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Retirement, One Year On

"Congrats on your 1st anniversary on the far side of employed life. Sounds like you are getting plenty of the good stuff in. Here's one strategy if you like, to guard your time for yourself without saying "no" (works for me when I find "no" difficult but want to say it), This technique comes from former governor Jerry Brown, who instead of "No" (politicians are into saying "Yes"), would say "I don't know..." Most people immediately unconsciously recognize "Thanks, but I don't know if I can go to the rodeo with you on Saturday" as a soft/polite "no." Takes a bit of practice but you have time to practice now, right? Retirement's been something of a wild ride for me, since I left earlier than expected to manage health and household responsibilities. Hard to believe this is my seventh year as a retiree. I've treated retirement as a time to experiment with places and roles and activities and pastimes I never had opportunity to try when younger due to work/family constraints, so that's been fresh and fulfilling. Making new friends in your new neighborhood will likely bring you much joy and satisfaction. Community volunteering in one way or another is also great. I haven't taken any OLLI classes yet but the suggestions in this thread have me looking at the university website and thinking about signing up. Public lectures (UC Davis for one hosts a boatload) on all sorts of topics I know nothing about is another idea. The family dog loves that I am retired. He's sure that's the way dogs and people should be: together, most all the time."
- Catherine
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Haunted Head

"Dan, "Productive" is an interesting word choice; I suppose it depends how you define it. Over the past year, I've had the pleasure of mentoring three groups of seniors through a racket sports development and fitness course. A portion dropped out along the way, but plenty finished and are still playing. Every one of them, I'd say, has picked up a noticeable boost in vitality, most have shed some weight, and quite a few have ended up with a bigger social circle than when they started. All the hours I put into it are pro bono, so by the strict, spreadsheet definition of "productive," I suppose my first year of retirement failed miserably…I'm happy with that!"
- Mark Crothers
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The Price of a Cool Pillow

"They make really good window air conditioners these days that are more quieter and efficient than the old ones. I would think that might be the best solution. I grew up in Eugene, Oregon in a home built in the 1950s without air conditioning. You need it there now. When I was young, we would run fans in the house at night. Now I live in the Deep South with the A/C running almost constantly right now. Awful. 🥵"
- Patrick Brennan
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Exercising true frugality 

"Mr. Quinn, I couldn't agree more on the price of the cards. My wife and I hit Dollar Tree, Dollar General, or the cheap card section at Wal-Mart. To each his own, but it's what inside the card that matters."
- Patrick Brennan
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Disposing of Questionable Assets

"Dan, I think the sponsorship application just requires a fondness for stout and a healthy disregard for trifling things like rules, my uncle would have qualified twice over. Free national healthcare and complimentary Guinness means you could blow half your portfolio and never worry about the medical bills. As for the family's questionable track record, there are plenty more stories where that came from, I just need to keep finding a financial angle sturdy enough to hang them on!"
- Mark Crothers
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What’s in your portfolio ?

"Thanks for posting. I agree with you, I believe it's an ongoing topic that continuously changes at different stages of life. For some more than others"
- L H
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Thinking about downsizing? Think seriously

"That Halloween raven sounds amazing! Not for the first time, I wish we could post photos here."
- DrLefty
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Independence Day

"Michael, I share your goal of counting my individual stocks on one hand. Steady as you go, you'll get there. I keep a short "sell next" list of the stocks that I want to sell and update it at the beginning of each year. Some carry over from one year to next but invariably I seem to sell at least two every year. This year I have sold two already (and invested the proceeds promptly in various index funds). One approach that can add a little "juice" on the way out is to sell covered calls on the stocks you are looking to sell.Sometimes you can do this numerous times before the stock finally gets "called away". Whether the stock gets called or not, you have a nice little cash infusion from selling the covered calls for investing in....you guessed it..... index funds."
- Dunn Werking
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A Letter 40 Years Later: What Mrs. Dolezal Remembered

"Thank you so much Dan for your kind words. I smiled at your opening line. I often wonder how much of who we become is shaped by our experiences and how much by the people who come into our lives along the way. Whatever the answer, I know the Dolezals played an important part in mine. I’m grateful our paths crossed, and even more grateful that Mrs. Dolezdal’s letter reminded me of that all these years later."
- Andrew Clements
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Luck, Stupidity, Automation and Inertia

"Kenneth, as you say, it's not rocket science — though I think having the excess means to do so is a harder ask than it used to be."
- Mark Crothers
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Four Walls

"For those that would like to listen to the song on YouTube. https://youtu.be/1Psjws97FoA?is=mI0yZ0sAmmNjjLEf"
- Andrew Clements
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Retirement, One Year On

"Congrats on your 1st anniversary on the far side of employed life. Sounds like you are getting plenty of the good stuff in. Here's one strategy if you like, to guard your time for yourself without saying "no" (works for me when I find "no" difficult but want to say it), This technique comes from former governor Jerry Brown, who instead of "No" (politicians are into saying "Yes"), would say "I don't know..." Most people immediately unconsciously recognize "Thanks, but I don't know if I can go to the rodeo with you on Saturday" as a soft/polite "no." Takes a bit of practice but you have time to practice now, right? Retirement's been something of a wild ride for me, since I left earlier than expected to manage health and household responsibilities. Hard to believe this is my seventh year as a retiree. I've treated retirement as a time to experiment with places and roles and activities and pastimes I never had opportunity to try when younger due to work/family constraints, so that's been fresh and fulfilling. Making new friends in your new neighborhood will likely bring you much joy and satisfaction. Community volunteering in one way or another is also great. I haven't taken any OLLI classes yet but the suggestions in this thread have me looking at the university website and thinking about signing up. Public lectures (UC Davis for one hosts a boatload) on all sorts of topics I know nothing about is another idea. The family dog loves that I am retired. He's sure that's the way dogs and people should be: together, most all the time."
- Catherine
Read more »

Haunted Head

"Dan, "Productive" is an interesting word choice; I suppose it depends how you define it. Over the past year, I've had the pleasure of mentoring three groups of seniors through a racket sports development and fitness course. A portion dropped out along the way, but plenty finished and are still playing. Every one of them, I'd say, has picked up a noticeable boost in vitality, most have shed some weight, and quite a few have ended up with a bigger social circle than when they started. All the hours I put into it are pro bono, so by the strict, spreadsheet definition of "productive," I suppose my first year of retirement failed miserably…I'm happy with that!"
- Mark Crothers
Read more »

The Price of a Cool Pillow

"They make really good window air conditioners these days that are more quieter and efficient than the old ones. I would think that might be the best solution. I grew up in Eugene, Oregon in a home built in the 1950s without air conditioning. You need it there now. When I was young, we would run fans in the house at night. Now I live in the Deep South with the A/C running almost constantly right now. Awful. 🥵"
- Patrick Brennan
Read more »

Exercising true frugality 

"Mr. Quinn, I couldn't agree more on the price of the cards. My wife and I hit Dollar Tree, Dollar General, or the cheap card section at Wal-Mart. To each his own, but it's what inside the card that matters."
- Patrick Brennan
Read more »

Disposing of Questionable Assets

"Dan, I think the sponsorship application just requires a fondness for stout and a healthy disregard for trifling things like rules, my uncle would have qualified twice over. Free national healthcare and complimentary Guinness means you could blow half your portfolio and never worry about the medical bills. As for the family's questionable track record, there are plenty more stories where that came from, I just need to keep finding a financial angle sturdy enough to hang them on!"
- Mark Crothers
Read more »

What’s in your portfolio ?

"Thanks for posting. I agree with you, I believe it's an ongoing topic that continuously changes at different stages of life. For some more than others"
- L H
Read more »

Thinking about downsizing? Think seriously

"That Halloween raven sounds amazing! Not for the first time, I wish we could post photos here."
- DrLefty
Read more »

Independence Day

"Michael, I share your goal of counting my individual stocks on one hand. Steady as you go, you'll get there. I keep a short "sell next" list of the stocks that I want to sell and update it at the beginning of each year. Some carry over from one year to next but invariably I seem to sell at least two every year. This year I have sold two already (and invested the proceeds promptly in various index funds). One approach that can add a little "juice" on the way out is to sell covered calls on the stocks you are looking to sell.Sometimes you can do this numerous times before the stock finally gets "called away". Whether the stock gets called or not, you have a nice little cash infusion from selling the covered calls for investing in....you guessed it..... index funds."
- Dunn Werking
Read more »

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Get Educated

Manifesto

NO. 76: WE SHOULD take comfort in knowing we made the best financial decisions possible with the information available at the time, while also realizing that’s no guarantee of success.

Truths

NO. 61: WILD investments can tame a portfolio. Prefer the comfort of U.S. large-cap stocks? You can modestly reduce short-term volatility by adding smaller U.S. companies and foreign shares. Such diversification is even more important over longer holding periods, because—in any particular decade—these three sectors often notch sharply different results.

humans

NO. 9: WE FAVOR possessions for their lasting value, but experiences often leave us happier. Why? Possessions’ lasting value is also their weakness. We have to maintain them and watch them deteriorate. By contrast, experiences are time limited, leaving us with fond memories that may grow fonder, as we forget the annoyances and recall the highlights.

think

LEVERAGE. Using debt can boost returns—or leave us broke. Let’s say we buy a $250,000 home. We put down 20%, or $50,000, and borrow the rest. If our home’s value rises to $300,000, the price gain is 20%, but the increase in our home equity would be 100%. Leverage, however, can cut both ways: A 20% price decline would wipe out our home equity.

How we make money

Manifesto

NO. 76: WE SHOULD take comfort in knowing we made the best financial decisions possible with the information available at the time, while also realizing that’s no guarantee of success.

Spotlight: Retirement

What workers and retirees say about their quest for a comfortable, desired lifestyle in retirement

The 34th Annual Retirement Confidence Survey (RCS) from the Employee Benefit Research Institute provides interesting insight into many of the topics discussed in the Forum. About 1200 of both workers and retirees were surveyed. 
I’m always a bit suspicious of surveys, but there aren’t other ways to obtain an insight from individuals that I know of. 
It’s a mixed bag. 
Planning can be improved in several areas, Social Security is not well understood, while it remains a significant source of income.

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A Nuanced View of FIRE

Well, mostly FI, but some RE. (FIRE standing for Financial Independence, Retire Early). Christine Benz from Morningstar recently attended a CampFI event in Spain, and wrote about her experience here.
She comments that “A lot of people have a caricatured perception of the FI community. They assume that everyone is trying to live on $10 a day in order to hang it up at age 35.” While she met some young people, she met older people as well.

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Is it possible to achieve financial well being without a plan or even a spreadsheet?

Based on the feedback I have received on HD over the years mostly directed at my failure to budget or track expenses in detail using spreadsheets, my selection of some high expense investments and to not pay much attention at all to our investments, failure to use financial or retirement planning services, retaining life insurance in retirement, beginning Social Security at FRA while working, buying cars for cash, retiring at age 67(part of my income replacement strategy),

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New 2025 Tax Deductions

THE IRS JUST released a new form called Schedule 1-A, which includes all the new tax bill deductions.
I wanted to quickly go through some of it, so that you are more aware of the new potential savings opportunities.
I’ve previously discussed some portions of the bill, but this is the first time we have a peek of the new lines.
All of these deductions are in addition to the standard deduction or itemized deduction.

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The current state of Social Security and something to consider in your planning

My view is that nothing will be done to fix the funding of Social Security through 2028 thus leaving people with concern for their future and to ponder rumors and misinformation. The latest report from the Trustees that should have been released by now is not available yet, but here is a summary from the last in 2024.
My opinion is to be conservative when planning your retirement in the next few years, and use 80% of your current projected Social Security benefit.

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Do farmers get to retire?

In an article published today titled Retiring from Farming is Complex and Not Always Planned the Center for Retirement Research at Boston College discusses the additional challenges that farmers face in their retirement planning.
https://crr.bc.edu/retiring-from-farming-is-complex-and-not-always-planned/
My wife and I are just back from a road trip Christmas visit with two of our adult children and their families that included driving across Indiana twice. After again seeing the vast farm lands and work I wanted to express my gratitude and appreciation to our farmers who keep us fed and whose efforts helps make my comfortable retirement possible.

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Spotlight: Gartland

Making Everyone Happy

I'M NOT A GENEROUS guy. Which brings me to tipping. I see a price on the menu, and I’m willing to spend that amount on the food. Then I have to spend additional money, after having consumed that food, because someone served it to me. Why? What about the kitchen staff who cooked my meal? Should I tip them also? After all, I can't cook, so the kitchen staff is doing me a more important service than the person who carries my food to the table. I could go to the kitchen and get the food myself. I just can’t cook it. Why should someone serving at an inexpensive diner get less than a waiter or waitress at a high-end restaurant? The diner waitstaff are working just as hard as those at high-end restaurants. And what about the folks working behind the counter at McDonald’s? They also get me food and I don’t tip. Why not? How much should I tip? Should it be a percentage of the bill or a certain dollar amount? At the bottom of restaurant checks, they often suggest tip amounts based on various percentages. That gives me a fighting chance of being either generous or foolish. If I go with the highest suggested percentage, I can feel generous. Unless the service was terrible, in which case I feel foolish. Should I tip anyone who does anything for me? That’s a lot of people. Does a carpenter get tipped? He did something for me. I’m confused. Giving money to a charity makes more sense to me than tipping. I can write off charitable donations on my taxes, assuming I itemize. I can’t do that when I tip. I’ve never worked a job in my life where tipping was considered a standard method of compensation. My paycheck…
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Time’s A-Wasting

MY LIFE’S GOAL WAS to make money. I make no apologies for this. I’m not particularly gifted in this pursuit, but I did persevere. I take satisfaction that I stuck to my goal despite all obstacles. There were many trips, falls, mistakes and failures along the way. I had to work hard and seek a new job each time my old employment ended. I set out to do something—and I did it. That all changed when I retired. It felt like crossing the finish line at the New York City Marathon. I’d completed my career race at last. It was a good feeling. Knowing that someday I’d reach that finish line was a vital part of my motivation. The satisfaction now is to look back on my journey and see what I accomplished. I fought the good fight. I’m proud of never giving up. But now, I move on to other goals, the ones that I still have time for. We are all given one lifetime. The longest will be about 100 years. Using 100 as a measuring stick, where are you on your 100-year timeline—and what’s next? What would you do today if you had just one week to live? I hope you’d feel fulfilled, that you’ve done what you wanted to do all along. The goals you pursued might not be what your friends and family thought you should do. Still, if you did what you wanted, you should have no regrets. If this isn’t true for you, I’d advise you to get going. What do you think you should be doing? The more you do things of your own choosing, the better you’ll feel. Retirement is a perfect time to think selfishly. Doing one selfish thing, while you do 10 things for others, will motivate you to…
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The Other Side Sucks

THERE ARE CERTAIN expressions I’ve heard during my lifetime which, for one reason or another, have stayed with me. In a previous article, I related how a coworker encouraged me to “keep on keeping on” when confronted with a challenge, and how Napoleon Hill’s expression “burning desire” struck me as a great way to describe a goal worth seeking. Here’s another expression I’ve never forgotten: “The other side sucks.” I’ve been a race car fan ever since my older brother introduced me to automobile racing in my youth. I especially enjoy Formula One racing. These international racing events gather the best of the best—mechanics, engineers, drivers and the sponsors who pay for it all. One of the Formula One race tracks I’ve visited is in Watkins Glen, New York. In the 1960s, Watkins Glen was the only race track that hosted a Formula One race in America. There were others in the years that followed but, at the time, Watkins Glen was the only one. The racing community that sponsored the event, along with the owners of the racing teams, were sophisticated. The same couldn’t be said of the fans at Watkins Glen, who weren’t necessarily from society’s upper crust. One area of the Watkins Glen track was known as “the bog.” It was a valley within the racing grounds that would become muddy following rain storms. This area became a gathering place for fans, who took great joy in directing late arrivals to this muddy area, especially after it was dark. Upon entering the bog, many cars would get stuck. Amid the resulting melee, cars would often be damaged. This led to Formula One’s sanctioning body to stop holding races at “the Glen.” On one particular night at the bog, two separate and distinct groups formed on each side…
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Stop the Fussing

BILLY JOEL WROTE a song that declares, “I love you just the way you are.” But as parents, sometimes it isn’t easy to say those words about our children. We’re supposed to train them to succeed in life. We all probably think we’re excellent trainers, so—when our children don’t get it—it must be their fault. We did our part, so why don’t they learn? For parents of special needs children, things are different, but also similar. We also have to train our children for life. But they don’t learn or perform as “typical” children do. But good parents persevere, training their children in different ways or with more intensity. We all need to get to the finish line, so we can say, “I did my part.” But what happens if we never get to the finish line? What happens if the usual events that parents enjoy—graduations, marriages, grandchildren—never happen? That’s what I was facing. Luckily, in recent years, I’ve been able to look at my life differently. I’ve accepted my son for who he is, not for what he could be. I was afraid I’d feel I was giving up, but the opposite happened. I started to look at him as complete—that he couldn’t be anything more than what he is. I believe we all want to be better. Take our finances. We read books, try to save more, buy things when they’re on sale and take out loans when it makes sense. But when do we stop trying to make our finances better, and instead accept them for what they are? To me, the goal of accumulating money and having wealth is to live a comfortable life. We do it so that, at some point, we can stop struggling. Thinking we can always improve our finances—or always improve our children—can…
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Ask the Question

I WAS A PART-TIME instructor in public speaking for Dale Carnegie & Associates during the 1980s and early 1990s. I taught a course at the Downtown Athletic Club in lower Manhattan. At the time, my wife and I were living in northwestern New Jersey, and we each took the bus into Manhattan to our respective jobs. The course was given after work, so I had to take a late bus home. This meant my wife needed to drive to the bus depot to pick me up. One night, I arrived at the bus stop, but my wife wasn’t there. I called our condo, thinking she’d fallen asleep, but she never picked up the phone. This was prior to cell phones. I called repeatedly, thinking that, if she had fallen asleep, the ringing phone would wake her up. But she never picked up. Just after I made yet another call, a police car pulled up and my wife got out of the back seat. She greeted me with, “Hello, honey.” The cop greeted me by asking, “Sir, do you have a license and registration for your car?” I said “yes,” and presented both. He then informed me that my wife didn’t have a valid driver’s license. Like me, my wife grew up on Long Island, New York. She’d tell me about the cars she owned and the adventures she had driving around Long Island. When we got married, the only question I asked her was, “Do you know how to drive a stick shift?” She said “yes.” This was important since I owned one car and she didn’t own any. I assumed she had a license. How else could she have driven a car on Long Island? It turns out she did have a license when she was living on Long Island.…
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Becoming an Investor

MY DREAM WAS TO become a brilliant investor who knew when and what to buy and sell. I imagined myself doing the necessary research, which would allow me to make savvy decisions, which would then impress my wife and relatives, as they observed my uncanny ability to always know what to do and when to do it. This never happened. Instead, I took stock of who I was and how I’d consistently behaved. “Know thyself” was the advice of Ken Pangburn, CEO of a company I once worked for. That’s what I endeavored to do. What I realized: I’m a saver, someone who has no difficulty skipping a purchase and instead putting the money in the bank. Now, this is a good start. But it’ll never get you onto the Forbes 400 list of America’s wealthiest. I needed to step on the accelerator a little. I undertook an in-depth study of investing. I had a good grasp of savings accounts and certificates of deposit. What I needed to learn was the other stuff. Stocks were the biggest mystery. I understood that owning shares meant you’re an owner of the company. But which stocks should I buy? This led to studying fundamental vs. technical analysis, and thinking about whether to be a value or growth investor. Should I own individual stocks or mutual funds? If I buy mutual funds, should they be actively or passively managed? It was all very confusing. I felt I had a better handle on bonds because I’d owned some savings bonds. Still, the same questions I had about stocks also applied to bonds. Do I buy individual bonds or mutual funds? Should I buy government or corporate bonds? Still very confusing. This confusion took me back to who I fundamentally was. I was a saver. Period.…
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