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The step-up in cost basis is the most wonderful of tax breaks. It’s just a shame somebody has to die first.
BENJAMIN GRAHAM was Warren Buffett’s teacher and mentor. He also ran an investment fund that specialized in uncovering demonstrably undervalued stocks.
One day in 1926, Graham was at his desk, reading through a government report on railroads, when he noticed a potentially important footnote. It referenced assets held by a number of oil pipeline companies. But there wasn’t a lot of detail, so Graham boarded a train to Washington and found his way to the Interstate Commerce Commission (ICC),
AT A FAMILY DINNER in the early 1980s, I remember one of my brothers—probably then age 20 or so—saying, “But isn’t the economy built on sand?”
My economist stepfather offered one of his trademark droll responses: “The economy’s always built on sand.”
The same could be said for the stock market. In the minds of many investors, it’s always teetering on the verge of collapse. After two years of rising share prices, and amid concerns about high stock valuations,
MANY FOLKS CLAIM TO be ready for retirement, both financially and psychologically. But they’re often surprised to discover that the reality is different from what they expected.
I started planning well in advance of my 2023 retirement. I read dozens of books on the subject, and talked to many classmates and friends who’d already retired. Of all the books and videos that I reviewed, one talk on YouTube stood out: a TEDx Talk by Dr.
IT WAS 1982 OR thereabouts. After attempting to be a landlord for several years, I decided it wasn’t for me. I sold the house and the four-family apartment building I’d been managing.
The final task in closing out this adventure would come at tax time. Keeping the books was the one aspect of being a landlord that I didn’t mind. I understood how accumulated appreciation would be recaptured and how capital gains tax would affect that year’s taxes.
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.
IS IT WORTH OWNING international stocks? There’s far from universal agreement. The traditional argument for investing outside the U.S. is straightforward: diversification—since domestic and international stocks don’t move in lockstep, and sometimes diverge significantly.
At the same time, however, international stocks have lagged behind their U.S. counterparts for so many years that it’s been trying the patience of even the most tenacious investors. Domestic stocks have outpaced international stocks in eight of the past 10 years.
WHEN MAKING a purchase, ponder not just its virtues, but also the maintenance, repairs and other hassles involved—because those’ll eventually loom large. Take the country home. It may initially seem like a great escape. But soon enough, you’ll be just as focused on the drive back and forth, and on the chores you’ll have to do once you’re there.
NO. 70: WE INVEST now so we—or our heirs—can spend later. The goal of investing isn’t to get rich or beat the market. Instead, it’s about paying for the house down payment, kids’ college, retirement and other goals. Like a pension fund, we should identify our future financial obligations—and then figure out the surest way to meet those obligations.
NO. 46: DIVERSIFICATION has been described as Wall Street’s only free lunch—but some folks take the notion too far. They’ll spread their money across multiple financial advisors, multiple funds that invest in the same market sector and far too many financial firms. The result can be high investment costs and an overly complicated financial life.
NO. 47: IF WE NEED a financial advisor, we should hire one who’s legally required to act as a fiduciary—meaning he or she should only make recommendations that are in our best interest.
WANT THE LAST WORD? Write your own obituary.
It’s the final opportunity to tell the world you were a great person and that others should regret never having known you. You can write what you want because, in most newspapers, the obituaries are essentially paid ads—and pricey, to boot. No one is going to challenge your obituary’s veracity, at least not publicly, unless it’s outrageous.
Was she really well liked by everyone she met?
IT ISN’T EASY STICKING to a budget. I get it. Surprise expenses pop up all the time. How can you possibly be expected to live on a strict dollar amount each and every month?
The answer is, you don’t. But the key is to make sure you have enough financial breathing room, so you aren’t living paycheck to paycheck. That brings me to three common budget busters. These areas of your financial life, if ignored,
I’M A LIFELONG football fan who’s played fantasy football for 20 years. What do I have to show for it? Zero league titles, a staunch ambivalence about fantasy football—and three investing maxims.
Every fantasy football season starts with the draft. Three intoxicating forces combine to make the draft a great time: predictions, customization and pride. I’ve come to realize that the draft accounts for about 90% of the appeal of the whole fantasy football concept.
I’VE BEEN CHALLENGED—by Mr. Clements, no less. Jonathan didn’t actually say it, but his challenge was to defend my unorthodox views on investing and retirement, and the actions I’ve taken as a result.
Some of my decisions will seem illogical to others. Some don’t maximize investment returns. Some are very conservative, others not so much.
I don’t like math. I don’t like details. I haven’t used a spreadsheet in 30 years. I focus on the big picture and long-term goals.
I DON’T USUALLY FOLLOW the NFL. But this year, I’ve made an exception—because the current season offers a valuable lesson not just for football fans, but also for investors.
Teams devote huge amounts of time, energy and money to determining who’s the best quarterback for their team. Yet, this year, three quarterbacks are leading their teams when most experts, who get paid to evaluate talent, didn’t give them much of a chance.
Brock Purdy leads the San Francisco 49ers.
NO. 47: IF WE NEED a financial advisor, we should hire one who’s legally required to act as a fiduciary—meaning he or she should only make recommendations that are in our best interest.
WHEN MAKING a purchase, ponder not just its virtues, but also the maintenance, repairs and other hassles involved—because those’ll eventually loom large. Take the country home. It may initially seem like a great escape. But soon enough, you’ll be just as focused on the drive back and forth, and on the chores you’ll have to do once you’re there.
NO. 70: WE INVEST now so we—or our heirs—can spend later. The goal of investing isn’t to get rich or beat the market. Instead, it’s about paying for the house down payment, kids’ college, retirement and other goals. Like a pension fund, we should identify our future financial obligations—and then figure out the surest way to meet those obligations.
NO. 46: DIVERSIFICATION has been described as Wall Street’s only free lunch—but some folks take the notion too far. They’ll spread their money across multiple financial advisors, multiple funds that invest in the same market sector and far too many financial firms. The result can be high investment costs and an overly complicated financial life.
WANT THE LAST WORD? Write your own obituary.
It’s the final opportunity to tell the world you were a great person and that others should regret never having known you. You can write what you want because, in most newspapers, the obituaries are essentially paid ads—and pricey, to boot. No one is going to challenge your obituary’s veracity, at least not publicly, unless it’s outrageous.
Was she really well liked by everyone she met?
IT ISN’T EASY STICKING to a budget. I get it. Surprise expenses pop up all the time. How can you possibly be expected to live on a strict dollar amount each and every month?
The answer is, you don’t. But the key is to make sure you have enough financial breathing room, so you aren’t living paycheck to paycheck. That brings me to three common budget busters. These areas of your financial life, if ignored,
I’M A LIFELONG football fan who’s played fantasy football for 20 years. What do I have to show for it? Zero league titles, a staunch ambivalence about fantasy football—and three investing maxims.
Every fantasy football season starts with the draft. Three intoxicating forces combine to make the draft a great time: predictions, customization and pride. I’ve come to realize that the draft accounts for about 90% of the appeal of the whole fantasy football concept.
I’VE BEEN CHALLENGED—by Mr. Clements, no less. Jonathan didn’t actually say it, but his challenge was to defend my unorthodox views on investing and retirement, and the actions I’ve taken as a result.
Some of my decisions will seem illogical to others. Some don’t maximize investment returns. Some are very conservative, others not so much.
I don’t like math. I don’t like details. I haven’t used a spreadsheet in 30 years. I focus on the big picture and long-term goals.
I DON’T USUALLY FOLLOW the NFL. But this year, I’ve made an exception—because the current season offers a valuable lesson not just for football fans, but also for investors.
Teams devote huge amounts of time, energy and money to determining who’s the best quarterback for their team. Yet, this year, three quarterbacks are leading their teams when most experts, who get paid to evaluate talent, didn’t give them much of a chance.
Brock Purdy leads the San Francisco 49ers.
How do I invest for Dividend Income? Should I?
The budget-less, automated financial life of two old retirees living paycheck to paycheck- sort of, okay, not really. By Quinn
Wellcare for Part D by Andrew Forsythe
The Choice to do Nothing
In defense of billionaires
California Free by Ken Cutler