FREE NEWSLETTER

Is it time to have the talk with your kids? You know, the important one—about how much you’ll help with college costs.

Latest PostsAll Discussions »

Health

Medicare Part D premium shock 2027

"It doesn't take much time to shop Part D plans during open enrollment. Login to medicare.gov, update your drugs and pharmacies, and see plans sorted by total cost (premiums plus drug copays/deductibles). You can often sign up for a Part D plan at medicare,gov. That will notify the previous plan to drop coverage on Dec. 31."
- Wilbur
Read more »

Taxes

Sourcing Taxes for Roth Conversions

"Indeed. Some would say that when looking at 2 diverse opinions like these, sometimes the best course is the middle ground. I've have been converting up to just below the 1st IRMAA tier for a few years, but after considering Sean's views, I did the math on my projected future RMDs, and it does seem to make sense to delay the payment of taxes into the 22 to 24% marginal bracket by doing large conversions now, when I will likely be around those tax rates later, and below the first IRMAA tier. I'll enjoy more modest Roth conversions this year, and the 0% LTCG/dividend rate."
- Bill C
Read more »

Abuse

If you don’t think AI is powerful and scary, think again!

"How did it know your age group? Look no further than HD. You have mentioned your age from time to time here. Information we post in HD articles and comments is available to be found by non-HD searches such as Google, etc."
- 1PF
Read more »

In Retirement

Dealing with a reduction in Social Security benefits. Is there a backup plan?

"Congressmen qualify for a pension after serving only three terms (six years)."
- Paul Ward
Read more »

From HumbleDollar Founder Jonathan Clements

Happiness

Let’s Get Happy

AMERICA’S HAPPINESS plunged during the pandemic. I’d assumed that survey result was an aberration, and perhaps that’ll still prove to be the case. But…
Read more »

Family

A Broken Boy

"Thank you, Dan. I lost touch with most of my classmates, so I really don’t know how those years affected them later in life. My circumstances were also somewhat different from most of theirs. While many could go home for weekends or shorter breaks, Nick and I had parents living some 10,000 miles away in Bangladesh, so home simply wasn’t an option. I’m sure we all carried away different experiences from those years, but I can only really speak to the impact they had on me."
- Andrew Clements
Read more »

In Retirement

Is your retirement plan counting on a Social Security COLA in the future?

"It’s not a scam, it’s social insurance. I don’t see it as regressive. The taxes are based on earnings and so are the benefits plus the benefit formula is skewed to give a higher benefit to lower income workers. The percentage bend points decline with higher average wage of the individual. Virtually all beneficiaries receive more than they pay in taxes within six years of starting to collect. That’s why taxing SS benefits make sense. And also another reason why it isn’t regressive. I collected in benefits all I paid in taxes ten years ago and all my employer paid as well at this point. Disabled children, some spouses and ex-spouses and surviving spouses all may collect without paying taxes on their own work earnings. That’s why it is insurance. It’s worked fine for over 80 years, cry’s of scam are misplaced. As far a Medicare goes that is pure insurance. Taxes fund Part A and premiums and out of pocket costs and general revenue fund part B. All insurance transfers someone’s money to someone else. That is the very concept, collective protection. Hardly a scam at all and to call it that is irresponsible. If there was no such transfer, what is the alternative for everyone regardless of means. Frankly, I wish all I paid into and now pay for Medicare went to someone else instead of the hundreds of thousands in medical bills my wife and I have incurred in the last few years. You may want to consider dropping all forms of insurance if you view the concept as a scam and if you feel comfortable with accepting all the risk on your own."
- R Quinn
Read more »

In Retirement

The Security Money Can’t Buy

"Bob, Thank you so much for sharing your heartfelt words and experience. I’m so glad you have good friends, family, and fond memories to lean on. Wishing you the very best."
- Dennis Friedman
Read more »

Behavior

Time Is Priceless

"Thank you Philip for your encouraging words, and thank you for reading my post. It's much appreciated."
- Andrew Clements
Read more »

Behavior

My favorite question.

"You are indeed rich. Rich is not just about money."
- Steve Skillman
Read more »

Investing

Financial Lessons

WHAT'S THE MOST important idea in personal finance? It’s hard to single out just one, but over the years, I’ve found the following dozen ideas to be among the most useful.
  1. Whether it’s on TV or online, there’s never any shortage of market prognosticators. Especially during a bull market, everyone seems to have an opinion on where things are headed. The reality, though, is that people can only guess about how the economy, the market or any individual investment will perform. Convincing as they might sound, no one has a crystal ball. That’s why, when it comes to investing, I suggest taking an evidence-based approach, one that relies as much as possible on data and research rather than on the simple stories, anecdotes and sayings that are so prevalent among market commentators.
  2. What does the data tell us? Among the most significant research in recent years is the work of Hendrik Bessembinder. In looking at the historical returns of stocks, he found that just a tiny fraction—only 4%—have accounted for the vast majority of the market’s gains over and above what Treasury bills paid, and the median stock actually delivered a negative return. This is one of the key reasons I recommend index funds rather than picking individual stocks or investing in an actively-managed fund. Identifying that 4% is almost impossibly difficult. But if you invest in a broad-based index fund, you’ll have a high likelihood of owning the next Apple or Nvidia.
  3. Be careful not to miss the forest for the trees. The most important driver of investment risk and return for most people, most of the time, is asset allocation. In other words, the dollars you have in stocks vs. in bonds or in cash will almost always be the most consequential decision. It’s easy to lose sight of that, though, because so much of the investment commentary from day to day focuses on details like small differences in fund expenses or small differences in bond yields. To be sure, details can be important, but only after considering the big picture.
  4. Another challenge in investing is that certain rules of thumb gain so much popularity that they end up being seen as rules rather than just guidelines. For example, some say that the percentage of a portfolio allocated to bonds should be equal to an investor’s age. To me, that’s illogical. Consider Bill Gates. He’s 70 years old, but it stands to reason that he shouldn’t have the same asset allocation as any other 70-year-old. Rules of thumb are useful as points of reference, but we shouldn’t lose sight of the fact that everyone’s situation is different, and our investments should reflect that. More to the point, don’t worry if you’re doing something different from the next person.
  5. Buy insurance, but only to protect against losses you couldn’t absorb on your own. What does this mean in practice? In many cases, it’s possible to significantly cut insurance premiums by increasing deductibles. For example, if you have a seven-figure net worth, you might consider raising the deductible on your homeowner’s insurance to $5,000 or $10,000 or even more. Similarly, you might re-evaluate your life insurance as your net worth grows. You’ll likely become “self-insured” at some point, and then you could reduce or drop that coverage.
  6. Personal finance is quantitative, but we should never make decisions based only on the numbers. For example, a common question is how much cash to keep on hand. While we could work out an optimal number on a calculator, that shouldn’t be the final answer. You should also consider what would provide you with peace of mind. That is equally important.
  7. Be wary of the psychological pitfall known as recency bias. This is the tendency to extrapolate from recent experience and to downplay the possibility that things might change. The most famous example? In the late-1920s, when the stock market was booming, Yale University economist Irving Fisher declared that the stock market had reached a “permanently high plateau.” Just nine days later, the market crashed, ultimately dropping 89% from its peak.
  8. Avoid high fees. The research firm Morningstar once wrote, “If there’s anything in the whole world of mutual funds that you can take to the bank, it’s that expense ratios help you make better decisions. In every single time period and data point tested, low-cost funds beat high-cost funds.”
  9. Keep things simple. Most importantly, I would be wary of investments that aren’t easily understood. Not only can this help keep investment costs down, but it also makes it much easier to monitor your financial picture. Legendary fund manager Peter Lynch said it best: “Never invest in any idea you can't illustrate with a crayon.”
  10. Avoid “interesting” investments. So far this year, Wall Street has introduced more than 1,000 new exchange-traded funds (ETFs). How many of these are worth your attention? My guess is you could probably count them on one hand. More than 80% of these new funds are actively-managed, and more than 30% employ leverage. And there are more to come. Fund companies recently filed paperwork to create ETFs that will track the performance of major league sports teams. They won’t actually own shares in the teams; instead, they’re expected to rise and fall in response to each team’s wins and losses.
  11. For years, I’ve argued that bitcoin isn’t a valid investment. Even though it’s gone way up since I first made that argument, I still feel the same way, and for the same reason: because it lacks intrinsic value. Unlike stocks or bonds, it doesn’t generate any dividends or interest. Bitcoin’s price is not anchored to anything measurable or tangible, and that’s why, in my opinion, its price is so volatile.
  12. When it comes to investment risk, investors’ attention usually turns to the stock market. That makes sense, but as we’ve seen this year, bonds are not without risk. And unfortunately, the total-bond market index, which is often seen as the simplest, set-it-and-forget-it option, is one that carries quite a bit of risk. If you’re choosing bond investments, my recommendation is to pay attention to a metric known as duration. This tells you how sensitive a bond, or bond fund, will be to interest rate changes. In my view, investors should hold a sizable portion of their bond investments in a fund, or in individual bonds, with a duration of less than two years.
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.
Read more »

Health

Medicare Part D premium shock 2027

"It doesn't take much time to shop Part D plans during open enrollment. Login to medicare.gov, update your drugs and pharmacies, and see plans sorted by total cost (premiums plus drug copays/deductibles). You can often sign up for a Part D plan at medicare,gov. That will notify the previous plan to drop coverage on Dec. 31."
- Wilbur
Read more »

Taxes

Sourcing Taxes for Roth Conversions

"Indeed. Some would say that when looking at 2 diverse opinions like these, sometimes the best course is the middle ground. I've have been converting up to just below the 1st IRMAA tier for a few years, but after considering Sean's views, I did the math on my projected future RMDs, and it does seem to make sense to delay the payment of taxes into the 22 to 24% marginal bracket by doing large conversions now, when I will likely be around those tax rates later, and below the first IRMAA tier. I'll enjoy more modest Roth conversions this year, and the 0% LTCG/dividend rate."
- Bill C
Read more »

Abuse

If you don’t think AI is powerful and scary, think again!

"How did it know your age group? Look no further than HD. You have mentioned your age from time to time here. Information we post in HD articles and comments is available to be found by non-HD searches such as Google, etc."
- 1PF
Read more »

In Retirement

Dealing with a reduction in Social Security benefits. Is there a backup plan?

"Congressmen qualify for a pension after serving only three terms (six years)."
- Paul Ward
Read more »

From HumbleDollar Founder Jonathan Clements

Happiness

Let’s Get Happy

AMERICA’S HAPPINESS plunged during the pandemic. I’d assumed that survey result was an aberration, and perhaps that’ll still prove to be the case. But…
Read more »

Family

A Broken Boy

"Thank you, Dan. I lost touch with most of my classmates, so I really don’t know how those years affected them later in life. My circumstances were also somewhat different from most of theirs. While many could go home for weekends or shorter breaks, Nick and I had parents living some 10,000 miles away in Bangladesh, so home simply wasn’t an option. I’m sure we all carried away different experiences from those years, but I can only really speak to the impact they had on me."
- Andrew Clements
Read more »

In Retirement

Is your retirement plan counting on a Social Security COLA in the future?

"It’s not a scam, it’s social insurance. I don’t see it as regressive. The taxes are based on earnings and so are the benefits plus the benefit formula is skewed to give a higher benefit to lower income workers. The percentage bend points decline with higher average wage of the individual. Virtually all beneficiaries receive more than they pay in taxes within six years of starting to collect. That’s why taxing SS benefits make sense. And also another reason why it isn’t regressive. I collected in benefits all I paid in taxes ten years ago and all my employer paid as well at this point. Disabled children, some spouses and ex-spouses and surviving spouses all may collect without paying taxes on their own work earnings. That’s why it is insurance. It’s worked fine for over 80 years, cry’s of scam are misplaced. As far a Medicare goes that is pure insurance. Taxes fund Part A and premiums and out of pocket costs and general revenue fund part B. All insurance transfers someone’s money to someone else. That is the very concept, collective protection. Hardly a scam at all and to call it that is irresponsible. If there was no such transfer, what is the alternative for everyone regardless of means. Frankly, I wish all I paid into and now pay for Medicare went to someone else instead of the hundreds of thousands in medical bills my wife and I have incurred in the last few years. You may want to consider dropping all forms of insurance if you view the concept as a scam and if you feel comfortable with accepting all the risk on your own."
- R Quinn
Read more »

In Retirement

The Security Money Can’t Buy

"Bob, Thank you so much for sharing your heartfelt words and experience. I’m so glad you have good friends, family, and fond memories to lean on. Wishing you the very best."
- Dennis Friedman
Read more »

Free Newsletter

Get Educated

Manifesto

NO. 36: WE SHOULD consider working at least part-time into our late 60s and possibly beyond. That’ll not only help financially, but also it can bring a sense of purpose to our retirement.

Truths

NO. 116: AVOIDING probate is a big cost savings in some states—but not others. A local attorney can tell you how things stand in your state. If probate is costly, you might place assets in a revocable living trust. That can also be a smart move if you own a house in another state—and face the prospect of your estate passing through probate in two states.

think

ILLUSION OF CONTROL. If we shake the dice vigorously, we feel we’re more likely to get the roll we want. Similarly, if we follow the stock market closely and trade often, we feel more control over our returns. But in truth, this can hurt results, as we act impulsively and rack up costs. A better strategy: Focus on things we can control, like risk, taxes and expenses.

act

SEARCH FOR UNCLAIMED property. Every state has a program for returning lost and forgotten assets to their rightful owners. Those assets include stocks, uncashed dividends, bank accounts, traveler’s checks, the contents of safe deposit boxes and utility company security deposits. You can find further details and links to state websites at Unclaimed.org.

What we don’t do

Manifesto

NO. 36: WE SHOULD consider working at least part-time into our late 60s and possibly beyond. That’ll not only help financially, but also it can bring a sense of purpose to our retirement.

Spotlight: Houses

Our Homes, Our Wealth: A Tale of Two Property Paths

I’m booking flights at the moment. Suzie and I are heading to the South of England to visit my brother-in-law and family in a couple of weeks’ time. They’ve just recently hit a major life milestone by purchasing their first home together, and we’re looking forward to getting a tour by the proud owners. I’m very happy for them; I’m also very happy for myself because I’m getting free accommodation by staying with them.
My brother-in-law is in his mid-forties with a wife ten years younger and has expressed nervousness at taking on such a large debt at his age,

Read more »

Let’s revisit the pros and cons of relocating upon retirement

A few weeks ago I wrote about relocating upon retirement and concluded it isn’t for us. 
This summer we are getting to test that conclusion. We are spending the entire summer at our place on Cape Cod, which means several months away from our routines, church, friends, golfing buddies and mostly family. I suppose if we moved here we would become accustomed to many things, but not being six hours away from family, let alone a three hour plane ride,

Read more »

Housing options for older Americans

I wanted to share this article and I hope our dear HD readers comment and tell us if they are doing what is suggested in the article and how it’s working out.  I am at the beginning of trying to figure out my housing options and what is described in the article sounds good.
https://www.wsj.com/lifestyle/relationships/new-housing-options-emerge-for-older-americans-dfa4c8f5?st=Sp9vyR&reflink=desktopwebshare_permalink

Read more »

More Than Money: Our Holiday Home

I’m excited this morning! Why the excitement, you may ask? It stems from the fact that, for the very first time, my wife Suzie and I are decamping to our holiday home in Portballintrae, a small coastal village on the North Coast of Ireland, for the next three months. This is only possible because we’re now both retired, allowing us to fully utilize the home we purchased six years ago. As we’ve been organizing for departure,

Read more »

DIY

Excellent article about DIY. My question to all HD readers: What are you willing to do instead of paying someone else to do it?

Read more »

Reverse 1031 Exchange

Hi,
I was encouraged to post here by my cousin, and HumbleDollar columnist, Ed Marsh so here goes – I’m considering a reverse 1031 exchange.  I’d have preferred it be a straight 1031 exchange but timing hasn’t worked in my favor in that my wife and I found the replacement property unexpectedly and had not intended on selling the relinquished property so quickly.  My question is twofold.  First – can the QI take title to the relinquished property instead of the replacement property ahead of the sale of said property so that I don’t have title to both properties?

Read more »

Spotlight: Southworth

Magic Number

MY MOM AND DAD split up when I was seven years old. Money was an issue for the rest of my childhood. Mom was rarely able to work fulltime and, according to her, child support and alimony were never enough. When I started working a newspaper stand at age 12, I was expected to give 25% of my daily take for rent. Mom also demanded that I save at least 10%. Depending on the headlines, I would make between $1.50 and $3 each day. Each night, I would drop a few coins in my savings cup. I never had an allowance, but I was a high-roller when it came to hanging out with my middle-school friends over cokes and candy bars (which might mean I wasn’t too good at saving). To my mom’s chagrin, I didn’t share her passion for saving money as I grew into young adulthood. Between a growing gambling addiction and a penchant for using credit cards to finance everyday life, my financial life was in ruins by my early 20s. Thankfully, I got help for the gambling addiction and fell in love with a woman who took financial management and budgeting seriously. On our second date, I went to her apartment to pick up her and her three-year-old son to see the latest Disney movie. She invited me into the kitchen for a drink of water. On the refrigerator was her biweekly budget for all the world, and maybe especially me, to see. It wasn’t a rounded-up budget, either. It was a “$78 for food, $11 for telephone, $35 for gas and $43 for savings” type of budget. It scared me so much I almost didn’t ask her out again. I have now been married to her for more than 35 years. While we eventually overcame…
Read more »

CDs and Cemeteries

“A YEAR TO LIVE.” That’s the name of a class I’ve been teaching on and off for the past 20 years. My hope: Participants will gain more understanding, acceptance and peace about one of life’s few guarantees—death. This year’s class members have a little over five months left to live. Every group is a little different. Some people resist the practicalities of preparing for death: putting things in writing, making medical and funeral arrangements, and divvying up their possessions. Others struggle with the spiritual and emotional preparations, such as making amends, letting go of control and telling those close to them how much they’ve meant. Last month’s homework included visiting a local cemetery to reflect on how we’re doing. Less than half of this year’s class made time for the cemetery visit. Those who did reported little impact, saying that—since they plan on being cremated—the cemetery didn’t mean much to them. I visited our local historical cemetery for the first time. I’ve loved cemeteries for as long as I can remember. I make a point of visiting them whenever I can. They’re one of the few public places where we acknowledge death. Normally, I start by finding famous people’s plots, which are often a pilgrimage site. But this time, I couldn’t find the famous politicians’ or national championship coach’s resting places. I decided to find a shady spot, sit on a bench dedicated in memory to a loved one, and meditate. I was surrounded by the graves of Edward who died in 2017 at the age of 86, Nancy who died in 2013 at 77, and Titus Elijah who died at seven. Ken was born in 1942 and Jacqueline was born in 1947. No dates of death yet. I was reminded, once again, that the rich and famous—like the rest…
Read more »

A New Life

DECEMBER IS A BUSY month for everyone. But it seems especially busy for clergy and those who work with money. If you work with money, there are important tasks to complete, such as planning for taxes, ensuring your investment allocations are where they should be, making charitable contributions, and getting ready for the new financial year. Meanwhile, when I was serving a congregation as a minister, December was full of gatherings and services to celebrate the traditions and holidays that come this time of year. I’d lead classes and services on the wisdom of the world’s religions, and talk about things such as holiday depression, generosity and self-care. There were sweets to prepare and eat, carols to sing and candles to light, culminating in the Christmas Eve services, when we’d gather to tell ancient stories, rejoice in community, and remember the hope and peace possible in our hearts and our world. I’ve been reminded in the past few weeks of my favorite Christmas Eve service. That year, a couple decided to have their baby dedicated on Christmas Eve. A child dedication in my religious tradition is when we celebrate the child. The parents, family, friends and congregation publicly vow to love, cherish and teach each child as he or she grows. Prayers would be recited, blessings would be shared, and the magic and hope that come with each new life would be remembered. Many celebrate Christmas because, in the Christian tradition, it’s a time to honor and remember the birth of Jesus. But most historians agree that late December is not Jesus’ birthday. The birth of Jesus, the lighting of a menorah and welcoming the winter solstice are three of the many traditions we celebrate to prepare for the darkness that comes this time of year. The birth of a…
Read more »

Taught by Others

THE DEEPER I SETTLE into semi-retirement, the more I miss something that I didn’t realize was important to me: working with and learning from a diverse group of people. I was lucky that, for most of my four-decade career, I was employed by profit-making and nonprofit organizations that were committed to workforce diversity. I miss how easy it was to be challenged and changed by difference. Sometimes, it was on pop culture. Sometimes, it was on something much more important. During my career, I learned how many things I take for granted as a white male: walking alone safely at night, driving without worrying about random police stops, making more for doing the same work, and the respect I got at work even when others deserved more. Awareness of our society’s diversity seems especially absent from the world of finance. I was reminded of this recently when I spoke to a woman of color who was in her mid-30s. She’s beginning to learn about investing and financial planning. She was, of course, confused by the financial alphabet soup that we forget is a foreign language to most. As I explained Roths, 401(k)s, 403(b)s, ETFs, ESG, cryptocurrencies and mutual funds, I was struck once again by how hard it can be for young people and people of color to break through the cultural, gender and class biases that often come with financial advice. Not everybody grew up with parents who invested in the stock market or even had a bank account. Not everybody today has the chance to own a home or has a job with employee benefits. As a relatively old, white, heterosexual male, it’s easy to forget that any experience, advice or wisdom I bring has been filtered through my racial, cultural and gender lenses. I often assume that…
Read more »

Game Changer

I FELL IN LOVE with baseball in 1965. My parents were in the midst of divorcing. I found sanctuary listening to San Francisco Giants’ games on the radio. I put on my batting helmet and pretended I was Willie Mays swinging at every pitch or diving on my bed catching imaginary lines drives. Willie had a magical year and, although the hated Dodgers nosed us out in the end, a lifelong passion was born. I preached on miracles when I applied for fellowship as a minister. Jesus’ acts were nowhere to be found in baseball. Still, the story of the 1969 “miracle” New York Mets—and this 11-year-old’s awe—were central to my message. Baseball was an annual sermon then because, for fans like me, it is a magical, mystical game that has meaning far beyond runs, errors and base hits. The 1989 film Field of Dreams, a story about fathers, sons, baseball heroes and ghosts coming out of a cornfield in Iowa, highlighted the spirituality of the game. Major League Baseball recently played its first game at the Iowa cornfield where the movie was made. The Yankees and White Sox entered the field through the corn and played before an intimate crowd of 8,000. Millions more watched on television. It was the highest-rated regular season game in years. The game ended dramatically when Tim Anderson of the White Sox hit a walk-off home run into the cornfield to win the game. Ironically, Anderson has never seen Field of Dreams. He was born after the movie was made. Like many young ballplayers, especially those of color, the storyline of old-time white baseball players coming back to life doesn’t really resonate. Baseball has become too slow and too boring for more and more people. It’s become an old man’s game. Players like Anderson…
Read more »

Santa Claus Rally

THERE ARE FEW certainties in life, but December always brings a few. Our neighbors will decorate their houses with bright lights, our mailbox will be stuffed with letters asking for charitable donations and the financial pundits will speculate whether there’ll be a Santa Claus rally this year. If you’re a regular reader of HumbleDollar, you know that a Santa Claus rally has the potential to fill our portfolios with extra dollars via higher stock and mutual fund prices. But the Santa Claus rally I want to share has been much more valuable to me than a few extra percentage points added to my net worth. I was in my early 20s and slowly putting my life back together after bankrupting myself with my compulsive gambling addiction. As the holidays came around, I began feeling lonely and even more depressed than usual. I had lost my money, my girlfriend and most of my self-esteem. A friend suggested I spend Thanksgiving delivering meals to seniors who couldn’t get out of the house. For at least one day, I forgot myself and felt good because of the smiles and joy my deliveries had brought. The Christmas season was going to be even harder. I’m the kind of guy who watches all the holiday movies and cartoons and can’t get enough of the spirit of giving. I decided to leverage my Thanksgiving learnings. I went to the costume shop and bought the most expensive Santa suit I could find. If I had a financial advisor back then, she would have warned against adding the equivalent of a week’s pay to my credit card debt. But more than 35 years later, I can say it was one of the best purchases I ever made. I soon became a volunteer in the Santa Claus helper patrol.…
Read more »
HumbleDollar · https://humbledollar.com/ · printed Sep 30, 2026

Log in