Deflation isn’t just “taking money out if circulation.” Deflation also tells consumers “don’t buy now, wait it will be cheaper tomorrow.” And consumers respond, and the economy contracts. Our last significant bout of deflation was the Great Depression. I’m not anxious to revisit those days.
I did wonder how so many folks from less affluent countries could afford an overseas trip to the US along with tickets. But I did spend $700 a ticket each to take my son to see Eric Clayton’s Crossroads in Austin in September. So to each his own I guess. i am learning to spend it while I can enjoy it.
Yes. i think it was Peter Lynch that said “don’t pick your flowers and water your weeds.” if you rebalance too aggressively that is what you end up doing. Lately I have been letting my winners run until they are well over my target. If I want each stock to count for no more than 5% of my portfolio, I don’t trim until it gets to 10%. So I’m using more like a 100% rule than a 25% rule; that is working great in this market.
It really is an amazing tool. i spent about an hour today with chstGPT writing a song for my wife for Valentine’s Day. It is highly personalized but in line with standard country music ballads. i gave it the initial ideas, massaged the key, timing, and instrumentation with 3-4 rounds. And I ended up with something very playable. Then I tweaked quite a few of the lyrics to my liking, changed the title, and started practicing. it does feel like “my song” but no telling how long it would have taken me to come up with it on my own.
My thoughts exactly. Seems like a pretty good contrarian indicator. Baron Rothchild advised us to “Buy when there is blood in the streets…”. Nowadays he would say “when the VIX is spiking”. It definitely peaks my interest in buying more when the vix really spikes.
I have used Fidelity Charitable Giving for many years. I was already in the “Fidelity Universe” with my brokerage account, and it was a logical step. i make large (for me) donations of appreciated stock and some cash every other year. This lets me “bunch deductions” and itemize every other year as well. the fidelity platform is very easy to use, and most 501c3s are already registered. I have made donations to my church (a small one), a large international charity, PBS, several colleges, etc. i always get recognized fir the donation, and I can put my monthly gifts on “autopilot. i am a big believer in the dad concept, and fidelity platform in particular. QCDs start for me in 5 years, and that may change my behavior, but for now fidelity charitable giving is the way to go. Just now finalizing my plans for year end 2025 gifts.
Paying off your mortgage is another area where the calculator and the emotions/intuition might lead to different conclusions. i try to allow the math/history to inform my decisions, but not dictate them.
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.
Comments
Deflation isn’t just “taking money out if circulation.” Deflation also tells consumers “don’t buy now, wait it will be cheaper tomorrow.” And consumers respond, and the economy contracts. Our last significant bout of deflation was the Great Depression. I’m not anxious to revisit those days.
Post: Short term and long term Social Security planning
Link to comment from August 8, 2026
I did wonder how so many folks from less affluent countries could afford an overseas trip to the US along with tickets. But I did spend $700 a ticket each to take my son to see Eric Clayton’s Crossroads in Austin in September. So to each his own I guess. i am learning to spend it while I can enjoy it.
Post: FIFA Financials
Link to comment from July 26, 2026
Yes. i think it was Peter Lynch that said “don’t pick your flowers and water your weeds.” if you rebalance too aggressively that is what you end up doing. Lately I have been letting my winners run until they are well over my target. If I want each stock to count for no more than 5% of my portfolio, I don’t trim until it gets to 10%. So I’m using more like a 100% rule than a 25% rule; that is working great in this market.
Post: When to Leave Your Portfolio Alone
Link to comment from June 28, 2026
It really is an amazing tool. i spent about an hour today with chstGPT writing a song for my wife for Valentine’s Day. It is highly personalized but in line with standard country music ballads. i gave it the initial ideas, massaged the key, timing, and instrumentation with 3-4 rounds. And I ended up with something very playable. Then I tweaked quite a few of the lyrics to my liking, changed the title, and started practicing. it does feel like “my song” but no telling how long it would have taken me to come up with it on my own.
Post: Planning a Trip
Link to comment from February 4, 2026
My thoughts exactly. Seems like a pretty good contrarian indicator. Baron Rothchild advised us to “Buy when there is blood in the streets…”. Nowadays he would say “when the VIX is spiking”. It definitely peaks my interest in buying more when the vix really spikes.
Post: Misleading Indicator
Link to comment from February 4, 2026
I have used Fidelity Charitable Giving for many years. I was already in the “Fidelity Universe” with my brokerage account, and it was a logical step. i make large (for me) donations of appreciated stock and some cash every other year. This lets me “bunch deductions” and itemize every other year as well. the fidelity platform is very easy to use, and most 501c3s are already registered. I have made donations to my church (a small one), a large international charity, PBS, several colleges, etc. i always get recognized fir the donation, and I can put my monthly gifts on “autopilot. i am a big believer in the dad concept, and fidelity platform in particular. QCDs start for me in 5 years, and that may change my behavior, but for now fidelity charitable giving is the way to go. Just now finalizing my plans for year end 2025 gifts.
Post: Easy DAF (e.g. Daffy.org) for Donation of Appreciated Stocks
Link to comment from October 19, 2025
Paying off your mortgage is another area where the calculator and the emotions/intuition might lead to different conclusions. i try to allow the math/history to inform my decisions, but not dictate them.
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
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