Excellent Article, and I did all of the above, because improvements count!
I think in the second example it is $750K -$600K=$150K. At any rate you all get the idea, it is worth it to keep excellent records, and do your best to get good info, on what counts as an improvement. Sold our house in 2022 for $725K but with improvements, got it below $500K our deduction for a married couple, and so NO capital gains tax. YAY!
But, did you account for the biggest killer of wealth over 30 years, a 3% inflation is 142.7% for 30 years, or that means something costing $100 today would cost $242.70 in 30 years if inflation averages 3% annually. So I went the other way, about 80% in the S&P 500 and 20% cash, to tide me over in the lean years. S&P average about 9% in the past, but next 30 years maybe 7%. My take after many years in retirement, now at 79. Select the approach which works for you.
Adam, another EXCELLENT article. Better to plan, than not. And that is the main point, no one can be a perfect planner, but it is my belief you learn a lot by planning. One thing is for sure, you need to save for retirement, and fund those IRA's or equivalents as best you can, the more the better. At 79, I want you all to know, retirement is not cheaper. As the article states get a handle on what is practical, and from my personal experience, do not plan on retirement at 80% but at 100% of your previous income. And in that way, if you have extra, that is all the better. Reality, is many lower middle income folks just do not have enough to prepare for retirement, but you should still do your best to SAVE.
We used to have 14 credit cards, but in retirement with less purchases overall, we trimmed down to 7 cards, but my goal is 3 cards, but I will probably never get there. Each card makes offers for 3 months 5% off on restaurants, 3% for this, 2% for that and the beat goes on. My favorite card is Costco which most of you are aware of. Other than that my Chase Visa. Let the games go on, and congrats to those who get the most out of each card. One thing I really dislike, is some restaurants are adding a 2.5% credit card fee on your bill, that negates a lot, and I refuse to pay it, will pay cash or debit card to avoid it. Make sure you let them know.
Great article Richard. I remember when I was able to start my first IRA in the 1975, sure did not know much, but somehow knew to pick an appropriate mutual fund, as ETF's did not exist. Always eager to learn more I followed Peter Lynch, and then found Warren Buffett, read books and early on in my early 30's around 1979 or so, took a course in Stocks. When it came to the 2000's I was well prepared to NEVER sell stocks in a panic, and followed Buffett's advice “Be fearful when others are greedy, and be greedy when others are fearful.” Also Buffett is the best LONG term holder of stocks. When the market crashes, or goes down considerably you just WATCH, and hopefully have some cash to buy when stocks are at their lows. We need to find a way to educate all these investors so they can have a reasonable retirement. Thanks for trying to help MANY.
Jonathan, just know, we are all here for you. We really appreciate your update, and for sure very happy you are not in Pain. From my experience, you are ODAAT, one day at a time. And in addition, enjoy what you can do. You have to take it easy and one step a time, so my suggestion is listening to soft music, reviewing past vacations from all the pictures, if possible watch videos of scenic landscapes, and each day that energy level will improve. Prayers for you and your family. Thanks again for all you do, even now.
After 55 years of work and passion, your Dad for sure gave you the right advice about WORK. I did a similar thing with my Children and Grands, “if you have a job you love, you’ll never work a day in your life.” This is a fact of life, it is not the most salary that makes the difference, it is doing what you love and have a passion for, that makes it all worth while. Once in a while Dad's know BEST.
With 6 Grands, we keep sending all kinds of gifts, and one is for a Great Grand. We are so fortunate to be able to enjoy our giving to the family. These grands are now starting to find their own jobs, as the age is 27 to 18, and the Great is 4, so nice to have a little one again. In preparing for Retirement, only two people were involved and we are blessed to have saved well for 50 years, and now get to enjoy the fruits of our labor.
All too complicated for me. Keeping my 2018 car for another 5 years or so. Maybe I will buy then, I will not have to drive it, it will pick me up and I will just say where I want to go. It is all happening before our eyes.
Comments
Excellent Article, and I did all of the above, because improvements count! I think in the second example it is $750K -$600K=$150K. At any rate you all get the idea, it is worth it to keep excellent records, and do your best to get good info, on what counts as an improvement. Sold our house in 2022 for $725K but with improvements, got it below $500K our deduction for a married couple, and so NO capital gains tax. YAY!
Post: Home Improvements Tax Tips
Link to comment from September 13, 2025
But, did you account for the biggest killer of wealth over 30 years, a 3% inflation is 142.7% for 30 years, or that means something costing $100 today would cost $242.70 in 30 years if inflation averages 3% annually. So I went the other way, about 80% in the S&P 500 and 20% cash, to tide me over in the lean years. S&P average about 9% in the past, but next 30 years maybe 7%. My take after many years in retirement, now at 79. Select the approach which works for you.
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
Adam, another EXCELLENT article. Better to plan, than not. And that is the main point, no one can be a perfect planner, but it is my belief you learn a lot by planning. One thing is for sure, you need to save for retirement, and fund those IRA's or equivalents as best you can, the more the better. At 79, I want you all to know, retirement is not cheaper. As the article states get a handle on what is practical, and from my personal experience, do not plan on retirement at 80% but at 100% of your previous income. And in that way, if you have extra, that is all the better. Reality, is many lower middle income folks just do not have enough to prepare for retirement, but you should still do your best to SAVE.
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
We used to have 14 credit cards, but in retirement with less purchases overall, we trimmed down to 7 cards, but my goal is 3 cards, but I will probably never get there. Each card makes offers for 3 months 5% off on restaurants, 3% for this, 2% for that and the beat goes on. My favorite card is Costco which most of you are aware of. Other than that my Chase Visa. Let the games go on, and congrats to those who get the most out of each card. One thing I really dislike, is some restaurants are adding a 2.5% credit card fee on your bill, that negates a lot, and I refuse to pay it, will pay cash or debit card to avoid it. Make sure you let them know.
Post: What is your credit card rewards strategy?
Link to comment from September 13, 2025
Great article Richard. I remember when I was able to start my first IRA in the 1975, sure did not know much, but somehow knew to pick an appropriate mutual fund, as ETF's did not exist. Always eager to learn more I followed Peter Lynch, and then found Warren Buffett, read books and early on in my early 30's around 1979 or so, took a course in Stocks. When it came to the 2000's I was well prepared to NEVER sell stocks in a panic, and followed Buffett's advice “Be fearful when others are greedy, and be greedy when others are fearful.” Also Buffett is the best LONG term holder of stocks. When the market crashes, or goes down considerably you just WATCH, and hopefully have some cash to buy when stocks are at their lows. We need to find a way to educate all these investors so they can have a reasonable retirement. Thanks for trying to help MANY.
Post: This post contains a secret and words I used in a few forum posts ago. Why is it not encouraging.
Link to comment from September 6, 2025
Jonathan, just know, we are all here for you. We really appreciate your update, and for sure very happy you are not in Pain. From my experience, you are ODAAT, one day at a time. And in addition, enjoy what you can do. You have to take it easy and one step a time, so my suggestion is listening to soft music, reviewing past vacations from all the pictures, if possible watch videos of scenic landscapes, and each day that energy level will improve. Prayers for you and your family. Thanks again for all you do, even now.
Post: Health Update
Link to comment from September 6, 2025
After 55 years of work and passion, your Dad for sure gave you the right advice about WORK. I did a similar thing with my Children and Grands, “if you have a job you love, you’ll never work a day in your life.” This is a fact of life, it is not the most salary that makes the difference, it is doing what you love and have a passion for, that makes it all worth while. Once in a while Dad's know BEST.
Post: Never Working a Day in My Life
Link to comment from September 6, 2025
With 6 Grands, we keep sending all kinds of gifts, and one is for a Great Grand. We are so fortunate to be able to enjoy our giving to the family. These grands are now starting to find their own jobs, as the age is 27 to 18, and the Great is 4, so nice to have a little one again. In preparing for Retirement, only two people were involved and we are blessed to have saved well for 50 years, and now get to enjoy the fruits of our labor.
Post: What They Don’t Tell You About Retirement: Part 2 – Grandchildren Are Expensive
Link to comment from September 6, 2025
All too complicated for me. Keeping my 2018 car for another 5 years or so. Maybe I will buy then, I will not have to drive it, it will pick me up and I will just say where I want to go. It is all happening before our eyes.
Post: The Wheel Deal
Link to comment from September 6, 2025
Thanks for another thought provoking article. Now more than ever, go Bogle and Buffett. I use the S&P 500 index like VOO, and I am as happy as a clam.
Post: Inventing Problems
Link to comment from September 6, 2025