I've started to use direct gifts of securities to my alma maters, and will continue to do so. I've taken to gifting blocks of shares that have the lowest basis while getting the market value as my deduction. This helps bring incremental efficiency to my portfolio and doesn't require me to build any new "structure" for giving. Simple and effective. But the ratcheting down of the value of deductions for charitable contributions based on income can add a new calculation chore.
Volatility is one way active market players can make money with a degree of confidence. Some good companies that are volatile still have fairly recognizable peaks and troughs. And people who track these companies can do really well over time if they buy during known troughs, and sell during peaks, as long as they don't get too greedy. While markets shocks can interfere, slow and steady in stable markets can pay off when one takes profits in smaller bites.
My RMD, combined with Social Security and a small pension, is more than I need to live on, and the monthly SEP distributions to me seem better than any annuity I can imagine. I am unlikely to ever withdraw more than my RMD (or less). And despite the surplus I have each month, I don't have much interest in increasing my consumption spending at all (though I've noticed I am gifting a bit more.) The RMD process did, however, help me to sort out what I should be doing with my investment choices and to simplify.
Sometimes working backwards helps. Decide where you want to be in ten years (or twenty years or another time, if you prefer.) Set a quantitative financial goal for that target year. Then build a chart year by year that tells you where you need to get to in each of the years before that target year to make that final goal. That chart should help you see how much you need to put away each year or how much your existing portfolio needs to grow each year in order to make it to the next year, and ultimately to the final goal. This is a realistic way to plan for the future, and will keep you from setting unrealistic goals that are simply unattainable, goals that won't get you where you want to go, or goals that you won't really commit to.
I don't have a lot of different funds, and I don't change the ones I do have often. But I do periodically retest them to see what they've done over the short and long terms, and whether my perception of the fund has changed. There are two things I do that are essential. First, I go to my public library and read any Morningstar reports on each fund, and I look at its star ratings - over all time periods, and I compare that fund with its peers. I also get a more current feel about whether the sector's attractiveness has changed. Second, I look at the list of each fund's top holdings, and I see if they are companies I'd actually want to own independently. I won't buy or keep a fund if its top holdings are companies I don't respect as businesses.
The last two times I moved, I felt some pressure to sell my home in what was a down market, and I occasionally looked at what those houses sold for when they were resold a few years later in up markets. The gap was pretty large. Did I give up too much? I console myself by thinking about the houses I bought with the proceeds of my sales. In both cases, I saw even greater increases in value with them, far outpacing what I supposedly had given up. You usually can't have it both ways unless you can somehow find a way to sell in an up market and simultaneously buy in a down market.
I am also with Suzie. I started by paying extra on my mortgage each month, because I wanted to see more principal being paid than interest every month. Over time, the shift was big, and I liked the feeling that I was owing less and owning more. Then I got a bonus and just paid the rest off. I love not having that expense every month. I don't care if the math doesn't always work, or put me at a slight disadvantage over time. I know a lot is based on your mortgage rate and what you might earn elsewhere. I have a pretty clean and clear view of my financial position. And having the extra money hasn't really made me less frugal. Now my biggest expense is, you guessed it, taxes. Too bad I can't negotiate a one-time lifetime settlement of that. I want to buy something like a "Forever" stamp for all my taxes.
Consolidation is really part of simplification. It has saved me a lot of headaches. But I resolved to consolidate four or five diverse accounts only down to two providers, not one. I want to be able to compare how they operate, identify things I like and dislike about their operations, see who has best practices, play them off against one another, and have a place to go if one starts to go downhill. (Funny, they both have made aggressive pitches to me to manage all my money/accounts, and I've not been convinced by their reasons why I should do that. I like having two providers. I feel much more in control of my future.)
Comments
I've started to use direct gifts of securities to my alma maters, and will continue to do so. I've taken to gifting blocks of shares that have the lowest basis while getting the market value as my deduction. This helps bring incremental efficiency to my portfolio and doesn't require me to build any new "structure" for giving. Simple and effective. But the ratcheting down of the value of deductions for charitable contributions based on income can add a new calculation chore.
Post: What is the best way to donate to charity in 2026?
Link to comment from March 9, 2026
Volatility is one way active market players can make money with a degree of confidence. Some good companies that are volatile still have fairly recognizable peaks and troughs. And people who track these companies can do really well over time if they buy during known troughs, and sell during peaks, as long as they don't get too greedy. While markets shocks can interfere, slow and steady in stable markets can pay off when one takes profits in smaller bites.
Post: Volatility is your Best Friend
Link to comment from March 9, 2026
My RMD, combined with Social Security and a small pension, is more than I need to live on, and the monthly SEP distributions to me seem better than any annuity I can imagine. I am unlikely to ever withdraw more than my RMD (or less). And despite the surplus I have each month, I don't have much interest in increasing my consumption spending at all (though I've noticed I am gifting a bit more.) The RMD process did, however, help me to sort out what I should be doing with my investment choices and to simplify.
Post: Forget the 4% rule.
Link to comment from March 9, 2026
Sometimes working backwards helps. Decide where you want to be in ten years (or twenty years or another time, if you prefer.) Set a quantitative financial goal for that target year. Then build a chart year by year that tells you where you need to get to in each of the years before that target year to make that final goal. That chart should help you see how much you need to put away each year or how much your existing portfolio needs to grow each year in order to make it to the next year, and ultimately to the final goal. This is a realistic way to plan for the future, and will keep you from setting unrealistic goals that are simply unattainable, goals that won't get you where you want to go, or goals that you won't really commit to.
Post: It’s Never Too Late
Link to comment from March 5, 2026
I don't have a lot of different funds, and I don't change the ones I do have often. But I do periodically retest them to see what they've done over the short and long terms, and whether my perception of the fund has changed. There are two things I do that are essential. First, I go to my public library and read any Morningstar reports on each fund, and I look at its star ratings - over all time periods, and I compare that fund with its peers. I also get a more current feel about whether the sector's attractiveness has changed. Second, I look at the list of each fund's top holdings, and I see if they are companies I'd actually want to own independently. I won't buy or keep a fund if its top holdings are companies I don't respect as businesses.
Post: Managing Investment Risk
Link to comment from March 5, 2026
The last two times I moved, I felt some pressure to sell my home in what was a down market, and I occasionally looked at what those houses sold for when they were resold a few years later in up markets. The gap was pretty large. Did I give up too much? I console myself by thinking about the houses I bought with the proceeds of my sales. In both cases, I saw even greater increases in value with them, far outpacing what I supposedly had given up. You usually can't have it both ways unless you can somehow find a way to sell in an up market and simultaneously buy in a down market.
Post: Value of Waiting
Link to comment from February 8, 2026
Very good interview. His comments on long term bonds and price compression captured a feeling I've had for years but could never quite articulate.
Post: Perfect Portfolio
Link to comment from February 8, 2026
I am also with Suzie. I started by paying extra on my mortgage each month, because I wanted to see more principal being paid than interest every month. Over time, the shift was big, and I liked the feeling that I was owing less and owning more. Then I got a bonus and just paid the rest off. I love not having that expense every month. I don't care if the math doesn't always work, or put me at a slight disadvantage over time. I know a lot is based on your mortgage rate and what you might earn elsewhere. I have a pretty clean and clear view of my financial position. And having the extra money hasn't really made me less frugal. Now my biggest expense is, you guessed it, taxes. Too bad I can't negotiate a one-time lifetime settlement of that. I want to buy something like a "Forever" stamp for all my taxes.
Post: The $8,000 Cost of Peace of Mind
Link to comment from January 24, 2026
Very easy to remember that new Vanguard fund. VEXC. Except China.
Post: China Market Risk
Link to comment from January 18, 2026
Consolidation is really part of simplification. It has saved me a lot of headaches. But I resolved to consolidate four or five diverse accounts only down to two providers, not one. I want to be able to compare how they operate, identify things I like and dislike about their operations, see who has best practices, play them off against one another, and have a place to go if one starts to go downhill. (Funny, they both have made aggressive pitches to me to manage all my money/accounts, and I've not been convinced by their reasons why I should do that. I like having two providers. I feel much more in control of my future.)
Post: Consolidating 401(k)s in retirement
Link to comment from January 11, 2026