Home - HumbleDollar

Do I really need International funds in my portfolio? I say no.

Bruce Roberts | Oct 26, 2026

"For an active (vs passive) investor, asset selection obviously is the most important. But clearly most of us on this forum are not active investors, and for good reason. To find alpha, you must possess an informational or analytical edge that nobody else has - a massive challenge in a hyper-connected world. You are effectively competing against multi-billion-dollar hedge funds, supercomputers, and insider networks. You might try to solve this by investing in actively managed funds you think have the right tools and skillsets to find your alpha. While it is easy to look backward and find funds that generated massive alpha over the last three or five years, data shows that past performance does not predict future results because alpha lacks persistence. According to the widely cited S&P Indices Versus Active (SPIVA) scorecards, which track the performance of active fund managers against their benchmarks: • Over a 10-year horizon, roughly 85% to 90% of all large-cap active managers fail to beat the S&P 500. • Over a 20-year horizon, that failure rate climbs closer to 95%. • The Persistence Trap: Studies tracking top-quartile winning funds show that within a few years, those same "elite" funds routinely drop into the bottom quartiles. True skill is virtually indistinguishable from a temporary streak of good luck in a random distribution. I will stick to my low-cost index funds and continue to believe that asset allocation is far more important than asset selection given my passive investing philosophy."

- Brent Wilson

Health

Dropping My Subsidized Retiree Health Plan for a Medigap Plan G—Am I Crazy to Pay $2K+ More?

John Katz | Oct 31, 2026

"No question you made rhe right call! It's like deciding to trade up to a newer car with better features. The only question is whether you can afford it. If so, why not? We readily upgrade cars and appliances, not because the older ones no longer work, but because we want better features. We just dropped $15K on upgrades to a kitchen we had already redone 10 years ago. There was nothing wrong with it, but we figured we could remove a wall and make it feel more spacious and usable than it already was. We spent the money without blinking, and every morning when I sit at the counter with my coffee and look straight through the living room to the large windows outside, I wonder why we hadn't done it sooner. The compliments we get when guests come over only add to the satisfaction. You made the right call."

- Mike Xavier

Life Events

Laundered

ArticleJeffrey K. Actor | Oct 3, 2026

FINANCIAL EMERGENCIES have a way of compounding when least expected. This is often coined as a correlated risk. I call it running out of clean underwear. My father used to profess, in emergencies, that turning pairs inside out was a legitimate way to extend undergarment use under duress. Financially, this is merely extending the life of a depreciating asset. I am sure my mother would have refuted this concept. Nevertheless, before you judge me too harshly, allow me to share the situational details. Three weeks ago our 7 year old washing machine, an example of aging capital equipment, began exhibiting signs of being possessed. Wash cycles were accompanied with grinding noises and violent walks across the floor. Spin cycles initiated poltergeist-like behavior, with heavy banging and metallic thuds made by nether-world demons. An internet search revealed the probable cause of the machine’s paranormal behavior, which was likely broken suspension rods or damaged shock absorbers holding the inner tub in place. After watching 8 or 9 YouTube videos, I decided that I had the inner fortitude to de-demonize our beloved washing machine. And being thrifty, I wished to avoid the major capital expenditure of replacing the washer. I consider myself handy and even pride myself on the 65% success rate for fixing household appliances. Yes, I freely admit that past performance is no guarantee of success. However, since I was attempting to maintain my existing emergency fund, I ordered new drum springs; at 7 years old it seemed financially responsible to repair rather than replace the machine. Upon arrival of the rods, I subsequently installed them in a mere 3 hours (I like to think of myself as methodical, rather than speedy). With a screwdriver in hand, one bruised elbow, and my pride on the line, I separated the whites from the darks and ran a load. Success! Unfortunately, the clean clothes ran up against another obstacle. Our 10 year old dryer must have been jealous of the attention its utility counterpart received. What are the odds that both a washer and a dryer would malfunction in the same week? Call it correlated asset failure. In my house, in hindsight, the odds were pretty darn high. One appliance repair was manageable. Two was beginning to feel like collusion between utilities. To make matters worse, the washing machine was only functional for two loads. Just because you can purchase parts on the internet does not guarantee long term utility after installment, in essence rendering my original repair invalid. Sunken costs for a depreciating asset. In this case, I probably broke a plastic piece holding the inner tub while replacing the springs. Unfortunately, I was lulled into a false sense of security, and was outside the house when those diabolical mechanical fiends struck again. When I returned, the washer was in full demonic dance, this time mischievously thumping our 17 year old water heater. The water tank wanted no part of the dance, and promptly sprung a supply line leak. Great. In hindsight, advocating for a larger emergency fund balance would have been prudent for someone like me with a known 35% failure rate. I ran to the big box store to purchase a new pipe and some sealing tape, but silly me, I forgot to take measurements of the tank and valves. I called my wife in the parking lot to assist. My mistake was to ask her to check if the tank’s intake valve was functional. It was not, evident by her high pitched scream and the clear sound of water gushing. Note to self: remember to shut off the main water supply before asking the wife to help with water tank issues. Did I mention that our daughter’s future in-laws were coming to dinner the next day? In the end, we purchased a new water heater and were only without water for two days. We also purchased a washing machine, but it took roughly three weeks for delivery, as we required a difficult footprint size to fill the space occupied by the previous device. Our emergency fund survived, albeit at a lower level than anticipated. As a side note, I was able to fix the dryer, for the most part, so that a full replacement was not necessary. The experience taught me a few lessons. First, household financial risks may appear independent, yet often this is not the case. It was easy to fathom we had our unexpected events covered with our existing emergency fund. Yet compounding systemic appliance failures pushed the unexpected expenses towards our theoretical limits. Second, my father was only partially correct. Underwear is not a renewable asset. I should also think about establishing a separate Fruit of the Loom reserve account to accompany our current emergency fund. A decision my mother would have approved. Jeffrey K. Actor, PhD, was a professor at a major medical school in Houston for more than 25 years, serving as an academic researcher with interests in how immune responses function to fight pathogenic diseases. Jeff’s retirement goals are to write short science fiction stories, volunteer in the community and spend time in his garden. Check out his earlier articles.

Retirement

IRS Blows Up Tax-Free Exchange of Appreciated Stocks for ETF

Paul Ward | Oct 31, 2026

"William, I'm curious. On this side of the pond, If the entire commercial premise of an adviser's recommendation was tax mitigation, the adviser cannot disclaim responsibility when that tax premise collapses under tax authority review…is it similar over there?"

- Mark Crothers

From HumbleDollar Founder Jonathan Clements

Careers

Late Shift

LIKE A SLOW-MOTION train wreck, we’ve spent recent decades inching toward a world where we have too few workers and too many retirees dependent…

Health

Brain Power

ArticleJeffrey K. Actor | Oct 31, 2026

I KEEP PHYSICALLY active and exercise on a semi-regular basis. Maybe not as much as my wife suggests, but enough that I feel the burn during a workout, and experience those pesky muscle group aches the next day. However, there is one muscle that I should probably exercise more, and with greater fervor, especially now that I am retired. That muscle is the brain. In my humble opinion, the brain should be considered a critical retirement asset. I am keenly aware of my diminished mental acuity as I enter my third trimester of life. My ability to sort, store, and retrieve information has weakened. Furthermore, at two years into retirement, I find that I no longer push my brain muscles for hours at a time as I did during my working years. When I do push, my focus is shorter; my thoughts are not quite as deep. Where I used to swim deep with the fishes, I now wade shallow with the minnows. I joke with friends and colleagues that, as a former scientist-researcher-educator, my brain was my most critical piece of “capital equipment”. In reality, regardless of occupation or social status, the brain serves everyone as his or her most important asset for career placement, advancement, and success. There is irony in carefully protecting a financial retirement portfolio while paying considerably less attention to the biological asset responsible for managing it. Many of us pour over our spreadsheets to ensure existing monetary assets will support our retirement years. I suggest that just like any other valuable asset, the brain requires continued monitoring. I am certainly guilty of giving my fiscal portfolio more attention than I do preserving the cognitive asset required to maintain it. During my working years, brain “maintenance” was automatic; daily doses of research investigations, teaching and writing, kept this capital equipment asset exquisitely tuned. Now that I am retired, I find that much of the built-in capital expenditure for maintaining the brain is gone. I have this extraordinarily valuable piece of equipment lying around the house (upstairs) with no scheduled maintenance program. Recognition that I require increased brain maintenance may be the first step. Perhaps all I need is simply a continued re-investment; a minor amount of intellectual capital deposited every day might do the trick to keep my most important muscle asset from depreciating. I thought to start by fortifying existing neurons. My twins bought me a subscription to Spotify, a music service that has eerily learned my likes and dislikes all too well. Figuring to rekindle teenage memories of the ‘70s, I created playlists that included the earliest albums I owned. Curiously, I am able to recall all the words from favorite songs written by The Beatles, Elton John, and The Kinks. Unfortunately these exercises can backfire. Let’s just say that once Bee Gees tunes, or associated images of John Travolta dancing in tight bell bottoms, get into your head, no amount of cognitive therapy can force them out. On the flip side, some neurons simply left no forwarding address. Try as I may, I am unable to remember anything I learned in physics or calculus from that same decade. Those capital assets left no receipts; the intellectual ledger entries have been simply wiped clean from the grey matter processing center. The creation of new neural pathways remains a challenge. I try to stay mentally engaged. While my time spent reading is probably similar to when working, the breadth of subjects has expanded. Less pure science, and more science fiction. What I really need is a way to consistently exercise and strengthen my brain’s problem-solving circuitry. I’ve tried jigsaw puzzles, however, my color deficiency leads to more frustration than completed projects. Apps are fun, but become less engaging once the logical paths to successful completion have been mastered. I tried to learn a new language, but the slow progress made me depressed. There is an oft-cited figure that it takes 10,000 deliberate and focused hours to achieve mastery in any particular field. At a realistic pace of 2 hours a day, for 6 days a week, mastery in any new field chosen would take roughly 16 years. That’s a significant time-related investment, and that investment comes with an opportunity cost. Time spent mastering one pursuit is time unavailable for another. At my current stage of life, time may actually be the capital asset in the shortest supply. I began new hobbies, such as woodworking and hydroponic gardening. Each brings the challenge of new cognitive skills. Yet I don’t engage in those activities every day. Furthermore, it seems unrealistic that these activities will hold my interest intently for the time required to master these subjects. Indeed, the only constant activity I’ve kept since retiring is that of napping. So, I guess I am on track to be a nap master in another decade or two. I could speed the process by taking longer naps, but on the surface that seems to defeat the overall goal of strengthening mental muscle growth and cognitive conditioning. For now, I am beginning to realize that the overall goal may not truly be mastery of new skills at all. Rather I should focus on continued cognitive maintenance and investment. A little intellectual capital deposited every day may not make me an expert in anything new, but perhaps it will keep my most important capital biological asset from depreciating too quickly. Jeffrey K. Actor, PhD, was a professor at a major medical school in Houston for more than 25 years, serving as an academic researcher with interests in how immune responses function to fight pathogenic diseases. Jeff’s retirement goals are to write short science fiction stories, volunteer in the community and spend time in his garden. Check out his earlier articles.

Markets

Executives have stopped talking about recession. They talk about affordability instead.

Daniel Oliveira | Oct 30, 2026

"Thanks, Mark. My data can't test that idea, since the call sample only starts in January 2024, but it does show the noise missing in both directions so far: a recession came up on 8.2% of calls in early 2024 and on 22.2% in April to June 2025, and neither time did one follow. Your chocolate is a good example of what executives now mean by affordability: the product changes so the price can hold."

- Daniel Oliveira

Investing

What happened to 145 companies that got a stock exchange warning letter

Daniel Oliveira | Nov 1, 2026

Be the first to comment.

Insurance

To Claim or Not to Claim, That Is the Question

Mark Crothers | Oct 28, 2026

"I suspect I’m already paying for other people’s flood risk. For decades, my local permitting office has approved development on floodplains, with predictably costly results. I’m sure our insurance carriers have built that civic stupidity into everyone’s annual premiums."

- Mark Crothers

Investing

Private Funds

ArticleAdam M. Grossman | Oct 31, 2026

IT'S THAT TIME of year again, when college endowments report their results for the recently completed fiscal year. This year’s numbers were unusual and carry lessons for individual investors. For fiscal year 2026, which ended June 30th, some schools reported extraordinary returns. The University of North Carolina’s endowment reported a gain of nearly 38%. Washington University notched a return of more than 37%. And Stanford University’s endowment gained almost 32%. Those are strong numbers, but it was a year of haves and have-nots. The median return was a much more modest 16.1%, according to consulting firm Cambridge Associates. And some schools trailed badly. MIT’s endowment, which has historically been near the top of the leaderboard, returned just 10.3%. Why the disparity? The explanation, in short: SpaceX. Some schools—but not all—had invested in the company years before its public offering. Some had purchased shares directly, while others had exposure through venture capital funds. So when SpaceX held its IPO earlier this year at a valuation of nearly $2 trillion, these schools experienced windfalls. That explains the outstanding results at UNC, WashU and Stanford, and it explains why the median school, which had little or no exposure to SpaceX, put up much less dramatic results. What should we conclude from this? On the one hand, this seems to validate stock pickers’ argument that the right picks can make all the difference. It also seems to support those lobbying for a rule change to allow private funds into workplace 401(k)s. Advocates of this move talk about democratizing access to investments, and the impact of SpaceX certainly aligns with that argument. Despite some endowments’ success with this strategy, though, my recommendation is unchanged: For virtually all investors, I would still opt for the simplicity of index funds and would steer clear of private funds, including hedge funds, private equity and venture capital. When it comes to private funds, there are four fundamental challenges which are well understood. For starters, they’re expensive. The traditional private fund structure involves a management fee which is typically between 1% and 2%. On top of that, the manager collects a performance fee—usually 20% of the profits each year. Funds like the Robinhood Ventures Fund (ticker: RVI) offer access to a basket of private companies through a publicly-traded vehicle, and they’re similarly expensive. This fund charges more than 3%. In contrast, funds tracking the S&P 500 charge as little as 0.03%. So cost is one key factor. Private funds can also be tax-inefficient. Because they’re actively managed, the level of trading inside these funds can be significant. That leaves investors’ tax bills exposed to the whims of fund managers. A recent roundup by research firm Morningstar illustrates how investors in actively-managed mutual funds can face unpleasant tax surprises. Though the mechanism is different, the same risk applies to investors in private funds. Private funds also carry fundamentally more risk, because they aren’t required to undergo the same level of scrutiny as publicly-traded funds. That provides more room for malfeasance. And finally, private funds are generally illiquid, limiting withdrawals to periodic windows throughout the year. These restrictions have been problematic even for large university endowments, forcing them to sell investments at below-market prices. For individual investors, this sort of illiquidity could be an even larger problem. In my view, an asset that can’t be sold on demand has limited practical value, however attractive it may appear on paper. Those are some of the more commonly cited challenges with private funds. But this year’s endowment returns highlight another issue: The performance of private funds is highly variable, and that’s because the landscape of investments outside of public markets is so idiosyncratic. At the University of North Carolina, for example, half of the endowment’s returns last year came solely from its SpaceX stake. That was fortunate. But unfortunately, there’s no reliable formula to repeat that kind of success. It’s for that reason, I think, that endowment returns, on average, have been middling. According to data from the National Association of College and University Business Officers (NACUBO), the average college endowment has gained 10.0% per year over the past three fiscal years. In contrast, an investor in a simple publicly-traded stock-bond fund like the Vanguard Balanced Index Fund, would have earned 12.5% per year over that same time period. To be sure, endowments have delivered better returns than publicly-traded alternatives in other time periods. Over the past five years, for example, endowments in the NACUBO database have beaten that Vanguard fund by about one percentage point per year. The issue, though, is that there’s no pattern to these returns. If private funds start the year encumbered by high fees, tax-inefficiency and illiquidity, then they need to deliver returns that are that much better just to stay even. And there’s no guarantee that this will be the case. It’s for these reasons that I continue to recommend the simplest of investments for portfolios of all sizes. 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.

Retirement

Why can’t Americans put more effort into understanding Social Security?

R Quinn | Oct 29, 2026

"If you believe accrued benefits are reduced before age 67-+ then indeed 67 if the full retirement age. However, no pension plan presents a retirement date beyond which you accrue more benefits other than the standard calculation using service and earnings. To me that says the full retirement age under SS is actually age 70 and thus early retirement causes reduced benefits not added benefits beyond age 67-+"

- R Quinn

Family

The Advantage We Bring

Andrew Clements | Oct 28, 2026

"Joey is my spouse and he's from the Philippines."

- Andrew Clements

Investing

Do I really need International funds in my portfolio? I say no.

Bruce Roberts | Oct 26, 2026

- Brent Wilson

Health

Dropping My Subsidized Retiree Health Plan for a Medigap Plan G—Am I Crazy to Pay $2K+ More?

John Katz | Oct 31, 2026

- Mike Xavier

Life Events

Laundered

ArticleJeffrey K. Actor | Oct 3, 2026

Retirement

IRS Blows Up Tax-Free Exchange of Appreciated Stocks for ETF

Paul Ward | Oct 31, 2026

- Mark Crothers

From HumbleDollar Founder Jonathan Clements

Careers

Late Shift

LIKE A SLOW-MOTION train wreck, we’ve spent recent decades inching toward a world where we have too few workers and too many retirees dependent…

Health

Brain Power

ArticleJeffrey K. Actor | Oct 31, 2026

Markets

Executives have stopped talking about recession. They talk about affordability instead.

Daniel Oliveira | Oct 30, 2026

- Daniel Oliveira

Investing

What happened to 145 companies that got a stock exchange warning letter

Daniel Oliveira | Nov 1, 2026

Be the first to comment.

Insurance

To Claim or Not to Claim, That Is the Question

Mark Crothers | Oct 28, 2026

- Mark Crothers

Investing

Private Funds

ArticleAdam M. Grossman | Oct 31, 2026

Manifesto

Nov 1, 2026

NO. 26: WE SHOULD strive to spend our days as we wish—by using our dollars to escape today’s chores that we dislike, while also saving for the ultimate prize: full financial freedom.

Truths

Nov 1, 2026

NO. 130: WE FIND stories more convincing than data. Reams of statistics tell us we’re highly unlikely to beat the market averages, whether by picking stocks or buying funds run by hotshot managers. Yet all it takes is the tale of a highflying growth stock or a star money manager, and we’re ready to ditch our sensible, market-tracking index funds.

act

Oct 31, 2026

FIND A CHARITY that's well run. There's a host of sites that can help you identify top-notch charities, including Charity Navigator, CharityWatch, GiveWell and GuideStar. The most efficient charities spend less than 10% of the donations they receive on administration and fundraising, so more ends up with the folks they're aiming to help.

humans

Oct 30, 2026

NO. 47: WE LIKE to follow the crowd, including mimicking the investment choices of those around us. Such copycat investing can help inflate stock market bubbles, as folks ignore valuations and pile into popular stocks. That’s obviously risky, but it doesn’t seem risky to the investors involved, who take comfort from the enthusiasm of others.

Money Guide

Manifesto

Nov 1, 2026

NO. 26: WE SHOULD strive to spend our days as we wish—by using our dollars to escape today’s chores that we dislike, while also saving for the ultimate prize: full financial freedom.

Spotlight: Estate Plan

Handling Aging Aunt’s Finances

Brian White | Oct 26, 2025

Back in 2022 and 2023, I wrote about finding that my then 95-year-old aunt had designated me her financial and medical power of attorney, executor of her estate, and trustee for her living trust, though she had not informed me of this. My brother and…

Time to share our financial info with children?

R Quinn | Jun 6, 2026

Our children know we are not your typical retirees when it comes to finances. I’m sure they figured that out from our funding eleven 529 plans, gifts and more often than not, picking up the check when families go out to eat, but that’s all…

When to share estate plans and net worth with your adult children

Jane | Jun 25, 2024

My husband and I are in our early 70s and have been retired for 5+ years. Our net worth is significant and we are fortunate to have a generous retirement income and lifestyle. Our adult children are in their 40s, have good incomes and various…

Tempus Fugit, Vol II

RCC | May 15, 2025

Last month, I wrote about a spate of funerals my wife and I attended. Since then, I recently found out that a close friend and colleague in his early 60s was diagnosed with a "butterfly glioblastoma," a rare and aggressive form of brain tumor. It's…

Signing up for pre-planned funeral services: Is it worth it?

smr1082 | Jul 23, 2024

The last few days have been hectic, attending a funeral for a friend as well as an information session by a local funeral home. I learned a lot from the presentation on funeral services. Pre-planned funerals can ease the burden on survivors. They claim it…

Skipping a Generation

Mark Crothers | Nov 21, 2025

My father-in-law, while certainly not a wealthy man, holds assets in the mid six-figure range. The subject of inheritance came up during a recent visit to his home in Spain, sparked by a conversation that my wife, Suzie, and I had just finalized updates to…

QCDs (and other donations) for Jonathan’s Legacy

Andrew Forsythe | Nov 7, 2025

As HD regulars know, Jonathan sought to have a meaningful legacy in the form of helping young people, especially those who otherwise might not have the opportunity, get started early with saving and investing. Thus, with the help of some of his many friends in the investing community, the Jonathan Clements Getting Going on Savings Initiative was born. Jonathan spoke about…

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…

Retirement Dreams

Andrew Forsythe | Feb 20, 2024

THIS ISN’T ANOTHER article about dreaming of retirement. Rather, it’s about dreaming in retirement. I retired in 2017 after practicing criminal law in central Texas for almost four decades. It could be stressful at times. Before that, there were long years in college and law school. College was relatively easygoing and enjoyable in the laid-back Austin of the 1970s, plus…

What is the risk level of sitting on the sidelines when it comes to bonds?

Andrew Forsythe | Apr 10, 2025

I posted this as a follow-up question in another thread, but it more appropriately should be a separate thread, so here goes: One reason often cited for not trying to time the market when it comes to stocks is that a large chunk of their gains comes during a small number of days. So if you’re on the sidelines then,…

Tale of Two Refunds

Andrew Forsythe | Jul 28, 2021

A FEW DAYS AGO, I drove up to a JP Morgan Chase ATM to make a cash withdrawal. The infernal machine not only wouldn’t spit out the cash or a receipt, but also it was a struggle even to get my card back. I parked and went inside, expecting a quick resolution. The teller told me that she could see…

Going to the Top

Andrew Forsythe | Apr 29, 2021

WE INCREASINGLY DO business with gigantic impersonal companies: banks, insurers, credit card issuers, cable and phone companies, utilities, and huge retailers like Amazon, Home Depot and Walmart. Often, we deal with them at a distance—by phone, mail, and especially online or via email. When disputes or problems arise, we’re typically forced to contact their so-called customer service departments, which are…

Do I really need International funds in my portfolio? I say no.

Dropping My Subsidized Retiree Health Plan for a Medigap Plan G—Am I Crazy to Pay $2K+ More?

Laundered

IRS Blows Up Tax-Free Exchange of Appreciated Stocks for ETF

Late Shift

Brain Power

Executives have stopped talking about recession. They talk about affordability instead.

What happened to 145 companies that got a stock exchange warning letter

To Claim or Not to Claim, That Is the Question

Private Funds

Why can’t Americans put more effort into understanding Social Security?

The Advantage We Bring

Do I really need International funds in my portfolio? I say no.

Dropping My Subsidized Retiree Health Plan for a Medigap Plan G—Am I Crazy to Pay $2K+ More?

Laundered

IRS Blows Up Tax-Free Exchange of Appreciated Stocks for ETF

Late Shift

Brain Power

Executives have stopped talking about recession. They talk about affordability instead.

What happened to 145 companies that got a stock exchange warning letter

To Claim or Not to Claim, That Is the Question

Private Funds

Free Newsletter

Get Educated

Manifesto

Truths

act

humans

Money Guide

Manifesto

Spotlight: Estate Plan

Handling Aging Aunt’s Finances

Time to share our financial info with children?

When to share estate plans and net worth with your adult children

Tempus Fugit, Vol II

Signing up for pre-planned funeral services: Is it worth it?

Skipping a Generation

Spotlight: Forsythe

QCDs (and other donations) for Jonathan’s Legacy

MOO for Me

Retirement Dreams

What is the risk level of sitting on the sidelines when it comes to bonds?

Tale of Two Refunds

Going to the Top