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The Federal Debt and Social Security Payments

"Then where does the treasury get the money to pay back the SSA the money it borrowed and spent? Take a look at this FAQ from the SSA Trust Fund Data"
- Adam Starry
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The Lottery of Birth

"Thank you for the comment, its good to hear from you. You make a good point that the lottery of birth isn't simply about which country has the cheapest healthcare. Every system comes with trade-offs. Higher taxes may help fund healthcare in one country, while higher take-home income and greater personal responsibility for healthcare may be part of the equation in another. I hadn't thought about healthcare affecting the timing of retirement quite that way, but you're right that for many Americans, access to employer-provided health insurance can influence when they're comfortable retiring. It reinforces my larger point: the system we're born into shapes not only what we pay for healthcare, but some of the financial choices we're able to make throughout our lives."
- Andrew Clements
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Federal debt

"I find it profitable to sometimes reread the classic writings of Bogle and a few others. Their words and message remain useful despite the time that has passed since they were first written."
- Jack Hannam
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If Retirement  is Getting Close

"Yes, I'm glad Sophie the Wonder Cat can't read."
- Dan Smith
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Tax Complications – How SS Benefits interact with Other Income

""Clear as mud" is how a new client described the worksheet, after he made mistakes while doing his own taxes, and later getting a dreaded notice from the IRS."
- Dan Smith
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TreasuryDirect changing login procedure to mandate ID.me later in 2026

"Could this ID.me outrage and threatened exit of Treasury Direct (TD) be exactly what the government wants? Think about it. Get people upset, push people away – that’s fewer customers to support. Want a Tbill? Go get it at your brokerage. Don’t come to TD. Eliminating paper savings bonds sure made it less desirable to gift one to a kid at a milestone life event. Look at the hassles of an electronic savings bond for a new $50 gift. That’s fewer customers for TD. Maybe Treasury Direct is effectively saying they just want everyone to get their treasury securities at their brokerage, not at TD. And you ask, what about ibonds? Suppose TD says just buy TIPS, we’re getting rid of ibonds. Many people think savings bonds are archaic and serve little purpose in a modern world. But I think they were a pretty good teacher to help develop a savings habit for a nation. Eliminating paper savings bonds killed a valuable tool in teaching people (young and old) to save which can lead to overall financial responsibility. Its too bad the government doesn’t see a role to make saving and conservative investing easily assessable to its citizens (young and old)."
- js
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Preparing for SS at Age 70….. How Do I Transition to Monthly Part B Premium Deduction?

"I am not taking SS yet, but am in year 3 on Medicare A&B. When that began, I was on the automatic quarterly billing cycle. I prefer as much stability from month to month for expenses, so requested monthly billing and that was granted. In the online conversation with the Medicare representative, I was assured the monthly billing cycle would continue when I began receiving SS benefits."
- Dave Melick
Read more »

Income taxes on retirees with Social Security

"We are in complete agreement that folks in those positions should receive Social Security. In the event my spouse and I ever are eligible at ages 67 and 70 respectively to receive S.S.; every dollar will be donated to Veterans' and First Responder related causes. BTW: Thank you for your service. I had a solemn stroll along the traveling Vietnam Memorial Wall recently and have visited the one in D.C. twice. It brings me to tears every time."
- Dunn Werking
Read more »

What is the right percentage?

"Duly noted. Your 'inflation beware' advisement is duly noted.Thanks! Inflation muddles the mind. Using less than 4% of total portfolio value yields greater than 100% of former salary is another math point, but it's all inflated dollars."
- luigi767
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COBRA insurance: No need to fear the bite

"Heidi! Very timely post. Missus and me are in the same boat. We work for large companies with great health plans. We are 10 years out from qualifying for Medicare, but here we are contemplating early retirement. One of the things I have tossed around is this and it maybe something else you might keep in your tool box. We plan to retire at aged 57 and take COBRA because even with us paying full rates, it's gold standard health insurance and the full premiums would be comparable to a market place plan. At aged 57, we do get a small subsidy of about $4k per year towards health costs. Once COBRA at the current employer runs out, I might just take a role for 6-12 mos somewhere else, hop on their insurance, then do COBRA again for another 18 months. Then the missus can take a turn. This is hoping we can get hired, she's an RN, so that's in our favor. I could potentially take a job working retail at Home Depot or one of the chains and play the COBRA carousel. Just another path to consider. Of course it makes sense to compare ACA vs COBRA to see what make the most sense, but that's another option that most do not consider. Good luck and let us know how things go."
- Mike Xavier
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Medicare Advantage Part C — Not too soon to start planning for 2027

"MedigapSeminars is the site that I check to see what is the landscape each year. It helped me choose a plan with them when I retired and I have had to switch to another Medigap G plan last year based on their recommendation. Lots of information on the site to educate oneself."
- V Saraf
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The Federal Debt and Social Security Payments

"Then where does the treasury get the money to pay back the SSA the money it borrowed and spent? Take a look at this FAQ from the SSA Trust Fund Data"
- Adam Starry
Read more »

The Lottery of Birth

"Thank you for the comment, its good to hear from you. You make a good point that the lottery of birth isn't simply about which country has the cheapest healthcare. Every system comes with trade-offs. Higher taxes may help fund healthcare in one country, while higher take-home income and greater personal responsibility for healthcare may be part of the equation in another. I hadn't thought about healthcare affecting the timing of retirement quite that way, but you're right that for many Americans, access to employer-provided health insurance can influence when they're comfortable retiring. It reinforces my larger point: the system we're born into shapes not only what we pay for healthcare, but some of the financial choices we're able to make throughout our lives."
- Andrew Clements
Read more »

Federal debt

"I find it profitable to sometimes reread the classic writings of Bogle and a few others. Their words and message remain useful despite the time that has passed since they were first written."
- Jack Hannam
Read more »

If Retirement  is Getting Close

"Yes, I'm glad Sophie the Wonder Cat can't read."
- Dan Smith
Read more »

Tax Complications – How SS Benefits interact with Other Income

""Clear as mud" is how a new client described the worksheet, after he made mistakes while doing his own taxes, and later getting a dreaded notice from the IRS."
- Dan Smith
Read more »

TreasuryDirect changing login procedure to mandate ID.me later in 2026

"Could this ID.me outrage and threatened exit of Treasury Direct (TD) be exactly what the government wants? Think about it. Get people upset, push people away – that’s fewer customers to support. Want a Tbill? Go get it at your brokerage. Don’t come to TD. Eliminating paper savings bonds sure made it less desirable to gift one to a kid at a milestone life event. Look at the hassles of an electronic savings bond for a new $50 gift. That’s fewer customers for TD. Maybe Treasury Direct is effectively saying they just want everyone to get their treasury securities at their brokerage, not at TD. And you ask, what about ibonds? Suppose TD says just buy TIPS, we’re getting rid of ibonds. Many people think savings bonds are archaic and serve little purpose in a modern world. But I think they were a pretty good teacher to help develop a savings habit for a nation. Eliminating paper savings bonds killed a valuable tool in teaching people (young and old) to save which can lead to overall financial responsibility. Its too bad the government doesn’t see a role to make saving and conservative investing easily assessable to its citizens (young and old)."
- js
Read more »

Preparing for SS at Age 70….. How Do I Transition to Monthly Part B Premium Deduction?

"I am not taking SS yet, but am in year 3 on Medicare A&B. When that began, I was on the automatic quarterly billing cycle. I prefer as much stability from month to month for expenses, so requested monthly billing and that was granted. In the online conversation with the Medicare representative, I was assured the monthly billing cycle would continue when I began receiving SS benefits."
- Dave Melick
Read more »

Income taxes on retirees with Social Security

"We are in complete agreement that folks in those positions should receive Social Security. In the event my spouse and I ever are eligible at ages 67 and 70 respectively to receive S.S.; every dollar will be donated to Veterans' and First Responder related causes. BTW: Thank you for your service. I had a solemn stroll along the traveling Vietnam Memorial Wall recently and have visited the one in D.C. twice. It brings me to tears every time."
- Dunn Werking
Read more »

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Get Educated

Manifesto

NO. 14: WE SHOULD avoid impulse spending and investment decisions. Our instincts often lead us astray, but we can usually figure out the prudent choice—if we pause and ponder.

humans

NO. 39: WE LATCH on to information that confirms what we already believe. Instead of dispassionately reviewing the evidence, bullish investors spot reasons for optimism wherever they look, while naysayers see just the opposite. The risk: Such confirmation bias convinces folks they know the market’s direction, prompting them to make big bets they later regret.

think

BETA AND ALPHA. Beta measures an investment’s volatility relative to a benchmark index. If the investment has a positive alpha, it means it beat the index on a risk-adjusted basis, with that risk measured by beta. For instance, a mutual fund could trail the market averages, but still have a positive alpha if its performance wasn’t especially volatile.

act

MAKE SURE SPENDING money is out of stocks. Calculate how much cash you’ll need from your portfolio over the next five years. That money should be out of stocks and invested in nothing more volatile than high-quality short-term bonds. You don’t want to be forced to sell shares at depressed prices—and that could happen if your time horizon is less than five years.

Retirement

Manifesto

NO. 14: WE SHOULD avoid impulse spending and investment decisions. Our instincts often lead us astray, but we can usually figure out the prudent choice—if we pause and ponder.

Spotlight: Borrowing

Facing the Truth

WHAT WAS MY DAD thinking when he asked me to help him and my mom with their finances? Did he expect me to give him money? Maybe.
Up until that moment, my dad handled the family finances. Both he and Mom were retired, though my mom still worked occasionally as an adjunct professor. My mom assumed things were okay, though I had my suspicions.
One day, I saw a credit card bill that showed a large outstanding balance,

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Losing at Cards

QUITTING CREDIT CARDS might be more difficult than quitting cigarettes. I’ve done both. I’ve not smoked in 36 years. But it wasn’t until 11 months ago that I stopped charging on my credit cards.
I got my first card at age 15 from the biggest department store in my hometown. It was 1971, and my card’s limit was $50. The store was locally owned, so perhaps it was easier to obtain credit as a minor without steady income.

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Refinancing—Again

I HAD A NEW HOME built in 2017. I financed it with a 30-year mortgage at a 3.875% interest rate.
Early last year, when interest rates dropped due to the pandemic, I suggested that readers refinance. I took my own advice, replacing my 30-year loan with a 15-year mortgage at 2.99%. The cost of refinancing seemed well worth the reduction in my loan interest rate.
Two months ago, I saw that mortgage rates had continued to decline,

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Best Investment 2018

THE ABOVE HEADLINE overpromises, I readily admit. Still, three considerations—taxes, risk and the economic cycle—point to one conclusion: Paying down debt in 2018 looks like an awfully smart move.
Debtors’ prison. Ridding yourself of debt, even mortgage debt, has long been a savvy alternative to buying bonds and certificates of deposit. But thanks to the new tax law, it looks especially savvy right now—and especially if you’re married.
How come? The new tax law took away personal exemptions but compensated by roughly doubling the size of the standard deduction.

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Reverse Engineering

WHAT IF I SAID YOU could borrow to buy a home and have no mortgage payment? Would you think I was nuts?
Trust me, I’m not. If you’re age 62 or older, it’s possible to finance a home purchase and have no ongoing mortgage payments. How? By taking advantage of a home equity conversion mortgage, or HECM. The federally insured HECM is the most popular reverse mortgage in America today.
Now, I know what you’re thinking.

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Playing Your Cards

YOU’VE PROBABLY already asked yourself this question: Is it better for my credit score to have just one credit card—or many?
There’s no magic number, because it isn’t really about how many credit cards you have. Rather, what matters is your financial situation and how you handle your cards. For example, if you are just beginning to build a credit history, it’s best to have a single card. Try to follow three rules:

Pay your bills on time—and avoid late payments at all costs.

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Spotlight: Friedman

Rich Is Relative

THE OTHER DAY, I did something I probably shouldn’t have done. I checked Zillow to see the current estimated value for the condo I sold last year during the COVID-19 pandemic. I knew real estate prices had gone up quite a bit since I sold in June 2020. But when I looked at Zillow’s price, I was still surprised to see my old home had risen 19% during that short period of time. It’s hard to imagine, even in California, that a 789-square-foot one bedroom, one bathroom condo built in 1968 can have an estimated value of $453,500. Do I have seller's remorse? No. I was glad to get rid of it and start a new life somewhere else. That said, my new home does feel different. I don’t feel as rich as I did living in my old condo. Where I used to live, a lot of my neighbors were first-time buyers and renters. You didn’t have the sense people were flush with money. It made me feel wealthier as a retiree who’d done well saving and investing over many years. Where I live now, homes, restaurants and even car washes are more expensive. Most of my neighbors are at an age where they’re entering—or are in—their peak earning years. Even though the value of my investment portfolio hasn’t changed much, I feel poorer. I don’t feel I’m doing as well as I did in my old neighborhood. For most people, rich is a relative term. How rich you feel isn’t solely based on the size of your portfolio or how much you make. It has a lot to do with who you associate with and where you live. You also don’t have to move to a different state or country to feel richer or poorer. I only had…
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Sharing the Journey

MY WIFE IS OUT OF town for a while, so I have a lot of free time on my hands. I asked Carl, an old schoolmate, if he’d like to have lunch. I thought it would be a chance to give Carl a couple of copies of the HumbleDollar book, My Money Journey. I didn’t think Carl would actually read the essay I wrote, let alone the whole book. Carl is like most of my friends; they're not interested in reading about money. But he knows lots of folks, and I thought he might find someone who’d like to read about how 30 people found financial freedom. Meanwhile, my wife left for six weeks to visit her mother. She’s giving her brother a much-needed break from taking care of their mother. I wasn’t able to accompany Rachel on this trip for various reasons. Her mother is going to be 99. She’s still mobile and coherent. I hope Rachel has her mother’s good genes. I told Rachel to take the opportunity to ask her mother lots of questions. She asked, “What kind of questions?” The kind of questions I wish I’d asked my mother: Who is the elderly man in the painting that hung outside her bedroom, and who painted his portrait? Where did she get the Chinese vase with the Chinese writing on the bottom? Where did she buy the cornmeal for her cornbread? I was so involved in my mother’s finances, health care and daily activities, and yet I wish I’d taken the time to ask her more questions about the smaller details of her life. Those types of questions may not seem important at the time, but they somehow become more meaningful when the person who has all the answers is gone. For now, I’m a bachelor for…
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Can’t Go On

WHEN I WAS IN HIGH school, I had a summer job at a machine shop. My job was to deburr large cutting tools known as end mills. I would take a penny and run it over the cutting edge of the tool to smooth it out. Once I finished my job, the tools were sent to another facility for the next operation. There was a young man in his 20s named Max whose job was to load these heavy boxes of tools onto a truck and transport them to the other facility, where he would unload them. He would do this all day long until one day he never came back from lunch. I was excited to get Max’s job because I’d just got my driver’s license and I got to drive a truck for the first time. It didn’t take long for reality to set in. I got my first taste of what hard manual labor was like. I spent the rest of the summer soaking my aching body in a warm bath after work. I was lucky to spend most of my adult life working behind a desk. Not everyone gets to do that. More than 10% of all workers nationally hold physically demanding jobs. In 2002, 29% of workers ages 55 to 60 said they experienced chronic pain in their jobs. There have been discussions in Congress about how to keep Social Security solvent, including raising the full retirement age to 70. This doesn’t seem fair to laborers who do hard work. Their declining bodies makes it difficult to work longer. In addition, they usually start working relatively young and hence spend more years paying into Social Security. I admit I don’t have a solution to this conundrum—one that would be fair to all workers. But I…
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When You Can’t Take Care of Yourself

I don’t believe I’ve ever enjoyed life more than I do now. What is there not to like about my life? I have my health, financial stability, plenty of free time to do the things I want, and I have a companion to share my journey with. I wish this stage of my life was never-ending. But at age 73, I know my life could be turned upside down tomorrow. Lately, I’ve been thinking about what Rachel and I should do if we can’t take care of ourselves. Although I’m six years older than her, there is a chance she could need a caregiver before me. Women tend to have fewer years of good health to live than men. According to a Washington Post article, “Women are more physically frail than men in old age.” We, like many folks, want to remain in our house until the very end. But I know that might not be possible, especially if it’s only one of us left behind. It can be expensive to hire a caregiver, and you can run the risk of running out of money. In California, where we live, the median hourly rate is $38.19. Also you might not get the quality care that you need.  As an alternative, we have been looking into a continuing care retirement community, or CCRC. Enrolling in one might be the biggest financial commitment of our lifetime. Here is what we learned, along with some of our preferences.  CCRCs can be either not-for-profit or for-profit.  We believe a not-for-profit CCRC would better serve our interests than one that has to answer to investors or shareholders. We would also try to avoid a CCRC that is part of a consortium because we wouldn’t want someone from far away making important decisions concerning our community.…
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What’s Really On My Mind

MY RETIREMENT HAS been wonderful so far. Honestly, sometimes I have to stop and remind myself how lucky I am. Rachel and I have our health and enjoy each other's company, which is not always true when a couple retires. However, there are four things that concern me as I reach my mid-70s. Loneliness I tried calling Mark, my old high school friend, a couple of weeks ago, and I haven’t heard from him. I tried again and got a message that his mailbox was full. I texted him asking him to call me when he had time. This isn’t like him. I’m beginning to think there’s something wrong. He has health issues, and when you’re my age, you think the worst. I can’t keep track of all the people who were a part of my life who have passed away since I retired. Some of them I was extremely close to and will be terribly missed. I never thought that when I retired, I would be more concerned about running out of friends than running out of money. If I ever lost Rachel, and I keep losing friends, I think I’d need to move into a retirement community just to have more people around me. The silence would be too much. Stock Market Lately, it feels like the economy has been built for people like me — retirees who already own their homes and have money in the stock market. I never expected our net worth would jump this much these past couple of years.  The rise in real estate prices and the AI-fueled market boom have nudged Rachel and me into spending more freely. We eat out more than we used to — not fancy places. We even booked business-class seats on our last trip, something I never…
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Retirement Begins Long Before You Retire

Including my time delivering newspapers, I’ve had a total of ten different employers in my life. Some jobs were more memorable than others. One of my early roles was at a company that created merchandise catalogs for department stores. I was twenty—shy, insecure, and working part-time while attending college. I mostly did the tasks no one else wanted: vacuuming, taking out the trash, cleaning the bathrooms. Yet, two women at that company saw potential in me that I couldn’t yet see in myself. One was Leni, the owner. She encouraged me to switch my major from history to business and promised that if I earned a business degree, she would make me her right-hand person. The other was Jodi, my age, who worked on staging photo shoots—and sometimes modeled herself. Fred from shipping insisted she liked me, but I never had the courage to find out. I never took Leni up on her offer. Perhaps it was because her son, who also worked there, didn’t like me. Or maybe I simply didn’t believe in myself. As for Jodi, I never asked her out. I couldn’t imagine someone like her being interested in a guy who cleaned toilets and had no plan for his life. My shyness held me back, too. These days, I’m no longer that shy, self-doubting kid. I tend to speak my mind—which brings me to retirement. Looking back, I realize that the habits I struggled with in my early jobs—self-doubt, hesitation, and risk avoidance—can have real consequences later in life, especially as we approach retirement. Some of what I’m about to say might be uncomfortable, but it’s important. Here are three ways people sabotage their own retirement: 1. Neglecting our health On a seven-hour flight to Amsterdam, the man next to me drank two regular Cokes, a…
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