My wife tells her young colleagues (if they raise the topic) that there never is a right time to have kids. If they want to have kids, they should do it and make it work. We didn't consider the expense when we decided to have kids. At the time, we weren't married and all of my partner's pay went to day care. All of it. Because we were unmarried, legally she was a single mom below the poverty line, but couldn't get benefits because she was paid as a consultant. But it was possible because of my salary and it paid off because it led to a career she loves and much higher pay within a few years. Having kids was and is great, but certainly not financially prudent. Until they take care of us when we're elderly!
In 1993 my girlfriend and I made the bold choice to not bring travelers checks with us to Europe. We had to hunt for the correct ATM machines, but we were able to get local currencies with the debit card I had. It was a new financial world.
When I run out of $1 and $5 bills, I go to the bank and withdraw 100 of each (or sometimes less because bank branches don't always have 100 of each, but the most I can get approaching 100).
Why?
Purchases of fruit from stands on the street. Or in summer an ice.
And beggars.
A few days ago one of my kids was on a beach in Puerto Rico and someone came around selling ice cream, water, chips. She told me she was bummed because the vendor only took cash so she couldn't buy anything.
Interesting what you say about being 50% in bonds. I've been telling my kids to put all in stocks and don't look at them for 25 years. Buy VT and SCHD and hold regardless of market swings. And slowly add bonds in future years.
When I was in college, a family member gave me a few shares of IBM, AT&T, and something else (don't remember now). The stocks didn't make any sense. The price was stagnant over years and I only had a few shares anyhow.
Three things changed in 1993.
I sat in a bookstore and devoured a book about different financial instruments. In one afternoon I learned a huge amount. I suddenly understood why my grandfather liked GNMAs and tax free munis.
My boss called me in to his office and asked me if I was enrolled in the 403(b) plan. He insisted that I put in at least the amount to get the full match because it was free money. He said that even though my pay was low, I needed to make this work.
I started reading the WSJ and a certain column because a favorite. I especially liked the comparisons of throwing darts at the stock pages vs expert picks. I became a convert to index funds after losing $14k in the tech crash.
Stock trading was too expensive, but firms started phone trading at about $28/trade and I was an early adopter of internet trading.
Precisely.
Life insurance was critical when we were younger. We had little savings, kids to support, and a mortgage.
Now the kids support themselves and we have maxed out 403(b)s and IRAs. Our first SS payment will be late summer.
Our term life insurance will end the day we leave our jobs, but we don't need it.
To avoid concentration in the top stocks dominating the S&P500 and VT, I'd recommend high dividend funds such as VYM, VYMI, and SCHD. Which have simple strategies.
Comments
Store a lot of fresh water.
Post: Why Marlboro Gold is better Than Gold
Link to comment from March 15, 2026
JD is much heavier per unit than Marlboro. But it doesn't go stale. Weren't these the favorite products of the bad captain in Waterworld?
Post: Why Marlboro Gold is better Than Gold
Link to comment from March 15, 2026
My wife tells her young colleagues (if they raise the topic) that there never is a right time to have kids. If they want to have kids, they should do it and make it work. We didn't consider the expense when we decided to have kids. At the time, we weren't married and all of my partner's pay went to day care. All of it. Because we were unmarried, legally she was a single mom below the poverty line, but couldn't get benefits because she was paid as a consultant. But it was possible because of my salary and it paid off because it led to a career she loves and much higher pay within a few years. Having kids was and is great, but certainly not financially prudent. Until they take care of us when we're elderly!
Post: The Case for Kids
Link to comment from March 8, 2026
In 1993 my girlfriend and I made the bold choice to not bring travelers checks with us to Europe. We had to hunt for the correct ATM machines, but we were able to get local currencies with the debit card I had. It was a new financial world.
Post: Loose Change
Link to comment from March 8, 2026
When I run out of $1 and $5 bills, I go to the bank and withdraw 100 of each (or sometimes less because bank branches don't always have 100 of each, but the most I can get approaching 100). Why? Purchases of fruit from stands on the street. Or in summer an ice. And beggars. A few days ago one of my kids was on a beach in Puerto Rico and someone came around selling ice cream, water, chips. She told me she was bummed because the vendor only took cash so she couldn't buy anything.
Post: Loose Change
Link to comment from March 8, 2026
Interesting what you say about being 50% in bonds. I've been telling my kids to put all in stocks and don't look at them for 25 years. Buy VT and SCHD and hold regardless of market swings. And slowly add bonds in future years.
Post: How did you avoid being in the 39%?
Link to comment from March 8, 2026
When I was in college, a family member gave me a few shares of IBM, AT&T, and something else (don't remember now). The stocks didn't make any sense. The price was stagnant over years and I only had a few shares anyhow. Three things changed in 1993.
- I sat in a bookstore and devoured a book about different financial instruments. In one afternoon I learned a huge amount. I suddenly understood why my grandfather liked GNMAs and tax free munis.
- My boss called me in to his office and asked me if I was enrolled in the 403(b) plan. He insisted that I put in at least the amount to get the full match because it was free money. He said that even though my pay was low, I needed to make this work.
- I started reading the WSJ and a certain column because a favorite. I especially liked the comparisons of throwing darts at the stock pages vs expert picks. I became a convert to index funds after losing $14k in the tech crash.
Stock trading was too expensive, but firms started phone trading at about $28/trade and I was an early adopter of internet trading.Post: How did you avoid being in the 39%?
Link to comment from March 8, 2026
This article echoes others I've read on this website which has led me to hold less VT and more SCHD, VYM, and VYMI.
Post: Sector Fund by Stealth
Link to comment from March 7, 2026
Precisely. Life insurance was critical when we were younger. We had little savings, kids to support, and a mortgage. Now the kids support themselves and we have maxed out 403(b)s and IRAs. Our first SS payment will be late summer. Our term life insurance will end the day we leave our jobs, but we don't need it.
Post: The $9.95 scam…
Link to comment from February 28, 2026
To avoid concentration in the top stocks dominating the S&P500 and VT, I'd recommend high dividend funds such as VYM, VYMI, and SCHD. Which have simple strategies.
Post: Managing Investment Risk
Link to comment from February 28, 2026