bogle. For decades, Jack has urged investors to invest in ultra-low-cost index funds. In his crusade, he amassed only a tiny percentage of the wealth that has typically flowed to managers who have promised their investors large rewards while delivering them nothing – or, as in our bet, less than nothing – of added value. In his early years, Jack was frequently mocked by the investment-management industry. Today, however, he has the satisfaction of knowing that he helped millions of investors realize far better returns on their savings than they otherwise would have earned. He is a hero to them and to me.” Note: I think the second quote is slightly different: "Don't just do something, stand there" — worded so it would echo more closely the more familiar "Don't just stand there, do something."
Post: My Favorite Jack Bogle Quotes
Link to comment from January 27, 2026
Thanks, Dan. That's different from what I saw in an online search, but I hadn't found a way to ask FreeTaxUSA directly. If it also e-files the returns, maybe I'll try it next year...
Post: Checks and Balances
Link to comment from January 27, 2026
Local (school district) income taxes are one of the joys of living in some parts of Ohio.
Post: Checks and Balances
Link to comment from January 27, 2026
3. I decided on new tax software for this year...FreeTaxUSA. I would try FreeTaxUSA if it could do the local (school district) tax return along with the state tax return. Sadly, online info says it generally does not. Nor does H&R Block. TurboTax, the online version of which I've been using since 2015, does handle the local return nearly seamlessly with the state return. Thanks to other HD comments about TurboTax Desktop version and its "what-if" feature, I decided to try it this year. When I looked yesterday, Amazon happened to have the downloadable Federal+State Premier version on sale, which I figured bodes well. While I can't say I'm ever exactly eager to do my tax returns, I am looking forward to seeing what this can do. 🤞
Post: Checks and Balances
Link to comment from January 27, 2026
I looked at the clock for the fifth time: 3:26am. This is what has worked for me now that I'm retired: Since I don't need a morning alarm, if I wake in the middle of the night I've trained myself NOT to look at the clock. Instead, I push off the covers for a few minutes, just until I cool down and get drowsy again. If my mind is really racing, I do controlled breathing (e.g., 4-7-8 or 4-4). Before I retired, I would silently count backwards from, say, 500 by 7s (just enough to take my mind off the worry). Some people find it helpful to get up, go to a different room, and do reading or something; that didn't help me. And yes, I think this is important financially: it is nearly impossible to make good decisions the next day if so low on sleep! Sending you good sleep wishes! 🥱
Post: 3:26 AM: The Arithmetic of Anxiety (A Sleepless Night)
Link to comment from January 26, 2026
I know this is not the grammar you meant, but to my mind paying off the mortgage (1998) was investing for peace of mind. 😄
Post: The $8,000 Cost of Peace of Mind
Link to comment from January 24, 2026
If that mortgage was your only loan of that type, then it's likely that eliminating it dropped your score at least for a while. Scores take into account the different types of loans you use — installment (mortgages, auto, student, personal) and revolving (credit cards, retail accounts, HELOCs) — not just how many different credit cards you use. So when you pay off one type, that contribution to your score is gone.
Post: The Debt Free Penalty.
Link to comment from January 24, 2026
That $20k likely puts your credit utilization (usage divided by credit limit) higher than usual. If it's too high (especially if over 30%), your score gets dinged. Assuming you have the funds available, you might want to pay it off immediately after the down payment appears in your transactions, instead of waiting until the due date. Credit scores are usually calculated around the closing date (not the due date), so paying it off a couple days before the closing date will likely prevent the score drop.
Post: The Debt Free Penalty.
Link to comment from January 23, 2026