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.)
I completely agree with you. Gold's history gives it some semblance of a supply and demand mechanism ( in contrast to crypto, which is still searching for broad public acceptance and will not be anywhere on my desirability list any time soon). The buy-sell framework for gold is not very comforting when you look behind the curtain, and transaction costs are huge. I want something with a promise behind it that can be measured and met - shares that pay me a dividend, shares from someone who will try to run a business at a profit and increase its value for me, or debt where someone pays me for the privilege of my allowing them to use my money for a while.
Their SS is $70 K. Their IRAs must be throwing off some RMDs at this point, but we don't know how much that is. Let's just say it is $50K. That's 120K. That is also more than half of their highest figure ($220K) and is already 80% of their lowest figure. They might have some bond funds or income funds already that could easily make up that difference, but if they don't, it is easy to choose one or two such funds, and have the income deposited each month in their checking account. In this way, their large nest egg might barely be touched.
While unplanned events may occur randomly, I don't think most unplanned events repeat themselves, like hot water heater replacements, a new furnace, a car accident, a fall down steps, or a leaky roof. I also think that unplanned events, taken as a group, tend to occur randomly over time, and can usually be managed if they do. I use the rule of thumb that I will have at least one and possibly two unplanned events a quarter that may cost me in the range of $500-$2,000 each. That's what I plan for, and that's the extra room I leave in my accounts to be used for them. Of course, I also try to maintain a slush fund of dollars that I can tap into if a larger unplanned event or a sequence of unplanned events demands it, or I don't want to confuse my normal planned spending with other things that demand my money. That goes for vacations, occasional big charitable contributions, and other things that are positives and not negatives. I don't like to maintain too much detail in my paperwork accounting - being too granular is a waste of time to me. One just needs to be able to go back and look at prior expenditures in an area, watch the flow, and notice changes in trends, IMHO.
I agree with Graham's weighing machine example. However, I see another reason why stocks will continue to creep higher over time - inflation. Holding all other things equal, it has always seemed to me that the price of a share of stock should be going up with inflation over the long run, just as any other good or service. (Of course, it is impossible to keep all other variable equal.) But I do subscribe to the view that a share of stock of an established firm, say Blackacre, that was $100 a year ago, should be creeping up over time at the same rate as goods in general. If I had to work five hours to buy a share of stock, and five hours to buy a bag of groceries, and I could give the grocer a share of Blackacre or $100 for that bag of groceries, that 1:1 ratio would seem to hold over time, as inflation drives the $100 price slowly higher, but again in theory - as all other factors are held equal.
I'm with you on the AI investment dilemma. The AI capital investors need to sell me AI-related things to recoup the billions being invested. Or sell them to others who will pass the costs on to me. I don't yet see much I'd pay for, especially since the AI results I get incidentally are either "fluff" or are just wrong. There will be some reckoning, and a shakeout will be what pushes all this flood of spending into a more rational equilibrium. There must be casualties to go along with the winners.
A very good set of suggestions. You don't have to be precise. Don't spend a lot of real time and money to protect yourself against a speculative harm. Simplicity sometimes wins out, for reasons more important than incremental gains. While money is important, there are lots of other things in life that are also important.
If you are interested in donating appreciated investments, and they are only part of a holding, make sure you donate those with the highest gain, usually the ones you have held the longest. For example, if you've been in a mutual fund for decades, you can usually go online to find and designate the exact shares you want to be part of your donation. This will be very important for tax purposes, for the year in which the donation is made, but even more so for the future.
Comments
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
I completely agree with you. Gold's history gives it some semblance of a supply and demand mechanism ( in contrast to crypto, which is still searching for broad public acceptance and will not be anywhere on my desirability list any time soon). The buy-sell framework for gold is not very comforting when you look behind the curtain, and transaction costs are huge. I want something with a promise behind it that can be measured and met - shares that pay me a dividend, shares from someone who will try to run a business at a profit and increase its value for me, or debt where someone pays me for the privilege of my allowing them to use my money for a while.
Post: Gold Isn’t Special
Link to comment from January 11, 2026
Their SS is $70 K. Their IRAs must be throwing off some RMDs at this point, but we don't know how much that is. Let's just say it is $50K. That's 120K. That is also more than half of their highest figure ($220K) and is already 80% of their lowest figure. They might have some bond funds or income funds already that could easily make up that difference, but if they don't, it is easy to choose one or two such funds, and have the income deposited each month in their checking account. In this way, their large nest egg might barely be touched.
Post: What is the standard advice for someone who wants guaranteed income in retirement?
Link to comment from January 8, 2026
While unplanned events may occur randomly, I don't think most unplanned events repeat themselves, like hot water heater replacements, a new furnace, a car accident, a fall down steps, or a leaky roof. I also think that unplanned events, taken as a group, tend to occur randomly over time, and can usually be managed if they do. I use the rule of thumb that I will have at least one and possibly two unplanned events a quarter that may cost me in the range of $500-$2,000 each. That's what I plan for, and that's the extra room I leave in my accounts to be used for them. Of course, I also try to maintain a slush fund of dollars that I can tap into if a larger unplanned event or a sequence of unplanned events demands it, or I don't want to confuse my normal planned spending with other things that demand my money. That goes for vacations, occasional big charitable contributions, and other things that are positives and not negatives. I don't like to maintain too much detail in my paperwork accounting - being too granular is a waste of time to me. One just needs to be able to go back and look at prior expenditures in an area, watch the flow, and notice changes in trends, IMHO.
Post: Distance from family: inconvenience…or a financial planning blind spot?
Link to comment from January 8, 2026
I agree with Graham's weighing machine example. However, I see another reason why stocks will continue to creep higher over time - inflation. Holding all other things equal, it has always seemed to me that the price of a share of stock should be going up with inflation over the long run, just as any other good or service. (Of course, it is impossible to keep all other variable equal.) But I do subscribe to the view that a share of stock of an established firm, say Blackacre, that was $100 a year ago, should be creeping up over time at the same rate as goods in general. If I had to work five hours to buy a share of stock, and five hours to buy a bag of groceries, and I could give the grocer a share of Blackacre or $100 for that bag of groceries, that 1:1 ratio would seem to hold over time, as inflation drives the $100 price slowly higher, but again in theory - as all other factors are held equal.
Post: 2026 Financial Plan
Link to comment from January 8, 2026
I'm with you on the AI investment dilemma. The AI capital investors need to sell me AI-related things to recoup the billions being invested. Or sell them to others who will pass the costs on to me. I don't yet see much I'd pay for, especially since the AI results I get incidentally are either "fluff" or are just wrong. There will be some reckoning, and a shakeout will be what pushes all this flood of spending into a more rational equilibrium. There must be casualties to go along with the winners.
Post: What’s Really on My Mind These Days
Link to comment from November 29, 2025
A very good set of suggestions. You don't have to be precise. Don't spend a lot of real time and money to protect yourself against a speculative harm. Simplicity sometimes wins out, for reasons more important than incremental gains. While money is important, there are lots of other things in life that are also important.
Post: Decision Frameworks
Link to comment from November 29, 2025
If you are interested in donating appreciated investments, and they are only part of a holding, make sure you donate those with the highest gain, usually the ones you have held the longest. For example, if you've been in a mutual fund for decades, you can usually go online to find and designate the exact shares you want to be part of your donation. This will be very important for tax purposes, for the year in which the donation is made, but even more so for the future.
Post: 10 Ways to Give—Without Writing a Check
Link to comment from November 9, 2025