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Regularly checking your portfolio’s value doesn’t help its performance. Just sayin’.

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Questions Matter

"Dan, I tried to post this morning, but I think the links slowed it down. I'll try again without the links. My wife and I didn't marry until our 30s, the first for both of us, and hopefully the last. From my perspective, I didn't consider marriage until I had settled into a career. I didn't have a perfect woman in mind, except I wanted her to be smart. Sharon is my perfect woman--very smart and very tolerant of my quirks. In his Guide--button at the top of this page--Jonathan has some comments on marriage in the "Life Events" section in the chapter Getting Married. And at the bottom of that page, there's a link to Check Him Out by Julian Block. As a tax man, I know you'll like that article. Thanks for an interesting story."
- Edmund Marsh
Read more »

America Doesn’t Just Do Layoffs. It’s Fallen in Love With Them

"Maybe this should be considered a “chicken and egg” problem. Whike companies seem to have little consideration for employees, what about employees? They quit without notice. I guess I’d say the days of loyalty in the workplace are gone — and both employers and employees are to blame."
- Marilyn Lavin
Read more »

Retirement in America is not a pretty picture…and not getting better.

"The problem is that lowest group is likely to increase very rapidly. Health care is the fastest growing area of the economy— and that isn’t doctors and nurses. It’s the low paid jobs like working in a memory care facility, home health care. CCRCs, etc. Then consider the current impact of AI on young people. Recent college grads have among the highest unemployment rates. And I don’t see a lot of support for people living totally on Social Security. They can go to food banks, but what else? Help with rent or property tax is minimal."
- Marilyn Lavin
Read more »

How to Lose

MY OLD INVESTING self was like the guy in the meme who twists around to ogle a woman in a red dress, while his girlfriend looks ready to break his neck.

Just as jumping from one relationship to another introduces new risks, the same holds true for jumping in and out of different investments. For me—and for most people, I’d wager—investing in individual stocks and narrowly focused funds involves a certain amount of trading, and we know such trading is an exercise in futility. Even the vast majority of professional fund managers can’t consistently beat the market averages. If your reaction to that is, “Yeah, but maybe I can, I’ve got a good handle on the way the world works,” you may need professional help with your portfolio.

Despite ample evidence that most investors trail the market averages, we all tend to “feel lucky,” like the ill-fated villain staring down Clint Eastwood in Dirty Harry. Why? A key reason: Stock market averages get a big boost each year from a minority of stocks that post big gains, and those huge winners make beating the market look easy. So how about buying those big winners? Unfortunately, yesterday’s winners aren’t necessarily tomorrow’s top dogs.

In fact, past performance has no predictive power. It may seem obvious today that we should have bought Facebook, Apple, Netflix, Microsoft, Amazon, Tesla and Google’s parent company Alphabet. But these “obvious” winners only seem that way in hindsight.

On top of our unjustified confidence in our own stock-picking abilities, we have a host of other behavioral faults, including impatience, a desire for quick gratification and the feeling that the grass is always greener somewhere else. Result? In our efforts to beat the market, we flit back and forth among different investments, as our latest stock picks lose their luster.

After taking fliers over the years on gold and energy funds, biotech and telecom stocks, and emerging markets specialty funds that focus on consumer companies, I’ve learned three key lessons:

  • I’m not lucky.
  • I can’t predict world events or the market’s reaction to them.
  • Undiversified investment bets give me a few ways to win big and a lot of ways to lose.

I came by these lessons the hard way. I would make a new investment and be excited, thinking I’d made a good bet. I’d anticipate my potential gains and the validation that I’d outsmarted the market. I would tell myself I understood the potential downside, but really, I was practically counting my winnings.

But the thrill would soon fade, along with my original investment rationale. Perhaps the idea had come from some legendary portfolio manager or from something I read. But when my new holdings struggled, I lacked a frame of reference by which to decide whether to sell or hold.

A star manager might have said a drug company’s clinical trials were going well or that certain companies were going to gain market share. But then these things didn’t happen, and the stocks underperformed. Was this bad news now fully priced in? It’s nobody’s job on Wall Street to answer that, least of all the managers who touted the investments in the first place, and they probably wouldn’t know anyway.

Another example: About six years ago, I read a series of articles that convinced me that the next big trend was emerging markets consumer spending growth. That prompted me to buy some high-cost niche exchange-traded funds. But the two funds I bought consistently underperformed. One has continued to do so since I sold, while the other folded last May. Again, no one can tell you when or if such performance will turn around. Wall Street gets paid to sell you high-expense funds and keep you in them. Those high fees pay for a lot of research, writing and marketing, which in turn filters its way into the financial press, which then encourages you to buy.

There are two sources of investment risk: systematic risk, which is the danger that the broad market will fall, and unsystematic risk, which is the danger that your particular investments will lag behind the market.

Investors in individual stocks and sector funds face both risks. By contrast, owners of broad stock market index funds face only systematic risk. Indexing lacks the allure of sexy strangers and the prospect of quick investment scores, but the strategy’s risks are also far lower.

Success in broad market-cap-weighted index funds hinges on fewer variables. You just need aggregate share prices—driven ultimately by corporate profit and dividend growth—to rise at well above the rate of inflation, as they have for more than a century in the global stock market, despite two world wars, hyperinflation, stagflation, market crashes, panics and depressions. In other words, with broad stock market index funds, you’re making just one bet—and it’s a pretty good one for globally diversified investors with long time horizons.

William Ehart is a journalist in the Washington, D.C., area. In his spare time, he enjoys writing for beginning and intermediate investors on why they should invest and how simple it can be, despite all the financial noise. Follow Bill on Twitter @BillEhart and check out his earlier articles.

[xyz-ihs snippet="Donate"]

Read more »

Medicaid Asset Protection Trusts (MAPTs)

"No, the creditors of the person making the gift, not the recipient. It's called "fraudulent transfer." Somewhat of a legal term of art because it's not "fraud" in the traditional sense. It's considered "fraudulent" as to the creditors of the person making the gift because but for that asset being gifted away the creditors could have reached that asset to be made whole upon default. All states have a fraudulent transfer statute. In Ohio the fraudulent transfer look back period is 4 years after the transfer or 1 year after it could have reasonably been discovered."
- Ben Rodriguez
Read more »

Well That’s A Bummer!

"An estimated 13 million pints of Guinness are consumed worldwide on St. Patrick’s Day alone. That’s a one-day foam frenzy. Beer sales overall jump 174% today, with the U.S. pouring more than 3 million of those pints and spending about $6.9 billion celebrating the holiday.  “Lá Fhéile Pádraig sona duit” is pronounced: law AY-leh PAW-drig SUN-uh gwit. That’s how the Irish say, Happy St. Patrick’s Day. Practice it once before your next Guinness. You’ll be the most impressive person at the bar."
- Olin
Read more »

Is there any point when a child needs financial help that you feel comfortable saying “not my problem?” 

"Thanks, we do enjoy seeing her move forward in life! The Fit is a great little car. I think she'll hang onto it for a long time. We changed the oil last week - an easy job on this car, and only $35 for oil and filter."
- David Mulligan
Read more »

What happens to Medicare Supplement coverage when moving to a different state?

"You asked for personal experiences. I resided in North Carolina when I became eligible for Medicare. At that time Plan F was an option, providing very good coverage, and I went with it, and chose a nationally-known carrier with decades of experience and good reputation. A few years later, we moved to Florida. No underwriting needed. No change in monthly fee. The transition was seamless. My same NC insurance carrier is still my Medigap policy-holder. The company is well-known throughout the US, including Florida. My advice is to choose the carrier that is highly-rated in both states. I am so glad I decided to pay monthly for a Medigap plan when I became eligible for Medicare. The older I get, the less I would have wanted to deal with extra recordkeeping, pre-approvals, co-pays,and so on. I can choose a specialist recommended by other trustworthy doctors and friends, make an appointment, and easily schedule what I need."
- Chris G
Read more »

Frugal Fitness

AS A PHYSICAL therapist, I’ve spent a large slice of each work day teaching and encouraging patients as they exercise their way to better health. Along with other elements of treatment, each patient pays for a custom exercise program tailored for their specific problem. These are folks looking for a way past the debilitating effects of injury or disease. Even so, many of them find it hard to follow my plea to “do your exercises”. If they struggle to follow the helpful recommendations of a health professional, what about the rest of us? Over the years, I’ve found that most of us have at least an inkling of the health benefits of exercise. Still, like my patients, we often fail to act on that knowledge. Why? Maybe we can find the answer in the list below. Here are five common barriers that I’ve heard keep people idle: 1. No time. I’m sure it’s true. Long commutes, lengthy work days and activity-packed weekends leave little chance to carve-out a few minutes for our physical health. Even in retirement, time can be siphoned-off by the endless list of errands, obligations and leisure pursuits that keep us running. 2. No knowledge. Strange environment. Strange vocabulary. Strange people who seem at ease and know more than us about everything. That’s the challenge facing the novice exerciser stepping into the gym for the first time. It can lead to fear–fear of embarrassment, fear of injury or just fear of feeling lost. 3. No support. Going against the social flow can be painful for the lone exerciser. Choosing to head into the gym, rather than out for pizza and beer with friends can be hard. Or, maybe our spouse thinks exercise time is selfish time. Like exercise, social connections are important for health as well. Ideally, we shouldn’t have to choose one over the other. 4. No money. Let’s face it, gym admission isn’t free, and a home equipment purchase can quickly run into thousands of dollars. That price is no sweat for a fitness aficionado with extra cash who’s hooked on the exercise habit, but what about the newbie? Few people want a gym membership or treadmill gathering dust, reminding them of the resolution they didn’t keep. 5. No energy or motivation. Hectic schedules leave many of us drained and dreaming of a quiet moment to just be still. Other folks find themselves stuck in a sedentary rut, never straying off the path that leads from one seat to the next. For those in either camp, any thought of pumping iron or pounding pavement holds no appeal. That’s my short, anecdotal list of hurdles hindering folks from launching into a new exercise routine. For an in-depth look at more barriers to physical activity for adults over age 70, check out this systematic review of the research literature. Meanwhile, our bodies are missing the movement that keeps them healthy. What to do? Here are five baby steps to help us past the roadblocks listed above: 1. Minutes matter. It’s easy to get hung up on the notion of needing a set routine of exercises performed within a solid block of time. That may be ideal, but it’s not necessary. We can try weaving convenient exercises into the actual fabric of our lives. By the end of our day, a few, short bouts of five to ten minutes each can add up to meaningful progress toward fitness. 2. Study time. The online world abounds with exercise advice. Experts promise results ranging from building a healthy heart to gaining the perfect glutes. The choices can be overwhelming. I recommend starting tiny. The simple routine I’ve included below can help nearly anyone take the first step. 3. New network. I’m not recommending we dump our motionless friends. Still, our moms warned us about spending too much time with the wrong crowd. Think about who in our circle is already doing a little exercise. Maybe they’d like a partner? Or, maybe there’s someone we could recruit with just a little nudge. 4. Frugal fitness. We don’t have to shell out bucks to a gym to get a workout. Any time we move our body against the force of gravity, we’re exercising. With a little thought, we can round up a robust routine of exercises to perform at home with little or no equipment. Read on to find a starter set of exercises for the true beginners among us. This list costs almost no money and just a little time. 5. Finding a cause. Stuck for a stimulus that rouses us to action? Remember, imagination is often stronger than willpower. Letting our thoughts dwell on the end game can often be helpful. Do we want to cut a fine figure? If so, we don’t have to get swimsuit-svelte to claim success. Even a little slimming and toning from exercise can give our normal clothes a nicer fit. How about feeling better? Researchers from Boston University and the University of Massachusetts found that even a low-intensity exercise program can help older adults improve both physical and psychological fitness. And their study doesn’t stand alone. Reams of other research support their findings, and highlight even more benefits from exercise. Still, on some days, the only force that will get us moving is old-fashioned discipline. It’s the same determination that moves most of us reading this to make better financial choices most of the time. No matter what our motivation, nearly all of us can kick off our trek to better health today with the following routine: 1. Wall push-ups. Stand facing a wall at fingertip distance. With arms held straight at shoulder height, place your palms on the wall a little more than shoulder-width apart. Bend your elbows until your nose almost touches the wall. Push back until your elbows are straight. Repeat until you’ve done 10-20 repetitions. When wall push-ups are too easy, progress to push-ups with your hands against a counter. These exercises strengthen the muscles of your chest, shoulders and arms. 2. Shoulder blade squeeze. Sit or stand and place palms together in front of your chest with elbows bent and pointing down toward your feet. Pull your arms apart while keeping your elbows down until you squeeze your shoulder blades together. Do 10-20 repetitions. To progress, add the resistance of an elastic exercise band. This exercise works the muscles of the upper back. 3. Sit to stand. This is a wonderful exercise for buttock and thigh muscles. To begin, sit at the edge of a firm seat. Lean forward from the hips, then stand up without using hands, if possible. Sit down and repeat for 10 or more repetitions. You should stay balanced, with feet in full contact with the floor, during the entire exercise. 4. Calf raises. Stand with your hands on a counter to maintain balance, Rise up on your toes for 20 repetitions to strengthen the muscles on the back of your lower legs. These muscles are important for walking and balance. 5. Easy crunch. Lie on your back on the floor or bed with your knees bent and feet flat on the supporting surface. Slowly curl your trunk forward as you try to touch your knees with your hands, then slowly return to the starting position. Do 10-20 repetitions to strengthen your abdominal muscles, one important part of your muscular “core”. The last five. This exercise requires a decent set of walking or running shoes. Begin by walking out the front door and up the street for five minutes at a brisk pace. Stop and retrace your steps for the return trip back home, for a total of ten minutes of heart-rejuvenating activity. Will this workout ready us to run a marathon or toned-up to star in the senior sports league? No. Could it be better? Probably. Still, nearly every muscle–including the heart–gets a little work. And it may just draw us into a habit that keeps our bodies sturdy enough to enjoy the years ahead. Ed Marsh is a physical therapist who lives and works in a small community near Atlanta. He likes to spend time with his church, with his family and in his garden thinking about retirement. His favorite question to ask a young person is, “Are you saving for retirement?” Check out Ed’s earlier articles.
Read more »

Developing Champions in your Career and Life

"He was a true champion who showed you the right way through his actions. Thank you for sharing."
- Raghu
Read more »

The Anatomy of a Threshold Rebalance: April 2025

"Oh my…I really, really want to be under the care of your doctor!"
- Mark Crothers
Read more »

Questions Matter

"Dan, I tried to post this morning, but I think the links slowed it down. I'll try again without the links. My wife and I didn't marry until our 30s, the first for both of us, and hopefully the last. From my perspective, I didn't consider marriage until I had settled into a career. I didn't have a perfect woman in mind, except I wanted her to be smart. Sharon is my perfect woman--very smart and very tolerant of my quirks. In his Guide--button at the top of this page--Jonathan has some comments on marriage in the "Life Events" section in the chapter Getting Married. And at the bottom of that page, there's a link to Check Him Out by Julian Block. As a tax man, I know you'll like that article. Thanks for an interesting story."
- Edmund Marsh
Read more »

America Doesn’t Just Do Layoffs. It’s Fallen in Love With Them

"Maybe this should be considered a “chicken and egg” problem. Whike companies seem to have little consideration for employees, what about employees? They quit without notice. I guess I’d say the days of loyalty in the workplace are gone — and both employers and employees are to blame."
- Marilyn Lavin
Read more »

Retirement in America is not a pretty picture…and not getting better.

"The problem is that lowest group is likely to increase very rapidly. Health care is the fastest growing area of the economy— and that isn’t doctors and nurses. It’s the low paid jobs like working in a memory care facility, home health care. CCRCs, etc. Then consider the current impact of AI on young people. Recent college grads have among the highest unemployment rates. And I don’t see a lot of support for people living totally on Social Security. They can go to food banks, but what else? Help with rent or property tax is minimal."
- Marilyn Lavin
Read more »

How to Lose

MY OLD INVESTING self was like the guy in the meme who twists around to ogle a woman in a red dress, while his girlfriend looks ready to break his neck.

Just as jumping from one relationship to another introduces new risks, the same holds true for jumping in and out of different investments. For me—and for most people, I’d wager—investing in individual stocks and narrowly focused funds involves a certain amount of trading, and we know such trading is an exercise in futility. Even the vast majority of professional fund managers can’t consistently beat the market averages. If your reaction to that is, “Yeah, but maybe I can, I’ve got a good handle on the way the world works,” you may need professional help with your portfolio.

Despite ample evidence that most investors trail the market averages, we all tend to “feel lucky,” like the ill-fated villain staring down Clint Eastwood in Dirty Harry. Why? A key reason: Stock market averages get a big boost each year from a minority of stocks that post big gains, and those huge winners make beating the market look easy. So how about buying those big winners? Unfortunately, yesterday’s winners aren’t necessarily tomorrow’s top dogs.

In fact, past performance has no predictive power. It may seem obvious today that we should have bought Facebook, Apple, Netflix, Microsoft, Amazon, Tesla and Google’s parent company Alphabet. But these “obvious” winners only seem that way in hindsight.

On top of our unjustified confidence in our own stock-picking abilities, we have a host of other behavioral faults, including impatience, a desire for quick gratification and the feeling that the grass is always greener somewhere else. Result? In our efforts to beat the market, we flit back and forth among different investments, as our latest stock picks lose their luster.

After taking fliers over the years on gold and energy funds, biotech and telecom stocks, and emerging markets specialty funds that focus on consumer companies, I’ve learned three key lessons:

  • I’m not lucky.
  • I can’t predict world events or the market’s reaction to them.
  • Undiversified investment bets give me a few ways to win big and a lot of ways to lose.

I came by these lessons the hard way. I would make a new investment and be excited, thinking I’d made a good bet. I’d anticipate my potential gains and the validation that I’d outsmarted the market. I would tell myself I understood the potential downside, but really, I was practically counting my winnings.

But the thrill would soon fade, along with my original investment rationale. Perhaps the idea had come from some legendary portfolio manager or from something I read. But when my new holdings struggled, I lacked a frame of reference by which to decide whether to sell or hold.

A star manager might have said a drug company’s clinical trials were going well or that certain companies were going to gain market share. But then these things didn’t happen, and the stocks underperformed. Was this bad news now fully priced in? It’s nobody’s job on Wall Street to answer that, least of all the managers who touted the investments in the first place, and they probably wouldn’t know anyway.

Another example: About six years ago, I read a series of articles that convinced me that the next big trend was emerging markets consumer spending growth. That prompted me to buy some high-cost niche exchange-traded funds. But the two funds I bought consistently underperformed. One has continued to do so since I sold, while the other folded last May. Again, no one can tell you when or if such performance will turn around. Wall Street gets paid to sell you high-expense funds and keep you in them. Those high fees pay for a lot of research, writing and marketing, which in turn filters its way into the financial press, which then encourages you to buy.

There are two sources of investment risk: systematic risk, which is the danger that the broad market will fall, and unsystematic risk, which is the danger that your particular investments will lag behind the market.

Investors in individual stocks and sector funds face both risks. By contrast, owners of broad stock market index funds face only systematic risk. Indexing lacks the allure of sexy strangers and the prospect of quick investment scores, but the strategy’s risks are also far lower.

Success in broad market-cap-weighted index funds hinges on fewer variables. You just need aggregate share prices—driven ultimately by corporate profit and dividend growth—to rise at well above the rate of inflation, as they have for more than a century in the global stock market, despite two world wars, hyperinflation, stagflation, market crashes, panics and depressions. In other words, with broad stock market index funds, you’re making just one bet—and it’s a pretty good one for globally diversified investors with long time horizons.

William Ehart is a journalist in the Washington, D.C., area. In his spare time, he enjoys writing for beginning and intermediate investors on why they should invest and how simple it can be, despite all the financial noise. Follow Bill on Twitter @BillEhart and check out his earlier articles.

[xyz-ihs snippet="Donate"]

Read more »

Medicaid Asset Protection Trusts (MAPTs)

"No, the creditors of the person making the gift, not the recipient. It's called "fraudulent transfer." Somewhat of a legal term of art because it's not "fraud" in the traditional sense. It's considered "fraudulent" as to the creditors of the person making the gift because but for that asset being gifted away the creditors could have reached that asset to be made whole upon default. All states have a fraudulent transfer statute. In Ohio the fraudulent transfer look back period is 4 years after the transfer or 1 year after it could have reasonably been discovered."
- Ben Rodriguez
Read more »

Well That’s A Bummer!

"An estimated 13 million pints of Guinness are consumed worldwide on St. Patrick’s Day alone. That’s a one-day foam frenzy. Beer sales overall jump 174% today, with the U.S. pouring more than 3 million of those pints and spending about $6.9 billion celebrating the holiday.  “Lá Fhéile Pádraig sona duit” is pronounced: law AY-leh PAW-drig SUN-uh gwit. That’s how the Irish say, Happy St. Patrick’s Day. Practice it once before your next Guinness. You’ll be the most impressive person at the bar."
- Olin
Read more »

Is there any point when a child needs financial help that you feel comfortable saying “not my problem?” 

"Thanks, we do enjoy seeing her move forward in life! The Fit is a great little car. I think she'll hang onto it for a long time. We changed the oil last week - an easy job on this car, and only $35 for oil and filter."
- David Mulligan
Read more »

What happens to Medicare Supplement coverage when moving to a different state?

"You asked for personal experiences. I resided in North Carolina when I became eligible for Medicare. At that time Plan F was an option, providing very good coverage, and I went with it, and chose a nationally-known carrier with decades of experience and good reputation. A few years later, we moved to Florida. No underwriting needed. No change in monthly fee. The transition was seamless. My same NC insurance carrier is still my Medigap policy-holder. The company is well-known throughout the US, including Florida. My advice is to choose the carrier that is highly-rated in both states. I am so glad I decided to pay monthly for a Medigap plan when I became eligible for Medicare. The older I get, the less I would have wanted to deal with extra recordkeeping, pre-approvals, co-pays,and so on. I can choose a specialist recommended by other trustworthy doctors and friends, make an appointment, and easily schedule what I need."
- Chris G
Read more »

Frugal Fitness

AS A PHYSICAL therapist, I’ve spent a large slice of each work day teaching and encouraging patients as they exercise their way to better health. Along with other elements of treatment, each patient pays for a custom exercise program tailored for their specific problem. These are folks looking for a way past the debilitating effects of injury or disease. Even so, many of them find it hard to follow my plea to “do your exercises”. If they struggle to follow the helpful recommendations of a health professional, what about the rest of us? Over the years, I’ve found that most of us have at least an inkling of the health benefits of exercise. Still, like my patients, we often fail to act on that knowledge. Why? Maybe we can find the answer in the list below. Here are five common barriers that I’ve heard keep people idle: 1. No time. I’m sure it’s true. Long commutes, lengthy work days and activity-packed weekends leave little chance to carve-out a few minutes for our physical health. Even in retirement, time can be siphoned-off by the endless list of errands, obligations and leisure pursuits that keep us running. 2. No knowledge. Strange environment. Strange vocabulary. Strange people who seem at ease and know more than us about everything. That’s the challenge facing the novice exerciser stepping into the gym for the first time. It can lead to fear–fear of embarrassment, fear of injury or just fear of feeling lost. 3. No support. Going against the social flow can be painful for the lone exerciser. Choosing to head into the gym, rather than out for pizza and beer with friends can be hard. Or, maybe our spouse thinks exercise time is selfish time. Like exercise, social connections are important for health as well. Ideally, we shouldn’t have to choose one over the other. 4. No money. Let’s face it, gym admission isn’t free, and a home equipment purchase can quickly run into thousands of dollars. That price is no sweat for a fitness aficionado with extra cash who’s hooked on the exercise habit, but what about the newbie? Few people want a gym membership or treadmill gathering dust, reminding them of the resolution they didn’t keep. 5. No energy or motivation. Hectic schedules leave many of us drained and dreaming of a quiet moment to just be still. Other folks find themselves stuck in a sedentary rut, never straying off the path that leads from one seat to the next. For those in either camp, any thought of pumping iron or pounding pavement holds no appeal. That’s my short, anecdotal list of hurdles hindering folks from launching into a new exercise routine. For an in-depth look at more barriers to physical activity for adults over age 70, check out this systematic review of the research literature. Meanwhile, our bodies are missing the movement that keeps them healthy. What to do? Here are five baby steps to help us past the roadblocks listed above: 1. Minutes matter. It’s easy to get hung up on the notion of needing a set routine of exercises performed within a solid block of time. That may be ideal, but it’s not necessary. We can try weaving convenient exercises into the actual fabric of our lives. By the end of our day, a few, short bouts of five to ten minutes each can add up to meaningful progress toward fitness. 2. Study time. The online world abounds with exercise advice. Experts promise results ranging from building a healthy heart to gaining the perfect glutes. The choices can be overwhelming. I recommend starting tiny. The simple routine I’ve included below can help nearly anyone take the first step. 3. New network. I’m not recommending we dump our motionless friends. Still, our moms warned us about spending too much time with the wrong crowd. Think about who in our circle is already doing a little exercise. Maybe they’d like a partner? Or, maybe there’s someone we could recruit with just a little nudge. 4. Frugal fitness. We don’t have to shell out bucks to a gym to get a workout. Any time we move our body against the force of gravity, we’re exercising. With a little thought, we can round up a robust routine of exercises to perform at home with little or no equipment. Read on to find a starter set of exercises for the true beginners among us. This list costs almost no money and just a little time. 5. Finding a cause. Stuck for a stimulus that rouses us to action? Remember, imagination is often stronger than willpower. Letting our thoughts dwell on the end game can often be helpful. Do we want to cut a fine figure? If so, we don’t have to get swimsuit-svelte to claim success. Even a little slimming and toning from exercise can give our normal clothes a nicer fit. How about feeling better? Researchers from Boston University and the University of Massachusetts found that even a low-intensity exercise program can help older adults improve both physical and psychological fitness. And their study doesn’t stand alone. Reams of other research support their findings, and highlight even more benefits from exercise. Still, on some days, the only force that will get us moving is old-fashioned discipline. It’s the same determination that moves most of us reading this to make better financial choices most of the time. No matter what our motivation, nearly all of us can kick off our trek to better health today with the following routine: 1. Wall push-ups. Stand facing a wall at fingertip distance. With arms held straight at shoulder height, place your palms on the wall a little more than shoulder-width apart. Bend your elbows until your nose almost touches the wall. Push back until your elbows are straight. Repeat until you’ve done 10-20 repetitions. When wall push-ups are too easy, progress to push-ups with your hands against a counter. These exercises strengthen the muscles of your chest, shoulders and arms. 2. Shoulder blade squeeze. Sit or stand and place palms together in front of your chest with elbows bent and pointing down toward your feet. Pull your arms apart while keeping your elbows down until you squeeze your shoulder blades together. Do 10-20 repetitions. To progress, add the resistance of an elastic exercise band. This exercise works the muscles of the upper back. 3. Sit to stand. This is a wonderful exercise for buttock and thigh muscles. To begin, sit at the edge of a firm seat. Lean forward from the hips, then stand up without using hands, if possible. Sit down and repeat for 10 or more repetitions. You should stay balanced, with feet in full contact with the floor, during the entire exercise. 4. Calf raises. Stand with your hands on a counter to maintain balance, Rise up on your toes for 20 repetitions to strengthen the muscles on the back of your lower legs. These muscles are important for walking and balance. 5. Easy crunch. Lie on your back on the floor or bed with your knees bent and feet flat on the supporting surface. Slowly curl your trunk forward as you try to touch your knees with your hands, then slowly return to the starting position. Do 10-20 repetitions to strengthen your abdominal muscles, one important part of your muscular “core”. The last five. This exercise requires a decent set of walking or running shoes. Begin by walking out the front door and up the street for five minutes at a brisk pace. Stop and retrace your steps for the return trip back home, for a total of ten minutes of heart-rejuvenating activity. Will this workout ready us to run a marathon or toned-up to star in the senior sports league? No. Could it be better? Probably. Still, nearly every muscle–including the heart–gets a little work. And it may just draw us into a habit that keeps our bodies sturdy enough to enjoy the years ahead. Ed Marsh is a physical therapist who lives and works in a small community near Atlanta. He likes to spend time with his church, with his family and in his garden thinking about retirement. His favorite question to ask a young person is, “Are you saving for retirement?” Check out Ed’s earlier articles.
Read more »

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Manifesto

NO. 3: WE SHOULD focus relentlessly on what we want from our financial life. That’ll motivate us to save, drive our investment strategy—and help ensure we pursue the goals we care about most.

act

ROUND UP the mortgage check. If you’re paying $1,512 a month, send the mortgage company $1,600 instead. It’s a painless way to increase savings, the extra $88 a month could allow you to pay off your mortgage years earlier and you’ll earn a pretax return equal to your mortgage’s interest rate. That return could be higher than you can get with high-quality bonds.

humans

NO. 69: WE'RE typically happier when we have regular contact with others. Eating at a restaurant or going to a concert is more fun with a companion. Those who are married tend to say they’re happier, while widowhood can devastate happiness. Indeed, a robust social network is associated not only with greater life satisfaction, but also greater longevity.

Truths

NO. 6: SAVE WHEN you’re young—and you’ll enjoy big cost savings later. If you salt away money in your 20s and quickly amass a modest nest egg, you won’t just clock decades of investment gains. You can also cut your cost of living by, say, raising your insurance deductibles, borrowing less, and avoiding bank fees for low account balances and bouncing checks.

Forum

Manifesto

NO. 3: WE SHOULD focus relentlessly on what we want from our financial life. That’ll motivate us to save, drive our investment strategy—and help ensure we pursue the goals we care about most.

Spotlight: Abuse

Hope is Not a Plan

The risk of sensitive personal data leaks is higher than ever, fueling identity theft, phishing attacks, financial account hijacks, and scams. It’s also a time when nation-backed hackers skillfully target critical infrastructure like mobile networks. A major hack revealed last year led the FBI to advise trusting only end-to-end encrypted communications.
No security is foolproof against a determined attacker, but you can make yourself a harder target. Nancy and I have so far avoided major cybercrimes but have faced fraud attempts.

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The Victim Might Be You

Who Is the Victim of a Ponzi Scheme?

Age: Often 50 or older, particularly retirees looking for stable income or to preserve capital.
Education: Many victims are college-educated—some with advanced degrees.
Financial Status: Typically middle to upper-middle class, with meaningful retirement savings or liquid assets.
Investment Experience: Usually have some experience, but not deep technical knowledge—confident, but not always skeptical.

Sounds like a typical HumbleDollar reader, doesn’t it?
Each year, 20 to 40 Ponzi schemes are uncovered in the U.S.,

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Stay Safe Out There

SOME YEARS AGO, an elderly neighbor came to our door, asking for a favor. She was looking for packing tape because she’d sold her television and needed to ship it. She went on to say that the buyer, who she’d found on eBay, was in Nigeria. It was, of course, an obvious scam. But for whatever reason, she couldn’t see it.
Today, scams like this are better known and easier to recognize. But what makes online fraud such a problem is that the crooks are always developing new tricks.

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Don’t Pick Up

I WAS A VICTIM OF identity theft. It wasn’t anything I did. Rather, it was what my former employer did.
During the pandemic, many employees were working remotely, including a member of the human resources department. She received an email from the CEO requesting that she send him the W-2s for all employees. So she did. Unfortunately, the email wasn’t from the CEO. It was sent from a shopping mall in Saudi Arabia.
As soon as she hit send,

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I want to see less of me on the internet

There is an excellent article in the Wall Street Journal about how to find what there is about you on the internet and how to delete it if you want.  Here is the Link.
I read the article followed the suggestions and it was very easy.  I hope it works.  Has anyone tried this?

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Numbers Game

IT HAPPENED AGAIN. For the third time in two years, our credit card number was stolen. I learned this yesterday when I received the now-too-frequent question from Chase: “Do you recognize this gas station purchase for $1?” We live nowhere near the station in question, so I knew something was amiss.
I appreciate Chase’s diligence in identifying such transactions, and the fact that we won’t be held liable for any fraudulent charges. Still, I’ve grown weary of the whole process of cancelling credit cards,

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Spotlight: Crothers

Digital Lockout: A Cautionary Tale 

I recently flew to Spain to meet a friend who was coming from London. We enjoyed a few lovely days together until disaster struck. After spending an hour at the pool, my friend went to check his phone for the time—only to realize he'd forgotten to take his phone out of his swimming shorts pocket. By then, it was too late: the phone had slipped out and been sitting at the bottom of the pool the entire time. Attempts to revive the device failed, so we drove to the nearest phone store to purchase a replacement. That's when the problems compounded. Although his SIM card worked in the new phone, he couldn't validate the verification emails from his cloud backup services—there was no way to prove his identity without access to his accounts. The result? He was stuck in Spain with no access to his cash(all digital), return flight boarding documents, or phone contacts. As a self-employed contractor in the middle of signing up for a new contract, the potential loss of income and reputation couldn't have been worse. I'd never really considered this digital lockout scenario before, but watching my friend's increasing agitation and frustration as he unsuccessfully tried to access his much-needed details brought it powerfully home. Thankfully, after a further day of frustration, a friend of mine had the phone number of one of his friends. After a whole lot of upheaval and further phone calls, a key holder gained access to his home laptop and could confirm the validation emails. In total: three days of worry and disruption…and three days of all drinks and food on me. So what could my friend have done to avoid this nightmare?  Particularly when we're traveling and perhaps already out of our comfort zone. The solution, to my mind, isn't…
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The 34% Return I’m Glad I Missed

Last February, just before I retired, I was wrestling with how to generate my retirement income. I flirted with the idea of moving 25% of my portfolio into a Vanguard UK equity income fund. I thought deeply about it—the fund historically yields above 4%, and combined with an annuity I was considering, it would have nicely solved my paycheck dilemma. Eventually I decided against it, mainly because of the concentration risk. Betting that heavily on a single economy felt like too many eggs in one basket. I kept my small 2% position in the fund and maintained my globally diversified portfolio instead. I can't help but notice that UK fund has been my portfolio's standout performer over the last year—trailing 12-month returns of 34.1%. Meanwhile, the 25% I didn't reallocate stayed in a boring global mix that returned about 12%. It's a classic case of "the one that got away." Watching a fund I almost bought climb 34% while my diversified holdings plodded along is enough to make any retiree's heart sink just a little. I wouldn't be human if I didn't admit that. But looking at this strategically, my decision was actually sound risk management—and I have no regrets. In investing, it's tempting to judge decisions by their results rather than the reasoning behind them. A 34% return would have been fantastic, but it doesn't retroactively make a concentrated bet "safe." If I'd moved 25% of my portfolio into a single-country fund and the economy had tanked due to unforeseen political or economic shocks, I'd be calling that same decision reckless. I didn't miss a "sure thing"—I avoided a significant risk. The fact that the risk didn't materialize this time doesn't mean it wasn't there. Choosing stability over speculation is the cornerstone of retirement planning. More importantly, the experience…
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My Dream: Derailed by Data

The occasional heated posts directed at a certain esteemed, HumbleDollar contributor, regarding his disdain for spreadsheets, always amuse me. While I find them entertaining, they sometimes become a bit uncivilized. I actually sympathize with his views, and my own use of spreadsheets is quite sparing. I believe that common sense, rule-of-thumb heuristics, and an individual's intimate knowledge of their own circumstances are more than sufficient for everyday budgeting. However, I do construct the odd spreadsheet, very occasionally. My latest foray into spreadsheet creation came from a rambling discourse with myself when a particular thought piqued my interest. Suzie and I have set up fixed annuities to the limit of our 0% income tax bracket. What if we took the rest of our income needs from after-tax accounts for the next 10 years, paying absolutely no personal taxes? This seemed like a splendid idea! "Good old brain," I thought, "you've done me proud!" The more I considered it, the more I liked it. I reasoned that the money saved from not paying taxes would compound over the timeframe, resulting in an excellent outcome. And paying no tax for ten years? Who wouldn't love that? I felt very pleased with myself for coming up with this strategy. Over the next few days, I decided to script a spreadsheet to get a feeling for our potential savings. After much brain activity, I completed the spreadsheet and input all the required information. To my dismay, the computer said no. This was devastating to my dreams of a tax-free decade and my desire to snub the tax authorities. It turns out we would be approximately 10% worse off over a 30-year timeframe if we optimized for ten years of zero tax. So I guess it shows that even my most splendid ideas need a bit…
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Cash: The False Prophet

When I was growing up in a loving but economically stretched household, birthdays and Christmas presents were nice. But what really rang my bell was a gift of cash. These sometimes materialised when an aunt or uncle couldn't think of anything better. As a kid those crisp notes were full of potential, self-directed treats, a true treasure. My parents were exclusively a cash using family; if there was ever any excess it ended up in a bank savings account or credit union. I followed this path during my first seasonal job as a young teenager, potato picking and hay and straw baling when required on a local farm. Taking my savings book to the teller and getting the interest marked up was a nice experience, but it didn't take long for me to wonder if it was possible to earn more than the pittance added to my balance. That pittance of interest felt good until I thought deeper. Inflation was running near 12% at the time and I was earning 10% on my savings book. Even at that age I figured out I was losing money. Every time I held those crisp notes, I was no longer seeing "potential" or "treasure"; I was seeing reduced value. The prophet hadn't just stopped giving; it was now actively taking. This made me look for a different solution. Luck stepped in with the solution to my dilemma. Around that time, the UK government began aggressively selling off public utilities, with British Telecom being one of the largest. The popular campaign, urging ordinary citizens to buy shares, made this feel different from the quiet credit union. With the money earned, I took the plunge and bought shares in the BT IPO. Suddenly, my cash wasn't passively decaying; it was transformed into capital that grew…
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Bearing Witness: Retirement From the Wrong Side of the Divide

I'm very confused. I think this article is a good fit for HD, but I'm really not sure if anything I write is suitable anymore. Hopefully, I'm not offending anyone posting this piece to the forum.   I bumped into a guy I played with as a kid. He's six foot six and built like a linebacker, but he looks old and worn out now—forty years in a hot tarmac crew hasn't been kind. He asked me what I was doing these days. I never told him I was retired. I vaguely talked about juggling lots of commitments and left it at that. I wasn't lying. I have sporting commitments, and I juggle social and travel schedules with more affluent people. I'm sometimes uncomfortable telling certain people I'm retired. My social circle is very diverse from a socio-economic point of view—that's a combination of randomness and a callback to my family history, growing up in a deprived public housing scheme. The ties that bind are still there; I'm friends with some pretty dodgy but interesting characters. These characters don't mix with my more affluent friends, and I don't make any effort to bring the different circles together. I genuinely think it would be the equivalent of throwing water on a cooking oil fire—an incendiary and explosive combination. It wouldn't end well. A dinner party or restaurant gathering would be an alien concept. A lot of pints, pool, and a few games of darts along with very, very strongly worded banter is the perfect night, preferably without your wife. It might sound stereotypical, but it's reality. I still join the craic and show my face a few times a year. It's very different but refreshing. This social disconnect between worlds is very real and, to my mind, very concerning for society…
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Ripples Through Time

I was catching up with one of my former employees recently, someone who'd been critical to my business for years. She left a few weeks after I sold the company and has moved into a senior managerial role elsewhere. As we were wrapping up our conversation, she laughed and said she had to get back to being a productive member of society. Then she headed off to work. It was meant as a joke, obviously. But it stuck with me. The implication was clear enough: I'm no longer productive. I'm retired, which apparently means I've stopped contributing anything meaningful to the world. Is that really true, though? I'm still participating in the economy, my portfolio generates capital gains that I convert into spending on goods and services. That spending keeps people employed just like signing paychecks did, even if it's less direct. But I contribute in ways that have nothing to do with money. I childmind my grandkids regularly, which lets my daughters go to work and have something resembling a social life. That's not nothing. My daughters earn income, pay taxes, and support their own families. None of that happens without me showing up. The ripples from that weekly childminding spread further than I can see. Beyond family, I've found ways to contribute to my wider community. I play racket sports and now help with development courses, encouraging people, young and old, to stay active. I've also gotten more involved in teaching financial literacy, helping people in my family and social circle learn to invest and manage their money. I do it because I enjoy it, but there's real value in it. Society benefits when people are healthier and more financially secure, and I've got the time now to help make that happen. Here's the part I think we…
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