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The condo, HOA, senior citizen conundrum

R Quinn | Apr 19, 2026

"I’ll add my two cents as a condo owner and an HOA board member. We are a community of 3 buildings with 197 condominiums units ranging in Size from 1-3 bedrooms. Located at the New Jersey shore, many residents own this property as a 2nd home enjoyed mostly in the summer months, but there are many full-time year round residents too. We engage a professional management company and have a full-time on site manager. As a board member I can say that we are as concerned about HOA fees as all the residents but our overriding priority is to maintain the integrity of the building, grounds and amenities (we have a pool, clubhouse and beautiful grounds) and maintain financial stability of the community for current and any future repairs. while maintenance fees have increased over the past few years we are very transparent with all owners as to the reasons and amounts of increases by holding quarterly open board meetings which all owners are invited to attend. our population consists of various ages and demographic groups most of which are concerned about expenses and property values. Although we don’t have a lot of turnover, property values continue to rise and this is a direct result of the way the property has been maintained. Our approach is not very different than an owner of a single home but it does impact ALL regardless of their economic situation and might cause more stress on some than others. Overwhelmingly, the residents/owners are quite happy with the running of the condominium association and property. We have very few collection issues for HOA fees."

- luvtoride44afe9eb1e

Staying Rational

ArticleAdam M. Grossman | Apr 18, 2026

IT'S BEEN MORE than six years since Covid first entered our vocabulary. It goes without saying that investors have experienced a lot, and for better or worse, recent market events provide some useful lessons. The first has to do with the nature of the stock market. What drives stock prices? Open a finance textbook, and the answer will be clear: The value of a stock should equal the sum of the company’s future profits. This idea is known as intrinsic value, and it’s the textbook explanation of how stock prices work. But there’s clearly a disconnect, since stock prices bounce around far more than the math suggests they should. How can we square this circle? Over the long term, the data tell us that intrinsic value is a valid idea. Chart the price of any given stock, then overlay the company’s profits, and there will often be a reasonably close relationship. But only if you’re Rip Van Winkle. Over shorter periods of time, anything can happen. Stocks often move far above or far below their intrinsic values in response to the news of the day. Especially during times of economic uncertainty, intrinsic value analysis is typically cast aside and replaced by some combination of emotion, conjecture, speculation and storytelling. That’s what we saw in the early months of 2020. Stores were closed, employees had been sent home and the economy went into recession. And since no one had a crystal ball, that’s when storytellers were able to step in with their extreme predictions, causing the stock market to drop more than 30% in the space of six weeks. The lesson for investors: No one can predict when the next crisis will roll around or what form it will take. But there is one very reasonable way to be able to keep it in perspective: by remembering that, at the end of the day, intrinsic value is what matters, and ultimately that’s what drives stock prices. Basic arithmetic illustrates how this can help us manage through the next crisis. Consider that the price-to-earnings ratio of the U.S. stock market has historically averaged around 16. The average company’s total stock market value, in other words, has been equal to about 16 times its annual profits. Now let’s imagine that the next crisis results in every company in America losing an entire year of earnings. That’s extreme and hasn’t happened since the Depression, but it’s useful as a thought experiment. In that scenario, what would be the impact to those companies’ intrinsic value? In simple terms, it would be just one-sixteenth, or a modest 6%. What if a crisis were so severe that a company lost two years of earnings? Using this simple model, the impact would be about 12%. This is meaningful, I believe, because crises typically result in stock price declines that are far more severe than just 6% or 12%. In 2000 and in 2008, the market dropped more than 50%. While every crisis is different, I think it’s useful to keep these numbers in mind whenever the next geopolitical event causes stocks to drop. When that occurs, storytellers will inevitably take over, and the news will be downbeat. But if stocks drop to an extreme degree, as they have in the past, we can probably view it as an overreaction. That won’t help anyone’s portfolio recover any faster, but it should help us tune out the worst of the forecasters and maintain our equanimity. How else can you maintain an even keel during a market crisis? It’s important to understand the impact of recency bias. This bias is the tendency to extrapolate from current conditions, to assume that the future will look like the present, and to downplay the possibility that things might change. That tendency is what contributed to the cycle of negative news during the depths of 2020, and this is why I think it’s so important for investors to be aware of market history. Again, extensive analysis isn’t required. We need only look back across some of the crises the country has weathered, from the Civil War to the Depression to World War II. In each case, the economy recovered and went on to become larger and stronger than before. The lesson for investors: In the depths of a crisis, it’s very difficult to know when or how it will end. But a sense of history can help carry us through. Those are ways to manage through a crisis. Covid also provided a lesson on how to prepare—specifically, how to prepare our portfolios—for a future downturn. In 2022, investors were caught flat-footed when popular total-bond market funds delivered surprising losses. These funds are one pillar of the well-known three-fund portfolio and have traditionally been viewed as the default choice for a set-it-and-forget-it bond allocation. But in 2022, when the Federal Reserve hiked interest rates, these funds dropped a surprising 13%. That was during the same year that the U.S. stock market dropped nearly 20%, creating a very difficult situation for those in retirement and needing to withdraw from their portfolios. The lesson for investors: Total-bond market funds may be well diversified, but they carry risk along another very important dimension known as duration. This is a bond metric that measures, in simple terms, how long it will take for bondholders to be repaid, and it’s a key determinant of risk. The longer the duration, the greater the risk of loss when rates rise. While total-bond market funds have holdings across a broad range of durations, they average out to nearly six years. That’s why they lost so much value in 2022. What’s the alternative? Short-term bond funds tend to have a duration in the neighborhood of just two years. As a result, in 2022, short-term government bond funds like Vanguard’s Short-Term Treasury ETF (ticker: VGSH) lost a far more manageable 4% of their value. To be sure, every crisis is different, and it’s easy to rationalize about the past once it’s in the past. But these lessons, I think, can help us better prepare both our emotions and our portfolios for whatever comes next. 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.

Penny Wise, Pound Foolish

DAN SMITH | Apr 12, 2026

"That's pretty impressive. An 80-cup Lavazza Keurig-cup box at Costco was priced at about 46 cents a cup today (I bought a box), while most supermarkets sell those cups in boxes that pencil out to more than $1.25 a cup. Coffee prices are spiking."

- Martin McCue

Navigating a Turbulent Career

ArticleRichard Connor | Apr 18, 2026

A RECENT article by Adam Grossman relayed an interesting story of the 2015 merger of Kraft and Heinz. One of the aspects that made this merger unique was the involvement of Warren Buffet. Adam’s story is a cautionary tale for investors – research shows that, more often than not, the hoped-for corporate synergies and growth are elusive. The story provides more evidence for the benefits of indexing to investors. There is, however, another side to this story that is very important to an individual’s personal financial life. In addition to being investors, most of us are, or were, employees of a corporation. What if you are an employee of a company that is acquiring another company, being acquired by another company, or part of a merger? How do you navigate the challenges of this significant career event? In late November 1985, I interviewed with RCA’s Astro Space division in East Windsor, NJ. Several weeks later I interviewed with GE Aerospace in King of Prussia, PA. In between those 2 interviews it was announced that GE was acquiring RCA. I received an offer for a position in the thermal engineering group of both companies. The GE offer was for $32,000, $4,000 more than the RCA offer. The GE plant was about 8 miles from our home; the RCA plant was 62 miles from our home. I accepted the GE offer. When I called the RCA manager to tell him my decision, he was professional and understanding. He remarked that “who knows, we may end up working together and you got a better deal out of it”. Four months later that RCA manager became the senior manager of the merged thermal engineering organization – my new boss’s boss. Seven years later my division was sold to Martin Marietta, whose space operations were based in Denver, CO. Two years later Martin Marietta merged with Lockheed, in Sunnyvale, CA, to form Lockheed Martin. Later that year it was announced that the company was closing its 2 east coast plants and moving the work to Sunnyvale and Denver. Over the 31 years starting in 1986, I was part of numerous acquisitions, mergers, two plant shut-downs, and being sold to a private equity company. Somehow, I managed to stay employed, and grow my career. I wasn’t special – hundreds of colleagues trod the same path. When I look back I can identify some of the attributes that helped me navigate a turbulent career. Build your Reputation: Be someone that people want to hire. If you move up, be someone that people want to work for. My first senior manager position came about because the hiring team remembered me from 4 years previous Maintain Flexibility: Are you willing to travel or relocate? Would you take a lateral position, or even a step down, if it meant keeping a job? During my career I traveled extensively, commuted 62 miles for four years, and took new positions that challenged me and my family. Focus on your Skills: What are the skills and behaviors that are valued by your company, and differentiate successful employees? These include technical, leadership, managerial, and interpersonal skills. My first GE manager provided a sound technical base, but also taught me just as much about work ethic, and professionalism. Focus on the Culture: Combing organizations means combining cultures, just as much as products or processes. This may require you to be open to a different way of doing things. It requires a willingness to learn and grow. It will also likely require some diplomacy skills. Change is hard for employees, and nobody enjoys being told their processes or products are inferior. When we merged with RCA, we found there was a significant difference in the way that managers and senior technical leaders challenged their employees in public forums, in front of customers. GE preferred to work out technical differences and approaches in-house, and present a united front to customers. This took some time to resolve into a shared approach. Focus on the People: When my first GE manager retired, we held a group luncheon. He was universally liked and respected. Someone described him as the best “BTU chaser” he’d ever seen, which was high praise. He gave a short speech at his retirement, where he discussed the exciting space programs he had supported. He ended that the thing that made his career special wasn’t the projects and technology, it was the people. I was also fortunate to work on some exciting, ground-breaking projects. It wasn’t always easy, and the path certainly wasn’t straight. Looking back, it is the people I think of most, and I miss the most. 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.

A Life You Build

Jeff Peck | Apr 19, 2026

"Mark, I was thinking the same thing about my life. Looking back I took the correct path when I met numerous forks in the road and was "lucky" to choose the correct path most times. Getting across the finish line is the important thing. How you get there can be an infinite number of paths as I've read over the years here on Humble Dollar."

- Tom Brady

Something to Think About

David Lancaster | Mar 24, 2026

"This is an issue for an optimizer but not a satisficer. I'm more concerned with the total amount I convert each year than the timing. But I do have optimizer tendencies: I tend to leave maybe half or more of my Roth conversions for December so I can guess better and make my income near the top of the tax bracket and keep my capital gains in the 0% bracket."

- Randy Dobkin

Fixing Social Security once and for all

R Quinn | Apr 15, 2026

"I’ve read that is so! 😂"

- David Lancaster

The IRA Decision That Affects Your Kids

David Lancaster | Apr 17, 2026

"Children yes"

- R Quinn

One Good Call?

Mark Crothers | Apr 14, 2026

"Jeremy. A very sharp observation, and it brings to mind that old saying: invert, always invert. To answer your question directly: no, I haven't analysed my wife's portfolio to that extent — and if I'm honest, I probably won't. She's determined to stay with the adviser, and I'm content with what we've achieved: a fee reduction and a new commitment to advise based on our total combined holdings rather than hers in isolation. Sometimes you have to know which hill to die on — and when to retreat with a partial victory."

- Mark Crothers

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

Carl C Trovall | Mar 15, 2026

"Triple check but I believe that the Medigap insurer you originally picked stays with you if you move to another county or state (and don't change plans or companies). A few states even allow you to change companies and/or plans without underwriting or higher premiums (community pricing). Each state has an 800 SHIP (State Health Insurance. Assistance Program) hotline to connect you with knowledgeable folks."

- R Mancuso

A Bit More Humble

ArticleEdmund Marsh | Apr 18, 2026

I LOVE TO PLAN. My wife, Sharon, often catches me nestled in my chair, gazing out a window at a distant object as my mind wanders even farther afield. My musings become scribbles on a scrap of paper, destined for discussion with Sharon at length over coffee and long walks. Eventually, we hammer out the settled strategies we think will best bring us happiness in adventures ranging from our next hike to the next few decades of life. Of course, I know our intended track, or even the final destination, may change over time. I'm just a little boat on a big sea, blown about by winds and carried along by deep currents that may push me far off my charted course. Still, though it may be somewhat of an illusion, I cling to the comfort of control. Smooth sailing. And for most of 2025, life was comfortable. In April, I shifted to part-time work as a physical therapist. I termed my new lifestyle “semi-retirement”. My reduced salary, added to Sharon’s contribution from a few hours’ work each month, still gave us enough income from our jobs to cover expenses, with leftovers for a little investing and so forth. Along with that, we gained enough new-found, free time to pursue a bit more fun while catching up on projects around the house. As an added bonus, I expected delaying full retirement a couple of years might lead to more happiness in the decades ahead. How so? Because my post-retirement plan was still a work-in-progress. “I studied and planned for two years before I retired,” Mike told me at a large family gathering. In his mid-70s, his excitement was evident as he recounted his active lifestyle. At home, his schedule includes participation in our state’s Master Gardener program and regular trips to the gym. Abroad, he organizes groups to walk the Camino de Santiago in Spain. I had a yen for a fulfilling retirement like Mike’s. My roster of reasons to jump out of bed each morning might have a different twist or two, but I wanted the same zest for living. My unique recipe for retirement happiness still needed time to cook, however. Oh, I knew I had plenty to keep my hands active. Even so, I wasn’t yet convinced I could substitute the mental stimulation provided by my patients and colleagues. According to a decades-long study from Harvard University, some folks discover that work supplies satisfaction not found elsewhere. I have a nagging suspicion I’m one of those restless souls, and I dreaded the thought of finding myself adrift, with little sense of purpose beyond indulging my own selfish needs. And let’s face it: I still get a thrill from watching my money grow. Earning an income delays the need to plunge my fingers into my pile of savings to pay the grocery bill. All told, I figured my best move was to stay put until a clear exit appeared. Unexpected storm. Meanwhile, my employer was moving in its own interest. In December, I learned that with the new year came new management for our outpatient physical therapy clinics. Our hospital system opted to outsource operations with the hope of securing guaranteed revenue. After the revamping, my boss would keep some new iteration of her job, but the outpatient clinics would report to the new administration, rather than her. The news was a blow to my ordered life. No longer was I sailing through calm waters toward the sunset of my choosing. Instead, I faced the probability of turbulence as our clinic transitioned to the new system. And we were already struggling to implement a comprehensive computer software replacement that would take many more months to fashion into a serviceable tool. I sensed danger ahead. Or, at the very least, a year or two of starts, sputters and stops before the clinic machine was humming again. I decided to bail, and on February 18th clocked my last day with my former employer, four days after Sharon. It turns out my radar was right. The details are dirty, but the gist is the transition is stalled and leadership of the affected clinics in limbo. New direction. On the face of the situation, it seems my “clear exit” did indeed appear, and that I acted with autonomy to choose the course of my life. After all, I had exercised the option of jumping out of a job headed south and into the retirement I had dreamed of for decades. On top of that, I landed in a new, part-time job with Miranda, an old friend. Back in December, Miranda called to ask if I could help cover patients in her clinic while she was out on extended leave. I wasn’t seeking more work, but she needed help. I couldn’t refuse. So, starting with one half-day per week in January, I’m now up to two or three half-days. Miranda’s made it clear I’m welcome to work more, but I’m satisfied for now. And the atmosphere in the clinic is great. It’s staffed by easy-going folks who are serious about patient care. Still, it’s hard to shake the sense I’ve been scrambling to right myself after getting shoved off balance. During the last few weeks with my former employer, I had the feeling I was getting pushed out of a satisfying job before I was ready to leave. My usual optimism suffered, as did my sleep habits and typical interests, like gardening and writing. Why? Perhaps the answer is the sudden, unplanned departure from my job. Research indicates forced retirement can lead to negative feelings about health and to depression. I have to admit I found my new temperament described in the pages of a research paper. Other studies on job loss, found here, here and here, examine and compare the emotions experienced by losing a job to that of other types of loss, such as grief after the death of a loved one. Considered in this light, the Kubler-Ross model of the five stages of grief might help someone--like me–understand and deal with the psychological aftermath of job loss. Peering ahead. Back to my reality, I know I’m painting a grim picture of a life that’s actually very blessed. Others have experienced far worse with fewer complaints. My perceived suffering pales beside that of a person who’s lost a loved one, or an income needed for survival. Also, as I get used to the shift in my lifestyle, I’m beginning to find my groove again. Last spring, I started the season thinking I was at life’s helm, confident I could steer in any direction and choose my pace. I was thankful, but a little smug as I laid plans for my vision of retirement. One year later, I’m still planning and still thankful–but a bit more humble. Ed is a semi-retired physical therapist who lives and works in a small community near Atlanta. When he's not spending time with his church, family or friends, you may find him tending his garden and wondering if he will ever fully retire. Check out Ed’s earlier articles.

What Bangladesh Taught Me About Enough

Andrew Clements | Apr 16, 2026

"Thank you Sundar for sharing your experiences and your encouragement to keep writing. I appreciate it."

- Andrew Clements

The condo, HOA, senior citizen conundrum

R Quinn | Apr 19, 2026

- luvtoride44afe9eb1e

Staying Rational

ArticleAdam M. Grossman | Apr 18, 2026

Penny Wise, Pound Foolish

DAN SMITH | Apr 12, 2026

- Martin McCue

Navigating a Turbulent Career

ArticleRichard Connor | Apr 18, 2026

A Life You Build

Jeff Peck | Apr 19, 2026

- Tom Brady

Something to Think About

David Lancaster | Mar 24, 2026

- Randy Dobkin

Fixing Social Security once and for all

R Quinn | Apr 15, 2026

"I’ve read that is so! 😂"

- David Lancaster

The IRA Decision That Affects Your Kids

David Lancaster | Apr 17, 2026

"Children yes"

- R Quinn

One Good Call?

Mark Crothers | Apr 14, 2026

- Mark Crothers

Manifesto

Apr 19, 2026

NO. 59: MOST FOLKS should avoid alternative investments. Yes, they promise returns uncorrelated with the stock market and gains when shares are tumbling. But isn’t that why we own bonds?

act

Apr 20, 2026

ALERT U.S. EMBASSIES to your travel plans. Before leaving on a foreign trip, sign up for the State Department's free Smart Traveler Enrollment Program and detail where you’re going. The local U.S. embassy or consulate will then contact you if, say, there’s a natural disaster or terrorist incident while you’re traveling abroad—and it may be able to offer advice or help.

think

Apr 20, 2026

INFLATION RISK. Suppose inflation runs at 2.5% a year. If you were living off a traditional employer pension or interest from long-term bonds, your income would lose more than half its spending power over a 30-year retirement. What to do? You might keep more in stocks, while also delaying Social Security so you have more inflation-indexed income.

humans

Apr 19, 2026

NO. 64: WE MAY feel stuck—but often others can point the way forward. We’ve all struggled with seemingly intractable problems, mulling them over and over, trying to figure out the answer. But sometimes, the solution isn’t to think harder. Instead, it’s to ask others, who will have a different perspective—and may suggest solutions that hadn’t occurred to us.

Money Guide

Manifesto

Apr 19, 2026

NO. 59: MOST FOLKS should avoid alternative investments. Yes, they promise returns uncorrelated with the stock market and gains when shares are tumbling. But isn’t that why we own bonds?

Spotlight: Insurance

Is buying long-term-care insurance a good idea?

Jonathan Clements | Apr 12, 2021

Home, Auto & Umbrella Insurance—“Longevity Benefit”?

Andrew Forsythe | Jan 23, 2025

Recently, and spurred by the horrific fires in L.A., there’s been a lot of attention on home insurance, including skyrocketing premiums. Like many people, we have our home, auto, and umbrella policies with the same company, and have seen our premiums increase dramatically in the last few years.
I’ve occasionally heard mention, without much in the way of specifics, of a “longevity benefit” in staying with the same insurance company rather than constantly shopping around and switching.

Six Tips on Term Life

James McGlynn | Oct 26, 2022

I RECENTLY LISTENED to a podcast during which the speakers lamented the death of a colleague who was in his 30s. They mentioned a GoFundMe campaign to assist his family, so I assume the deceased had no life insurance. According to LIMRA, which collects data on the life insurance industry, less than 50% of millennials have individual life insurance.
There are two major types of life insurance: term and whole life. Term insurance is intended to cover a specific period,

MOO for Me

Andrew Forsythe | Jun 22, 2022

I’VE WRITTEN BEFORE about stumbling on an unexpected way to save on auto insurance. My education continues: I’ve also learned of a way to save on Medigap coverage.
When I became eligible five years ago for Medicare, I bought Medigap Plan G supplemental coverage from Mutual of Omaha (MOO). Last summer, as my wife was about to become eligible for Medicare, we took another look at Medigap coverage. I was generally happy with MOO’s claims procedures and customer service,

Grab an Umbrella

Adam M. Grossman | May 2, 2021

ON FEB. 27, 1992, Stella Liebeck ordered a cup of coffee from a McDonald’s drive-through. Moments later, as she attempted to open the lid, the cup spilled, causing a burn that sent her to the hospital. Her injury was serious but self-inflicted and not life-threatening. Nonetheless, she sued McDonald’s, and a jury awarded her almost $3 million. That award was reduced upon appeal, but this case is often cited as an example of an out-of-control legal system exploited by personal injury lawyers.

Details, Details

Sonja Haggert | May 11, 2022

DO YOU SKIM OVER the fine print? Two recent incidents involving insurance coverage made me rethink my tendency to do just that. One incident alerted me to a major problem. The other saved me money.
Let’s start with the problem. It was time to renew our homeowner’s insurance. In looking over the policy, something didn’t look right. In the section for dwelling, which is defined in our policy as alterations and other improvements, we had $5,000 worth of coverage.

Five Lessons

Joe Kesler | Apr 14, 2021

COVID-19 WILL SOON, I hope, be in the rearview mirror. But as Winston Churchill said, “Never let a good crisis go to waste.” Here are five lessons I’m taking away from the pandemic: 1. Government spending. Some folks tell me they’re claiming Social Security retirement benefits as soon as they’re eligible because the system’s trust fund will be depleted within the next decade or so, at which point benefits could get cut. Claiming Social Security early could either be a really bad decision, because benefits go up some 8% for each year you delay, or it could be a really smart move if the politicians let the system run out of money. My reaction: If there’s one certainty that came out of 2020, it’s that politicians on both sides of the aisle excel at throwing money at people. After watching stimulus checks, enhanced unemployment benefits and Paycheck Protection Program loans flow into the economy, does anyone believe that politicians would let our most popular entitlement program run out of money? I think there’s little risk that politicians will get religion on deficits and cut Social Security—and we shouldn’t let that possibility impact one of our most important retirement decisions. You may have good reasons to take Social Security early, but I don’t think fear of possible benefit cuts should be a deciding factor. 2. Economic fragility. Remember how, just a few short months ago, we had big shortages of everything from hand sanitizer to swabs to toilet paper? My wife and I ordered some furniture last year that took more than four months to get delivered due to disruptions in the supply chain. The furniture would normally have been shipped in a week. I have friends who have been waiting months for a refrigerator. The disruptions are very real for…

The Joy of Work

Joe Kesler | Sep 16, 2021

I’VE HAD SOME dreadful jobs in my life. I spent one summer putting metal plates under a huge press for eight hours a day. Once the plates were in the right position, I’d push some buttons that would cause the press to crash down and shape the metal into something useful. The goal was to work fast because that meant more pay. Some of the workers disabled the safety features so they could produce more widgets and earn extra money. It was a joyful day when I walked out of that factory for the last time with all 10 fingers still attached. Factory jobs made me appreciate landing a job in finance. The industry pays above-average wages, it isn’t back-breaking work and you get to use your brain to find creative solutions for customers. But even a cushy finance career came with some curses. Granted, they weren’t physical curses, but more mental in nature. For one thing, everyone in finance is focused on the money. As a result, I think there are more fights over salaries and bonuses than in other industries. Those experiences partly explain why I find retirement so liberating. And I’m hardly alone. In retirement, many of us can, for the first time, untether the value of our work from the paycheck it generates. The habit of thinking about work as something we do to make money is deeply ingrained. We can scarcely imagine what a Copernican revolution it is to evaluate work without considering the dollars involved. Are you enjoying financial freedom or hoping to get there one day? Here are four suggestions to help you rethink the relationship between work and money. First, take the idea that work is what we need to do to live, and turn it on its head. The goal is…

Beyond Saving

Joe Kesler | Jun 21, 2021

I’M CONSERVATIVE, but sometimes even I see the need to change. For instance, I belonged to a high-profile service organization for many years. They’re very proud of their tradition of raising money to give a Webster’s dictionary to each fifth grader in our city. Let’s face it: These days, no self-respecting fifth grader is going to be caught dead with a hardcopy dictionary. Doesn’t everyone know that kids look up everything online? Traditions die hard—even when they no longer make sense. Which brings me to saving for college. Should we continue to automatically fund 529 college savings accounts? I’m trying to decide whether to put money in 529 plans for my three grandchildren. Some parents sacrifice their own retirement savings to make sure their kids’ college education is funded. Others might fail to pay off debt because they feel a duty to stash dollars in a 529. But those good intentions could backfire—in part because money in 529 plans can hurt a family’s financial aid eligibility. If anyone should know the value of a college degree, it’s me. My degree opened the door to a successful banking career. So why am I having doubts about funding 529 accounts for my three grandchildren? It isn’t that we can’t afford it. Unless financial catastrophe strikes, we should be able to help with college costs. Still, I’m wondering whether saving for college should remain a priority—for five reasons. First, I recently had a heart-to-heart with one of my sons. He said that, if I hadn’t helped pay for college, he doesn’t think he would have gone. He’s ended up with a good job in the technology sector, but his conversations with friends have convinced him that a college education wouldn’t have been good value if he’d had to borrow to pay for it.…

Ignoring the Rules

Joe Kesler | May 27, 2021

ONE HALLOWEEN, SOME of my teenage buddies and I were having a great time throwing water balloons at trick-or-treaters. It was a lot of fun—until we got caught. After getting hauled down to the police station for a lecture, and then receiving another one when I got home, I’ve been pretty much on the straight and narrow ever since, including when it comes to money. Over the years, I’ve discovered various tried-and-true rules of investing and those have been the keys to my success. In my personal Investor Hall of Fame, I’d include Warren Buffett for his lessons on patience and the value of letting compounding work to your benefit. I’d also include Burton Malkiel for the classic he authored, A Random Walk Down Wall Street. It taught me that the markets were so efficient that I’d be better off buying index funds than individual stocks. And, of course, there would be a place for Vanguard Group founder John Bogle, who made it possible to follow Malkiel’s advice by creating the low-cost index fund. These wise sages, along with others, provided me with the rules needed to succeed. But despite my reverence for time-tested wisdom, I give myself a little wiggle room. Most of us can’t always invest like robots. Sometimes, we want to do something with our money that doesn’t follow the established rules for investment success. A popular compromise: Set up a “fun money” account. I allow myself to play with 5% or 10% of my portfolio. Here are four examples of how I’ve had fun by not following the rules. 1. I’m a little embarrassed to admit that I have a position in bitcoin. Crazy? Yes, I know. Buffett calls it “rat poison squared.” But even Buffett gets some things wrong. It isn’t unusual in the history…

Go Away

Joe Kesler | Jul 15, 2021

ONCE IT LOOKED SAFE to travel again, I didn’t waste any time. I jumped on a plane and spent three weeks in the Carolinas. It was a great vacation. Staying in an Airbnb on Hilton Head Island gave me a much-needed chance to recharge while enjoying the beach. Renting a place on Lake Norman, the largest man-made lake in North Carolina, gave me quality time with two of my grandchildren. It was like breathing freedom again after the long COVID-19 lockdown. That said, the trip wasn’t cheap. Is it wise to spend so much on travel? Imagine 70-year-old twins, Samuel and Joseph, sharing a cup of coffee and talking about their different life journeys. Samuel traveled the world. When he wasn’t working for the Peace Corps, he was vacationing in a new country. Meanwhile, Joseph rarely left the county where he was born, instead focusing on building his business. Samuel doesn’t have much of a net worth, but he believes he’s lived a rich life. He can entertain others for hours with his travel stories, although he isn’t sure if his money will last into old age. Finances aside, he pities his twin for leading a sheltered life. What about Joseph? He’s a prominent member of his community and is worth several million dollars. He is proud of the mark he’s made locally and enjoys his financial security. He wouldn’t change a thing about his life because of the legacy he’s built. He can’t understand how Samuel could end up at 70 years old without financial security. Who lived “the good life?” I’ve known a lot of Josephs, who are rich financially but impoverished by their narrow understanding of the world. And I’ve known some Samuels, who have great stories to tell but worry about their lack of financial preparation…

Lending a Hand

Joe Kesler | Jul 9, 2021

IF I'M HONEST WITH myself, I’ve been financially comfortable for so long that I’ve lost the ability to truly relate to those living paycheck to paycheck. But over a lifetime of working with people and their money, I’ve learned to be aware of signs that someone may be on the brink of breakdown—and could use some help. I was only 22 years old when I had my first shocking experience with the power of money to cause a life to self-destruct. I was working as one of the federal government’s national bank examiners. A teller’s cash drawer was missing money and she was sent home. Around lunchtime, the bank president realized his truck was also missing. The teller had stolen his truck, and then driven for several hours before stopping and attempting to end her life. Fortunately, she wasn’t successful. But the experience made a big impression on me. Money is a double-edged sword with the power both to help fulfill our aspirations and to destroy. How can we help those who are struggling? Try these three steps. 1. Strive to be a “financial first responder.” That’s the label I give to those willing to help others in financial difficulty. We know that depression can occur in those suffering from too much consumer debt. If not addressed, serious consequences often result. In such situations, there are time-tested methods to give people hope. It doesn’t take an MBA to help those who have too much credit card debt. Just like we learn first aid to assist with a medical need when a doctor isn’t around, anyone can learn some basics to help financially stressed people who can’t afford professional help. I’ve trained others with materials from organizations like Crown Financial Ministries. The goal is to lay out a series of small, manageable steps…

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