Lists

I am certainly nearer the end of my life than the beginning. and I thought it wise to ask around, talking with everyday people, trying to get a good, accurate analysis of the overall economic outlook. Some may find this silly, after all, why  not just heed the advice and wisdom of all of the experts, offering their views on market conditions, the direction of interest rates, both short and long term, etc.  But, nothing ventured,

To my best recollection, I first came across the book Predictably Irrational by Dan Ariely while on vacation. While my wife was checking out clothing and jewelry stores—a mild form of torture for me—I found a local bookstore and flipped through some of the more interesting chapters in Ariely’s book. One chapter’s thesis is that getting free stuff can be “a source of irrational excitement.” While the chapter is mostly about how our penchant for free things can be manipulated by marketers,

Six years ago, Jonathan Clements published an article in HumbleDollar recounting some of the  anecdotal influences on his financial thinking. Rather than research and facts, he explained, it’s often the exploits we experience, the tales we’re told or the comments that come our way that shape how we view money matters.
I know that holds true for me. Years later, I can still hear the voices and see the faces attached to these events:
1.

As a compulsive list maker, I’m updating my list of finance-related
action items and analysis to do around year-end. Here are a few things on my list:
– Estimate taxes
– Consider year-end contributions
– Target income levels to maximize ACA credits
– Consider Roth conversions
– Assess prior year’s returns
– Analyze last year’s spending
– Project “safe spending” for the coming year
– Re-balance investments if needed
What’s on your list?

THE OLDER WE GET, the easier it is to see the progress we’ve made, both as individuals and as a society. But I’m not just thinking about personal wealth, higher standards of living, better health care and extraordinary technological advances.
As I look back, I also see impressive progress in our financial thinking. Here are eight notions that were conventional wisdom half a century ago—but which today aren’t universally accepted and, in my estimation,

The Forum has been live for more than two months, and it’s been a hit with readers. Each day brings an impressive number of comments and often at least a few new discussion threads. But—as your most irritating boss would remind you—there’s always room for improvement.
Here are six suggestions for Forum participants:

Don’t refer to stocks and funds by their ticker symbols or, at a minimum, not on first reference. I’ve spent my career focused on this stuff,

Here’s the 3×5 card challenge: Summarize everything essential for retirement on a 3×5 card, and then share your summary here. For the sake of this post, please limit your advice to eight to ten bullet points.
This is the first in a series of posts on: Everything You Need to Know on a 3×5 Card.
Have fun…
Bill

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.

I always like seeing Jonathan’s monthly top hits list for articles, which is based on page views. I thought I’d compile something similar for the Forum to recognize posts that had the highest engagement last month. My engagement metric uses a proprietary formula based on a combination of likes and comments.

Quinn Relents/Dick Quinn
Feeling Lucky/Jonathan Clements
Humble Bragging/Jonathan Clements
Nobody Wants to Pay Healthcare Bills/Dick Quinn
Vanguard vs Fidelity/Steve Abramowitz
New Car Envy/Rick Connor
CCRC is not an Assisted Living Facility/Kathy Wilhelm
They’re Sunk/Jonathan Clements
Would You Leave a Note?/Rick Connor
Monday Rant/Dick Quinn

How about the three most liked posts?

Our oldest grandchild is off to college this September. Needless to say he is a bit anxious. I gave him some simple advice I learned many years ago in basic training. “Anticipate, be aware and plan ahead.” 
In basic training they do their best to break you down, to keep you on edge and then they build you up. The fear of what’s happening next is worse than the reality.
I remember the live fire training when they told us the machine gun was three feet above the highest point on the range.

GETTING OLD CAN, after a while, get really old. Here are 30 ways I’m reminded that I’m no longer a spring chicken.

Life insurance salespeople burst into laughter when I inquire about a policy.
My house is so warm I can cook without using the oven.
As I walk past the neighborhood funeral parlor, the undertaker’s eyes light up.
Decades ago, all my doctors were stern, serious men. Now, my primary care physician is a woman with a great sense of humor—who was born after I retired.

On other financial sites, you’ll find folks bragging about the hot stocks they own and the prescient market calls they made. But here at HumbleDollar, we favor a different sort of boasting.
Instead of trumpeting their market savvy, HumbleDollar writers and commenters are often looking to signal their financial prudence. How do they do that? Here are eight of my favorite HumbleDollar boasts:

How quickly folks paid off their mortgage.

I doubt there are any HumbleDollar readers who buy into the dozen notions listed below. But trust me: There are plenty of folks who do.
Trying to play financial coach to friends or family members? You’ve got your work cut out for you if:

They imagine they can achieve financial freedom without living well below their means.
They believe their car—or any other possession, for that matter—is an investment.
They think it’s easy to beat the stock market averages.

What does it take to be “rich?”  Answering that question is nearly impossible. There are as many answers as Google sites, but after trying, I have settled on being in the top 10% of income and net worth at around $200,000 per year and $2,000,000. Most people think that’s rich.
Keep in mind you can meet the net worth goal even falling short on income. 
What got me thinking about this was reading various social media sites where individuals were complaining about their inability to be wealthy and displayed strong envy over those who were.

I’VE ALWAYS ASSUMED my financial life wasn’t so different from that of others—and that made writing personal-finance articles a whole lot easier. I, too, wanted to own a home, buy the right insurance, pay for the kids’ college, and amass enough for a long and comfortable retirement.
On top of that, I wasn’t some financial minority—a highly paid executive, or a successful business owner, or the recipient of a hefty inheritance. Instead, I was like most everybody else,