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FANS OF PROFESSIONAL sports know the excitement and agony of watching each year’s fresh crop of rookies. These young players have to relearn a game they thought they knew.
The fact is, the strategies, tactics, intensity and winning habits of big league sports teams are tougher than those of college and minor league teams. That can leave rookies wondering what hit them when they move up to the big leagues.
That’s how I felt in December 2022,
MY FAMILY HAS BEEN regularly visiting a remote corner of southwest England since 1968, when I was five years old. My maternal grandparents retired to the area, and for a while my parents owned a holiday house nearby. It is, to me, the world’s most beautiful place.
Decades ago, while walking the country lanes, I came across the ruins of a church that was under the protection of a group called Friends of Friendless Churches,
VICKY AND I ALWAYS knew our retirement home would need to be near our two sons and their families, so we could be part of our grandchildren’s lives. It’s taken a few years and a pandemic, but we finally made that happen.
We purchased a new home in Monmouth County, New Jersey, in September 2023. We’ve now moved in, and we’re already enjoying more time with our grandsons. We’ve also met some very welcoming neighbors.
WE SOLD OUR PRIMARY residence in the Philadelphia suburbs and moved to our New Jersey beach home in March 2021. The sale allowed Vicky and me to take advantage of what’s arguably the most valuable tax break available to everyday Americans: the capital-gains tax exclusion on the sale of a primary residence.
But while the tax break is valuable, it comes with strict and often-confusing rules—and those rules may work against us now that we’ve moved home yet again.
THE LAST TIME I HAD a job where I was eligible for a pension was 1994. People with pensions seem to count the days till they’re eligible to collect their monthly check. That makes sense: They know there’s gold at the end of their working life. I didn’t have this sort of “golden parachute.” If I didn’t save, I couldn’t retire.
From 1994 on, funding my 401(k) and IRA were my only paths to a comfortable retirement.
WHAT SHOULD BE THE first rule of personal finance? My vote: Always look for ways to stay in the center lane—that is, to take a balanced approach. As 2024 gets underway, here are 10 ways you could apply this principle.
1. Housekeeping. Over time, many of us accumulate a grab bag of investments—some good, some not-so-good. Those in the not-so-good category can pose a challenge. Suppose you own an expensive mutual fund.
IN A RECENT ONLINE discussion, I compared the benefits of an immediate-fixed annuity with the 4% retirement-income rule. The 4% rule suggests that investors can withdraw 4% from a well-balanced investment portfolio in the first year of retirement, and then add annual inflation adjustments without fear of running out of money over a 30-year retirement.
Using the NewRetirement annuity calculator, I found that a 65-year-old man could purchase an immediate annuity for $1 million,
WE OFTEN IMAGINE WE know something about the future that’s unknowable—and the result can be costly investment mistakes. Below is an edited excerpt from the new book “From Zero to Millionaire: A Simple, Effective, and Stress-Free Way to Invest in the Stock Market,” published by Harriman House.
“I don’t think the United States is going to survive.”
Several years ago, I was having lunch with a friend in a San Francisco restaurant when he made this confession.
WITH NO DISRESPECT TO our representatives in Congress, a new rule taking effect in January reminds me of a scene from The Jerk, an old Steve Martin movie. Playing the role of a carnival huckster, Martin shows off a wall of attractive prizes, but then narrows the choices to an impossibly small set of options.
Congress did something similar when it instituted a new rule governing 529 education savings accounts. The rule in question opens up greater flexibility in how surplus 529 funds can be used.
I SPENT A GOOD portion of my early adult life in neighborhood taverns. Back then, I sold beer for a living. You can imagine that I saw and heard some crazy things. Remember the sitcom Cheers? I knew doppelgangers for each and every Cheers character.
But the things I heard in those bars didn’t come close to the things I heard later when I worked as an income-tax preparer.
STOCK INVESTORS TALK about taking advantage of market inefficiencies. That sounds nice, but I don’t have any confidence I can spot mispriced stocks, which is why I stick with mutual funds, especially index funds.
But there’s a market inefficiency where I’ve done pretty well—train tickets. In my late 60s, when I was in my final job, I commuted from central New Jersey to Philadelphia by train. This meant parking my car at the station,
I RETIRED ALMOST TWO years ago, at age 56. My wife, who is nine years younger, decided to semi-retire so we could relocate from Rhode Island to Florida. We were able to afford early retirement in part because we’d lived below our means for many years, diligently saving while also paying off our mortgage and other debts.
Relocating to a state with a lower cost of living and lower taxes also helped. In addition,
SOMEONE POSTED THIS comment on a Facebook retirement-planning group that I follow: “My plan is based on my spouse and I living to 95 and 94 respectively. Our paid house is now worth about 900K. I am comfortable it will appreciate at 5% per year. The plan shows a 75% chance of success. If we sell the house at 85-84 and rent at a retirement community the success goes to 99%. We could cut back on expenses and that 75% chance would improve but why do that if I don’t need to?”
I suppose that,
HOW DID I GET financially to where I am today, 15 years into retirement? It’s a good question—one that’s taken me a lifetime to answer.
I’ve been fortunate in a way that’s nearly impossible for Americans today. I worked for one company for nearly 50 years and I accumulated a traditional pension based on that service. In addition, during my last few years on the job, I was eligible for stock options, restricted stock awards and enhanced bonuses.
HOW MANY OF OUR adult financial habits are shaped by childhood experiences? My parents, who grew up during the Great Depression, weren’t fans of providing allowances for my sisters and me. My oldest sister, Gail, got no pocket money but remembers being offered a quarter to fill a grocery bag with dandelions pulled from the yard. Lynn, 10 years older than me, received a quarter a week for a short period.
My first allowance was also a quarter a week,
