This is a great piece. Let me add a corollary. This explains why it is also a mistake to ever, yes ever, give wide or unfettered discretion to your broker to buy and sell on your behalf. You may subscribe to the "sit still" philosophy, but it is likely your broker without constraints will have already taken lots of action in unsettled times before you know it to "protect" you. Whether or not he or she succeeds, your own commitment to sit still was worthless.
To me, tokens represent yet an additional barrier or barriers between the investor and the desired investment - a piece of actual corporate ownership. That is unbelievably important. Just saying "tokens don't represent actual shares" doesn't begin to explain the risks. Only in times of trouble and/or dysfunction in the market, or with the companies involved, or with the intermediary token entity (or multiple entities) will these problems emerge. Who do you go after? What contract rights do you have? Who will be left holding the bag when someone - anyone - up the chain to the actual stock offeror runs into financial trouble? The individual investor will be last in line, and can't begin to know how to cut losses, much less be made whole.
I've noticed some slight evolution in the site, and the main comment I have is that IMHO, a post will occasionally stray too far from what I would consider personal finance issues. I don't mind individuals having more than one submission if the submission is something that is interesting, useful and/or compelling - i.e., it is something with a personal finance connection that readers really will want to read. I think the multiple post issue is something that will take care of itself over time - it is hard to write something that is heavily substantive and also readable, and writers will find that out from experience. I will note here one thing that really has bothered me a little. I've seen a few items that wander into politics or into public policy issues that have little connection to personal finance. I really don't want to read about politics on HumbleDollar. I see it everywhere else. I would have liked to post something on one post that said the item was inappropriate for HumbleDollar, but I held my pen. I have always assumed that Jonathan ran a tight ship, and he would have had no hesitation in telling a writer that his or her article might be good, but not for HumbleDollar.
I have a couple of mutual funds that tend to throw off a lot of capital gains distributions in December. I have a couple of general questions about making my portfolio more tax efficient: First, if my (or another) fund family has a matching ETF (an ETF that mirrors the holdings of my mutual fund), would that be a more tax-efficient vehicle to use, due to few capital gains distributions? If so, are there offsetting downsides? Second, if there are ETFs sold specifically to reduce taxable capital gains distributions of one or a few mirrored mutual funds, who offers them? Third, how easy or difficult is it to make the shift from the mutual fund to the ETF? I know there is a rule about the extent to which the new fund has to match the old one, and that rule is somewhat firm, but are there other pitfalls?
I may be wrong, but I seem to recall that SEPs offered me as a self-employed professional a much better option for sheltering more of my earnings each year. I'm now long retired, but I note that this year, one can shelter $72,000! That adds up fast, though you eventually have to pay the piper.
I estimate the S&P 500 is down about 7% from its high, but it is still a couple of thousand points ahead of where it was only a few years ago. Rule 1 is always "keep calm". I agree with many commenters that one should have some cash or cash equivalents available if things get worse so as not to have to invade your core investment portfolio. Then take the Buffett view - the United States always bounces back.
I agree that every employee whose job must be terminated deserves to be treated with consideration and respect, and to some degree they deserve that treatment even if their termination is for cause. However, beyond that, I have many areas of disagreement with your post, and I'd bet there are many like me who chose to remain silent. In competitive markets, some businesses are run poorly and you have to expect they will falter or fail, and they will do the acts of severance poorly, too. But the competitive market, especially a volatile market that now includes large and powerful international competitors, exerts its own discipline. That often includes surprises and forced actions that cannot be predicted or cushioned. More people in the room doesn't help when their personal interests take precedence over the firm's. One must always be alert to one's own risks, and sometimes we choose our career path poorly or suffer despite our best efforts. (Which takes me back to my first sentence.)
Newton's law of fitness: A body at rest tends to stay at rest. A body in motion tends to stay in motion. Change your inertia to one of motion. Get out of the chair. Walk. Do anything to get your blood flowing. And work hard not to fall down. I am 75. I figure I have 20 years left. I think the first 10 should be OK. I exercise so the second 10 will be OK, too. And I don't cut corners.
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 tax 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. For example, my state phases deductions out and I have seen that the Federal government will start to do that for 2026 for certain higher income taxpayers.
Comments
This is a great piece. Let me add a corollary. This explains why it is also a mistake to ever, yes ever, give wide or unfettered discretion to your broker to buy and sell on your behalf. You may subscribe to the "sit still" philosophy, but it is likely your broker without constraints will have already taken lots of action in unsettled times before you know it to "protect" you. Whether or not he or she succeeds, your own commitment to sit still was worthless.
Post: Resist the Urge to Act
Link to comment from April 12, 2026
To me, tokens represent yet an additional barrier or barriers between the investor and the desired investment - a piece of actual corporate ownership. That is unbelievably important. Just saying "tokens don't represent actual shares" doesn't begin to explain the risks. Only in times of trouble and/or dysfunction in the market, or with the companies involved, or with the intermediary token entity (or multiple entities) will these problems emerge. Who do you go after? What contract rights do you have? Who will be left holding the bag when someone - anyone - up the chain to the actual stock offeror runs into financial trouble? The individual investor will be last in line, and can't begin to know how to cut losses, much less be made whole.
Post: Stock Tokens
Link to comment from April 12, 2026
Thanks!
Post: Tax Efficiency
Link to comment from April 5, 2026
I've noticed some slight evolution in the site, and the main comment I have is that IMHO, a post will occasionally stray too far from what I would consider personal finance issues. I don't mind individuals having more than one submission if the submission is something that is interesting, useful and/or compelling - i.e., it is something with a personal finance connection that readers really will want to read. I think the multiple post issue is something that will take care of itself over time - it is hard to write something that is heavily substantive and also readable, and writers will find that out from experience. I will note here one thing that really has bothered me a little. I've seen a few items that wander into politics or into public policy issues that have little connection to personal finance. I really don't want to read about politics on HumbleDollar. I see it everywhere else. I would have liked to post something on one post that said the item was inappropriate for HumbleDollar, but I held my pen. I have always assumed that Jonathan ran a tight ship, and he would have had no hesitation in telling a writer that his or her article might be good, but not for HumbleDollar.
Post: Note to HD Writers and Contributors
Link to comment from April 4, 2026
I have a couple of mutual funds that tend to throw off a lot of capital gains distributions in December. I have a couple of general questions about making my portfolio more tax efficient: First, if my (or another) fund family has a matching ETF (an ETF that mirrors the holdings of my mutual fund), would that be a more tax-efficient vehicle to use, due to few capital gains distributions? If so, are there offsetting downsides? Second, if there are ETFs sold specifically to reduce taxable capital gains distributions of one or a few mirrored mutual funds, who offers them? Third, how easy or difficult is it to make the shift from the mutual fund to the ETF? I know there is a rule about the extent to which the new fund has to match the old one, and that rule is somewhat firm, but are there other pitfalls?
Post: Tax Efficiency
Link to comment from April 4, 2026
I may be wrong, but I seem to recall that SEPs offered me as a self-employed professional a much better option for sheltering more of my earnings each year. I'm now long retired, but I note that this year, one can shelter $72,000! That adds up fast, though you eventually have to pay the piper.
Post: Something to Think About
Link to comment from March 29, 2026
I estimate the S&P 500 is down about 7% from its high, but it is still a couple of thousand points ahead of where it was only a few years ago. Rule 1 is always "keep calm". I agree with many commenters that one should have some cash or cash equivalents available if things get worse so as not to have to invade your core investment portfolio. Then take the Buffett view - the United States always bounces back.
Post: Any concern?
Link to comment from March 29, 2026
I agree that every employee whose job must be terminated deserves to be treated with consideration and respect, and to some degree they deserve that treatment even if their termination is for cause. However, beyond that, I have many areas of disagreement with your post, and I'd bet there are many like me who chose to remain silent. In competitive markets, some businesses are run poorly and you have to expect they will falter or fail, and they will do the acts of severance poorly, too. But the competitive market, especially a volatile market that now includes large and powerful international competitors, exerts its own discipline. That often includes surprises and forced actions that cannot be predicted or cushioned. More people in the room doesn't help when their personal interests take precedence over the firm's. One must always be alert to one's own risks, and sometimes we choose our career path poorly or suffer despite our best efforts. (Which takes me back to my first sentence.)
Post: America Doesn’t Just Do Layoffs. It’s Fallen in Love With Them
Link to comment from March 22, 2026
Newton's law of fitness: A body at rest tends to stay at rest. A body in motion tends to stay in motion. Change your inertia to one of motion. Get out of the chair. Walk. Do anything to get your blood flowing. And work hard not to fall down. I am 75. I figure I have 20 years left. I think the first 10 should be OK. I exercise so the second 10 will be OK, too. And I don't cut corners.
Post: Frugal Fitness
Link to comment from March 14, 2026
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 tax 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. For example, my state phases deductions out and I have seen that the Federal government will start to do that for 2026 for certain higher income taxpayers.
Post: What is the best way to donate to charity in 2026?
Link to comment from March 9, 2026