John Yeigh

Comments:

• Linda - Indeed, Jonathan's post highlights the tradeoffs of time versus cost which is a key challenge for those of us in the cheap Humble Dollar cohort. Our family is saddled with old mechanical systems (cars, houses, boats, lawn equipment) which are joys when working, but they do mandate a regular maintenance focus. Like Jonathan, I now more frequently pay to save time. Mike is also correct that Amazon would have been cheaper, but I had a timing issue to meet. The defective part led to most of the time and cost wastage.

  Post: Getting Rolled by Jonathan Clements

  Link to comment from September 20, 2024

• This week I spent an extra $30 to buy (save) an hour's time after already having wasted two hours of time. In my youth, I would align with Elaine and have spent even more time for the cheapest solution. My 40 year-old battery charger caught fire, so I drove out to the nearest auto store (15 mins away) for a replacement. This major auto store no longer stocks any auto parts and converted to a tire service center only. Argghh!! Drove a further 15 minutes away to a big box hardware store and bought the very last battery charger on the shelf for $80. Returned to the house 30 minutes later, open the box, and the new charger is defective and has no plug. Argghh!! Drove 10 minutes to the local-yocal hardware store, and they are sold out of battery chargers. Argghh!! Drove a further 10 minutes to a local boating store, and they have the identical charger to the defective charger I just bought, but it is $110 or $30 more. By now it is peak commuter time, and the added round-trip time to any alternative hardware or auto store would be an hour - if they even had a battery charger. Argghh!! Two days later, I spent 30 minutes to drive and return the defective charger.

  Post: Getting Rolled by Jonathan Clements

  Link to comment from September 19, 2024

• At retirement roughly: 90% tax-deferred, 10% taxable, zero Roth Eight years later roughly: 74% tax-deferred, 12% taxable, 14% Roth How we got here, here: https://humbledollar.com/2024/07/driven-by-taxes/

  Post: What’s your asset breakdown by tax treatment?

  Link to comment from September 10, 2024

• Agree, hiking and the outdoors are free to everyone and are proven to foster positive mental health. My wife's Alltrails app indicates we've completed more than 350 hikes over the last decade. National Park access is nearly free for retirees as a Senior Golden Pass costs $80 for life. The Smithsonian Museums are fantastic and free. In addition to libraries, we love free book exchanges and picking up books at thrift stores, often for as little as fifty cents. When traveling, the finished books can then be left behind in a hotel kiosk for others.

  Post: Read This for FREE!

  Link to comment from September 9, 2024

• As previously indicated, we like JEPI as a sort of "bond surrogate" which provides us comfort to maintain a higher overall stock allocation than we might otherwise. JEPI has performed well and pretty much as advertised. JEPI should not beat stocks over the long term, but probably should beat bonds. JEPI is far less volatile than stocks, and will moderate stock downturns such as in 2022. We first bought JEPI 3.5 years ago, and its valuation is essentially breakeven. Over that time, JEPI has distributed about 30% (11,9,7,& half a year 3.5 %) for an annualized return of at least 8.5%. The S&P 500 has risen about 33% in that time. We bought more JEPI in late 2022. Since then, JEPI's valuation is up 4-10% and it has distributed about 14%. JEPI's annualized return has averaged at least 14%. The S&P 500 has risen about 47%. JEPI beats bonds but clearly lags stocks when the market is strongly rising. JEPI also has broader stock diversification than the S&P as it is not so heavily weighted to the Magnificent Seven. With stable markets, JEPI's long term distribution rate is projected to level out in the 6-7% range. JEPI's original high payouts were when the VIX volatility index was 30, not 15 as today. I also have a concern that as JEPI grows ever larger, its managers may be challenged to to capture the required volume of options since large tranches of options can move a stock and it's options pricing. Thus, I am keeping a watchful eye on JEPI for the longer term. In sum, JEPI has performed well for us as a bond surrogate, but this could change in the future. I'm personally not a huge bond fan, so I like JEPI for its stability and yield. Still, JEPI may not be for everyone as you could probably get similar performance with a correctly managed stock to bond allocation.

  Post: JEPI as a Bond Substitute? Don Quixote Confronts the Windmills by Steve Abramowitz

  Link to comment from August 29, 2024

• As soon as our youngest graduated from college and started adult employment, we switched our estate to a give it now from a dole it out by age 35 model. Due to cost and long-term fee erosion experiences with trusts, I am generally anti-trust except for minor children or to protect significantly challenged adult inheritors. I have come to fear lawyers’ costs, management fees, and tax-law changes far more than either probate or my kids spending non-ideally. More here: https://humbledollar.com/2022/08/where-theres-a-will-2/

  Post: Connor asks – How young is too young to receive an inheritance?

  Link to comment from August 28, 2024

• OldITGuy - We had a 1988 house fire and the only regretted loss were some pictures despite losing 3/4 of our possessions - most pics fortunately survived. Since then, we have constructed several picture books of our family's life together via Shutterfly. While these books would be the first thing we grab, Shutterfly maintains a digital backup of these books. These few books are also the the first possession we'll be taking to the assisted living facility.

  Post: Do You Own a Safe?

  Link to comment from August 25, 2024

• I am not sure that this subject really warrants Humble Dollar retirement-related, commentary as there are plenty of marketing studies on these issues. Here's one: https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/men-buy-women-shop-the-sexes-have-different-priorities-when-walking-down-the-aisles/ Dick - you should buy your obviously very sweet wife whatever she desires and not worry or post about it. Let's get back to ranting about other important stuff like tattoos

  Post: Women and men are different. Quinn’s in trouble again

  Link to comment from August 19, 2024

• We own some JEPI, but we view it as a quite different and unique piece of the portfolio. JEPI acts as a sort of "bond surrogate" or "hybrid" investment which has given us comfort to maintain a higher total stock allocation (80-90 percent) than we would otherwise. JEPI performs pretty much as advertised - it provides current yield via call options, has low price volatility, and broader market distribution than our index and tech funds. JEPI (and all call options) performs best when the market goes sideways. You are correct that call options leave money on the table when the market goes up and moderate the down side when the market declines. I also agree that JEPI is best held in a non-taxable account.

  Post: A Foolish Option

  Link to comment from August 19, 2024

• Ed - excellent post. I too wish I had good answers for my children whenever we discuss these conundrums. They observe peers "working from home" who send out one or two emails a day from the beach, lake or when traveling. Our kids' jobs are more demanding as are all those workers who must be fully present at their work.  Our children also remember that both Mom and I commuted every day to work, missed dinners, traveled on weekends, and regularly had to grind out deadlined work with longish hours. Still, we try not to fuss as we remind our kids of our two hard-working contractor friends without 401ks who, in their early 70's, still have to sling around heavy construction materials with their broken bodies. Technology has changed the working game for many, but I'm uncertain of the sustainability of seemingly undemanding remote work. 

  Post: Nothing to Trust by Jonathan Clements

  Link to comment from August 16, 2024