Ensuring patients have "skin in the game" by increasing their out of pocket co-pays and deductibles will dissuade many from going to the doctor, at first, until their problem has worsened and now may require more costly investigations, treatments, and possibly face less favorable outcomes. They already have skin in the game: their health, and sometimes their life. We should not crack down on the hypochondriacs by making it more difficult for others to afford care when they need it.
Most of us can benefit from reading this well written article and by running similar calculations for ourselves. Another analysis worth perusing is by Bill Bernstein and Ed McQuarrie titled "The Widow Tax Hit" dated 9/29/2025 and found at: www.muckrack.com/william-bernstein/articles
Many articles urge us to enjoy as much of our money as we can while we are alive and able to enjoy it. The message can be seductive. On the other hand, there is the risk that we outlive our money. So we must balance the risks of spending too little and spending too much. The residual portfolio value is the amount remaining after the distribution period has ended. If the residual value is zero after fully funding a 30 years long retirement using the "4% method",it counts as a success. Once retired and taking withdrawals, Bernstein says burn rate and time horizon are the most important determinants of success. I have introduced a margin of safety by choosing a withdrawal rate which will allow for a residual portfolio value of 25% (inflation adjusted) if we live to age 103. Leaving an inheritance behind was not the purpose, but the consequence of such conservative planning. We cannot risk pool the way insurance companies can, so using conservative assumptions is our best bet. Reading about Pascal's wager can help one better evaluate the risks of such strategies as "Dying with Zero". In other words, when considering the probabilities of an outcome, remember to consider the consequence of even a very low probability outcomes.
I don't know what its been like for you to have gone through such a loss. I have watched others, most notably my younger sister, try to cope after the loss of their husbands. I can only how imagine this first anniversary has likely brought back a flood of memories, some happy, some sad. I enjoy your contributions to keep Jonathan's spirit alive for all of us. Thank you.
If you think political discussions are spirited, just for fun try logging on to sites dealing with topics like "Vinyl versus CD or Streaming" or "Analog versus Digital". Lots of interesting technical and scientific data exist, but strongly held personal beliefs reign. My non-expert advice: Buy what you enjoy listening too, never mind what others say. I have zero musical talent, but I love listening to music, both live and recorded, and I know a little about the neuroscience of audio perception and basic acoustics. Dan Smith below mentions the important fact that the room will interact with the speakers. The late Siegfried Linkwitz's goal was to produce a home speaker system which worked with the room, not against it, to create a convincing sonic illusion that the recorded performers were in the room with you. For details, engineers and enthusiasts on this site might enjoy perusing: www.linkwitzlab.com I have his flagship system in my basement which is a very large space (about 16,400 cubic feet; they perform better in large rooms). If I'm busy with something on the main floor or am just too lazy to go downstairs, our far less expensive but convenient system is good enough. The brain is clever about enhancing and filling in when listening to less than state-of-the-art systems. And while my ears are 73 years old and I can't hear as well as I used to, I can quickly tell whether the reproduced sound approaches a level of realism.
The 90/10 allocation for someone worth hundreds of millions makes sense, especially for one who is elderly, but it does not scale downwards for the majority of us. He once referred to bonds as "return free risk". Influenced by his analysis, but adapting it to suit my case, my bond allocation is a mix of government money market fund, and individual Treasurys and TIPS which will mature in the next 1-5 years. I think in terms of years worth of future withdrawals rather than raw percentages, and prefer to hold a minimum of 10 years worth. Today with a 3% burn rate, my Stock/Bond allocation of 55/45 includes 15 years worth. If future stock valuations come down to more reasonable levels, I could see moving towards 70/30 but no higher. This will probably underperform better plans, but as they say, the best plan for you is the one you will stick with. And I can sleep well with this approach.
I too have had the experience of learning more about a loved one after they passed. Acting as an executor meant going through not only their financial papers or documents, but often personal notes. It was sometimes difficult, but also beautiful. It seems unusual, at least to me, that I and so many others felt like we genuinely knew Jonathan, despite never having met him. I still have one of his personal thank-you notes he sent me. It was brief yet warm. Thanks for sharing this Andrew.
Class A shares are valued at 1,500X class B shares, while their voting rights are 10,000X. Many long term investors hold primarily Class A shares, as does Mr. Buffett. Their voting power is therefore much greater than their proportional share of ownership. Furthermore, many additional investors, like me, who are not so wealthy also support Buffett's long term policy. And any shareholder who desires a dividend who reads the passage I referenced above will see how they can achieve an equivalent result by following his suggestions.
Comments
This is an excellent list of ideas to keep in mind.
Post: Financial Lessons
Link to comment from September 26, 2026
Ensuring patients have "skin in the game" by increasing their out of pocket co-pays and deductibles will dissuade many from going to the doctor, at first, until their problem has worsened and now may require more costly investigations, treatments, and possibly face less favorable outcomes. They already have skin in the game: their health, and sometimes their life. We should not crack down on the hypochondriacs by making it more difficult for others to afford care when they need it.
Post: Keep an eye on Medigap policies
Link to comment from September 26, 2026
Most of us can benefit from reading this well written article and by running similar calculations for ourselves. Another analysis worth perusing is by Bill Bernstein and Ed McQuarrie titled "The Widow Tax Hit" dated 9/29/2025 and found at: www.muckrack.com/william-bernstein/articles
Post: Widow’s Penalty Redux
Link to comment from September 26, 2026
I plan for the worst and hope for the best.
Post: Is your retirement plan counting on a Social Security COLA in the future?
Link to comment from September 25, 2026
Many articles urge us to enjoy as much of our money as we can while we are alive and able to enjoy it. The message can be seductive. On the other hand, there is the risk that we outlive our money. So we must balance the risks of spending too little and spending too much. The residual portfolio value is the amount remaining after the distribution period has ended. If the residual value is zero after fully funding a 30 years long retirement using the "4% method",it counts as a success. Once retired and taking withdrawals, Bernstein says burn rate and time horizon are the most important determinants of success. I have introduced a margin of safety by choosing a withdrawal rate which will allow for a residual portfolio value of 25% (inflation adjusted) if we live to age 103. Leaving an inheritance behind was not the purpose, but the consequence of such conservative planning. We cannot risk pool the way insurance companies can, so using conservative assumptions is our best bet. Reading about Pascal's wager can help one better evaluate the risks of such strategies as "Dying with Zero". In other words, when considering the probabilities of an outcome, remember to consider the consequence of even a very low probability outcomes.
Post: Anyone For S.K.I.ing?
Link to comment from September 22, 2026
I don't know what its been like for you to have gone through such a loss. I have watched others, most notably my younger sister, try to cope after the loss of their husbands. I can only how imagine this first anniversary has likely brought back a flood of memories, some happy, some sad. I enjoy your contributions to keep Jonathan's spirit alive for all of us. Thank you.
Post: It’s been one year
Link to comment from September 21, 2026
If you think political discussions are spirited, just for fun try logging on to sites dealing with topics like "Vinyl versus CD or Streaming" or "Analog versus Digital". Lots of interesting technical and scientific data exist, but strongly held personal beliefs reign. My non-expert advice: Buy what you enjoy listening too, never mind what others say. I have zero musical talent, but I love listening to music, both live and recorded, and I know a little about the neuroscience of audio perception and basic acoustics. Dan Smith below mentions the important fact that the room will interact with the speakers. The late Siegfried Linkwitz's goal was to produce a home speaker system which worked with the room, not against it, to create a convincing sonic illusion that the recorded performers were in the room with you. For details, engineers and enthusiasts on this site might enjoy perusing: www.linkwitzlab.com I have his flagship system in my basement which is a very large space (about 16,400 cubic feet; they perform better in large rooms). If I'm busy with something on the main floor or am just too lazy to go downstairs, our far less expensive but convenient system is good enough. The brain is clever about enhancing and filling in when listening to less than state-of-the-art systems. And while my ears are 73 years old and I can't hear as well as I used to, I can quickly tell whether the reproduced sound approaches a level of realism.
Post: My Favorite Room
Link to comment from September 20, 2026
The 90/10 allocation for someone worth hundreds of millions makes sense, especially for one who is elderly, but it does not scale downwards for the majority of us. He once referred to bonds as "return free risk". Influenced by his analysis, but adapting it to suit my case, my bond allocation is a mix of government money market fund, and individual Treasurys and TIPS which will mature in the next 1-5 years. I think in terms of years worth of future withdrawals rather than raw percentages, and prefer to hold a minimum of 10 years worth. Today with a 3% burn rate, my Stock/Bond allocation of 55/45 includes 15 years worth. If future stock valuations come down to more reasonable levels, I could see moving towards 70/30 but no higher. This will probably underperform better plans, but as they say, the best plan for you is the one you will stick with. And I can sleep well with this approach.
Post: Structuring Bonds
Link to comment from September 20, 2026
I too have had the experience of learning more about a loved one after they passed. Acting as an executor meant going through not only their financial papers or documents, but often personal notes. It was sometimes difficult, but also beautiful. It seems unusual, at least to me, that I and so many others felt like we genuinely knew Jonathan, despite never having met him. I still have one of his personal thank-you notes he sent me. It was brief yet warm. Thanks for sharing this Andrew.
Post: The Jonathan I Found: Through Others’ Eyes
Link to comment from September 20, 2026
Class A shares are valued at 1,500X class B shares, while their voting rights are 10,000X. Many long term investors hold primarily Class A shares, as does Mr. Buffett. Their voting power is therefore much greater than their proportional share of ownership. Furthermore, many additional investors, like me, who are not so wealthy also support Buffett's long term policy. And any shareholder who desires a dividend who reads the passage I referenced above will see how they can achieve an equivalent result by following his suggestions.
Post: I will still take the dividends
Link to comment from September 18, 2026