Happiness is a warm puppy—and a down day in the market when your 401(k) contribution invests.
From HumbleDollar Founder Jonathan Clements
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.NO. 64: AS WE GROW wealthier, we should seize the chance to save on insurance—by raising deductibles, lengthening elimination periods and perhaps dropping some policies entirely.
GIVE AWAY MONEY. You might be considering a large financial gift to your favorite charity or to your children. Charitable contributions aren’t limited, though their tax-deductibility can be. Meanwhile, with your kids, you might take advantage of the annual gift-tax exclusion. But before you do, check that you have plenty set aside for your own retirement.
NO. 29: BROKERAGE commissions aren't your only trading cost. When you buy and sell individual stocks and bonds, or a fund manager does so on your behalf, you lose money to the bid-ask spread—the gap between the lower price at which you can currently sell and the higher price at which you can buy. Wall Street’s market makers pocket the difference.
CONSIDER A HEALTH plan that qualifies as a high-deductible plan. Not only should the premiums be low, but also you’ll get the chance to fund a health savings account—arguably the most tax-advantaged savings plan on offer. A high-deductible plan could mean large out-of-pocket medical expenses, so that should figure into the size of your emergency fund.
NO. 64: AS WE GROW wealthier, we should seize the chance to save on insurance—by raising deductibles, lengthening elimination periods and perhaps dropping some policies entirely.
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