WHEN MY TWO CHILDREN were ages nine and five, I opened Vanguard Group variable annuities for them. No, variable annuities aren’t my favorite investment. Far from it. Indeed, I don’t think they’re anybody’s favorite investment vehicle, unless you happen to be an insurance agent angling for a big commission.
Still, tax-deferred annuities differ from other retirement accounts in one crucial way: You don’t need earned income to fund the account. That means it’s possible to open a tax-deferred annuity for a toddler,

Last month, I wrote about a spate of funerals my wife and I attended.  Since then, I recently found out that a close friend and colleague in his early 60s was diagnosed with a “butterfly glioblastoma,” a rare and aggressive form of brain tumor. It’s a recent diagnosis, and his treatment plan is being finalized. A few friends and I drove an hour and a half to take him out to lunch earlier in the week,

I want to thank Jonathan Clements for his article on allowances for children many years ago while I was raising my children. After reading the article I decided to give my two children age 13 and 5 at the time a monthly allowance. For this allowance they had to buy their own clothing. My daughter at age 13 was initially appalled at having to buy her own clothes. We did agree that we would buy big clothing items such as a.

I thought the IRS gifting rules were pretty straight forward and I understood them.  Any individual can give $19K (in 2025) to anyone else w neither a gift tax or reporting requirement.  Seems pretty clear.
Then I dug a little deeper online which was maybe a mistake and came up w some issues.
One was the IRS reference to “gift splitting” by spouses where one spouse can use the other spouses gift exemption to gift in excess of the $19K. 

Even though I’m retired now, I have certain routines to get me going every day. First, I make the coffee, then I peel an orange, and finally I curl up on my sofa with my coffee, orange and iPhone and read the latest posts that come into my inbox from Humble Dollar.
This week on two occasions, I didn’t receive my daily newsletter!  I finally went directly to the website and got caught up on all the recent posts that I may have missed.

We have discussed many times when to start Social Security and pretty much concluded the decision is personal and need based. I don’t have a problem with any of that, but what bugs me is concern over breaking even considering amount received and years of benefits.
It seems to me the monthly benefit, the income when needed most is all that matters. Since I once again find myself in the minority, I asked a neutral party,

I’m going to be 74 next month, and I’m beginning to realize that the little things in life are starting to frighten me more. If I were younger, they probably never would have crossed my mind.
When I walk, I’m constantly scanning the ground for hazards. A raised sidewalk or uneven pavement could send me tumbling—and at my age, I’m not sure my bones would hold up to the fall.
Every night before I lie down,

The Joint Committee on Taxation today posted their analysis of proposed changes to the current tax code. The 400+ page document is long but certainly easier to read than the tax bill that posted yesterday 5/12/2025.
Nothing final here but I think it will give a flavor to what may be coming in 2026.
https://www.jct.gov/publications/2025/jcx-21-25/

We often hear about the power of compounding returns—how investments grow exponentially over time. But there’s a lesser-known side to compounding: the cost of ongoing financial advisor fees.
Consider a $1,000,000 portfolio growing at 7% annually. Over 10 years, that could grow to about $1,967,151—if left untouched. But add a seemingly modest 1% annual advisory fee, and your ending value drops to roughly $1,779,056. That’s a $188,000 difference.
Why such a large gap?
Each year, the fee reduces your balance before it compounds.

My favorite, beautiful word is “consequences,” and how it seems to be ignored.
We tend to forget that no matter what we do, there will be a result, a reaction. There will be consequences, some intended, others not.  We tend to address one problem but fail to think through possible consequences. 
The best examples are at the national level. Apply a surcharge such as IRMAA and people will attempt to keep income lower.  
Roth accounts were intended to increase retirement savings,

It seems that converting my (non-IRA and non-Roth IRA) Vanguard mutual funds to the corresponding  or equivalent ETFs is a smart tax move to make.
However, then I read this in Vanguard’s information about making the conversion.
By making the conversion, I will be giving up the average cost basis of the shares I had purchased years ago, and applying the FIFO (First In First Out) cost basis.
This is what Vanguard says:
“If you are already locked into the average cost method by a sale,

This holiday can be a stressful one for many families.  Who plans it? Who hosts it? Do you go out for a meal or cook or cater in?  Who is invited?  Who can actually come (geographically and other commitments)?  How does everyone get along?
After an exhausting but great Mother’s Day at our Jersey shore home on a beautiful day here my wife and I collapsed as I reflected on how lucky we are compared to many families including many of our friends.

Here I sit on my deck, the blue sky is cloudless. It is 74 degrees, no wind and quiet except for the birds making their views known. My view of anything beyond 50 feet is blocked by thickly leaved trees.  
Between writing, I read commentary about tariffs, trade, economies on Project-Syndicate, a daily updated compilation of articles from scores of international writers. I’m also reading about the Salem witch trials and Ben Franklin’s rise to fame and testimony before Parliament about taxing the colonies –

There have been many discussions about assisted living and CCRC in HD. As I learn about how they staff and manage these facilities, there are many unanswered questions.
Currently, about 65% of elderly are cared for by their families at home. For 13% of those who aren’t living with family, the gap is partially filled by assisted living establishments. The median cost of care is $5,900/month, but ancillary services are extra. That can bring that cost over $15,000/month.

“Don’t ask what the world needs. Ask what makes you come alive, and go do it. Because what the world needs is people who have come alive.” — Howard Thurman
When I last checked in with you we were waiting to move to California to be closer to our, now, 18-month granddaughter. I shared the wisdom I had gotten from a six-day silent retreat. As Paul Harvey used to say, “now for the rest of the story”.