One of my favorites, too. Will Durant wrote it in The Story of Philosophy (1926), discussing Aristotle’s Nicomachean Ethics. I displayed a poster attributing it to Aristotle for years, until a friend told me it was misattributed. That led me to read Will Durant’s works, which are excellent.
I distinguish between investment portfolio and savings. My savings, for emergencies and major purchases, is held in cash (T-bills, T-notes, and HYSA). My investments are in index funds, not cash. I’m counting on time in the market to grow my mone.
If you really want to understand the Social Security formula, download the detailed calculator from their site and run scenarios. It’s clunky, but seeing just how working more years at various salaries affected my benefits was educational. For me, replacing two low earning years was worthwhile, but otherwise additional years didn’t make much difference because my income is well above the second bend point and I had 35 years.
The Flint Hills region, including the Konza Prairie in Kansas. If you can go on a windy day with lots of sun and scattered clouds, that’s ideal, because you can pull off at one of the roadside overlooks and watch the interplay of light and shadow on the plains. But there’s a quiet beauty year round, wonderful for slow drives and long walks.
In 2018, I decided to never again fly coach if I’d be cramped in the seat for more than two hours. I drive when possible, but first class is worth the cost on my flights. It’s nice to arrive without cramped legs and bruised knees and in a terrible mood. Coach seats are tough for tall people even when the plane isn’t packed.
I’m 61 and single with no children. My 403b retirement account is 80% invested in a total stock market fund, 10% in international equities, and 10% in a TIPS fund. That seems risky for someone planning to retire in 2-4 years, but I’m planning based on other assets. I have 18 months living expenses in T-Bills and T-Notes, with staggered maturity dates. At 65, I’ll have a pension that will cover bare minimum living expenses, but with no COLA. I plan to claim Social Security between 67 & 70, which will double my income. Those assets let me take more risk with retirement account.
Wayne may not have paid into Social Security as a minister. Nonprofit organizations, like state governments, are allowed to opt out of Social Security under certain conditions, see https://www.ssa.gov/help/iClaim_nonCov1.html. Clergy are allowed to opt out under certain conditions, see https://www-origin.ssa.gov/OP_Home/handbook/handbook.11/handbook-1131.html. Members of certain religious groups are allowed to opt out, see https://www.ssa.gov/OP_Home/handbook/handbook.11/handbook-1128.html I once interviewed for a job where the recruiter cited their exemption from Social Security and Medicare tax as a great benefit that justified their significantly below market salaries. I asked how that would affect my future SS benefits, and was assured that it wouldn’t. After declining the job, I spent some time exploring exemptions. Not contributing would have affected my future SS benefits.
“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
Comments:
One of my favorites, too. Will Durant wrote it in The Story of Philosophy (1926), discussing Aristotle’s Nicomachean Ethics. I displayed a poster attributing it to Aristotle for years, until a friend told me it was misattributed. That led me to read Will Durant’s works, which are excellent.
Post: Didn’t Say That by Jonathan Clements
Link to comment from December 7, 2024
I distinguish between investment portfolio and savings. My savings, for emergencies and major purchases, is held in cash (T-bills, T-notes, and HYSA). My investments are in index funds, not cash. I’m counting on time in the market to grow my mone.
Post: What should be our % cash allocation in investment portfolio?
Link to comment from November 7, 2024
If you really want to understand the Social Security formula, download the detailed calculator from their site and run scenarios. It’s clunky, but seeing just how working more years at various salaries affected my benefits was educational. For me, replacing two low earning years was worthwhile, but otherwise additional years didn’t make much difference because my income is well above the second bend point and I had 35 years.
Post: How might early retirement at say age 55 affect your FRA SS benefits?
Link to comment from September 28, 2024
The Flint Hills region, including the Konza Prairie in Kansas. If you can go on a windy day with lots of sun and scattered clouds, that’s ideal, because you can pull off at one of the roadside overlooks and watch the interplay of light and shadow on the plains. But there’s a quiet beauty year round, wonderful for slow drives and long walks.
Post: First Place by Jonathan Clements
Link to comment from September 7, 2024
Stocks go up, stocks go down, stocks spin around. This is why I keep a cash cushion.
Post: Staying the Course by Jonathan Clements
Link to comment from August 6, 2024
In 2018, I decided to never again fly coach if I’d be cramped in the seat for more than two hours. I drive when possible, but first class is worth the cost on my flights. It’s nice to arrive without cramped legs and bruised knees and in a terrible mood. Coach seats are tough for tall people even when the plane isn’t packed.
Post: A Case for First Class by Dan Smith
Link to comment from July 24, 2024
I’m 61 and single with no children. My 403b retirement account is 80% invested in a total stock market fund, 10% in international equities, and 10% in a TIPS fund. That seems risky for someone planning to retire in 2-4 years, but I’m planning based on other assets. I have 18 months living expenses in T-Bills and T-Notes, with staggered maturity dates. At 65, I’ll have a pension that will cover bare minimum living expenses, but with no COLA. I plan to claim Social Security between 67 & 70, which will double my income. Those assets let me take more risk with retirement account.
Post: Perils of market downturns early in retirement
Link to comment from July 21, 2024
The second link I provided above is to the option for clergy to opt out of self-employment tax.
Post: Three Significant Moments
Link to comment from July 21, 2024
Wayne may not have paid into Social Security as a minister. Nonprofit organizations, like state governments, are allowed to opt out of Social Security under certain conditions, see https://www.ssa.gov/help/iClaim_nonCov1.html. Clergy are allowed to opt out under certain conditions, see https://www-origin.ssa.gov/OP_Home/handbook/handbook.11/handbook-1131.html. Members of certain religious groups are allowed to opt out, see https://www.ssa.gov/OP_Home/handbook/handbook.11/handbook-1128.html I once interviewed for a job where the recruiter cited their exemption from Social Security and Medicare tax as a great benefit that justified their significantly below market salaries. I asked how that would affect my future SS benefits, and was assured that it wouldn’t. After declining the job, I spent some time exploring exemptions. Not contributing would have affected my future SS benefits.
Post: Three Significant Moments
Link to comment from July 20, 2024
“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.”
Post: What’s your favorite financial quote?
Link to comment from July 15, 2024