normr60189

Comments

• At any given time, one or more assets may underperform. Adam Grossman’s HD article “Sell America” includes a reference to the Callan Periodic Table of Investments. It depicts how regularly this occurs and how chasing winners may be futile. Now that the Ex-U.S. stock market and gold have been performing there is a tendency to chase these.  I don't chase performance and I've made few changes to my portfolio since 2021 (I did purchase stock in rocket company in 2024) . I’ve done very well since 2006-7 and I attribute this to a well-diversified portfolio which has had a healthy foreign stock component, some precious metal mining stocks and the avoidance of fads. 

  Post: Keep it Simpler

  Link to comment from February 18, 2026

• Upon graduation they faced the usual tasks. Find an apartment in the city in which they chose to live and work, provide a security deposit and so on. The point of the loan was to assure resources for these things until payday arrived. Alternately, I could have simply paid their bills and in doing so, promoted a dependency cycle.  The children had jobs upon graduating. That wasn’t the issue. As for “Why a loan?” Well, lending and repayment is what most of us will face, be it for a car loan, a mortgage or a credit card. They were adults and once they decided upon their school of choice, I made it a point to treat them as such. With choice comes responsibility.  In fact, the children had managed their finances throughout college. They had budgets and were expected to properly manage any funds they received. During college they all worked part-time, saved some and spent the rest. For example, one ran a painting crew during the summers.  When they graduated they made a smooth transition into the work force, for which they had been prepared.  None returned home after college; they had successfully left the nest, moving to CA and the east coast. Although the CA child learned that CA is a very expensive place to live and left it after a few years. After that initial loan I’ve never had to lend them money or pay their bills. As far as I know, they use debt strategically as they were taught. Home mortgage, for example.  

  Post: Helping Adult Children

  Link to comment from February 16, 2026

• I suspect many parents help their adult children in some manner.  I was no exception. Helping can take various forms. The children were groomed for technical engineering careers and schooled in critical thinking and various forms of independence, so it was no surprise that they decided to go to engineering school.   If they had decided to go to in-state public colleges, I agreed to a free ride. However, they decided to go out of state. In that case they were responsible for a portion of the costs. They took out loans. It was a token amount, and I wanted them to see a portion of their post-graduate paycheck go to the education of their choice. It was to be a reminder of the consequences of their decision. One was able to get a partial scholarship, too.  The costs were high; one college was about $100,000 a year. When they graduated, I was nearly debt free, but I had suspended funding for my retirement for a few years. Helping can take different forms. During college, I turned over a well-used vehicle to each. It was serviced, had new tires and brakes, etc. The vehicles were expected to perform with simple routine maintenance for several years, and did. They paid insurance, etc. Eventually they sold these and purchased something better. I got a portion of the proceeds. When they graduated, I gave them each a “grubstake” loan. This was to assist them with rent and other necessary, initial expenses. All had good jobs upon graduation. I gave them lots of time to repay this. One took about 6 years and had to be reminded. One decided upon an advanced engineering degree, paid for by his company. He attended school nights and part-time.   Today, all are in their 40s, are independent, have excellent careers, own their homes and have well-funded retirement plans. There were some bumps, and good jobs at stable companies can be difficult to find from time to time.   In fact, they are in better financial shape at their age than I was when I was in my 40s.  We are available for any reason, but the children take pride in their independence and accomplishments.  

  Post: Helping Adult Children

  Link to comment from February 15, 2026

• I won’t argue that housing is expensive, because it is. However, this is not news to me and bargain hunters can find exceptions. My first home was purchased in 1978. It was during one of those real estate booms that occur from time to time. Three years later there was a bust and prices settled, but a loan I took out for improvements hit 21% interest. Yow! One thing about real estate it is said that “all real estate is local”. Average pricing can be deceptive. For my first house, I capitulated and purchased a smaller house on a larger lot. It was all I could afford with a 20% down payment. It was significantly less than the average and median prices in that small city. I later purchased a 3BR condo when I downsized for much less than the average prices at the time.   Some compromise and hunting will yield desireable bargains. I sold both at a good price and both were in better condition when I sold than when I purchased. Many apparently think decorating is maintenance.  I currently live in a 2,000 sq. ft. manufactured home which I purchased for 55% of the average price in this community. I invested an additional $15,000 to take care of maintenance issues. Because it is a manufactured home on land I don’t own, I pay $350 annual property tax, but no real estate tax. I also pay an annual resort fee.   Today, the city for my first home has a population of about 53,000, median age is 38. Prices vary significantly. Average home prices are $481,000, the mean is $510,000 and the highest are $700,000-$1 million+.  Clearly, the low end is substantially less than the median, and really nice 3-BR condos are available for $250,000. Median property tax is $4,306. Average rent is $2,500 (median $1,437) and household income is about $120,000. In other words, there is reasonable property available and with very good public schools.  Certainly, some neighborhoods are unaffordable. NYC and many CA cities come to mind. If the real estate price isn’t prohibitive, then the taxes may be, but I think bargain hunters can do well in many locales.  

  Post: Home Prices and Affordability

  Link to comment from February 13, 2026

• I had a similar experience with my spouse, who was stock-market averse. In 2004 I convinced her to contribute to a 403b and suggested Vanguard. I also suggested target date funds and she asked for help and I selected two. However, in 2009 Vanguard was dropped as the manager and she was forced to pick from a new list. All of the stipulated firms only offered managed accounts.  I went through the list and found one which, among other things, charged a much lower fee, about 0.5%. So, after an interview she went with that firm. When she retired because of health issues I attempted to get her to consolidate and move all funds to Vanguard, but she wouldn’t. She used the manager of the other 403b as another source and I didn’t have a big problem with that. However, I did create a spreadsheet comparing her Vanguard performance to the managed account. Vanguard did better and this was obvious with the graph I showed her. She finally agreed to move her managed account to a self-managed brokerage. To do so required a conversion from 403b to IRA. The new firm was very helpful in navigating the forms. That ended the fees. Now, I don’t fault her for her reluctance. For one thing, she tends to view the stock market as a crap-shoot. She watched relatives invest for years and go down in flames from time to time. One uncle was severely burned in the 2008 fiasco and never recovered. All got hit in the Dot-Com plunge. One was even a day trader for a time and that didn’t turn out well. For another thing, she really hates the volatility which is inherent when investing.   I think the fact that she overcame her great reluctance in 2004 and continues to invest to be a significant accomplishment for her. According to Firecalc, her decisions will increase retirement spending by $20,000 per year.  

  Post: The High Cost of Financial Advice: A Tale of Two Portfolios Revisited

  Link to comment from February 7, 2026

• Where I live we have quite a few older people running the check-out lanes in the grocers, etc. I'd guess the ratio of old to young is about 50/50.

  Post: Laid Off

  Link to comment from February 7, 2026

• Wow, after 30 years I can appreciate the shock. She sould approach this initially as a sabbatical and, then consider looking for part-time employment if she is so inclined. It is not unusual for the newly retired to feel a bit off balance. It can take a while to adjust.

  Post: Laid Off

  Link to comment from February 6, 2026

• I had a similar experience with a K-1. I had everything else ready by February 1, but was delayed every year by the general partner who filed via extension.

  Post: Tax Filing (A Teeny Tiny Rant)

  Link to comment from February 5, 2026

• My spouse has a chronic disease and has had a similar experience. When I reduced my working hours we traveled to warmer, lower climates with fewer barometric pressure changes. G was surprised to get relief. We then decided to winter where it is warmer. We flipped the script a few years ago, made the Southwest our domicile address and head north for 3 months to avoid peak summer heat. Her disease has been much more bearable with less pain.

  Post: The Right Time to Retire Isn’t Always the Optimal Time

  Link to comment from February 5, 2026

• When you think you know what you need in retirement you must then decide if the withdrawal rate will deplete savings within a lifetime. No one wants to run out of money in retirement. Allegedly the median household savings age 65-74 is $200,000. When retirement arrives, by choice or necessity, it may be necessary to make a difficult decision, such as drawing more to sustain a lifestyle and/or trimming expenses. For anyone with sufficient savings simple RMDs may work. For those who lack savings, different withdrawal approaches may provide a solution. This is especially true if one has limited savings, but wants to leave a legacy. Some may argue that HD readers are enlightened and have sufficient savings. I don't know what's typical for a reader.

  Post: Maximizing Lifetime Retirement Spending

  Link to comment from February 5, 2026