The main issue in this country is over spending and under saving.
I know people who make from $50K and all the way to $150K with this problem. Most of them know they spend too much but refuse to lower their spendings and save for retirement.
Most Americans who bought a house decades ago are better financially now.
Paying your mortgage forces you to save and be more responsible.
The future will be similar because it's mostly a behavioral issue.
Of course being good with money and buying at the right time help a lot.
+1
I have never made a budget, and never tracked our expenses because if we were able to save by investing in our 401K, and pay all our bills in time, I don't need to do that.
Our bank and discount broker have all this information too.
On the other hand all the people I know that have done that have much smaller portfolio.
The conclusion: people who know how to save, invest and handle money intuitively can do just fine.
Complete disregard for all market situations.
I sold everything on March 2nd.
Almost every year I sell once when risk is too high. Usually I'm out for 1–3 weeks, but in 2022, I was out 10 months. My model is based on timing + slow trading + funds in leading categories that have excellent risk-adjusted performance.Of course, you can stay in indexes and do pretty well, but you also suffer all the market volatility. Your only solution to lower volatility is bonds.Sometimes you will be far behind:
The SP500 lags as it lost money from 01/2000 to 01/2010.
The US bond index has a terrible peformance for 3-5-10-15 years
Investors with pensions, especially pensions that cover all expenses, are not the norm. Most don't have them. History of my allocation 1995-2000 + 2000 until last year = very high % in the US2000-2010 = value, small cap, internationalsince 2025 = international
The same 24/7 media that promote despair daily in the last 14 months was a lot quieter during the previous administration when we had the worst inflation in 4 decades, the worst year in bonds in decades where retirees hurt badly and millions of unvetted illegals entered our country.
Unfortunately, I have read a lot of stuff over the years and l don't see strong solutions.
Most Americans don't have big portfolios and/or a pension to cover all their retirement expenses.
Most private companies don't offer a pension anymore, only Gov/State/Education offer it. Diversification sounds good but what does it mean?
Bogle and Buffett believe in the SP500. That index lost money for 10 years from 01/2000 to 01/2010.
On the other hand, it did great for 15 years from 2010 to 2015. If you were diversified with international you made less money with higher volatility.
When a bear market, at least 20% loss shows up, correlation goes higher and everything losses money.
The US bond index, BND, had a miserable performance of about 2% annually during 2010-2025. Other experts like William Bernstein don't have a real solution either. If your portfolio isn't big enough you can never retire, unless you work forever. This is why I created a simple model that is based on
1. Invest in what works lately. 2-3 times annually use wide range indexes and own 3 of them.
Exceptions: if the SP500 leads, only use this index. If not , select the other top indexes.
2. Use core and explore. Use 70% for core and follow 1 above.
3. For explore use 3 managed unique great risk-adjusted returns funds. I followed the above, retired years later, and my portfolio had a much better Sharpe ratio.
I hardly even got bonuses, never stock options or profit share, never inherited anything and no pension. It was all based on saving consistently, making better choices when market changes and doing much better during meltdowns.
Later, I learned how to avoid the biggest meltdowns instead of losing a lot of money.
I found plenty of research proving that missing the best 10, 20 days over 20 years is costly. This is correct, but hardly anyone discuss that missing the 20 worst days is a lot better and most of both happen at the same periods. http://redirect.viglink.com/?key=71fe2139a887ad501313cd8cce3053c5&subId=7235782&u=https%3A//www.cambriainvestments.com/wp-content/uploads/2018/01/Where-the-Black-Swans-Hide-the-10-Best-Days-Myth.pdf I know, most of you would not agree.
History shows that most economic news have low correlation to what markets do in the next 1-4-12 weeks and why I hardly pay attention to them in regards to my portfolio.
On the other hand, I listen to every word the Fed chair says.
Economists forecasts over the years have been notoriously wrong.
It may sound like a lot, but once you run the numbers, it really isn’t. When you have millions, paying higher taxes comes with the territory. I’ll gladly accept that outcome compared to the alternative.
A couple of years ago, I began doing Roth conversions for both of us—about $80K per year. At that level, the impact on our future taxes was minimal.
After running the numbers again, my calculations suggested I needed to be more aggressive. To confirm, I reviewed the plan with Schwab Wealth Management and later consulted a CPA who specializes in investment-related tax planning.
After reviewing all of my accounts, the CPA told me my situation was very clear. He said he has handled at least 50 cases with similar numbers. His guidance was that households with $2–3 million in traditional IRAs (TIRAs) should consider converting $250K–$300K annually after age 65, especially in today’s relatively low-tax environment.
He also recommended bringing each TIRA down to roughly $200K per account, which would significantly reduce the risk of paying higher taxes later. My wife’s family has a history of living to 100, so if I were to pass away first, she could face substantially higher taxes as a single filer.
Based on that analysis, I increased my annual conversion from $80K to $280K.
As a result, our annual tax bill rose from roughly $30K to about $80K. However, this strategy is designed to achieve several important goals:
All taxes are paid first from our taxable account, which will gradually be depleted.
The additional taxes over the next 8-9 years will total about $500K, but that should be far less than the taxes we might otherwise pay over 30 years and increased tax rates.
The converted funds will end up in Roth accounts, where future growth and withdrawals should be tax-free (assuming tax laws remain unchanged).
I began the larger conversions last year. Next year I will finish converting my smaller TIRA after just 3 years. My wife’s conversions will begin in 2028 and should be completed within about six years.
By the time she reaches age 73, the conversions should be finished. At that point, our taxable account will be depleted, both TIRAs will be minimal or gone, and our future tax burden should be very small.
Comments
The main issue in this country is over spending and under saving. I know people who make from $50K and all the way to $150K with this problem. Most of them know they spend too much but refuse to lower their spendings and save for retirement.
Post: “We did everything right.” Maybe not. Retirement income should not be an unpleasant surprise.
Link to comment from April 11, 2026
Most Americans who bought a house decades ago are better financially now. Paying your mortgage forces you to save and be more responsible. The future will be similar because it's mostly a behavioral issue. Of course being good with money and buying at the right time help a lot.
Post: The Home Ownership Gamble
Link to comment from April 11, 2026
+1 I have never made a budget, and never tracked our expenses because if we were able to save by investing in our 401K, and pay all our bills in time, I don't need to do that. Our bank and discount broker have all this information too. On the other hand all the people I know that have done that have much smaller portfolio. The conclusion: people who know how to save, invest and handle money intuitively can do just fine.
Post: Nothing Like a War To Bring Folks around to Personal Financial Planning
Link to comment from April 11, 2026
Complete disregard for all market situations. I sold everything on March 2nd. Almost every year I sell once when risk is too high. Usually I'm out for 1–3 weeks, but in 2022, I was out 10 months. My model is based on timing + slow trading + funds in leading categories that have excellent risk-adjusted performance. Of course, you can stay in indexes and do pretty well, but you also suffer all the market volatility. Your only solution to lower volatility is bonds. Sometimes you will be far behind:
- The SP500 lags as it lost money from 01/2000 to 01/2010.
- The US bond index has a terrible peformance for 3-5-10-15 years
Investors with pensions, especially pensions that cover all expenses, are not the norm. Most don't have them. History of my allocation 1995-2000 + 2000 until last year = very high % in the US 2000-2010 = value, small cap, international since 2025 = internationalPost: Any concern?
Link to comment from April 5, 2026
Correct.
Post: My Window is Open – Come In
Link to comment from March 22, 2026
Unfortunately, I have read a lot of stuff over the years and l don't see strong solutions. Most Americans don't have big portfolios and/or a pension to cover all their retirement expenses. Most private companies don't offer a pension anymore, only Gov/State/Education offer it. Diversification sounds good but what does it mean? Bogle and Buffett believe in the SP500. That index lost money for 10 years from 01/2000 to 01/2010. On the other hand, it did great for 15 years from 2010 to 2015. If you were diversified with international you made less money with higher volatility. When a bear market, at least 20% loss shows up, correlation goes higher and everything losses money. The US bond index, BND, had a miserable performance of about 2% annually during 2010-2025. Other experts like William Bernstein don't have a real solution either. If your portfolio isn't big enough you can never retire, unless you work forever. This is why I created a simple model that is based on 1. Invest in what works lately. 2-3 times annually use wide range indexes and own 3 of them. Exceptions: if the SP500 leads, only use this index. If not , select the other top indexes. 2. Use core and explore. Use 70% for core and follow 1 above. 3. For explore use 3 managed unique great risk-adjusted returns funds. I followed the above, retired years later, and my portfolio had a much better Sharpe ratio. I hardly even got bonuses, never stock options or profit share, never inherited anything and no pension. It was all based on saving consistently, making better choices when market changes and doing much better during meltdowns. Later, I learned how to avoid the biggest meltdowns instead of losing a lot of money. I found plenty of research proving that missing the best 10, 20 days over 20 years is costly. This is correct, but hardly anyone discuss that missing the 20 worst days is a lot better and most of both happen at the same periods. http://redirect.viglink.com/?key=71fe2139a887ad501313cd8cce3053c5&subId=7235782&u=https%3A//www.cambriainvestments.com/wp-content/uploads/2018/01/Where-the-Black-Swans-Hide-the-10-Best-Days-Myth.pdf I know, most of you would not agree.
Post: AI, Bubbles, and Markets
Link to comment from March 22, 2026
History shows that most economic news have low correlation to what markets do in the next 1-4-12 weeks and why I hardly pay attention to them in regards to my portfolio. On the other hand, I listen to every word the Fed chair says. Economists forecasts over the years have been notoriously wrong.
Post: Economic Trends
Link to comment from March 14, 2026
It may sound like a lot, but once you run the numbers, it really isn’t. When you have millions, paying higher taxes comes with the territory. I’ll gladly accept that outcome compared to the alternative.
Post: Tax Smart Retirement
Link to comment from March 8, 2026
A couple of years ago, I began doing Roth conversions for both of us—about $80K per year. At that level, the impact on our future taxes was minimal. After running the numbers again, my calculations suggested I needed to be more aggressive. To confirm, I reviewed the plan with Schwab Wealth Management and later consulted a CPA who specializes in investment-related tax planning. After reviewing all of my accounts, the CPA told me my situation was very clear. He said he has handled at least 50 cases with similar numbers. His guidance was that households with $2–3 million in traditional IRAs (TIRAs) should consider converting $250K–$300K annually after age 65, especially in today’s relatively low-tax environment. He also recommended bringing each TIRA down to roughly $200K per account, which would significantly reduce the risk of paying higher taxes later. My wife’s family has a history of living to 100, so if I were to pass away first, she could face substantially higher taxes as a single filer. Based on that analysis, I increased my annual conversion from $80K to $280K. As a result, our annual tax bill rose from roughly $30K to about $80K. However, this strategy is designed to achieve several important goals:
- All taxes are paid first from our taxable account, which will gradually be depleted.
- The additional taxes over the next 8-9 years will total about $500K, but that should be far less than the taxes we might otherwise pay over 30 years and increased tax rates.
- The converted funds will end up in Roth accounts, where future growth and withdrawals should be tax-free (assuming tax laws remain unchanged).
I began the larger conversions last year. Next year I will finish converting my smaller TIRA after just 3 years. My wife’s conversions will begin in 2028 and should be completed within about six years. By the time she reaches age 73, the conversions should be finished. At that point, our taxable account will be depleted, both TIRAs will be minimal or gone, and our future tax burden should be very small.Post: Tax Smart Retirement
Link to comment from March 8, 2026
Why is 20% being used for generic exploration results in restructuring? If you are rigid, any change looks like a restructuring.
Post: The 34% Return I’m Glad I Missed
Link to comment from February 15, 2026