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Americans and their credit cards

R Quinn | Aug 24, 2026

"Most people are underpaid. Many are trapped paycheck to paycheck. This includes many people who would otherwise be responsible if they could just have an opportunity to dig out of their debt. It's easy to say, well they should have rented a smaller apartment, but maybe that's not an available or realistic choice. A lot of people have to own cars. It's not a choice to have to buy new tires and gasoline. Even with Obamacare, a huge amount of debt and bankruptcy are due to medical costs. In most cases, the need for medical care is bad luck, not problems caused by personal responsibility. (And why is medical care so much more expensive in the US than other wealthy nations, like across Europe?) People should not be blamed for situations truly out of their control. I'm not saying that a lot of people don't handle finances well or that some need of medical care isn't due to self-destructive behavior. But looking at the systems we have to negotiate, as capitalism gets less regulated, more individuals need to scramble to pay their way. Credit cards are designed by our corporate overlords to make a profit. We own stock in banks and credit card companies. Why? Because we expect them to have high revenue streams of interest and fees and to grow. This is proof that the system is designed to suck money from creditcard holders and that we are well aware of this."

- Cammer Michael

Traditional or Roth

ArticleRichard Connor | Aug 29, 2026

THE CHOICE BETWEEN a traditional retirement account or a Roth is a frequent topic on HumbleDollar. The choice is generally framed as a choice between paying taxes up front (a Roth), or deferring taxes until withdrawal (traditional). I thought it would be interesting to evaluate a real-life example of how this choice might work out. In December of 2016 my wife and I had an opportunity to each open a Roth IRA. My wife took a partial sabbatical that year, and that, combined with maxing out our 401k accounts, gave us a chance to each open a $4,500 Roth IRA. The maximum allowable contribution that year was $6,500 for those 50 and over. Up until then we had assumed that our marginal tax bracket would likely be lower in retirement, and focused on contributing to our employer’s traditional 401k plans. Despite that, we decided to move forward with opening a Roth IRA. I thought it would give us some tax diversity, and the opportunity to do Roth conversions when, and if, it made sense in the future. In December of 2016 we opened Roth IRAs at Vanguard and invested the $4,500 in their S&P 500 Index Fund. Those initial funds have been invested for almost 10 years. Over that decade we have added some additional funds, and have done a few conversions. I recently did a quick analysis to see how my Roth experience would have compared to investing in a traditional IRA. In 2016, our marginal tax bracket was 28%. To contribute the $4,500 required $6,250 of pre-tax income. Due to some financial engineering over the last year, including selling our second home in late 2025, I expect our 2026 marginal tax bracket to stay within the 12% bracket. I’ve been looking at this closely because I’m considering doing a Roth conversion later this year. The table below shows the comparison between the Roth performance, and what a traditional IRA would have produced. The annual rate of return was determined using Nick Maggiulli’s S&P 500 Historical Return Calculator. Roth vs Traditional

The table shows that the Traditional IRA would have been the better choice, producing about $3,500 more in available funds, or about 22% more. This demonstrates that the primary driver in choosing between a Roth and a traditional qualified account is a consideration of the tax rates at the time of contribution and at the time of distribution. There have been a number of changes to the tax code in the last decade that have contributed to the result, but I certainly didn’t predict any of them. If you guess wrong, you pay the price in a higher tax bill. In the example above, the extra $1,750 invested in the traditional account produced an additional $6,143.31 in earnings. The lower tax rate at the distribution of the traditional IRA results in the $3,500 in extra funds. Even though the Roth IRA had tax free earnings growth, the initial larger tax rate overcame that advantage, when compared to the traditional IRA. Because of my pension and my wife’s social security benefit, 85% of her social security benefit is taxable income, so that is not a consideration in our tax calculation. I used Dinkytown’s 1040 Calculator to run a series of estimates of our 2026 tax return to assess if we want to execute a Roth Conversion this year. We are still 4 years from taking RMDs, and I will start my Social Security in a year when I turn 70. My current thinking is a conversion of about $40,000 will keep us in the 12% bracket. There would also be a small NJ state tax impact. My simple analysis reinforces what I’ve been taught. Roth contributions make the most sense when you think your current tax bracket is lower than when you expect to withdrawal the funds. There are secondary considerations, like no tax diversification, no RMDs, and uncertainty about future tax rates. If you intend to pass the funds to heirs, it might make sense to perform Roth conversions today at the 22% tax bracket if you intend to pass these accounts to heirs who may be in their peak earnings years. Not sure? I believe I recall several HumbleDollar contributors write something about splitting the difference? Richard Connor is a semi-retired aerospace engineer with a keen interest in finance. He enjoys a wide variety of other interests, including chasing grandkids, space, sports, travel, winemaking and reading. Follow Rick on Twitter @RConnor609 and check out his earlier articles.

The Wrong-Sided Man

Dennis Friedman | May 8, 2025

"I too walk early in the morning and now I carry a small can of pepper spray. It might be a vicious dog, wrong-way man as you describe, or a wayward hobo looking for an easy roll."

- art winslow

How Did You Find Paid Work After Retiring from Your Primary Career?

Jeffrey Chan | Jul 31, 2026

"After years in the workforce, I came home to raise our twins and eventually homeschooled them through middle school. During that time, I worked part-time for a nonprofit for nine years before "retiring" to help care for my mother in her mid-90s. Along the way, I managed several family estates, including a complex probate estate, as well as my mother-in-law's and my mother's affairs. After my mother's death, my sister, an RN, and I were asked to help an older woman in our hometown navigate aging-related challenges. We helped her remain safely in her home for several years and later assisted with her transition to skilled care after a serious fall. Through those experiences, I gained firsthand insight into the gaps in support available to older adults and their families. Around the same time, I managed the estate of my best friend after she died of cancer during COVID, deepening my exposure to end-of-life planning and estate administration. I thought I was retired. My husband and I traveled, and while we were financially comfortable, I wasn't planning to draw Social Security until age 70. Then a financial planner friend asked if I could help some of her older clients. The idea intrigued me. With a CPA, MBA, and a career that included commercial real estate, construction management, relocation, and a wide range of financial responsibilities, I realized I had skills that could make a meaningful difference. What began as a part-time venture became a growing Daily Money Management practice. Today, three of us help clients manage their day-to-day finances and navigate life's transitions. The work is challenging and rewarding, and it gives me the flexibility to enjoy regular travel and time with family. Best of all, it has allowed us to preserve our retirement savings while continuing to do work that genuinely improves people's lives. There's nothing wrong with knitting or other retirement hobbies (I tried knitting and was terrible at it), but I find deep satisfaction in helping clients solve problems, maintain independence, and face life's challenges with greater confidence."

- cynthiahoffman

This would be a great posting on a web site with the name “HaughtyDollar.”

R Quinn | Aug 28, 2026

"t"

- Mick

You Heel!

Michael Flack | Aug 24, 2026

"Counterpoint- I purchased a brand new pair of Bostonian oxfords, maroon in color for about $20, about 25 years ago. I liked them so much I bought a black pair, but they were only reduced to $35. The black ones were go to shoes for my work environment for a couple decades. I spent ~$150 combined to replace the leather soles and rubber heels multiple times. I wondered if it was a prudent decision to keep spending so much more than the original cost. Then I shopped for equal quality and comfort in new shoes, and I found they were around $250 and could not be re-soled due to the rubber soles. I therefore succeeded in exercising my frugal muscle and got the maximum value out of a relatively paltry investment. And I supported small local businesses, making a modest living for their family. I call that a win-win. I've trashed the black shoes as I felt they were no longer worth repairing, or needed for work. I'll be wearing the maroon ones (original heel/sole) later this year in my son's wedding."

- John Verlautz

The Intentional Spendthrift

Mark Crothers | Aug 21, 2026

"This article really hit home for me. We’ve been retired since 2013 and started off somewhat “frugal” as well. My wife got cancer (twice) in 2016 and 2017 but recovered. This was the first wake up call for me. When we were able to travel again in 2019, that frugality disappeared (within reason). However, I realized that it was mostly while we traveled. I had not realized that until I just read this article. We have always enjoyed traveling but the “getting to the destination” part was the challenging part (flying economy, for example). Now we fly first class and book suites on cruises. At the same time, I think it is funny that I still peruse the menu and may shy away from a dish that costs $3 more or that I will drive out of my way to save $0.05 on a gallon of gas (does anyone else get that paranoid on gas prices). On the other hand, I feel no remorse spending $1,000 on an excursion to Iguazu Falls. Another factor has recently entered my thought process. Now that we are in our mid-to-late 70s, it is apparent that our go-go years will be waning at some point and traveling will lose more of its appeal (as walking up 300 steps to reach the castle or shrine entrance might entail). One way I have mentally “justified” spending more is to say to myself “this is the last trip will be taking.” The reality has been that I’ve been mentally saying that since 2019, while taking typically three international trips per year since (avoiding 2020 and 2021 for Covid). We are booked through 2027, so far. As far as spending limits, our RMDs are fully available for vacation, since we have sufficient income to cover all other expenses. As half our portfolio is in Roth, we have established twice our RMD as the upper end of our discretionary spending plan. This should allow us to spend while still enabling long-term growth."

- snak123

A Place At The Table

Andrew Clements | Aug 26, 2026

"Thank you, William. I’m glad you enjoyed it. The Philippines has taught me quite a bit, and often it’s the small, everyday experiences that have left the biggest impression on me."

- Andrew Clements

Inflation Hedge

ArticleAdam M. Grossman | Aug 29, 2026

THE OPEN KITCHEN restaurant has been a fixture in Charlotte, North Carolina for 75 years. The restaurant has an old-time feel, with memorabilia, including menus from years gone by, lining its walls. Those old menus provided David Enna, a financial journalist, with a laboratory for examining the effects of inflation. What did Enna find? The oldest menu on display is from 1963. To state the obvious, today’s prices make those from the 1960s look quaint. Back then, spaghetti and meatballs cost just $1.10. Today, it’s $15.50. But, as Enna points out, that was more than 60 years ago, so increases are to be expected. Over the past 60 years, the Consumer Price Index (CPI) has averaged 3.8% per year. That isn’t unreasonable, especially since that average includes the 1970s, when inflation sometimes topped 10%. What’s of more concern, though, is what consumers have experienced more recently. Since 2020, prices across the economy have risen 29%. And though those increases have slowed, the Fed is still struggling to ratchet inflation back to its preferred 2% level. This has given investors renewed interest in strategies to defend against inflation. At first glance, this doesn’t seem like it should be such a difficult problem. The U.S. Treasury offers an investment specifically designed for this purpose: Treasury Inflation-Protected Securities (TIPS). These are bonds that are guaranteed by the federal government to increase in value with inflation. And though I hesitate to use the words “bond” and “exciting” in the same sentence, today many investors are finding the return on TIPS compelling. The 30-year TIPS is now paying close to 3% on top of inflation. If inflation averages 2.5%, for example, over the next 30 years, this bond will end up returning a total of 5.5% per year, and with minimal risk. That sounds good in theory, but do these bonds make sense for your portfolio? It’s worth taking a closer look. The first thing to note is that this seemingly attractive 3% yield only applies to 30-year TIPS. Yields on shorter-term bonds are lower. So unless your investment horizon happens to be exactly 30 years, these bonds may be of limited practical value. Putting aside the yield question, though, a more fundamental challenge with individual TIPS—and individual bonds in general—is that they’re a cumbersome way to build a portfolio. Even if you didn’t mind the process of buying bonds one by one, which can be tedious, there’s the fact that it’s hard for most people to be able to forecast their cash flow needs each year into the future. That’s a problem because choosing maturity dates is the foundation on which bond portfolios are built. Ideally, if you can align the maturity dates of the bonds in your portfolio with your future cash needs, then you can hold bonds to maturity, which is when the issuer would promise to pay you back in full. But that redemption value is guaranteed only at maturity. Buy a 20-year bond and sell it after just 10 years, and there are no guarantees. A bondholder could easily lose money selling an individual bond before maturity. Given these challenges, would a TIPS fund be a better choice? To be sure, bond funds are much simpler to purchase and to manage, but they typically offer even less protection from losses than individual bonds. Most recently, shareholders in TIPS funds were disappointed by how they performed in 2022, when inflation spiked to 9%. Investors expected that to be the year when TIPS rewarded investors, but instead, diversified TIPS funds such as the Vanguard Inflation-Protected Securities Fund (ticker: VAIPX) lost nearly 12%. Why did funds like this fare so poorly when inflation was running so high? The problem is that, at the end of the day, TIPS are still bonds. And though they receive a bump in value when inflation rises, a countervailing force is that they lose value when interest rates rise. In 2022, the Federal Reserve raised interest rates aggressively to fight inflation. The negative impact from those rate increases far outweighed the benefit TIPS received from inflation being higher. That puts investors in a difficult position. If TIPS provide inflation protection in theory, but both individual TIPS and TIPS funds carry limitations, what other options are there? The good news is that not all TIPS funds are the same. Some hold only short-term bonds, and they have historically held up much better than more broadly diversified TIPS funds because short-term bonds are more resilient when interest rates rise. Over the past five years, a fund like Vanguard’s Short-Term Inflation-Protected Securities ETF (ticker: VTIP) has outperformed a comparable fund (ticker: VGSH) holding standard short-term Treasury bonds every year, as well as this year to-date. It’s important to note, though, that this is relative performance. In 2022, when the entire bond market was under pressure, even short-term TIPS funds like VTIP did still lose money. They just lost less than funds holding conventional bonds. The bottom line: We should never become too wedded to any one strategy. No investment can promise reliable and complete protection against inflation in every market scenario. That said, I do still recommend TIPS and would specifically recommend a short-term fund like VTIP. But I also suggest taking a diversified approach to inflation protection. Here are other steps to consider. If you’re in your 60s and considering when to claim Social Security, that decision offers a powerful lever. Because Social Security benefits increase with inflation and also increase with each year you delay claiming, it’s maybe the most effective way to build additional inflation protection into your plan. What else can you do? Fortunately, you may already own one of the most effective—and underappreciated—inflation-fighting instruments: stocks. While rising prices in recent years have been frustrating for consumers, the result has been that companies have been able to maintain their profit margins. That, in turn, has helped to support their stock prices through this period of inflation. To be sure, some companies have more of an ability to raise prices than others, but overall, stocks are, in my view, a good way to keep pace with inflation. The one thing I wouldn’t do is to buy gold. Despite its reputation, various studies have confirmed that gold really isn’t a reliable inflation hedge. In a paper titled “The Golden Dilemma,” researchers wrote: “Over practical investment horizons, gold is an unreliable inflation hedge,” though they acknowledge that it may be more reliable over longer timeframes—“if the investment horizon is measured in centuries.” Adam M. Grossman is the founder of Mayport, a fixed-fee wealth management firm. Sign up for Adam's Daily Ideas email, follow him on X @AdamMGrossman and check out his earlier articles.

Bad Maths, Good Fire.

Mark Crothers | Aug 28, 2026

"Thanks for another nice read over morning coffee, Mark. Reading this took me back to the early 1970's when the oil embargo contributed to heating oil prices skyrocketing and the availability of the oil spotty at times in New England. The wood stove in our house became the primary source of heat during that time and for years after the crisis had abated. We were blessed with virtually unlimited access to firewood on the property and adjoining properties. I have great memories of both sitting in front of the stove (sometimes open like a fireplace or closed to run for hours on a armload of wood) and of the many hours working in the woods with my dad cutting, splitting and stacking wood for the coming seasons."

- Dunn Werking

Blood Money

Michael Flack | Mar 28, 2026

"I agree with you about KO but XOM is involved in climate deception since it knew about global warming risks 60 years ago and ranks as one of the top global greenhouse gas polluters."

- Nick Politakis

Feeling TIPSy?

ArticleSanjib Saha | Aug 22, 2026

NOT TOO LONG ago, Treasury Inflation Protected Security (TIPS) was a relatively obscure investment for safe long-term fixed-income investments. For the first twenty years of the new century, consumer prices were mostly stable or rising at a too-slow-to-notice rate. Why bother with anything related to inflation? Sadly, persistently low inflation made us complacent on the biggest long-term risk of bond investments -- the insidious unexpected inflation that robs us of the purchasing power of our “safe” investments. Yes, let’s not forget that the biggest risk of bond or bond-like investments is unexpected inflation. Any bond or CD with a maturity beyond a few years must either offer a sufficiently high interest rate to compensate for sudden bouts of inflation, or have its principal adjusted for the inflation actually realized. The former is nearly impossible to find without sacrificing safety. The latter is what TIPS is for. To be clear, the market and investors always expect some level of inflation. Therefore, a bond’s effective interest rate - measured by its YTM (Yield to Maturity) - must be high enough to not only compensate for “expected” inflation and the uncertainties around it but also provide a meaningful increase in the purchasing power of the original principal. A concrete example might help. Consider a 10-year US Treasury nominal bond with a face value of $1,000, selling at $1,000 and paying 5% annual interest. The interest rate reflects the expectations about inflation and other factors over the next 10 years. The rate would be lower if market expected lower inflation, and higher if market expected the opposite. The omnipresence of inflation means we’re likely to lose some purchasing power when we get our $1,000 in 10 years. It won’t buy what $1,000 buys today. By how much? That’s the thousand dollars question (pun intended). There isn’t a readily available number that explains why that 10-year Treasury Bond yields 5% instead of 3% or 7%. Investors essentially take a leap of faith that annual inflation stays low enough over the 10-year period for the interim interests to compensate for the purchasing power loss, plus some changes. Most of us are perfectly comfortable assuming that inflation won’t be as high as 5% for 10 years. But are we fooling ourselves? I suggest using an inflation calculator to see for ourselves. Spoiler alert: Late 1960s through early 1980s can be an eye-opening period. How’d we feel if the next 10 years turn out to be something similar? Think about how you might feel when you safekeep your money in a so-called secure investment, give up higher returns available from risky investments, and then encounter an inflationary regime. Your minimum expectation was that your purchasing power would remain intact and perhaps improve a little by the time your bond matures. Instead, unforeseen inflation erodes your purchasing power and compromises the financial goal the fund was supposed to cover. Your “safe” investment fails you completely. You realize that it wasn’t safe at all. If unexpected inflation is so devastating, why are we so lax about it? I can think of two reasons. First, our minds haven’t adapted to the reality that, unlike to a “real” asset like a bag of rice or a gallon of gasoline, money in its current form is inherently self-eroding. It slowly loses its worth over time. A hundred dollars sitting around will still be a hundred dollars next year, but it won’t buy the same amount. We don’t intuitively perceive the continuous loss of purchasing power. Even when we do internalize it with some effort, we get used to the “pace” of the loss. In other words, we view inflation as steady and unexpected inflation as highly unlikely. Alas, all it takes is a single prolonged inflationary period to change that perception. By then, however, the damage to existing fixed income investments may already be done. Frankly, I’d be very wary of keeping my long-term “safe” money -- fund that I need to preserve beyond a three-year horizon - in any form that isn’t protected against unexpected inflation. For bond investments, the most meaningful option would be TIPS. Why? Because, in addition to being secured by the full faith and credit of the US Government just like any other Treasury securities, TIPS provides three important assurances upfront. First, it provides protection against unexpected inflation, which is a realized inflation that differs from what we expected when purchasing it. If the actual inflation averages 12% instead of the expected 2%, the principal is automatically adjusted to reflect the actual inflation. No guesswork or unexpected risk involved. Second, it provides a “real interest rate” upfront that tells us how much the purchasing power of the investment will increase over time, regardless of what the actual inflation turns out to be. Buying a 10-year TIPS with real 2% annual interest means the investment’s purchasing power will grow 2% per year over the holding period, before considering taxes and other factors. The third aspect is more nuanced. It involves the possibility of inflation being lower than expected, or even negative inflation (aka deflation). Let me elaborate. If a regular nominal 10-year Treasury Bond offers 5% annual yield and an equivalent TIPS offers a real annual interest rate of 2.75%, the market-implied inflation, the breakeven inflation rate, is roughly 2.25% (5% minus 2.75%). Actual inflation, of course, will be known only after 10 years when the bond matures. Suppose the actual inflation turns out to be only 1.25%. The nominal Bond investor would end up with more purchasing power than the TIPS investor because the TIPS principle would be adjusted by only the actual 1.25% inflation rate. The primary objective of the TIPS investor would still have been met: preserving and improving purchasing power by about 2.75% annually. But there would be a “missed opportunity”. The nominal Treasury investor would end up with even greater purchasing power. Does it mean that a TIPS investor can face an unlimited opportunity cost if inflation turns out to be negative? What happens if the actual inflation is, hypothetically speaking, negative 5%, in a severely deflationary period? Does the TIPS investor get back proportionately reduced principal at maturity? Thanks to the third assurance of TIPS, the answer is NO. TIPS guarantees that the principal returned at maturity will never fall below the original face value. During periods of deflation, the inflation-adjusted principal can fall below its face value and the interim interest payments will decline accordingly. But at maturity, the principal is floored at the original principal amount. Therefore, the breakeven inflation rate, the difference between the yield of a nominal Treasury bond and the real yield of an equivalent TIPS, represents the maximum annual yield advantage that the nominal bond can have over TIPS in an unexpectedly low inflation regime. To summarize, a TIPS investor gets unlimited protection against unexpectedly high inflation, while accepting a limited opportunity cost should the actual inflation be low or even negative. The magnitude of that trade-off is reflected in the breakeven inflation rate at the time of the TIPS purchase. An aside: given the destructive impact of deflation on economy and society, policy makers are generally more concerned about preventing prolonged deflation than about preventing modest inflation. Therefore, prolonged deflation is usually considered less likely. Still, we cannot ignore deflation risk altogether and should be prepared for the possibility that TIPS can underperform a nominal bond if inflation runs low. Therefore, the decision to favor TIPS over an equivalent nominal Bond hinges in part on the current breakeven inflation rate. If it’s low enough, favoring TIPS can be an easy decision. Getting unlimited protection against unexpectedly high inflation is worth accepting the relatively small opportunity cost if inflation comes below the breakeven rate. There is, however, a cautionary note about buying TIPS bonds in the secondary market, especially older issues. Consider a 30-year TIPS bond issued 20 years ago and a 10-year TIPS issued within last 6 months. Both might appear to be valid choices if they mature within a few months of each other and offer similar yields. But beneath the surface, one may be more favorable than the other. The older TIPS will likely have a much higher inflation-adjusted principal because it accumulated 20 years of inflation adjustments. But the protection against unexpected deflation applies only to the bond’s original face value, which is typically $1,000. In a prolonged deflationary period, the older bond has much more room for its inflation-adjusted principal to decline before reaching the $1,000 floor. The newer issue, whose adjusted principal is much closer to the $1,000 face value, has less exposure to this risk. Therefore, all else being equal, I’d favor a TIPS with a low inflation-adjusted factor when buying in the secondary market. All things considered, my vote goes to TIPS for long-term “safe” investments, provided the break-even inflation is reasonably low. For secondary market purchases, however, a high inflation-adjustment factor would give me pause. Sanjib Saha retired early from software engineering to dedicate more time to family and friends, pursue personal development and assist others as a money wellness mentor. Self-taught in investments, he passed the Series 65 licensing exam as a non-industry candidate. Sanjib is the president and cofounder of Dollar Mentor, a 501(c)(3) nonprofit organization offering free investment and financial education. Follow his nonprofit on LinkedIn, and check out Sanjib’s earlier articles.

Americans and their credit cards

R Quinn | Aug 24, 2026

- Cammer Michael

Traditional or Roth

ArticleRichard Connor | Aug 29, 2026

The Wrong-Sided Man

Dennis Friedman | May 8, 2025

"I too walk early in the morning and now I carry a small can of pepper spray. It might be a vicious dog, wrong-way man as you describe, or a wayward hobo looking for an easy roll."

- art winslow

How Did You Find Paid Work After Retiring from Your Primary Career?

Jeffrey Chan | Jul 31, 2026

- cynthiahoffman

This would be a great posting on a web site with the name “HaughtyDollar.”

R Quinn | Aug 28, 2026

"t"

- Mick

You Heel!

Michael Flack | Aug 24, 2026

- John Verlautz

The Intentional Spendthrift

Mark Crothers | Aug 21, 2026

- snak123

A Place At The Table

Andrew Clements | Aug 26, 2026

"Thank you, William. I’m glad you enjoyed it. The Philippines has taught me quite a bit, and often it’s the small, everyday experiences that have left the biggest impression on me."

- Andrew Clements

Inflation Hedge

ArticleAdam M. Grossman | Aug 29, 2026

Manifesto

Aug 28, 2026

NO. 34: FIGURING out what we ought to do with our money is relatively easy. Getting ourselves to do it is hard. Victory goes not to the smartest, but to the most disciplined.

act

Aug 29, 2026

HIRE OTHERS TO do chores you dislike. For each of us, time—not money—is the ultimate limited resource. Research has found that those who use their money to buy time—by, say, hiring others to clean or do yardwork for them—report greater happiness. Why? These folks feel less time stressed, while also freeing up extra hours for activities they love.

Truths

Aug 28, 2026

NO. 97: IT’S HARD to say “no” to our adult children if they get into financial trouble—which is why we should try to raise money-savvy kids. But how? Set a good example. Talk regularly about your own finances. Tell your kids about your lean early adult years. Involve them in family financial decisions. Encourage them to save up for larger purchases.

think

Aug 27, 2026

HABIT FORMATION. To improve our behavior—financial and otherwise—we need to turn our desired good behavior into habits. That might require doing the right thing daily for perhaps two months. To get through this transition period, helpful strategies include sharing our resolutions with others, visualizing our goals and automating our savings program.

Money Guide

Manifesto

Aug 28, 2026

NO. 34: FIGURING out what we ought to do with our money is relatively easy. Getting ourselves to do it is hard. Victory goes not to the smartest, but to the most disciplined.

Spotlight: Retirement

401(k) participants want annuities – some form of guarantee – RDQ

R Quinn | May 22, 2025

I have expressed my opinion on the need for and desirability of a steady income stream in retirement, as guaranteed as possible. Next Friday my pension will be deposited in our bank account. On the second and forth Wednesday each month our Social Security will be deposited. All that has happened each month for the last seventeen years.
I don’t worry about withdrawal strategies, withdrawal percentages, guard rails, tip ladders or any similar strategy. The IRC tells me what I must withdraw from my IRA.

Mega Backdoor Roth

Bogdan Sheremeta | Jun 6, 2026

I WAS RECENTLY asked about strategies that high earners can use to reduce their tax bill.
Most people know the usual options. They contribute to a 401(k), fund a health savings account or make a Roth IRA contribution through the backdoor method. Business owners may have additional opportunities through retirement plans and business structures.
But there’s another strategy worth knowing about: the Mega Backdoor Roth (MBDR).
The MBDR allows some workers to put far more money into Roth accounts than the usual contribution limits permit.

Decision Frameworks

Adam M. Grossman | Nov 29, 2025

IN THE SUMMER of 1966, author John McPhee spent two weeks lying on a picnic table in his backyard. Why?
McPhee was suffering from writer’s block. As he described it, “I had assembled enough material to fill a silo, and now I had no idea what to do with it.”
Investors find themselves in a similar situation today. There’s no shortage of financial information around us. But that doesn’t make it easier to know what to do with it.

When the Spreadsheet Gets Real

Mark Gardner | Jun 4, 2025

I’m 58 and my wife is 56. We’ve been planning our retirement with care and intention for years—no debt, solid retirement savings, a well-diversified portfolio, and a liability-matching plan (LMP) that covers us until Medicare kicks in. We’ve talked through our priorities, run the numbers, and built our plan together. The core approach to our plan was heavily influenced by Bill Bernstein and Wade Pfau’s writing and we are content with a good funded ratio.
One thing we agreed on early: when one of us loses or leaves work,

Money and Me

Adam M. Grossman | May 30, 2026

JONATHAN CLEMENTS’S final book was released this week. Titled Money and Me, it traces the arc of Jonathan’s nearly four-decade career as a personal finance columnist.
Money and Me starts with the story of a man named George Cope, who was a nineteenth century tobacco baron. At the time of his death in 1888, Cope was one of Britain’s richest men. But within just two generations, his fortune was gone.

Trump Accounts

Adam M. Grossman | Jul 11, 2026

INNOVATION IN THE world of retirement plans is decidedly slow moving. But as of July 4th, investors now have a new savings option known as a Trump account. In short, these are retirement accounts designed specifically for children.
Trump accounts share some similarities with traditional individual retirement accounts (IRAs), but there are also key differences. If you have children, grandchildren, nieces or nephews, this new option may be worth exploring.
Who is eligible for a Trump account?

Playing It Safe

David Gartland | Aug 6, 2024

I TOOK MY FIRST cross-country car trip in 1972. It was the summer of my junior year in college. I’d be graduating the following year and embarking on working life. This would be my last chance for a while to take a long trip. I was traveling by myself, so I had the freedom to decide exactly what I wanted to do. That’s what brought me to Pikes Peak near Colorado Springs, Colorado. One of the greatest auto races in America is the Pikes Peak International Hill Climb. It’s a timed race. Each car travels up the road alone, racing against the clock. When I saw the race, the course was a dirt road. Eventually, it began to be paved. Now, the road is completely paved so the race times are faster since a paved road offers more traction. The race on dirt was much more exciting. As a car took a curve, it would slide sideways. The driver would have to turn the steering wheel in the opposite direction while keeping his foot on the accelerator to keep from going over the side. When you slide, you’re losing time, so it’s important to recover quickly. I remember watching the race from one of the curves. A group of young kids was watching from close to the edge, while their parents stood farther away from the road. As one of the faster, more aggressive cars raced past us, it kicked up a huge plume of dirt, dust and rocks. It was an exciting moment. But it was the words of one of the parents that’s stayed with me all these years. A kid—who’d had dust and dirt thrown at him by the passing car—ran back to his father in a great excitement. His father’s response: “Don’t spit out any teeth.”…

Waiting Is Risky

David Gartland | Feb 12, 2024

"YOU CAN PAY ME NOW—or you can pay me later." Years ago, that was the catch phrase, spoken by an auto mechanic working on a broken-down car, in ads for FRAM oil filters. The pitch: If you spend a modest sum on routine car maintenance, you’ll avoid far bigger bills down the road. The same philosophy applies to retirement savings. There’s a constant tradeoff between now and later. Faced with life’s challenges, we need to strike a balance. We need to balance our work with our home life. We need to balance risk with reward. We need to balance growth with income. And, yes, we need to balance saving with spending. None of us knows how long we’ll live. It’s good to make plans and have goals. They act as the proverbial carrot, encouraging us to keep moving forward. But we also need to enjoy today. Each one of us has our own ideas about what’s fun and what’s worth spending money on. We need to balance the things we must do with these things that we want to do. The musts provide us with the financial foundation that allows us to support ourselves and our family. The wants make our life worth living. We can pay now for our wants or we can pay later—assuming we live long enough to get the chance. The choice is up to us. Many folks say they can’t wait to retire so they can do the things they’ve put off doing because of their careers, family commitments or lack of time. The benefit of this approach to retirement: It gives you something to look forward to. All your hard work will pay off when you’re sitting on that tropical beach sipping that umbrella drink. The downside: If your health deteriorates prior to retirement,…

In Love With Bonds

David Gartland | Oct 8, 2024

WHEN I WAS GROWING up, I’d receive Series E savings bonds as birthday gifts from my parents. It was the start of many to come. My parents had great respect for savings bonds and, as I got older, I came to hold them in high regard as well. Savings bonds never offered the highest interest rate. At a defense plant where I worked, a guy in the accounting department questioned my bond buying. He noted that savings bonds paid less interest than the certificates of deposit then available. I just shrugged my shoulders. I know why I kept buying the bonds. They were something I was familiar with since childhood, plus it was an easy way to invest. When I began working full-time, I purchased savings bonds through payroll deduction. The deductions were automatic, so the money was gone before I could spend it. In 1976, when I got married for the first time, the guests—who were our college friends—all gave us savings bonds. When I signed up for the U.S. Coast Guard’s Officer Candidate School in 1978, we were able to buy bonds through payroll deduction. I did. When my current wife and I got married in 1987, once again our friends gave us savings bonds. And I continued buying them through payroll deduction for many more years. That ended when my employer introduced a 401(k) savings plan, and I switched my payroll deductions to buying mutual funds through the 401(k) instead. But I held onto the savings bonds I’d acquired. They continued to earn interest for 30 years, and I typically only cashed them in when they matured. On top of that, my mother kept buying savings bonds for my brother and me, as well as for her grandkids and great-grandkids. When my mother gave me all of…

Parting Ways

David Gartland | Nov 24, 2023

IN 1980, MY FIRST WIFE and I spent the Labor Day weekend with friends on Cape Cod, Massachusetts. We went out for breakfast and I drank a lot of coffee. Our friends were planning a day at the beach. This is not a good idea for me because—being of Irish descent—I come in two colors, red and white. Either I look pale and sickly or I’m red as a beet. To avoid this latter state, I suggested they go ahead and I’d walk back to the house where we were staying. During this walk back, I came across a 1960s Porsche sitting in a repair shop’s parking lot. I stopped to admire it. I continued on my walk back to the house and began fantasizing about how cool it would be to own a Porsche. At this point in our marriage, I’d begun my insurance career, while my wife was progressing in her career as a teacher for those with special needs. We were both finally making okay money. The caffeine was kicking in and my brain was racing. I began to think about how I could buy a Porsche. My thoughts led me to decide that, if we never had kids, our financial position would improve even faster, and that would lead to the car I now desperately wanted. I kept the idea to myself on our ride back home to Brooklyn, as well as the next morning when we went to work. But on that Tuesday night, I decided to broach the subject with my wife to see her reaction. She went ballistic. The evening culminated with her walking out and never coming back. My first wife was also my first girlfriend. We met in college when she was a freshman and I was a senior. We dated…

Not My Thing

David Gartland | Jul 23, 2024

IN RICH DAD POOR DAD, author Robert Kiyosaki touts the virtues of owning real estate as a way to reach financial independence. He explains the difference between how his father handled money and invested in his education, versus his friend's dad, who gained his wealth by investing in businesses. There’s controversy over whether this is a true tale or just a literary device to explain how to invest in real estate. Either way, there’s a lot to learn from Kiyosaki’s book. One thing I learned: Real estate investing isn’t for everybody. That would include me. I’ve been aware of real estate’s appeal since Robert Allen’s 1984 book Nothing Down. I would see his late-night infomercials and think, “That’s what I need to do to reach my dream of personal wealth.” I attended free seminars on real estate investing. It all made sense, except for one thing: It didn’t excite me. At the time, I was renting a studio apartment in Brooklyn. I kept hearing about how all these people were making a killing in real estate. I wanted to be rich. But why would I buy a rental property when I was paying rent myself? Why wouldn’t I buy my own place first? I’ve owned two pieces of real estate in my life, a condo and my current single-family home. Kiyosaki talks about the joy he feels owning real estate. But I didn’t feel joy buying either home. I decided real estate investing wasn’t for me. That decision was confirmed by watching reality TV shows about real estate investing. One show stands out in my mind. It was based in South Carolina. The main character was a visionary with money. He could look at a house and see what needed to be done to make the house attractive to potential…

My Retirement Prep

David Gartland | Nov 29, 2023

I DON’T KNOW THAT MY life has been all that different from that of others. Still, what’s happened to me has—I believe—been good preparation for retirement. Here are seven life lessons I learned on my journey from childhood through to my departure from the workforce just before my 70th birthday. Lesson No. 1: Doing it yourself can save big money. My older brother got me interested in cars. This was the late 1950s and 1960s, when drag racing and international road racing became popular in the U.S. Teenage boys back then were primarily interested in three things: girls, sports and cars. My brother was only interested in girls and cars. I was an eight-year-old trying to keep up with my older brother. I didn’t like girls, so cars were an easy choice. I helped my brother work on his cars. I learned they weren’t so intimidating and could be understood with a little effort, and that doing your own repairs could save a lot of money. The problem: I assumed my brother would help me like I helped him. But I didn’t have a girlfriend. My brother did, and the girlfriend didn’t like time away from her. Helping out a little brother wasn’t permitted, so when I did repairs, I had to do them all by myself. Lesson No. 2: Nothing lasts forever. When I was age 15, my father had a massive heart attack and died in the room next to where I was watching television. It was a shock that he was gone. The pain hits all at once. Then, over time, you come to accept it. I’ve since watched others suffer through long, drawn-out illnesses like cancer. Heart attacks, at least, are quick. At 15, I needed guidance to help me through my teenage years. I didn’t…

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Americans and their credit cards

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This would be a great posting on a web site with the name “HaughtyDollar.”

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