Home - HumbleDollar

My Name is Dan, and I’m a CPAP User

DAN SMITH | Sep 24, 2026

"I was super-resistent to having the CPAP mask on at night. It took me several tries over several years to get it right. Here are two things that turned it around: 1) I wore the mask during the day for increasing amounts of time so I'd get acclimated to the 'feel' of it. This helped me to mentally accept the device and not resist it at night. 2) I use a Breath Right nasal strip each evening to keep my nostrils open. This removes the feeling of restricted nose breathing (which kept me from falling asleep). Good luck. Hope this helps."

- Doug Burke

In Retirement

Widow’s Penalty Redux

ArticleRichard Connor | Sep 26, 2026

A RECENT post by achnk53 about the impact of a spouse’s death on the survivor’s taxes piqued my interest. The post referenced an interesting Kiplinger article about the “Widow’s Penalty”, or the negative tax implications on a surviving spouse after the death of a spouse. A surviving spouse can file Married Filing Jointly (MFJ) in the year of their spouse’s death. In the full year following the spouse’s death you must file Single. There are some beneficial filing rules for surviving spouses who have dependent children, but that is beyond this post. Nine days later John Urban published an article running the tax numbers for 3 different retiree scenarios, and using the data to provide some excellent suggestions for readers. In between these two articles I had run some similar case studies to understand the impacts. I ran some case studies using the 2026 Dinkytown 1040 Calculator. I considered a “lower" income retired couple. The impact of one spouse passing is very dependent on the sources of income. Assume the retired couple were each receiving $36,000 in annual SS benefits. They have no other sources of income. The couple filing jointly would have no taxable income, and no tax for 2026. Had the husband died in 2025, the surviving widow would have seen her income reduced to $36,000. If she needed the lost income, and found a job that paid $36,000, her income would match the original $72,000. But $21,500 of her SS benefit would be taxable, her taxable income would be $33,350, and her annual tax bill would be $3,757. The table below shows the details of this analysis: Tax Calculation

After accounting for the reduction in Medicare related spending, she has similar spending power. But she had to go back to work to achieve that. This, and the previous examples, reinforce the importance of understanding a couple’s financial details before and after the passing of a spouse. Income will likely be reduced, but expenses may also be reduced. Lower income retirees who depend primarily on both partners SS benefits may see the biggest impact. I also ran a comparison of our tax return for 2026, for both MFJ and if my wife filed single. I assumed our income consisted of my pension, my wife’s SS benefit, and my SS benefit had I claimed it on January 1, 2026. When I die my wife will receive 75% of my pension, and my higher SS benefit. The results were not surprising.

Her total income would be 68% of our combined pre-death income.
Her annual tax bill would be $1,250 more than our joint tax bill.
Her effective tax rate would increase by 4.2%.
85% of her SS benefits would be taxable
Her spendable income after taxes would be about 65% of the joint amount.
She would lose about 20% of the new Senior Deduction
She would have no NJ State Tax liability

I then ran an additional scenario with the same assumptions, but also assuming we were 4 years older and would both have to take initial RMDs in 2026. This scenario reflects one of the concerns frequently expressed when discussing this topic – what happens when the surviving spouse is responsible for reporting the income from both RMDs on her Single tax return. The results changed to reflect the scenario.

Her total income would be about 79% of our combined pre-death income.
Her annual tax would be $708 more than the joint tax filing.
Her effective tax rate would increase by 3.8%.
Her spendable income after taxes would be about 80% of the joint amount.
She would lose all of the new Senior Deduction.
Her NJ State Income tax would be $540 more than the joint tax filing.
She would be pushed up one IRMAA bracket in 2028.

These results are a simplified look at our finances today. My pension and my wife’s SS benefit cover our non-discretionary, and a decent portion of our discretionary, expenses. The wild card is travel – how much we spend in any year is our choice and may require additional income. I’m about 11 months from claiming my SS benefit, at which point virtually all of our expenses will be covered in a fairly tax-efficient way. RMDs are still 4 years away. This was a good exercise to get a feel of how my demise would impact my wife’s finances. It would have some financial impacts, but I believe our plan can handle them. I’m considering running some more detailed projections varying the age at death to assess the impacts, but a quick look made me reasonably confident our retirement savings will be adequate, even considering long term care. I will also continue to look at Roth conversions each year. 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.

In Retirement

Keep an eye on Medigap policies

R Quinn | Sep 26, 2026

"Premiums are not based on individual usage. They vary by whether they are community based, entry age based or current age based."

- R Quinn

Investing

Financial Lessons

ArticleAdam M. Grossman | Sep 26, 2026

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.

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.
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.
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.
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.
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.
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.
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.
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.”
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.”
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.
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.
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.

From HumbleDollar Founder Jonathan Clements

Lists

Why HumbleDollar?

IN OUR 20s, WE TEND to be a confident lot: We figure we know what we want from our life, that the goal is…

In Retirement

The Security Money Can’t Buy

Dennis Friedman | Sep 25, 2026

"Mark, Pushing ourselves to build those friendships is so important for men, and you gave a great example. That feeling of an empty house is exactly what I feel when Rachel is away, too."

- Dennis Friedman

Retirement

Will Congress Wait Until the Last Minute on Social Security?

Jeff Peck | Sep 27, 2026

"If you really want to see how relatively easy it is to fix SS with a combination of changes. Most relatively minor in the scheme of things, go to the Committee for a Responsible Federal Budget modeling tool and build your combination of changes."

- R Quinn

In Retirement

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

R Quinn | Sep 24, 2026

"SS was designed as a partial income replacement plan which is why the taxes are based on the income used to calculate benefits (inflation adjusted). This was designed to give people a reason to support the program as an earned benefit and focus on future retirement income. In my view it would be a big mistake to change any of that by either taxing people on earnings not counted toward a future benefit or taxing any other form of income such as interest and dividends or even accumulated wealth. A couple of relatively modest changes can extend the solvency for 50 years and along the way make other changes as necessary."

- R Quinn

Behavior

The Art of Making Do

Mark Crothers | Sep 25, 2026

"I can't resist reply. I've adopted a new approach to buying. one focused on quality, rather than price. I did buy that better fork a few years ago, and enjoy it immensely. And I've considered upgrading to one like you describe, but I won't unless my present fork develops a problem. Buying a better garden fork is a small matter, and I'm sure I could have done it years ago with no damage to my long-term financial health. But it's evidence of a mind that's moved beyond a feeling of lack and uncertainty about money. And that's not a small matter."

- Edmund Marsh

Spending

Little luxuries

greg_j_tomamichel | Sep 19, 2026

"Thats interesting Roy. My son has always said that if money were no object for him he would wear a new pair of socks every day."

- DavidHLancaster

Spending

Anyone For S.K.I.ing?

Mark Crothers | Sep 22, 2026

"Hall, a mighty way to direct to your funds. Well done indeed."

- greg_j_tomamichel

Behavior

Time Is Priceless

Andrew Clements | Sep 23, 2026

"Mark, that’s an excellent point. We certainly don’t have to wait until retirement to recognize the value of our time. Looking back, I wish I had understood that as clearly as you did when your children were still at home. I spent too many years focused on building a business and providing for my family, sometimes at the expense of simply being present. I like your motto, “Use money, love people.” Money is a tool. The people we share our lives with are what give that tool a purpose. Thanks, Mark."

- Andrew Clements

Health

My Name is Dan, and I’m a CPAP User

DAN SMITH | Sep 24, 2026

- Doug Burke

In Retirement

Widow’s Penalty Redux

ArticleRichard Connor | Sep 26, 2026

Her total income would be 68% of our combined pre-death income.
Her annual tax bill would be $1,250 more than our joint tax bill.
Her effective tax rate would increase by 4.2%.
85% of her SS benefits would be taxable
Her spendable income after taxes would be about 65% of the joint amount.
She would lose about 20% of the new Senior Deduction
She would have no NJ State Tax liability

Her total income would be about 79% of our combined pre-death income.
Her annual tax would be $708 more than the joint tax filing.
Her effective tax rate would increase by 3.8%.
Her spendable income after taxes would be about 80% of the joint amount.
She would lose all of the new Senior Deduction.
Her NJ State Income tax would be $540 more than the joint tax filing.
She would be pushed up one IRMAA bracket in 2028.

In Retirement

Keep an eye on Medigap policies

R Quinn | Sep 26, 2026

"Premiums are not based on individual usage. They vary by whether they are community based, entry age based or current age based."

- R Quinn

Investing

Financial Lessons

ArticleAdam M. Grossman | Sep 26, 2026

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.

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.
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.
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.
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.
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.
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.
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.
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.”
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.”
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.
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.
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.

From HumbleDollar Founder Jonathan Clements

Lists

Why HumbleDollar?

IN OUR 20s, WE TEND to be a confident lot: We figure we know what we want from our life, that the goal is…

In Retirement

The Security Money Can’t Buy

Dennis Friedman | Sep 25, 2026

"Mark, Pushing ourselves to build those friendships is so important for men, and you gave a great example. That feeling of an empty house is exactly what I feel when Rachel is away, too."

- Dennis Friedman

Retirement

Will Congress Wait Until the Last Minute on Social Security?

Jeff Peck | Sep 27, 2026

- R Quinn

In Retirement

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

R Quinn | Sep 24, 2026

- R Quinn

Behavior

The Art of Making Do

Mark Crothers | Sep 25, 2026

- Edmund Marsh

Manifesto

Sep 27, 2026

NO. 3: WE SHOULD focus relentlessly on what we want from our financial life. That’ll motivate us to save, drive our investment strategy—and help ensure we pursue the goals we care about most.

think

Sep 28, 2026

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

Sep 28, 2026

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.

Truths

Sep 27, 2026

NO. 93: PAYING down a mortgage is often the best bond we can buy. We earn a return equal to the mortgage’s interest rate, which will typically be above the yield on high-quality corporate and government bonds. True, if we pay down a mortgage, we’ll have less mortgage interest to deduct—but that deduction is now less valuable, thanks to 2017’s tax law.

Money Guide

Manifesto

Sep 27, 2026

NO. 3: WE SHOULD focus relentlessly on what we want from our financial life. That’ll motivate us to save, drive our investment strategy—and help ensure we pursue the goals we care about most.

Spotlight: In Retirement

Do retirees really struggle financially? Why and what to do?

R Quinn | Apr 17, 2026

I asked my friends AI, what percentage of pre-retirement income to retirees actually live on. Of course, most of the data is survey based. The answer was 66% on average.
A T. Rowe Price/NewRetirement survey found that, nearly three years into retirement, retirees report living on 66% of pre-retirement income on average—and 57% said they live as well or better than before.
A Goldman Sachs Asset Management survey showed retirees receive ~60% of pre-retirement wages on average,

Retirement Accounts

Bogdan Sheremeta | May 16, 2026

I WAS SCROLLING through social media recently and saw somebody dismiss retirement accounts as “paper wealth.” The argument was familiar: Your money is locked away and you’re waiting for permission to access it.

There’s a grain of truth here. Retirement accounts do come with rules. But much of the discussion online ignores how flexible these accounts actually are. More important, it ignores the enormous tax advantages.
Most people today will likely live well beyond age 59½.

Widow’s Penalty Redux

Richard Connor | Sep 26, 2026

Traditional or Roth

Richard Connor | Aug 29, 2026

THE CHOICE BETWEEN a traditional retirement account or a Roth is a frequent topic on HumbleDollar. The choice is generally framed as a choice between paying taxes up front (a Roth), or deferring taxes until withdrawal (traditional). I thought it would be interesting to evaluate a real-life example of how this choice might work out.
In December of 2016 my wife and I had an opportunity to each open a Roth IRA. My wife took a partial sabbatical that year,

Americans are rushing to collect Social Security. The reason is disturbing

R Quinn | Sep 12, 2026

I am incensed when I read nonsense posted on social media about social security – “Congress stole the SS funds and never paid it back,” “there would be plenty of money if we didn’t give it to people not eligible” and worse. All nonsense.
Is it worth me getting upset over? It is, because uninformed people believe it and now it appears people are acting on the lies and misinformation they read and hear. They don’t understand that SS can’t go bankrupt or run out of money and that there is a different between SS’s ongoing revenue and the reserve trust.

Social Security Survivor Benefits for Spouses

James McGlynn CFA RICP® | Apr 16, 2026

I recently explained some facts about Social Security spousal benefits and upon doing so discovered there were some questions related to the linkage of spousal and survivor benefits. I delved deeper into survivor benefits and found some interesting facts about them as well.
Survivor vs spousal benefits. Survivor benefits are separate from spousal benefits. While spousal benefits are capped at 50% of the workers full retirement amount (FRA), survivor benefits can pay up to 100 % of what the deceased was receiving or entitled to receive.

The Investing Life

Andrew Forsythe | Dec 9, 2021

MY PARENTS WERE financially comfortable but not rich. Some of their friends, though, were rich. The men always seemed to die before their wives, resulting in a few wealthy widows in my parents’ social circle. I recall glancing at the annual report of a company for which my dad had done some work. One of the widows was listed as a board member and her occupation was stated as “investor.” I asked my dad what that meant and he replied that it meant she had enough money that simply managing it was a part-time job. Through my working career, that intriguing idea stuck in my mind. I think I was forming an unconscious goal that, in retirement, I’d actually have a new job—as an “investor.” I’m retired now, and our net worth doesn’t come close to that of those wealthy widows I remember, and yet managing our financial affairs really does amount to a part-time job. We have investment accounts at Vanguard Group and Charles Schwab, including taxable accounts, Roth IRAs and a SIMPLE IRA from my working days. We also have accounts at Chase, our brick-and-mortar bank, as well as a handful of savings accounts and no-penalty certificates of deposit at various online banks. My wife and I each have a health savings account, with linked brokerage accounts at TD Ameritrade. Recently, we each opened a TreasuryDirect account and made our first Series I savings bond purchases. There’s an old Lincoln Financial variable annuity from back when I didn’t know any better. There’s also a modest trust from my long-deceased grandmother that still requires some attention and oversight. In addition, my old law-firm partner and I own a piece of investment real estate, which has always been complicated but which we hope we can finally sell in our lifetimes.…

Cooking Up a Kitchen

Andrew Forsythe | Feb 6, 2024

I'VE WRITTEN BEFORE about the financial benefits of learning to cook and then preparing meals at home, rather than frequently eating out. I still heartily endorse that notion. Still, our recent decision to remodel our kitchen can’t be defended as a wise financial choice. In fact, the consensus is that almost all remodeling jobs result in an increase in home value that’s less than the remodeling project’s cost, and that includes kitchen renovations. Instead, our latest home project was an emotional and enjoyment expenditure, one that I owed to my wife, an expert cook and very patient woman. Our home was built in 1986 and we moved in a few years after that. The kitchen hadn’t had any major updates since then. The biggest factor in a remodeling project’s success is the general contractor, so our first step was to find a good one. Ideally, you have a trusted friend or family member who says, “This is the guy. He just handled our project and he’s great.” But we didn’t know anybody who had a general contractor they’d recommend. Nextdoor, Yelp, Google and so on can all be helpful in identifying potential contractors. The guy we ultimately chose had an extensive website. He later told me I was the first person who’d actually read the whole thing. Still, what drove our decision was the contractor’s references. I spoke at length with three clients. Each was obviously intelligent, articulate and made no bones about being demanding. They all sang our guy’s praises. We were sold. We’ve now finished the project, and we’re as happy with our contractor as his references were. With the benefit of hindsight, I can now list his attributes that were most important to me: Organization. I got a sense of this from his website. It went into…

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. I'm hoping someone with a background in insurance can shed some light on this. First off, is there any truth to it? If so, is the benefit in the form of smaller premium increases for long term policyholders, or a smaller chance of being dropped, or...? Thanks for any insights.

Friday the 13th, the Luckiest Day of My Life

Andrew Forsythe | Sep 13, 2024

Happy Friday the 13th, everyone. They say that one of the best financial decisions you can make, if you’re married, is to stay married. So I figure that gives me just enough of a hook to justify sharing on Humble Dollar why I celebrate today. I met my wife Rosalinda for the first time…twice. In 1977, I was a 2nd year law student at the University of Texas in Austin. That spring I found myself spending another boring and tedious weekend studying at the UT law library. I took a break and was walking the halls when I saw a beautiful girl sitting alone on the steps. I mustered my courage and sat down beside her. We talked for just a few minutes and I thought things were going pretty well---right up until she told me she was there with her boyfriend. I said my goodbyes and left, impressed not only with her beauty but with her kindness. Ten years later I was a lawyer in Austin, enjoying my bachelor life. One Friday at a local Happy Hour, I noticed a woman enter. She was quite a distance away, but her smile lit up the whole room. There was something absolutely electric about her presence. I walked over, introduced myself and said, “I think we’ve met somewhere before.” Naturally, she rolled her eyes at the oldest line in the book. But somehow a distant memory had surfaced in my mind. “You’re from the Rio Grande Valley”, I said. “Your father is Mexicano and your mother is Puertorriquena. You once had an orange sweatshirt. And, about 10 years ago, you spent time in the law school library.” How a 10 minute conversation survived 10 years in my musty brain, I can only attribute to fate. But I got her attention, and eventually…

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 my major was sociology—a world apart from those in pre-med, engineering and the like. The University of Texas School of Law was, by contrast, a rude wake-up call. The professors and the material were demanding, to put it mildly. For as long as I can remember, I’ve had recurring dreams with the same theme: I’m unprepared for something, or lost in a new environment, or somehow thrust into chaos and disorganization. A frequent dream involves starting off at a new school where I don’t know the location of any of my classes and I’m already way behind on the assignments. Alternatively, I’m in court and I’m totally unprepared for my case. Now that I’m retired and living the easy life, you’d think those dreams would disappear. But they haven’t. Not content to be unprepared locally, I recently dreamed that I’d somehow become attorney of record on three cases in Florida. You guessed it: Trial was about to start on one case and I was unprepared. What seems even more odd is that, during my waking hours, I rarely think back on my working life. I have many things on my mind, but my old law practice isn’t one of them. Maybe it’s genetic—or maybe it just goes with the profession. My dad was a Maryland farm boy who in the 1920s made it to college and then law school. He practiced in Dallas well into his 90s and loved it.…

What’s Cooking?

Andrew Forsythe | Sep 10, 2022

COUNTLESS ARTICLES on HumbleDollar speak of the need to save, especially for those early in their careers, so they can eventually retire in comfort. The powerful effect of compounding means that the sooner those dollars are saved and invested, the greater the sum down the road. But where can folks find those extra savings? Let me offer a suggestion: learn to cook. The amount Americans of all income levels spend on eating out, whether it’s sit-down restaurants, fast food places or takeout, is staggering, according to studies cited by Richard Quinn in an article last year. Americans spend an average of $787.28 a month on meals outside the home, found one survey. The timing of this screed may seem insensitive. After all, the restaurant industry was decimated by the pandemic and its underpaid workers were hit hard. I have nothing against the restaurant industry. I worked as a waiter during college. Two of our kids have also worked in restaurants, and my niece is part owner of two successful restaurants and bars. But I have an old-fashioned view of restaurant meals. Eating out is a treat, an occasional indulgence, not a several-times-a-week habit. I’m not saying to give it up entirely. For those retirees and others who enjoy it and can afford it, by all means indulge. Among those who have a future to save for, however, I’d suggest calculating what dining out is costing you and then look to reduce that sum. The total tab can be quite surprising. Years ago, my wife checked the bank account of one of our kids, then in college. In one month, the cost for restaurants was around $600. That was a shocking amount even to our dining-out college student, who promised to reform. You don’t have to be a gourmet chef to…

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