BY THE WAY....HAPPY 37th Anniversary, Mark. I wish you both continued hope, health, and happiness. Also, forgive typo on my earlier post. $10,000, not $10,00.
Mark: In the words of the Christian Rock Group, Mercy Me, "I Can Only Imagine" what those numbers would be based on our numbers. On June 23, 2026, my bride and I will celebrate our 52nd wedding anniversary. According to Claude.ai, had we invested $10,00 on June 23, 1974, it would have grown to $2.4M by June 23, 2024, our 50th wedding anniversary. Here was Claude.ai's comment: What a golden anniversary result! That $10,000 wedding gift would have grown to approximately $2,473,000 — almost two and a half million dollars — over exactly 50 years. A few highlights from the journey: The rocky start. You invested right into a bear market — 1974 was one of the worst years in S&P 500 history, down nearly 26%. Your $10,000 fell to about $8,548 by year-end. But you would have recovered fully within two years, and the 1975 and 1976 rallies more than made up for it. The great bull run. The 1990s were extraordinary. From 1991 through 1999, the market posted positive returns every single year, and your investment went from about $82K to $443K in just nine years. The two big gut-checks. The dot-com bust (2000–2002) sliced the portfolio from $443K down to $277K — a 37% drop. Then 2008 alone took it from $504K to $320K (-37%). Both times, staying invested was the only way to capture the recoveries that followed. The home stretch. The decade from 2013 to 2024 was exceptional, with the portfolio going from $723K to nearly $2.5M. The key stats: +24,634% total return at 11.65% annualized — slightly above the S&P 500's long-run historical average, reflecting the particularly strong era your 50-year window captured. Happy 50th anniversary! 🎉 As always, this assumes dividends fully reinvested, no taxes along the way (as in an IRA or similar), and minimal fund expenses. Real-world results would be somewhat lower. If there was ever a case for following Jack Boigle's advice to "Just stand there, don't do anything," this is it. Thanks for an interesting post.
The stock market is run on the combination of three things...fear, greed, and stupidity. It is not my place to convince anyone to agree with that position, and I wouldn't try to do so, for one simple reason: "People convinced against their will are of the same opinion still." It has been known for over 50 years that you cannot time the market, yet people still try it every day. Evidence shows that fewer than 10% of money managers consistently outperform the S&P 500, yet thousands of financial advisors claim they are worth their fees every day. Bogle was right. Buy the US Stock Market and stay the course. Anything and everything else is a form of market timing...and it will fail. Personally, I have 80% in the Total US Stock Market and 20% in the Total International Stock Market because we have no need for bonds or fixed income, as over 145% of our retirement living expenses (not including travel) are covered by Social Security and annuities. Whenever you get the urge to get creative with your portfolio...or try to play sectors...or think you have an original investment idea that is a sure thing... read the first sentence of this post...and try to determine which one of the three is motivating you.
What a great example. Now I want Peking Duck for dinner! As far as financial advice goes, I tend to agree with your philosophy... but only if the client is truly an educated DIYer. As I have said in numerous other posts, the level of financial ignorance present in the US population is borderline abysmal. After spending 15 years in academia and 3 decades in financial services, I never cease to be amazed by how many people know so little about how money works, and specifically, how to manage their own financial situation. You have to admit, most HD readers do not fall into that category.
Ram, You are aware that the US Social Security system is tweaked by the government, especially to benefit "the poor," paid for by "the well-to-do," aren't you?
Richard, I am in total agreement on your suggestion to increase the current FICA/Medicare deductions to the 16.22% level. In addition, the cap on the FICA tax should be removed, just as it was on the Medicare Deduction. There is no excuse for the capping of one and not the other, especially with the system being underfunded, primarily due to low birth rates over the past 2-3 decades. Other changes/adjustments should be considered to resolve the Social Security/Medicare pending crisis. These include increasing the minimum age to file for Social Security benefits, as well as sound, focused, unbiased financial education on the benefits of delaying filing for benefits. Despite overwhelming mathematical evidence that delaying filing until at least FRA provides greater overall benefits, over 60% of all recipients file for their benefits before reaching FRA. Considering the additional fact that only 8% f recipeints wait until age 70 to file, the need for this financial education becomes even more obvious. Lastly, under no circumstances should we allow Congress to punish those currently receiving benefits. NO Means Testing, NO Reduction in benefits due to the earned benefit amount being received, and NO Delay in COLA, as you suggested. The single most important factor required to solve the issues we are faced with is to KEEP THE PROMISES MADE to those who followed the rules to which they were subjected. No more "moving the goal posts" or "changing the rules of the game after the game is underway."
Glad to see you made it to the "two-comma club" as well. Welcome, new member, and Congratulations. It really is a simple process. NOT easy, but simple.
Not paying fees for unneeded services is a smart decision. Leaving a spouse to fend for herself financially, after your demise...questionable to say the least. My wife, like yours, has zero interest in learning how to handle the investments, insurance, etc. For that reason, I have two advisors. One is a Vanguard. CFP, 33 years old, paid by salary. Vanguard's total fee for his services is 30 basis points a year, or .03%. His value to me is to advise my wife about our Vanguard Portfolio after my death. If he leaves the company, another qualified CFP will take his place, and the service will continue. My portfolio consists of VTI and VXUS, and I advised my wife not to change it after I am gone. The second advisor is actually an insurance professional. His company services our annuity contracts. His staff is in their 30's. He is 55 years old. They are credentialed and qualified to do the job for which I retain them. They charge no annual fees. The only real change that might have to be made in the future would be the result of my wife needing LTC. She is not insured against the need for LTC because she could not qualify for a policy. Should that need occur, the annuities we have will increase their payouts by 505 annually, for up to five years, and then revert to lifetime payments at the standard amounts. She would also have access to RMDs, currently being used for QCDs, and the investment portfolio. We have no debts and no mortgage payment, and even without her social security check, my remaining social security check, which we will receive, will exceed her retirement expenses. I also prepared a detailed letter, listing all accounts, account numbers, access codes, user names, passwords, addresses, phone numbers, etc. so all she has to do is make four phone calls. I suggest you consider something similar.
Comments
BY THE WAY....HAPPY 37th Anniversary, Mark. I wish you both continued hope, health, and happiness. Also, forgive typo on my earlier post. $10,000, not $10,00.
Post: For Richer, For Poorer: 37 Years of Compounding
Link to comment from April 29, 2026
Mark: In the words of the Christian Rock Group, Mercy Me, "I Can Only Imagine" what those numbers would be based on our numbers. On June 23, 2026, my bride and I will celebrate our 52nd wedding anniversary. According to Claude.ai, had we invested $10,00 on June 23, 1974, it would have grown to $2.4M by June 23, 2024, our 50th wedding anniversary. Here was Claude.ai's comment: What a golden anniversary result! That $10,000 wedding gift would have grown to approximately $2,473,000 — almost two and a half million dollars — over exactly 50 years.
A few highlights from the journey:
The rocky start. You invested right into a bear market — 1974 was one of the worst years in S&P 500 history, down nearly 26%. Your $10,000 fell to about $8,548 by year-end. But you would have recovered fully within two years, and the 1975 and 1976 rallies more than made up for it.
The great bull run. The 1990s were extraordinary. From 1991 through 1999, the market posted positive returns every single year, and your investment went from about $82K to $443K in just nine years.
The two big gut-checks. The dot-com bust (2000–2002) sliced the portfolio from $443K down to $277K — a 37% drop. Then 2008 alone took it from $504K to $320K (-37%). Both times, staying invested was the only way to capture the recoveries that followed.
The home stretch. The decade from 2013 to 2024 was exceptional, with the portfolio going from $723K to nearly $2.5M.
The key stats: +24,634% total return at 11.65% annualized — slightly above the S&P 500's long-run historical average, reflecting the particularly strong era your 50-year window captured. Happy 50th anniversary! 🎉
As always, this assumes dividends fully reinvested, no taxes along the way (as in an IRA or similar), and minimal fund expenses. Real-world results would be somewhat lower. If there was ever a case for following Jack Boigle's advice to "Just stand there, don't do anything," this is it. Thanks for an interesting post.
Post: For Richer, For Poorer: 37 Years of Compounding
Link to comment from April 29, 2026
The stock market is run on the combination of three things...fear, greed, and stupidity. It is not my place to convince anyone to agree with that position, and I wouldn't try to do so, for one simple reason: "People convinced against their will are of the same opinion still." It has been known for over 50 years that you cannot time the market, yet people still try it every day. Evidence shows that fewer than 10% of money managers consistently outperform the S&P 500, yet thousands of financial advisors claim they are worth their fees every day. Bogle was right. Buy the US Stock Market and stay the course. Anything and everything else is a form of market timing...and it will fail. Personally, I have 80% in the Total US Stock Market and 20% in the Total International Stock Market because we have no need for bonds or fixed income, as over 145% of our retirement living expenses (not including travel) are covered by Social Security and annuities. Whenever you get the urge to get creative with your portfolio...or try to play sectors...or think you have an original investment idea that is a sure thing... read the first sentence of this post...and try to determine which one of the three is motivating you.
Post: Staying Rational
Link to comment from April 19, 2026
[deleted by moderator]
Post: Staying Rational
Link to comment from April 19, 2026
What a great example. Now I want Peking Duck for dinner! As far as financial advice goes, I tend to agree with your philosophy... but only if the client is truly an educated DIYer. As I have said in numerous other posts, the level of financial ignorance present in the US population is borderline abysmal. After spending 15 years in academia and 3 decades in financial services, I never cease to be amazed by how many people know so little about how money works, and specifically, how to manage their own financial situation. You have to admit, most HD readers do not fall into that category.
Post: One Good Call?
Link to comment from April 17, 2026
Ram, You are aware that the US Social Security system is tweaked by the government, especially to benefit "the poor," paid for by "the well-to-do," aren't you?
Post: Fixing Social Security once and for all
Link to comment from April 16, 2026
Richard, I am in total agreement on your suggestion to increase the current FICA/Medicare deductions to the 16.22% level. In addition, the cap on the FICA tax should be removed, just as it was on the Medicare Deduction. There is no excuse for the capping of one and not the other, especially with the system being underfunded, primarily due to low birth rates over the past 2-3 decades. Other changes/adjustments should be considered to resolve the Social Security/Medicare pending crisis. These include increasing the minimum age to file for Social Security benefits, as well as sound, focused, unbiased financial education on the benefits of delaying filing for benefits. Despite overwhelming mathematical evidence that delaying filing until at least FRA provides greater overall benefits, over 60% of all recipients file for their benefits before reaching FRA. Considering the additional fact that only 8% f recipeints wait until age 70 to file, the need for this financial education becomes even more obvious. Lastly, under no circumstances should we allow Congress to punish those currently receiving benefits. NO Means Testing, NO Reduction in benefits due to the earned benefit amount being received, and NO Delay in COLA, as you suggested. The single most important factor required to solve the issues we are faced with is to KEEP THE PROMISES MADE to those who followed the rules to which they were subjected. No more "moving the goal posts" or "changing the rules of the game after the game is underway."
Post: Fixing Social Security once and for all
Link to comment from April 16, 2026
Glad to see you made it to the "two-comma club" as well. Welcome, new member, and Congratulations. It really is a simple process. NOT easy, but simple.
Post: Avoid the noise, buy the market and stay invested
Link to comment from April 12, 2026
Not paying fees for unneeded services is a smart decision. Leaving a spouse to fend for herself financially, after your demise...questionable to say the least. My wife, like yours, has zero interest in learning how to handle the investments, insurance, etc. For that reason, I have two advisors. One is a Vanguard. CFP, 33 years old, paid by salary. Vanguard's total fee for his services is 30 basis points a year, or .03%. His value to me is to advise my wife about our Vanguard Portfolio after my death. If he leaves the company, another qualified CFP will take his place, and the service will continue. My portfolio consists of VTI and VXUS, and I advised my wife not to change it after I am gone. The second advisor is actually an insurance professional. His company services our annuity contracts. His staff is in their 30's. He is 55 years old. They are credentialed and qualified to do the job for which I retain them. They charge no annual fees. The only real change that might have to be made in the future would be the result of my wife needing LTC. She is not insured against the need for LTC because she could not qualify for a policy. Should that need occur, the annuities we have will increase their payouts by 505 annually, for up to five years, and then revert to lifetime payments at the standard amounts. She would also have access to RMDs, currently being used for QCDs, and the investment portfolio. We have no debts and no mortgage payment, and even without her social security check, my remaining social security check, which we will receive, will exceed her retirement expenses. I also prepared a detailed letter, listing all accounts, account numbers, access codes, user names, passwords, addresses, phone numbers, etc. so all she has to do is make four phone calls. I suggest you consider something similar.
Post: Financial Planning
Link to comment from April 12, 2026
It just might be. Go for it!
Post: Resist the Urge to Act
Link to comment from April 11, 2026