I remember when I was very young (maybe 6-7) I would get a nickel, dime or quarter for doing some errands around the house. i would take my change down to the post office with my mom and buy “savings bond stamps”. I can’t remember exactly what the cost, but maybe 25 cents. I would paste them in my “savings bond book”, and once I had $18.75 worth of stamps (I think) the book was full and I would get a $25 savings bond. i ended up with a stack of savings bonds over the years. When I graduated from college (dead broke) I cashed in my bonds in order to raise cash for a deposit on my first apartment and utilities.
Regarding point #2, this is absolutely true, for some of us. If you don’t appreciate dividends, then don’t buy those stocks. There is a big market out there for you. I have bought some high dividend stocks, some average, and a few no/low dividend stocks. I am not spending those dividends on living expenses yet, but expect to in the next couple of years. if my portfolio yields between 3-4% then I can live off the dividends and pretty much ignore the stock price. Market swoon. No big deal, dividend checks still come in oin time. the comfort factor of being able to live on dividends and ignore stock price fluctuations is significant for me. It isn’t something that I discount just because “ the price at the open the day after my stock goes ex-dividend is reduced by the size of my dividend check.” but to each his own. That is what makes a market.
When I came to faith as an adult I was convicted in my heart that we needed to give significantly, with a goal of tithing. Money was very tight, and we had been giving zero, so we started on a plan to increase a little bit each year. i was early in my career so I got some significant salary increases in those early years. We tried not to increase our lifestyle spending, and extra money went to giving and saving. My wife would tell people I never got a raise 😇 it wasn’t that bad, but the percentage of our income dedicated to consumption continued to go down. But the time I retired we were spending less than 70% of what I made. we were big supporters of the local church, where I was on the board, but also supported many other religious and secular organizations. one unexpected (to me) benefit of this charitable inclination was an ability to resist jealousy and covetousness over what others had. If a neighbor had a nicer car (or vacation) I could look at that and realize we had made a different decision with our finances. I wasn’t failing to provide for my family, we just had different priorities. i don’t feel that giving has cost me anything over the years. It is a spiritual discipline that has made my life richer for many years.
I am afraid that I share that perspective. I graduated from a Top engineering school in 1981 with minimal debt; but found myself out of work in the 1982 recession. It was a long road back that included pawning items to buy groceries, shopping with a calculator to see what we could afford, and purchasing a foreclosure as our first home (with a double-digit interest rate). I hear about how difficult it is for my son's generation, but I don't see any of them doing those types of things.
I like to defer capital gains; ideally forever. This can be accomplished if shares are donated to charity or passed on in an estate. Here's an example... I had shares in a regional bank, that got clobbered back in 2023. I sold those shares at a loss and got the deduction in my 2023 tax return. I simultaneously bought shares in a different bank that was also way down. Since that purchase those shares are up over 100%. I just gave them to my church. I got a tax deduction for the capital loss in 2023, and a tax deduction for a charitable contribution in 2025. And no capital gains tax ever. That is how it works...
I was diagnosed with pulmonary hypertension at age 60 (while undergoing heart valve repair). Since then my cardiologist has me taking 1/2 a 20 mg sildenafil every morning and every night. This is now the second unintended side effect of his prescription 😇
They are withdrawing much less 4% if they have half their assets in TIPs (50%), and are drawing that down evenly across 20 years, that means they are only spending 2.5% per year. They are “rebalancing” every year as they cash in bonds without replacement. Only they are actually rebalancing in a more aggressive direction. in short, their strategy has nothing to do with “4% rule”.
Correct. However, if you time conversions to coincide with a qualifying event in the same year (like retiring or reduced work hours) “bingo” you can get the IRMAA premiums waived. i speak from personal experience. It works, just need to navigate the paperwork.
Yes, this is an example where “market timing” might actually make sense. i am a couple of years older than Jonathan, so i may have to suck it up with IRMAA premium impacts but i am trying to make some very significant conversions this year and next (taking advantage of the 22-24% brackets that may go away). I converted about $100k worth of stocks 2 weeks ago during the late April downturn. My recently converted Qualcomm position surged more than 10% after that move. You never know how those things will turn out, but I see every downturn as a conversion opportunity. I had multiple opportunities in 2022 😩
Comments
I remember when I was very young (maybe 6-7) I would get a nickel, dime or quarter for doing some errands around the house. i would take my change down to the post office with my mom and buy “savings bond stamps”. I can’t remember exactly what the cost, but maybe 25 cents. I would paste them in my “savings bond book”, and once I had $18.75 worth of stamps (I think) the book was full and I would get a $25 savings bond. i ended up with a stack of savings bonds over the years. When I graduated from college (dead broke) I cashed in my bonds in order to raise cash for a deposit on my first apartment and utilities.
Post: My Money Memories
Link to comment from August 9, 2025
Regarding point #2, this is absolutely true, for some of us. If you don’t appreciate dividends, then don’t buy those stocks. There is a big market out there for you. I have bought some high dividend stocks, some average, and a few no/low dividend stocks. I am not spending those dividends on living expenses yet, but expect to in the next couple of years. if my portfolio yields between 3-4% then I can live off the dividends and pretty much ignore the stock price. Market swoon. No big deal, dividend checks still come in oin time. the comfort factor of being able to live on dividends and ignore stock price fluctuations is significant for me. It isn’t something that I discount just because “ the price at the open the day after my stock goes ex-dividend is reduced by the size of my dividend check.” but to each his own. That is what makes a market.
Post: Dividend Days
Link to comment from July 5, 2025
When I came to faith as an adult I was convicted in my heart that we needed to give significantly, with a goal of tithing. Money was very tight, and we had been giving zero, so we started on a plan to increase a little bit each year. i was early in my career so I got some significant salary increases in those early years. We tried not to increase our lifestyle spending, and extra money went to giving and saving. My wife would tell people I never got a raise 😇 it wasn’t that bad, but the percentage of our income dedicated to consumption continued to go down. But the time I retired we were spending less than 70% of what I made. we were big supporters of the local church, where I was on the board, but also supported many other religious and secular organizations. one unexpected (to me) benefit of this charitable inclination was an ability to resist jealousy and covetousness over what others had. If a neighbor had a nicer car (or vacation) I could look at that and realize we had made a different decision with our finances. I wasn’t failing to provide for my family, we just had different priorities. i don’t feel that giving has cost me anything over the years. It is a spiritual discipline that has made my life richer for many years.
Post: Saving and Giving
Link to comment from June 28, 2025
I am afraid that I share that perspective. I graduated from a Top engineering school in 1981 with minimal debt; but found myself out of work in the 1982 recession. It was a long road back that included pawning items to buy groceries, shopping with a calculator to see what we could afford, and purchasing a foreclosure as our first home (with a double-digit interest rate). I hear about how difficult it is for my son's generation, but I don't see any of them doing those types of things.
Post: Generational Perspective
Link to comment from May 10, 2025
I like to defer capital gains; ideally forever. This can be accomplished if shares are donated to charity or passed on in an estate. Here's an example... I had shares in a regional bank, that got clobbered back in 2023. I sold those shares at a loss and got the deduction in my 2023 tax return. I simultaneously bought shares in a different bank that was also way down. Since that purchase those shares are up over 100%. I just gave them to my church. I got a tax deduction for the capital loss in 2023, and a tax deduction for a charitable contribution in 2025. And no capital gains tax ever. That is how it works...
Post: One Stock at a Time
Link to comment from February 24, 2025
I was diagnosed with pulmonary hypertension at age 60 (while undergoing heart valve repair). Since then my cardiologist has me taking 1/2 a 20 mg sildenafil every morning and every night. This is now the second unintended side effect of his prescription 😇
Post: Avoiding Alzheimer’s
Link to comment from September 14, 2024
They are withdrawing much less 4% if they have half their assets in TIPs (50%), and are drawing that down evenly across 20 years, that means they are only spending 2.5% per year. They are “rebalancing” every year as they cash in bonds without replacement. Only they are actually rebalancing in a more aggressive direction. in short, their strategy has nothing to do with “4% rule”.
Post: Laying Down a Floor
Link to comment from September 14, 2024
True. IRMAA surcharges, while annoying, only last one year per conversion, and are minor compared to a 5-10% higher tax bracket (post 2025).
Post: Paying to Avoid Pain
Link to comment from May 11, 2024
Correct. However, if you time conversions to coincide with a qualifying event in the same year (like retiring or reduced work hours) “bingo” you can get the IRMAA premiums waived. i speak from personal experience. It works, just need to navigate the paperwork.
Post: Paying to Avoid Pain
Link to comment from May 11, 2024
Yes, this is an example where “market timing” might actually make sense. i am a couple of years older than Jonathan, so i may have to suck it up with IRMAA premium impacts but i am trying to make some very significant conversions this year and next (taking advantage of the 22-24% brackets that may go away). I converted about $100k worth of stocks 2 weeks ago during the late April downturn. My recently converted Qualcomm position surged more than 10% after that move. You never know how those things will turn out, but I see every downturn as a conversion opportunity. I had multiple opportunities in 2022 😩
Post: Paying to Avoid Pain
Link to comment from May 11, 2024