AUTHOR: Howard Schwartz on 8/21/2025 FIRST: Mark Crothers on 8/21/2025 | RECENT: Mark Crothers on 8/21/2025
Comments
I replaced my 190,000-mile 2007 Honda CR-V in January with a 2022 Acura RDX which had 53,000 miles on it. I saved about $25,000 over the cost of a similarly outfitted new Acura. I replaced the Honda to get the latest safety features and for more comfort and reliability. Much of the money to pay for it came from the minimum distribution from my IRA. I suggest keeping an open mind on a used car since newer models are very dependable and safe and you can save a considerable sum. If you buy a dealer certified used car, you can even get a better warranty than the manufacturer offers on new cars. I am delighted with my purchase and wish you well.
My lifestyle would not change if the COLA was eliminated or taxed differently. I do object to our clueless politicians changing the rules that people have counted on when they made their plans. So, if they change the formula, they should not disadvantage current retirees who did not do anything wrong (except vote for the wrong politicians).
I drove a 2007 Honda CR-V with 190,000 miles until January. (It was so old it had a cassette player). My wife had been begging me for several years to replace it with a car with modern safety features. I held out until I was reading a personal finance book by, I think, Barry Ritholz, that insisted replacing an older vehicle could be a lifesaving decision since the old car had 18-year-old air bags, etc. I suffered a syncope spell while driving in 2012 and crashed a Nissan Altima into a utility pole and I did not want to repeat that experience. So, I took the plunge and could not be happier. I bought a used 2022 compact SUV with 53,000 miles for $25,000 less than a new one. It has all the new safety features (no cassette player though) and I feel safer and it is much more comfortable. The decision to replace a vehicle should include the safety items, if you can afford it.
Great post. I am very lucky that my grandparents came to the US from Eastern Europe about 130 years ago. If they had not, I would not exist at all. Happy birthday America, the land of opportunity.
Rebalancing your portfolio should be about risk management, not maximizing returns. Equities usually outperform fixed income. If you don't rebalance, the risk will increase. By the way, Larry Swedroe is one of the best personal finance writers around and almost everyone would benefit from reading his books.
Defined contribution plans with an annuity option are not a new idea. TIAA started offering them around 1920 and still does for millions of employees of schools and health care employers. I sold a 401(k) annuity option to plan sponsors in the mid 1990s. Very few employees chose it, due I think to poor communication of how it worked. I like guaranteed income which for most people is Social Security. I also like the idea of spending up to 25% of your investable dollars on a single premium fixed annuity to cover living expenses. The rest of your money can then be invested for growth. This is just me. Everyone does what they are comfortable with.
I put 10% of my portfolio in VNQ in 2008 for around $25 after real estate collapsed. It was one of my best decisions. It would not stop going up so I had to keep selling to rebalance which turned out to be one of my worst decisions. Go figure. Now I have none because I stopped making sector bets a few years ago.
The easiest way to avoid AUM fees is to figure how much cash to keep in a risk-free account and put the rest in a balanced fund. There are lots of choices and you can pick your risk level. Alternatively, choose a target date fund and put everything except the cash in it. This may not be tax efficient but will be inexpensive. Use the money you save to hire an hourly paid tax advisor.
Comments
I replaced my 190,000-mile 2007 Honda CR-V in January with a 2022 Acura RDX which had 53,000 miles on it. I saved about $25,000 over the cost of a similarly outfitted new Acura. I replaced the Honda to get the latest safety features and for more comfort and reliability. Much of the money to pay for it came from the minimum distribution from my IRA. I suggest keeping an open mind on a used car since newer models are very dependable and safe and you can save a considerable sum. If you buy a dealer certified used car, you can even get a better warranty than the manufacturer offers on new cars. I am delighted with my purchase and wish you well.
Post: Buying a car in retirement
Link to comment from July 14, 2026
My lifestyle would not change if the COLA was eliminated or taxed differently. I do object to our clueless politicians changing the rules that people have counted on when they made their plans. So, if they change the formula, they should not disadvantage current retirees who did not do anything wrong (except vote for the wrong politicians).
Post: About that inflation in retirement
Link to comment from July 13, 2026
I drove a 2007 Honda CR-V with 190,000 miles until January. (It was so old it had a cassette player). My wife had been begging me for several years to replace it with a car with modern safety features. I held out until I was reading a personal finance book by, I think, Barry Ritholz, that insisted replacing an older vehicle could be a lifesaving decision since the old car had 18-year-old air bags, etc. I suffered a syncope spell while driving in 2012 and crashed a Nissan Altima into a utility pole and I did not want to repeat that experience. So, I took the plunge and could not be happier. I bought a used 2022 compact SUV with 53,000 miles for $25,000 less than a new one. It has all the new safety features (no cassette player though) and I feel safer and it is much more comfortable. The decision to replace a vehicle should include the safety items, if you can afford it.
Post: Tempted by the Shiny and New: Another HD Car Post
Link to comment from July 5, 2026
Great post. I am very lucky that my grandparents came to the US from Eastern Europe about 130 years ago. If they had not, I would not exist at all. Happy birthday America, the land of opportunity.
Post: Happy 250th Birthday America
Link to comment from July 4, 2026
The six most important words in this post: "we have a plan for that".
Post: Retirement, One Year On
Link to comment from July 2, 2026
Rebalancing your portfolio should be about risk management, not maximizing returns. Equities usually outperform fixed income. If you don't rebalance, the risk will increase. By the way, Larry Swedroe is one of the best personal finance writers around and almost everyone would benefit from reading his books.
Post: When to Leave Your Portfolio Alone
Link to comment from June 29, 2026
My brother says "if you are lucky enough, you don't need to be smart".
Post: Luck, Stupidity, Automation and Inertia
Link to comment from June 29, 2026
Defined contribution plans with an annuity option are not a new idea. TIAA started offering them around 1920 and still does for millions of employees of schools and health care employers. I sold a 401(k) annuity option to plan sponsors in the mid 1990s. Very few employees chose it, due I think to poor communication of how it worked. I like guaranteed income which for most people is Social Security. I also like the idea of spending up to 25% of your investable dollars on a single premium fixed annuity to cover living expenses. The rest of your money can then be invested for growth. This is just me. Everyone does what they are comfortable with.
Post: Automatic Income stream? How important to you?
Link to comment from June 27, 2026
I put 10% of my portfolio in VNQ in 2008 for around $25 after real estate collapsed. It was one of my best decisions. It would not stop going up so I had to keep selling to rebalance which turned out to be one of my worst decisions. Go figure. Now I have none because I stopped making sector bets a few years ago.
Post: What’s in your portfolio ?
Link to comment from June 25, 2026
The easiest way to avoid AUM fees is to figure how much cash to keep in a risk-free account and put the rest in a balanced fund. There are lots of choices and you can pick your risk level. Alternatively, choose a target date fund and put everything except the cash in it. This may not be tax efficient but will be inexpensive. Use the money you save to hire an hourly paid tax advisor.
Post: Financial Planning
Link to comment from June 23, 2026