My SO had a fixed indexed annuity out of the penalty phase and wanted to earn a better interest rate than the 2.5% rate it had earned over the last 10 years.  She did a 1035 exchange into a Multi Year Guaranteed Annuity ladder for 3-5 years at roughly 5.85%. This is a taxable (non deferred) account that will shelter the money from taxes for the length of the annuity.  She will not need lifetime income as her current guaranteed income floor is more than sufficient to cover expenses. 

One of my relatives lived on a pension of $23 a month. Of course that was his military pension in 1866. That’s $491 in 2024 – that’s poverty level for sure. 
In retirement I do a great deal of reading, listening to and viewing opinions and strategies about retirement. Having managed pension and 401k plans for decades, I can’t let go. 
One thing I know for sure, views about retirement are as diverse as each individual.

I recently heard a fascinating discussion about millionaires.  A financial advisor was speaking to an audience and made the comment that billionaires have jets and millionaires have two used Toyota Camrys in the garage.  His point was that millionaires become millionaires by living below their means and that most millionaires whom he has met live modestly.
He went on to say that there are an estimated 24 million people in the United States who are millionaires. 

OVER THE PAST SEVEN years, HumbleDollar has become my professional life’s passion. Cancer means I have maybe another year in me—and then it’ll be up to you. My hope: The site will have a life beyond me.
On the site’s homepage, just below the latest articles, you’ll find a new feature dubbed Forum. Will HumbleDollar have a lively future, rather than fading into a dusty collection of old articles? That all depends on whether readers and writers embrace the Forum,

For the last five or so years, I’ve held a disproportionately large position in the Vanguard World Stock Index ETF (VT). This fund has given me “coverage” of the global markets, including a 40% stake in international stocks. Originally, I congratulated myself on my cleverness. After all, VT is monstrously diversified and dirt cheap and, besides, foreign markets were deemed sorely undervalued by the market cognoscenti.
But were they really? As of now, my shrewd little maneuver has left my portfolio performing embarrassingly below the return of the “simpleminded” and home-biased—but inordinately domestic tech/heavy—S&P index funds.

Obviously, this depends on individual situation. I faced this dilemma in 2023, when I retired. There are pros and cons for each. Many of my colleagues opted for lump sum. That seemed to be the most popular thing to do.  I was one of the few who opted for monthly payment.
With Social Security  and monthly pension, which cover my expenses, I can be more aggressive with investing our nest egg. I don’t need to worry about funding expenses from investments in the midst of market fluctuations. 

In recent weeks, I’ve been asked by several friends if and by how much am I invested in NVDIA. Well, overall I have about a 5% position, similar to that of the broadest market index funds. The typical response is, “Is that all? Why not more?” Many of them have devoted anywhere from 20-50% of their savings to the stock and are blithely delighting in their wisdom. Of course, the answer depends on very many factors—age,

Exactly who are them and they?
It seems these two folks, them and they, are responsible for most of our problems, especially financial problems, a least that’s the way some – many – people see things.
A women on Treads this morning was complaining she had to pay a Medicare premium bill – before starting Social Security – within 12 days.  According to her the Medicare system is a joke. Her plan to get even was going to the doctor just to make them have to pay for that bill.

DO YOU REMEMBER the days before you could drive? You felt like you were on a leash. No freedom. No fun.
I have news for you: Those days could return.
One of the post-age-65 nightmares that we don’t talk about enough: Most affluent retirees live in the suburbs. Homes are miles from grocery stores, medical offices, movie theatres, restaurants and—perhaps most important—drugstores.
In the suburbs, the stream of city-based public transportation usually slows to a trickle.

IN AN EARLIER ARTICLE, I detailed how Charter Communications wasn’t so much my internet provider as my extortionist. I thought I’d dealt with it all in an equitable manner. But then, exactly two years after our relationship began, Spectrum abruptly increased the price it charged for internet access by 67%, from $29.99 a month to $49.99. I guess we didn’t have a relationship so much as a contract.
While I didn’t take too kindly to that,

I see this new Forum as akin to the Bogleheads forum.  I have some problems with that site, and I (obviously) like this one better.  But one very interesting post I saw related to retirees from 2000.
The idea is that, theoretically, 2000 was just about the “worst time” someone could retire because it was shortly before the 9/11/2001 drop in stocks, followed by the 2008-09 plunge.
As a mid-career investor, I’d be interested to hear how retirees from that time period fared.

I’ve never been that diligent about pursuing frequent-flyer points, credit card rewards and other “freebies” for being a loyal customer. Still, it’s amazing how many of these programs I participate in, including four airlines, three hotel chains, a travel site, a cruise line, Amtrak, a rental car agency and four rewards credit cards, not to mention a local pizza joint.
And these are just the ones I pay attention to: I have a quarter-century-old address book listing all kinds of rewards programs that I no longer bother with.

I VIVIDLY REMEMBER my father explaining how small sums of money could grow exponentially. Using the example of a penny that doubled every day for a month, he showed how it could grow to more than $10 million. Indeed, as Albert Einstein didn’t say, “The most powerful force in the universe is compound interest.”
Many authors tout the benefits of saving beginning at a young age. Radio personality Dave Ramsey and his daughter Rachel Cruze,

AS WE GET OLDER, some of us have less patience and complain more. Maybe it’s because we’re frustrated. Many everyday activities become more difficult to perform as we age. As a 73-year-old, I probably have a shorter fuse when dealing with life’s daily hassles.
My friend Bill might also fall into the cranky category. He was complaining about how terrible customer service has become since the pandemic. “Prices keep rising, but we keep getting less in return,” he ranted.

If 78% of Americans were truly living paycheck to paycheck – implying no money except for basic necessities, the economy would be at a standstill. No purchases at retail store sales, no entertainment venues, no travel – unless, of course it’s all on credit. Only utilities, food markets and insurance companies would be in business- maybe a McDonalds of Chick-fil-A or two.
The reported percentages are based on surveys. People don’t always give honest answers in surveys.