HEARD OF DIRECT indexing? It’s supposed to be the next big thing in investing. Let me tell you why that isn’t likely.
Direct indexing arose from a shortcoming in the way exchange-traded funds (ETFs) work. Most ETFs mimic a market benchmark such as the S&P 500 or the Russell 2000, and are bought and sold on an exchange like stocks. Their main selling point is that there are no active portfolio managers selecting the securities,

THERE’S A LOT of handwringing right now about U.S. stock market valuations. Prof. Robert Shiller’s cyclically adjusted price-earnings ratio, or CAPE, has rarely been more famous—or perhaps infamous. It’s currently perched near 39, meaning buyers of the S&P 500 are paying almost 39 times average inflation-adjusted corporate earnings for the past 10 years. That number might mean little to many without proper context. It was around five at the worst of the Great Depression,

BANK OF AMERICA’S monthly fund manager survey takes the pulse of portfolio managers around the world. The latest survey was released last week—and some of the results weren’t so rosy.
Despite a record-breaking quarter for corporate profits, which blew past analysts’ predictions, money managers have turned more bearish. Perhaps recent market volatility, especially among foreign stocks, has caused jitters. Also casting an ominous cloud is the Delta variant’s global spread. On top of that,

I GOT STUCK IN a conversation at a dinner party recently with a name dropper. It was painful. Wanting to impress me, I suppose, I learned that, “Yes, Janet Yellen and I are good friends. I’ll be traveling to D.C. soon and I’m looking forward to connecting.”
But it didn’t end there. I also heard about this person’s exotic travels and homes around the world. And the fabulous career that supported this lavish lifestyle.

AT THE END OF EACH month, my pension arrives in my bank account. I can count on the same amount every month. It’s comforting.

In the old days, nearly 50% of working Americans had pension benefits. But it was never more than that. For most workers, the three-legged stool really only had two legs, Social Security and personal savings. Today, 76% of state and local government workers have a pension plan, versus just 12% of private sector workers.

WHEN I TOLD MY WIFE a few years ago that I wanted to retire by age 50, she was supportive from the get-go. The memories of her dad passing away soon after his 52nd birthday played a role in her snap approval. But it took us a while to sort through the full financial implications.
I figured that our lifestyle, including our foreign travels and occasional splurges, would be the same even if my paychecks stopped prematurely.

TODAY’S STOCK MARKET reminds me of Charles Dickens’s famous line: “It was the best of times, it was the worst of times….”
It’s the best of times, of course, because the market continues to hit new highs. From a low of 2,237 in March 2020, the S&P 500 has doubled. Over the 10 years through July, the S&P has delivered an average annual return of 15.4%, including dividends, far above the historical average of 10%.

WHEN DESIGNING a portfolio, a critical decision is how to allocate your money across stocks, bonds and other investments. Within stocks, you’ll need to make an additional choice: How to split money between U.S. and international. A quick survey of finance-related websites turns up recommendations of 25% to 40% for an investor’s foreign stock allocation.
While I agree that investors should have a meaningful percentage of their portfolio in overseas stocks, I don’t think investors should lose sleep over whether they’re at the high or low end of this range.

FINDING HIGH-QUALITY, affordable childcare has always been a challenge, but it became especially so during the pandemic. Suddenly, thousands of parents were working from home. Many childcare centers closed or restricted new enrollment. Our small South Jersey town saw an influx of families fleeing New York and Philadelphia. That put a strain on limited local resources, and spots for the summer have been hard to find.
I know a little about this because my youngest son and daughter-in-law have been struggling to find consistent childcare for their 17-month-old son James.

I RECENTLY INJURED my lower back playing tennis. I rested for a day and then decided I was well enough to resume my usual activities. But my haste worsened the pain, extending my recuperation to more than a week. Every move—even sneezing—hurt. Putting on my pants was a major struggle. I was forced to do nothing except rest.
Doing nothing was the one of the hardest things I’ve ever done. Ironically, at the time of my injury,

IN SEPTEMBER 2017, my wife and I sold our home, car and almost all our earthly possessions. We spent the next four years driving across four continents. Along the way, I learned a great deal about renting a car that, in this rental-car-challenged world, could make your travels less costly and more reliable.
1. I use Expedia, Kayak and Hotwire to compare rental car rates. When you book, pay attention to whether your reservation is free cancellation or pay now (noncancellable).

NOW MORE THAN EVER, people are hungry for yield or, failing that, a reliable return that doesn’t hinge on the performance of the stock and bond markets. Those puny money market and “high yield” savings account rates may suffice for your emergency fund. But after factoring in inflation, keeping too much in cash investments is a losing proposition.
Last week, a 50-something neighbor asked me for investment ideas to help him bridge the gap between now and retirement.

WANT A LONG and prosperous retirement? Here are six numbers to pay attention to:
No. 1: Retirement savings. Add up all your retirement account balances and divide by 25. This will give you an estimate of what you can safely withdraw from savings in your first year of retirement.
No. 2: Social Security benefit. To your projected income from your nest egg, add your estimated Social Security benefit and any other retirement income you’ll likely receive.

CAN YOU EVER HAVE enough? Yes, I’m talking about money.
But I’m not some gazillionaire burning up billions on a rocket to space. I’m talking about emergency savings for ordinary people. A cash stash. Rainy-day funds. Mattress money.
I thought I had enough a few months ago, but then life happened. Dental work. A blown clutch. More support for my son, who has a great job offer but won’t start work until later this year.

WE OWN AN OLD WHITE farmhouse in Mid-Coast Maine. When I have work done, I tell contractors to make it look exactly the same, as if the house were sealed in a snow globe.
Up here, the rural past seems close at hand. The artist Andrew Wyeth painted one peninsula over. His depiction of the Olson farm perfectly captured the rustic ideal. Christina Olson and her brother Alvaro sold vegetables out of their kitchen door.