Fred Wallace

Comments:

• Jonathan….another amazing candid, heartfelt and powerful article which causes all of your readers to reflect and digest. Bravo!

  Post: No Regrets

  Link to comment from September 7, 2024

• Jonathan, I’m honored to be the first to post to your latest column. Like many others, I feel I’ve known you for many years given your honesty and candor in your columns. I also wish you you the absolute best as you fight your cancer prognosis. Okay.. I’m writing tonight as I truly think you should reconsider your decision to fly premium economy on any international trips in the future. I was never a senior corporate executive, however thanks is large part to learnings from you over many years I have amassed a substantial portfolio. I’m a big believer in “fly business class or your kids will!” Okay… now there are great ways to get round trip business class fares anywhere in the world for $2500-4500 (not $5000-8000). I am not a travel agent but have used Business Class Consolidators and Cook Travel to successfully do this on multiple trips. When you fly Business Class you are able to sleep on the plane (avoiding jet lag) and feel pampered. Please reconsider, and God Bless You, Jonathan Clements for all you have done for others!

  Post: Looking Different

  Link to comment from July 6, 2024

• A short addendum on my just posted note…. I believe it’s important to project what you annual budgetary needs are vs your projected RMDs. If your IRAs are very large (and excessive) to your RMD needs, then of course this makes the case for IRA to Roth Conversions.

  Post: Paying to Avoid Pain

  Link to comment from May 11, 2024

• Another great article Jonathan! Your article inspired me to do some calculations on what will happen if current tax rates “sunset” YE2025. Like many retirees, my mortgage will be paid off, and although I will benefit from more liberal treatment of SALT (state and local taxes), the standard deduction will be reduced by almost 50% and federal tax rates will radically increase. I just did some “back of the envelope analysis.. I paid $41,000 in Federal taxes on an AGI of $260,000 in 2023 with current tax rates. Using same AGI in 2026 (and assuming current tax rates “sunset”), I would have a reduced standard deduction (from $32,000 to $22,000) and my Federal taxes would increase by roughly 25% to $53,000. Of course, Biden is saying if he is reelected he will not increase taxes (and therefore Congress would need to pass a new tax bill to handle 2026+). Will this happen? Probably, but certainly not guaranteed! To me, future tax rates are by far the biggest “wild card” in this conversation on whether to do an IRA to Roth conversion. If tax rates stay the same, it is one set of arithmetic. If current tax rates expire, than doing IRA to Roth conversions becomes much more of a “no brainer.”

  Post: Paying to Avoid Pain

  Link to comment from May 11, 2024

• Jonathan, wonderful post. One of your best, then there have been many. However this one gave me pause to be really reflective. Thank you.

  Post: Ask Before Quitting

  Link to comment from June 18, 2023

• Casey, First off, thank you for your years of service and for raising what must be an amazing family! Regarding your home dilemma, with a pension, Social Security and other income streams, coupled with the fact that interest rates are now “healthy” and could/should decline over the next few years, I recommend taking out a mortgage so your stock investments will benefit from the “power of compounding.” As an aside, and since others have spoken about purchasing a home can be an inefficient investment, I’ll topline our situation. In contrast to you, I thought there would be a high chance that I would be staying in our home for several years. We “stretched out budget” and purchased a large home in 1996 for $550,000 (so we wouldn’t have to move again when we started a family). It was a “fixer upper” and we put $75K into it the first year. The only other major work we did to the home was putting in a new backyard (cost $50K) a new roof ($15K), and new driveway ($10K). Today the home is valued at $2.5 million. In approximate terms our home has averaged a 5-6% increase in value each year. I still believe purchasing a home is very advantageous. I’m 68 and two years from now it will be completely paid off!

  Post: A Moving Predicament

  Link to comment from May 10, 2023

• Jonathan…avid fan and follower of Humble Dollar! However, as an avid follower what is wrong with a martini or scotch & soda at the end of the day, particularly if you are a retiree? Must regress… Winston Churchill enjoyed scotch and lived to a ripe old age!

  Post: Ten Words for 2023

  Link to comment from January 26, 2023

• Sanjib… Thanks for your wonderful article. It reminded me of how inexpensive things were when my family visited Cambodia 3 years ago. I have always had hesitation in visiting India given extreme poverty and the challenges of visiting this country with pollution and general uncomfortableness. Care to comment?

  Post: Relative Affluence

  Link to comment from December 7, 2022

• Richard, As someone just 2 years older than you I learned a lot from your column and found it inspirational, particularly in terms of your initiative to take care of family and being flexible while you are approaching, or are “in” retirement! Congratulations on having a rich and rewarding life! It is very well deserved!!! Enjoy!

  Post: Learning by Helping

  Link to comment from May 8, 2022