Losing money was a great shame in my family, worse than not making any money at all. It was a shanda, Yiddish for disgrace. It didn’t take me long to learn the program. I’ve spent a lifetime trying not to be someone’s financial embarrassment, which includes managing money in my own family. I suffer from FOLM, or fear of losing money, not to be confused with FOMO, shorthand for the daredevils of the investment world afflicted with the fear of missing out on stocks hurtling toward glory.

DO YOU REMEMBER the headline, “Brooke Astor’s Son Guilty in Scheme to Defraud Her”? He swindled his famous mother out of millions, once by pocketing a $2 million commission on the sale of an Impressionist painting he purloined from her New York City apartment. She lived to age 105 but suffered from dementia.
F. Scott Fitzgerald purportedly said, “The rich are different than you and me.” But maybe not when it comes to elder fraud.

In 2024, it seemed like the stock market went in just one direction—up. That notion has been shattered in the past few weeks. The Nasdaq is well into correction territory. The Japanese stock market tumbled 12.4% on Monday alone. Legend has it that the great banker, John Pierpont Morgan, was once asked what was going to happen in the stock market. His answer: “It will fluctuate.”
Stock market volatility is nothing new. But investors have hardly mastered their nerves and emotions in the face of it.

I read here on HD and regularly elsewhere about Roth conversions. I never did one mainly because they weren’t available until after I retired at 67. 
My questions are:
is there an age when doing the FIRST conversion for the FIRST Roth account is no longer prudent —- and if a conversion is made is it typical to pay tax taxes from the account being converted or other sources?

I TOOK MY FIRST cross-country car trip in 1972. It was the summer of my junior year in college. I’d be graduating the following year and embarking on working life. This would be my last chance for a while to take a long trip. I was traveling by myself, so I had the freedom to decide exactly what I wanted to do.
That’s what brought me to Pikes Peak near Colorado Springs, Colorado. One of the greatest auto races in America is the Pikes Peak International Hill Climb.

In the comment section of Jonathan’s recent newsletter, Dave Arey asks that I post the list of questions I referenced in my comment.
Background: Several months ago, my fellow deacons and I emailed a list of questions focused on personal financial readiness to the members of our church. Our small congregation includes single people, young families and older folk. A few are retired, but most still work. Also, most are not as financially sophisticated as the typical HumbleDollar reader.

“Stevie, it’s your number one brother calling.”
“You mean my only brother.”
“Very funny. Look I’ve been thinking about something important I want to pass by you.”
“Sure, but it sounds ominous. Not health I hope.”
“No, no, fortunately, my back situation seems to have stabilized. I can get around and I can walk about a block or two. I still have trouble getting up from a chair.”
“Better but not great. So what’s up?”
“I want to sell the Jacksonville properties.”
“Seriously? 

We’re once again suffering a bout of stock market indigestion–hardly surprising after a robust two-year market rally. We’ve enjoyed healthy returns since October 2022. Now it’s time for a taste of risk. Indeed, today, the Nikkei Stock Average fell 12.4%, its worst one-day performance since 1987.
No doubt market pundits will start focusing intently on what the Federal Reserve will do in September, and whether indications of economic weakness will result in a larger-than-anticipated interest rate cut.

THE CONTROVERSY over student loans has caught up with the latest federal government repayment program. That program is known as SAVE, or Saving on A Valuable Education.
SAVE is an income-driven repayment plan, or IDR. It’s the sixth iteration of an IDR plan. Due to the favorable terms and the high estimated price tag, it was recently halted by legal challenges.
IDR plans follow the same general formula to determine the monthly payment on student loan debt.

There has been a plethora of back and forth in the HD Forum recently about what constitutes income. I hesitate to wade into these stormy seas. But what the heck. I wrote an article a while ago that discussed the various meanings of income that the tax code uses.  Head there if you want a discussion of Gross income, Adjusted Gross Income (AGI), Modified AGI, Taxable income, and Combined income.
Right off the bat I’ll state that this argument will never be won.

The August 3rd Wall Street Journal has an interesting article on target date funds in 401k plans. The article notes:
”Target-date funds are a professionally managed portfolio of stocks and bonds that recalibrates the mix as we hurtle toward retirement age. These funds now attract 64 cents of every dollar that flows into 401(k) plans, Vanguard Group data shows, and hold trillions in assets.”
The article says some people reject these funds as too conservative and sometimes too expensive.

BONDS MAY NOT BE the most interesting investment, but they generate their fair share of debate. Especially after 2022’s rout, when total-bond market funds dropped 13%, many investors wonder how best to proceed. An open question: Does it make more sense to buy individual bonds or opt for bond funds?
To answer this question, let’s start with a simple example. Suppose you’d invested in Vanguard Group’s total-bond market fund (symbol: BND) on Jan. 1,

Should we make healthcare “free”? Should the minimum wage be increased? Should we eliminate tipping and raise pay? Should seniors be exempt from property taxes? Should teachers be paid on par with doctors? Should CEO pay be limited to a lower multiple of worker pay? Should college be free? Should we limit the ability for landlords to raise rents.
These and many similar ideas pop up on social media (and from politicians) all the time. Sometimes they are refuted,

I was in Flapjacks with my friend Jerry on a Monday morning that looked  like it had the potential to be a much-needed good day. But the pancakes were warmer than the conversation.
“How could you have embarrassed me like that? “
“You mean what I said last night when we were having dinner at Café Bernardo with those insufferable  attorney friends of yours?” I knew darn well what he meant but I didn’t think it was such a big deal.

I was out of college for seven years before I got married. During all those years, I lived in the same apartment located on the edge of Lancaster, PA. I occasionally had friends who were in transition bunk with me for a month or two, but for the most part I lived alone. I liked living a relatively simple life and having control of my environment.
The apartment started out with a sofa ($300), chair ($50),