The $9.95 scam…

R Quinn | Feb 26, 2026

"It may not be everyone’s answer, but here’s mine. On insurance my usual approach is to pay to insure against only those problems that it would really hurt financially to address using my own resources. (I think this was Jonathan’s philosophy on insurance as well.) For example, I wouldn’t buy insurance to cover a $10k funeral, and we carry no collision insurance on our 2008 vehicle. But, if I owned a home, I’d definitely carry flood insurance, and if I were a doctor, I’d definitely carry malpractice insurance."

- Michael1

Volatility is your Best Friend

Mark Crothers | Mar 4, 2026

"Ah. That may make more sense than my waiting until the market goes down enough to suit me."

- Michael1

Grown-Up Money

Jonathan Clements | May 5, 2018

HUMBLEDOLLAR ISN’T the financial website for everybody. Instead, it’s the place that folks end up after they have made their fair share of youthful financial mistakes—and they’re ready to settle down and get serious about money. I even briefly toyed with adding a tagline to the site: “Where Money Grows Up.” What does grown-up money look like? It’s less about the size of your nest egg—and more about attitude. Here are 21 signs you’re a HumbleDollar reader:

When your neighbors show off their remodeled kitchen, you stare in terror and try to imagine how much it cost.
The word “annuity” makes you twitch.
When friends tell you about the great lease terms on their new car, you immediately assume they couldn’t afford to buy.
You’d rather spend an evening with Jack Bogle than Peter Lynch (and, yes, you know who both of them are).
When your niece mentions how much credit card debt she has, you suddenly feel the need to sit down.
When friends boast that they save 10% of their income every year, you think, “Is that all?”
When you worry about money, it’s about whether you’ve become too good at delaying gratification.
If someone mentions cash-value life insurance, you instinctively reach for your wallet—to make sure it’s still there.
When your brother-in-law talks about the hot tech stock he just bought, you try not to slap him.
You suspect your heirs will be pleasantly surprised.
When you hear about your cousin’s great vacations, wonderful home and European sedan, you just know your bank balance is bigger.
CNBC makes you laugh almost as much as Comedy Central.
When you read about the lavish lifestyle of some rich dude, you wonder whether all that money really makes him happy.
You have this nagging feeling you could have got it cheaper elsewhere.
When friends say they beat the market, you assume either they’re lying—or they don’t know the truth.
The prospect of paying more than 0.2% a year for a mutual fund triggers an existential crisis.
When the family takes off on a Saturday morning for the shopping mall, you just know it isn’t going to end well.
When your neighbors mention the great guy they use at Merrill Lynch, you take deep breaths to calm yourself.
Like everybody else, you have no idea where the market is headed. But unlike everybody else, you know you don’t know.
You’re no longer capable of an impulse purchase.
When your colleague announces she signed up for the 401(k), you offer a hearty “congratulations”—and silently wonder what the hell took so long.

And How About Them Kids?

MONEY MAY NOT BE the root of all evil, but it does seem to be the source of much stress. A therapist once told me it was the No. 1 reason that couples came to see her. Today, fewer Americans express satisfaction with their financial situation than they did in the early 1970s—despite living more than twice as well. The Federal Reserve found 44% of American adults either couldn’t handle a $400 financial emergency or would cover it by going into debt or selling household possessions. Much of this angst could be avoided with just a handful of simple financial steps. Suppose you’re the parent of young adults in their 20s. What would it cost to set them on the right financial path, so one day they, too, will be HumbleDollar readers? It is, alas, not nearly as cheap as I had hoped—which may explain why so many Americans lead lives dogged by money worries. Consider the price tag on six key financial steps: 1. Build up an emergency fund. You might open a high-yield savings account for your kids and add $250 every month, with perhaps both you and your children chipping in. The monthly sum is arbitrary, but the idea behind it isn’t: You want your adult children to have enough set aside to muddle through at least a few months. That’ll provide a modest safety net—and, I suspect, significantly reduce your children’s day-to-day money worries. 2. Pay off credit card debt. Among older college students who carry credit cards, the average balance is some $1,100, according to a 2016 study. Got kids who accumulated card debt during their college years? You might help them pay it off. 3. Stash $250 every month in a Roth IRA. While debt can be depressing, saving money is uplifting: It gives you hope the future will be brighter. A Roth is a great investment vehicle for those in their 20s, thanks to the decades of tax-free growth they’ll enjoy. True, they won’t get the initial tax deduction that traditional retirement accounts offer. But for those in their 20s on relatively low salaries, that tax deduction probably isn’t worth all that much. An added bonus: Roth contributions can be withdrawn at any time, with no taxes or penalties owed, as long as you don’t touch the account’s investment gains. That means the Roth could supplement your children’s emergency fund. 4. Purchase health insurance. You may have the option of keeping your adult children on your employer’s health plan until they turn age 26. If not, consider helping them buy coverage on their own. In their 20s, this will be relatively inexpensive—perhaps $300 a month, depending on how competitive the local insurance market is, and maybe even lower if your adult children qualify for a tax credit. Make no mistake: The potential downside of skipping coverage is huge. Indeed, as a parent, helping to pay for your adult children's health insurance ranks as financial self-defense. If they need major medical care and don’t have coverage, you will undoubtedly ride to the rescue—and it will likely cost you dearly. 5. Buy $250,000 in term life insurance. If someone doesn’t have a spouse or children, this probably isn’t necessary. But for those in their 20s, the insurance would be cheap, perhaps $330 a year. Want to turn your adult children into buyers of term insurance—and steer them away from costly cash-value life insurance? That $330 might be a small price to pay. 6. Get a will. Your adult children may have relatively few assets, so this might also seem unnecessary. Still, wills are cheap: LegalZoom.com’s starting price is $69 and Nolo.com is $59.99. Once your adult children have a will, it will become part of their financial mindset—and there’s a decent chance they’ll update it regularly. To be sure, there are other potential steps you might take, like subsidizing your adult children’s 401(k) contributions—assuming they have access to one—or helping them buy disability insurance. But you’ll likely find the above six steps already carry too steep a price tag. Add them all up and the first-year cost might be $11,000. What if you cut the six steps down to three—and focus on building up your children’s emergency fund, paying off credit card debt and purchasing health insurance? Even that could potentially cost almost $8,000. If you can swing it, it would make a great graduation gift. What if you can’t? If you have sound financial advice to offer, that could be just as valuable. [xyz-ihs snippet="Donate"]

Smoke, Sparks and Retirement Spending.

Mark Crothers | Mar 5, 2026

"We recently performed water and air radon tests. For those of you who don’t live in NH radon is a radioactive gas that is emitted by granite. NH is called the granite state for a reason. As you can imagine breathing radiation into your lungs is not good. Radon is actually the leading cause of lung cancer in non smokers. Remediation is a 10 K+ cost which must be addressed. If you have read my posts in the past you know we do not have a dedicated emergency fund. My philosophy is that all of our retirement money is available as an emergency fund. So although it’s not fun to spend money on something this, nor is the thought of having a mini municipal water treatment plant in my basement, it is a necessary evil. So how will we pay for it? Every quarter I perform a quarterly review of our finances and top off our estimated 1 year cash reserves. For now we will expend the cash and April 1 replacement cash will be raised by rebalancing our portfolio to our target allocation. Guess the dream of having an on demand generator will have to wait for next year, which is what I said last year when our loosely defined home improvement budget went towards a top coat of asphalt on the driveway."

- David Lancaster

What is the best way to donate to charity in 2026?

Howard Schwartz | Mar 4, 2026

"I retired last July and wanted to sell some heavily appreciated tech stocks I had inherited, but I didn't want the capital gains tax liability. Because giving has always been a priority in our budget — 10% of gross income, even during lean years — a DAF through Fidelity was the perfect solution for us. It made donating stock very straightforward, and allowed us to stack deductions (charitable giving, property taxes bundled into one year, plus mortgage interest) so we could itemize our deductions in 2025. Another nice thing is that I get the tax benefit of the donation in the year I give it, but I don't have disburse all of my donation in one year, but can spread it out over numerous years. Donating to all sorts of charities has become incredibly simple — simpler than I ever imagined. With a few clicks, I can give to more than 20 of our favorite charities, all in one place. For one-off donation requests that come up from time to time, it's easy to log into Fidelity and give immediately. My only regret is not having set one of these up earlier in life. Once I reach 75, I'll likely shift to QCDs. Until then, I'm quite satisfied with the DAF and will happily pay Fidelity for the convenience."

- Carl C Trovall

New to building a CD or Bond Ladder?

Dan Smith | Feb 27, 2026

"Completely agree, but our traditional accounts are almost full of bonds, so as that allocation increases, the additional bonds are going to have to live in either Roth or taxable."

- Michael1

How did you avoid being in the 39%?

R Quinn | Mar 4, 2026

"Interesting approach, but what works, works."

- R Quinn

HSA Tips

Bogdan Sheremeta | Feb 28, 2026

HEALTH SAVINGS ACCOUNT (HSA) is the most efficient tax-advantaged investment account because it offers a triple tax advantage:

Contributions are tax-deductible
Earnings grow tax-free
Withdrawals are tax-free if used for medical expenses

One of the best uses of an HSA is to actually invest the balance. For example, I keep $500 (the minimum required balance) in cash. The rest, I invest in low-cost index funds. This allows me to maximize compounding inside the HSA account. I also receive a $1,000 HSA match. Since I’m young and my medical expenses are low, it’s a great way to minimize taxes and grow the balance. I will also not touch my HSA at all, even if I have medical expenses. I will reimburse myself 20-30 years down the road (more on this in a bit). But if you are paying medical expenses with the HSA, you should have at least a portion of the funds in a Treasury fund or money market fund (MMF) for stability. Generally, this amount should be equal to at least one year of deductible costs. Rules To contribute to an HSA, three things must happen:

You need a high deductible health plan (HDHP). You cannot contribute to an HSA without one. A “high deductible health plan” is defined under §223(c)(2)(A) as a health plan with an annual deductible of more than $1,700 for self-only coverage or $3,400 for family coverage. The maximum out-of-pocket limit is $8,500 or $17,000 (family).

Importantly, before enrolling in a high deductible plan, you need to decide whether it’s worth it in the first place. You will generally receive the biggest benefit from an HDHP if you are in good health (more on this in a bit). 2. You aren’t enrolled in Medicare. 3. You cannot be claimed as a dependent. Importantly, the HSA balance never expires. This account is always yours to keep, even if you leave your employer. Some people confuse an HSA with an FSA (which does expire, aside from a small potential rollover option). The account typically works like a “bank account,” where you make deposits and can withdraw money via online transfers or checks, or invest it like a brokerage account. Contributions The 2026 contribution limit is $4,400 for an individual plan and $8,750 for a family plan, with an additional $1,000 catch-up contribution if you are 55 or older. The contribution limit includes both your contributions and your employer’s contributions. If your employer allows it, contributing to an HSA via payroll deduction is generally better than contributing directly, as it avoids the 7.65% FICA (Social Security and Medicare) taxes. Direct, after-tax contributions only save on income tax when filing, missing the payroll tax savings. Withdrawals Withdrawals for medical expenses are tax-free. IRS Publication 502 has information about which expenses qualify as medical expenses. In addition, as long as you keep proper records, you can reimburse yourself in a later year. I keep track of all my medical expenses in a spreadsheet (e.g., with columns for EOB documents, receipts, bills, etc). I plan to reimburse myself in the future, assuming the law doesn’t change. In 2025, House Bill 6183 was proposed to change the reimbursement limit to expenses no older than two years, but it didn’t gain any traction. If there is a change in legislation, I plan to reimburse myself for all prior medical expenses before enactment. Once you turn 65, you can withdraw money from your HSA for any reason without penalty. However, you will owe income taxes on any non-medical withdrawals, effectively making this similar to a Traditional 401(k) or IRA. Inheriting an HSA Per Publication 969, if your spouse is the designated beneficiary of your HSA, it will be treated as your spouse’s HSA after your death. If your spouse isn’t the designated beneficiary (e.g. your child is the beneficiary), the account stops being an HSA and the fair market value of the HSA becomes taxable to the beneficiary in the year in which you pass away. This is why tax free HSA dollars should ideally be spent before passing down an inheritance due to tax inefficiency. On the other hand, naming a beneficiary in a low-income tax bracket to receive the deceased person’s HSA can also be beneficial for tax purposes. HSA can be powerful, but make sure the math makes sense. If you spend thousands of dollars on medical bills, having a standard plan could outweigh all the tax savings you can get. Bogdan Sheremeta is a licensed CPA based in Illinois with experience at Deloitte and a Fortune 200 multinational.

Managing Investment Risk

Adam M. Grossman | Feb 28, 2026

BEFORE ITS FAILURE in 2008, Lehman Brothers had been one of the most prominent investment firms in the United States. After 158 years in business, what caused it to collapse so suddenly? In a word: complexity. Lehman had been involved in the securitization of mortgages, a process that resulted in taking something relatively simple—a home mortgage—and turning it into something much more complicated, thus obscuring its true risk level. That was the proximate cause for the firm’s failure. In addition to mortgage bonds, Lehman specialized in creating other complex instruments. A document titled “The Lehman Brothers Guide to Exotic Credit Derivatives” can still be found on the internet. The strategies it describes are the sorts of things that ultimately brought the firm down. When it comes to making investment choices, risk is unavoidable. No one can know what path the economy, the market or any given investment will follow. But that doesn’t mean investment risk is entirely outside our control. There are, in my view, certain characteristics we can look for in investments that can help tilt the odds in our favor. Here are four to consider. Simplicity. Peter Lynch, former manager of the Fidelity Magellan Fund, had this warning for investors: “Never invest in any idea you can’t illustrate with a crayon.” Lynch felt that simplicity was paramount because investing is hard enough. As Kodak, Polaroid and BlackBerry taught us, things can go wrong even for well-run companies. But when an investment is complicated, it’s that much harder to assess how things might go. Consider, for example, an exchange-traded fund called the Box ETF (ticker: BOXX). It’s designed to deliver performance comparable to U.S. Treasury bills but in a more tax-efficient manner. For that reason, it’s quite popular, and I’m asked about it frequently. Despite the clear tax advantage, though, I advise against it. That’s because of its complex structure, which involves a strategy known as a box spread. This is how it’s described on the BOXX website: “A box spread is an options trading strategy that combines a long call and short put at one strike price with a short call and long put at a different strike price.” Another question about BOXX is whether the IRS might challenge the tax strategies it’s employing. BOXX could work out just fine, but in my view, the complexity and IRS risk just aren’t necessary. And even though it’s worked well so far, the hardest part about complex instruments is that we can’t know in advance how they’ll perform through various market cycles. Times of stress could cause an otherwise successful strategy to fail. That was the lesson of Lehman Brothers. Management style. For decades, there’s been a debate between advocates of active and passive investing. That debate is an important one, but it isn’t the only one. Within the world of actively-managed funds, there are also important distinctions. Funds like the Magellan Fund, for example, are straightforward. The manager’s aim is to choose a group of stocks that he thinks will outperform. That’s one type of actively-managed fund and is the most common one, but there are many others. Some funds take a tactical approach, trading in and out of different asset classes in response to the managers’ sense of where markets are headed. Morningstar analyst Jeffrey Ptak analyzed these funds a few years back and concluded that they “would have earned twice as much if their managers didn’t trade over the past decade.” The funds’ managers, in other words, only subtracted value. The lesson: The investment world is much more nuanced than the simple distinction between active and passive, and the passive realm isn’t immune to potholes either. So be sure to look carefully under the hood of any fund you’re considering. Tax-efficiency. Mutual funds and exchange-traded funds offer a number of advantages, but they can also carry risk in the form of higher tax bills because funds are required to distribute the bulk of their gains to shareholders on a pro rata basis. Careful due diligence is required on this point because there’s a misconception that a fund’s turnover ratio—which measures the amount of trading inside a fund—is the best proxy for tax efficiency. Turnover can be an imprecise measure, though. Consider a fund like the PIMCO Total Return Fund (ticker: PTTRX). It has thousands of holdings—everything from bonds to currencies to interest rate swaps, credit default swaps, reverse repurchase agreements, and more. As a result of this diverse mix, it has an extremely high turnover rate, north of 600%. With so much trading, you might expect this fund to be massively tax-inefficient. But surprisingly, it isn’t. It hasn’t generated any capital gains distributions at all in the past four years. In contrast, a fund like Magellan might appear to be more tax-efficient, with a much lower turnover ratio of 49%. But Magellan has generated significant capital gains for its investors in each of the past several years. The lesson: When assessing a fund’s tax efficiency, be sure to study its distribution history. That’s the metric that’s most meaningful. Concentration. With the rise of the so-called Magnificent Seven stocks, there’s been increasing hand-wringing over the concentration level of the S&P 500. The top 10 stocks today account for nearly 40% of the entire index. On the one hand, this is unprecedented and potentially cause for concern. But as The Wall Street Journal’s Jason Zweig pointed out recently, there’s more than one way to look at market concentration. At one point, for example, AT&T accounted for nearly 13% of the entire market. Today, the market’s largest stock, Nvidia, poses a risk but nonetheless has a more modest weighting of less than 7%. The bottom line: Concentration may or may not turn out to be a problem in the coming years. But since we don’t have the benefit of hindsight, this is another area where you could be defensive with your portfolio. If concentration is a potential risk, it’s one that’s easy to avoid. To diversify away from the S&P 500, you could allocate to value stocks, to small- and mid-cap stocks and to international stocks. Other factors. How else can you play defense with your portfolio? In evaluating prospective funds, I’d also consider the length of its track record, the firm behind it, and, as discussed last week, the fund’s withdrawal policies. Investment risk may be unavoidable. But that doesn’t mean it can’t be managed. 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.

Vanguard’s Transfer on Death Plan Kit

William Perry | Mar 3, 2026

"In my name only though I was going to see if I could amend to joint ownership."

- Mark Ukleja

Why I use a Donor-Advised Fund

David S | Feb 21, 2026

"DAF at Fidelity ... No fees Harold, I'm confused (apologies if I'm being dense): The Fidelity website says the DAF annual administrative fee is 0.6% on a balance up to $500k (and decreasing rates for higher account balances), plus there's the expense ratio of the underlying investments."

- 1PF

Helping Adult Children, pt. 2

gnussen623 | Mar 1, 2026

"If your children will be beneficiaries of your estate and you can afford to help them I see no reason not to do so. Personally we have been gifting our children money for their IRA's that they would struggle to fund at their current salaries. They are thankfully both financially responsible and live within their means."

- Thebroman

The $9.95 scam…

R Quinn | Feb 26, 2026

- Michael1

Volatility is your Best Friend

Mark Crothers | Mar 4, 2026

"Ah. That may make more sense than my waiting until the market goes down enough to suit me."

- Michael1

Grown-Up Money

Jonathan Clements | May 5, 2018

When your neighbors show off their remodeled kitchen, you stare in terror and try to imagine how much it cost.
The word “annuity” makes you twitch.
When friends tell you about the great lease terms on their new car, you immediately assume they couldn’t afford to buy.
You’d rather spend an evening with Jack Bogle than Peter Lynch (and, yes, you know who both of them are).
When your niece mentions how much credit card debt she has, you suddenly feel the need to sit down.
When friends boast that they save 10% of their income every year, you think, “Is that all?”
When you worry about money, it’s about whether you’ve become too good at delaying gratification.
If someone mentions cash-value life insurance, you instinctively reach for your wallet—to make sure it’s still there.
When your brother-in-law talks about the hot tech stock he just bought, you try not to slap him.
You suspect your heirs will be pleasantly surprised.
When you hear about your cousin’s great vacations, wonderful home and European sedan, you just know your bank balance is bigger.
CNBC makes you laugh almost as much as Comedy Central.
When you read about the lavish lifestyle of some rich dude, you wonder whether all that money really makes him happy.
You have this nagging feeling you could have got it cheaper elsewhere.
When friends say they beat the market, you assume either they’re lying—or they don’t know the truth.
The prospect of paying more than 0.2% a year for a mutual fund triggers an existential crisis.
When the family takes off on a Saturday morning for the shopping mall, you just know it isn’t going to end well.
When your neighbors mention the great guy they use at Merrill Lynch, you take deep breaths to calm yourself.
Like everybody else, you have no idea where the market is headed. But unlike everybody else, you know you don’t know.
You’re no longer capable of an impulse purchase.
When your colleague announces she signed up for the 401(k), you offer a hearty “congratulations”—and silently wonder what the hell took so long.

And How About Them Kids?

Smoke, Sparks and Retirement Spending.

Mark Crothers | Mar 5, 2026

- David Lancaster

What is the best way to donate to charity in 2026?

Howard Schwartz | Mar 4, 2026

- Carl C Trovall

New to building a CD or Bond Ladder?

Dan Smith | Feb 27, 2026

"Completely agree, but our traditional accounts are almost full of bonds, so as that allocation increases, the additional bonds are going to have to live in either Roth or taxable."

- Michael1

How did you avoid being in the 39%?

R Quinn | Mar 4, 2026

"Interesting approach, but what works, works."

- R Quinn

HSA Tips

Bogdan Sheremeta | Feb 28, 2026

HEALTH SAVINGS ACCOUNT (HSA) is the most efficient tax-advantaged investment account because it offers a triple tax advantage:

Contributions are tax-deductible
Earnings grow tax-free
Withdrawals are tax-free if used for medical expenses

You need a high deductible health plan (HDHP). You cannot contribute to an HSA without one. A “high deductible health plan” is defined under §223(c)(2)(A) as a health plan with an annual deductible of more than $1,700 for self-only coverage or $3,400 for family coverage. The maximum out-of-pocket limit is $8,500 or $17,000 (family).

Managing Investment Risk

Adam M. Grossman | Feb 28, 2026

Manifesto

Mar 4, 2026

NO. 27: RISK and potential return are inextricably linked. If an investment holds out the prospect of high returns, we should presume it’s highly risky—even if we can’t figure out what the risk is.

think

Mar 5, 2026

SEQUENCE OF RETURNS. Our investment success hinges not only on long-run market returns, but also on when good and bad performance occur. Ideally, we get lousy results when we’re saving, so we buy stocks and bonds at bargain prices. But as we approach retirement age, we should hope for a huge stock market rally, so we can cash out at lofty valuations.

act

Mar 4, 2026

CAP ALTERNATIVE investments. How much do you have in various alternative investments—everything from gold to commodities to hedge funds? As a rule, keep your allocation to 10% or less of your total portfolio’s value, and favor simpler, less expensive options, such as mutual funds that focus on gold-mining stocks and real estate investment trusts.

Truths

Mar 3, 2026

NO. 40: NOTHING generates spectacular returns forever. Investment trends can last far longer than expected and, after a few years, further gains can seem inevitable. But that sense of inevitability encourages investors to pay prices far above what the fundamentals justify—and those fundamentals eventually drag the highfliers back to earth.

Money Guide

Manifesto

Mar 4, 2026

Spotlight: Health

Time to Decide

Scott Martin | May 31, 2023

I’LL BE TURNING 65 this year, so I’ve been researching my Medicare options. Even though I work in health care—and many of my patients are on Medicare—the task of choosing a plan is no less onerous for me.
I’ve read the information provided on Medicare.gov and watched numerous YouTube videos from insurance brokers. These brokers tend to support two types of Medicare coverage. Retirees might opt for a bundle that includes Medicare Part A,

Rx for Medicare

Howard Rohleder | Jun 9, 2022

RONALD REAGAN SAID “the nine most terrifying words in the English language are ‘I’m from the government and I’m here to help’.” Government programs are put in place to address real concerns. But they often come with unintended consequences.
When created in 1965, Medicare addressed the real need of senior citizens who couldn’t afford health care, just as Social Security was established in 1935 to help seniors in poverty. Both have become pillars of American retirement,

Happy I Had Medicare

Dennis Friedman | Jun 8, 2021

I WENT TO SEE MY primary care physician about a medical problem. I actually felt pretty good and wasn’t in any pain. I was fairly confident there wasn’t anything seriously wrong with me, so—when the doctor greeted me and asked how I was doing—I said, “I’m doing well.”
When he responded, “No, you’re not,” I knew this wasn’t going to go well.
I gave him my explanation of what might be causing my physical condition.

Paradox of choice. What to do, what to do?

R Quinn | Nov 5, 2024

I used to be a big fan of choice when it came to employee benefit plans including life insurance, health insurance and, of courses 401k investment options.
When working I crafted a plan with lots of choices. Employees said they wanted choice, it was all the rage at the time. Our unions were not so thrilled, but went along.
The unions were right and I was wrong.
People may say they want choice, but when faced with it for very important decisions,

A Painful Confession

William Housley | Jun 28, 2024

IT PAINS ME TO SAY this, but I hurt—everywhere. I’ll start at the bottom and work my way up. My feet hurt, my knees hurt, my hips hurt, my back hurts and my shoulders hurt. One more thing: I can’t remember. My memory is in decline.

Cataract surgery improved my eyesight. Hearing aids mean my grandkids don’t have to be two rooms over when we watch TV together. Exercise seems to reduce my pain slightly and increase mobility.

Fighting IRMAA

Richard Connor | Oct 18, 2021

I TURNED AGE 64 over the Labor Day weekend. One of my goals for my 65th orbit of the sun is to really dig into Medicare.
Luckily, I have a few friends and relatives who have blazed the trail before me. I’ve also studied Medicare as part of some financial planning courses I took a few years ago. Still, one topic I’ve never researched in detail is Medicare’s income-related monthly adjustment amount, otherwise known as IRMAA.

Let’s revisit an important retirement living topic. How’s it going? Great expectations

R Quinn | May 8, 2025

I hear about this topic on YouTube retirement videos. It has also been a topic on HD from time to time. We all know about the process of preparing financially for retirement, but it seems that for many people facing a retirement lifestyle is equally challenging. Honestly, I can’t relate. I never thought about what retirement living would be like. I had no expectations. Perhaps taking phased retirement for 18 months was a factor, but even when I decided on doing that it wasn’t with a plan to prepare for retirement, it was purely a financial move - collecting a pension, Social Security and half my pay simultaneously. Admittedly it gave me a taste of more free time and a loss of work related status. It may be retiring at 67 was a factor as opposed to taking the leap at 55 or even 60, when the retirement years might be longer. Still, I have been fully retired over 15 years with no disappointments or regrets. Why did I retire? I liked my job, that’s not it. I felt I had accomplished all I could. The senior leadership changed and in the process the company culture changed. At a meeting with the CEO about an incentive compensation issue he whipped out a flip chart and started writing formulas. It could have been Sudoku as far as I was concerned. That was it. Perhaps I just have a dull personality. The older I get, the more mellow I seem to be. I am happy doing nothing if that happens. Connie maintains a pocket calendar with everything she (we) will be doing. There are two main activities. Family events and doctors visits. I write in “golf” twice a week. When there is a open date, I’m happy. I’m equally happy traveling, even a road trip. I look forward to the five hour drive to Cape Cod, even driving to Florida in the winter. SO, FOR THOSE RETIRED, how was the transition? Are you all settled into a comfortable retired life routine? Do you seriously miss any part of your pre-retirement life? FOR THOSE NOT YET RETIRED, what are your expectations?

Spending Time

Richard Quinn | Mar 9, 2022

AFTER 78 YEARS, my plumbing has gone awry, and I’m not talking about the kitchen sink. My doctor said something about my prostate having its own zip code. I’m waiting to have surgery and, because of fear of COVID, I’ve been quarantined for the past month. We were supposed to be in Florida. For several years, we had rented a house using VRBO. Luckily, I was able to cancel within a week of our reservation date with no hassle. I received a full $10,000 refund within three days. I’ve confirmed that Medicare works. I chose my own doctor and, thanks to my Medigap plan, my bills will be limited to the Part B deductible. Even my prescriptions—more in the last month than in my entire life combined—cost me copayments of $5.42, $14.28, $18 and $0. The fact is, despite the outliers we hear about, the great majority of the most commonly used medications are affordable. In checking the possible side effects of one prescription, I discovered unanticipated benefits. It causes hair to grow on your head and reduces the desire for alcohol. Unfortunately, I don’t seem to be prone to either side effect—at least not yet. My confinement has led to boredom. My motivation to do much of anything has waned. I’m watching more TV than ever before. Did you know you can still watch Laurel and Hardy and Ozzie and Harriet? I’ve also learned how easy it is to shop online. I used to be amazed at the number of packages arriving daily for an elderly lady in our building. Now, I understand. Online shopping is addictive, especially when you’re bored or lonely. I started by innocently exploring a few things on Amazon. Just necessities, don’t you know. Then I was duped by Facebook ads. The Irish sausages looked interesting. I’m always up for bangers and mash, as well as white pudding. I moved on to a site for assorted snacks, candy and pretzels. Then there’s the ice cream. What a selection. Luckily, I was saved because there’s no room in our freezer, otherwise it would have been filled with butter pecan and mint chocolate chip. Charles Chips brought back memories, too. We used to buy them off the company’s truck. Now you buy them online. Even shopping for regular groceries can get out of hand. Just search and click, no aisles to walk. They say you’re prone to buy more if you shop while hungry. Imagine you’re hungry—and bored. Did I need those bags of popcorn, the raspberry ice tea or that can of corned beef hash? Hey, I ordered organic celery, too. I claim to have a modicum of frugality. That seems to have fallen by the wayside. Oh my, what can happen when you have time on your hands. It’s so easy, choose your purchase, add your credit card info and check out. It’s like EZ-Pass. Who pays tolls? You just drive through the toll booth. It’s all free—at least until the end of the month.

When Free Isn’t Free

Richard Quinn | Feb 24, 2023

DO A QUICK REVIEW of Twitter and other social media sites, and you’ll find extensive use of the word “free.” The dictionary defines free as “without cost or payment.” College, health care, child care, preschool, even housing are often mentioned in connection with “free.” The actual cost of “free” may not be what it seems. Free in this context typically means shifting the cost from one person to another, or redirecting money to some favored purpose. The true cost of free may be an expense passed on to the next generation in the form of accumulated debt. Free education in my community, for example, costs 58% of our $13,000 annual property tax bill. How often have you heard someone complain about property taxes? But at the same time, our public schools are popular and celebrated. Citizens complaining about their property taxes seldom draw the connection between their taxes and what the schools cost. Even if they do, they’re not usually aware of the total cost. In many states, including mine, teachers’ pensions have never been adequately financed. The true cost is usually hidden from taxpayers as an unfunded obligation. I imagine that everyone knows that nothing is truly free, so why are we so susceptible to the lure of free things? Well, it’s an easy concept to understand—and it sure sounds appealing. But how accepting would we be if, instead of “free,” the cost of something was described as “hidden in your taxes"? Or what if something “free” came with the proviso that “the cost is to be paid by your children”? Politicians use free to add appeal to a proposal. Yet often they do so without consideration of short-term costs and consequences or long-term government debt. Who will pay that burden in the future? Social Security and Medicare are two excellent examples of short-term thinking. To avoid talking about costs, funding and taxes, politicians have allowed both programs to deteriorate slowly toward insolvency. All the while, calls for free health care and enhanced Social Security benefits proliferate. These days, many citizens seem willing to abandon the broad-based funding of such social programs in favor of tapping only the “wealthy” to keep them going. As a society, are we any different from those families who live beyond their means and don’t save?

Getting a later start: college vs. retirement, a growing conundrum

R Quinn | Jun 17, 2025

Our oldest child is age 55, - three children ages 14 and 12 (twins), our second is age 54 - three children ages 14, 13 and 10, our third age 51 - three children 18,17 and 13, and our fourth age 50 - two children ages 20 and 17 All ages are rounded. Look at these ages and what comes to mind, college, retirement? Pretty sure not retirement any time soon. This is what I ponder when I read about FIRE or even early retirement before age 60. Our children will be near or over age 60 when our grandchildren finish college. I look at these ages and wonder how they will ever retire. Needless to say none of our children has a pension and two don’t have a 401k, two are working two jobs. All this is why we fund 529 plans and help our children occasionally and why I am keen to leave the largest legacy we can. Once again I find my thinking out of the norm. An article on MarketWatch says boomers intend to spend their money and leaving an inheritance is not a priority. This example is similar to the reality for many families. The trend of people having children at older ages is well-documented in the United States. However, according to the Census Bureau the average family size in 2022 was 3.13, but even one or two children with these age scenarios may have a significant impact on finances, especially retirement. I was 45 when our oldest child entered college and they were all finished ten years later. I suspect there are people who don’t see their children’s college as an obligatory expense. That is a choice. In any case, saving for retirement should be the priority, but it’s still a tough road for people who start families later in life.

Two Paychecks Needed

Richard Quinn | Oct 16, 2023

DOES THE RISE IN dual-income families, which started in the 1960s, mean that today it’s almost a necessity for both spouses to work? In my opinion, absolutely. Our first child was born in 1970. That was the last time my wife was employed, apart from a brief part-time job when our youngest was in high school. But we’re the exception. Over the past 40 years, the number of couples where both have jobs has soared from about half to 70%, according to the Brookings Institution. Among families with children at home, the percentage is a bit lower at 63%. The trend toward working wives began taking off around 1968 as younger, more educated women entered the workforce. My wife and I married in 1968. But there was never any discussion of my wife getting a job once we had a family. She had no desire for a career. My mother wasn’t employed, nor were my grandmothers. Today, it’s a different story. I read articles about working couples balancing work and family, including their struggles to pay for child care and to carve out quality time with their children. It strikes me as sad that families suffer such stress, financially and otherwise. Still, for most American families, two incomes are a necessity. There are many reasons both spouses work, from the desire for a career to needing the money. For me, it’s not a matter of right or wrong. But I think we should acknowledge the impact. What fascinates me: the issue of paying the bills. How did we reach the point where two incomes have become a financial necessity? From the day we were married—or, more accurately, from the day I got home from the Army in 1969—we lived on my income alone. From August 1969 until July 1970, we saved what my wife earned, using that money in 1971 for the down payment on the first house we purchased. It was a 1,106-square-foot home in serious need of an HGTV makeover, but—at $29,000—it was what we could afford. We’d looked at another house that was newer and larger, but cost $35,000. On my income of $8,300 a year, it was unaffordable. My wife going back to work, so we could afford the nicer house, wasn’t a tradeoff we even considered. Today, Zillow shows that our old home is worth $564,000, which means its value has climbed 5.9% a year over the past 52 years, two percentage points a year faster than inflation. There are many factors driving housing prices, but the ability to pay for them because of dual incomes is certainly one of them. We've also seen demand for larger homes. The average size of a U.S. home was 1,660 square feet in 1973. By 2015, that figure had ballooned to 2,687 square feet. Since then, homes have begun to shrink. In 2021, the average single-family home fell to 2,273 square feet, while the average family size dropped to 3.13 people. It had been 3.8 in 1940. Over the first 30 years of our marriage, our single-income status required many choices that meant we didn’t “keep up with the Joneses.” I don’t think our children felt deprived, except perhaps being the only kids on the block without Mickey Mouse ears. If we were in our 30s today, I wonder if we’d be making the same decisions. We might be in a bind competing in the housing market against couples earning two incomes. These days, two incomes are almost a necessity for most American families because the spending power of other households—the good old Joneses—has raised the bar for standard of living, as well as the cost of basics like housing and college. How many families today would find a 1,106-square-foot house desirable, even as a starter home? A family of four no longer wants to travel in a mid-size sedan, but in a huge SUV or a pickup truck. A Ford F-150 is today’s most popular vehicle. The number of households with two cars or more has grown from 22% in 1960 to 59% in 2020. Those cars are now so big they often won’t fit in the garage, which—in any case—is often overflowing with other possessions. It’s not easy for a working husband and wife to raise a family, and even harder for couples who strive to do so on a single income. We’ve created a society where what used to be the norm is barely affordable, and those who try to attain it often must spend far more time working. We’ve also put lower-middle-income families in a bind where child care is required, but often unaffordable. Costs vary greatly from place to place. But in 2022, the average was $284 a week for one child in daycare. The calls for taxpayer-funded child care solutions are growing. Every societal change has consequences. In this case, there are winners—financially and career-wise. But many families are losers. Have I once again demonstrated that I’m out of touch with 21st century society? Oh my, I fear this has turned into another rant. Richard Quinn blogs at QuinnsCommentary.net. Before retiring in 2010, Dick was a compensation and benefits executive. Follow him on Twitter @QuinnsComments and check out his earlier articles. [xyz-ihs snippet="Donate"]

Seniors are a frustrating lot. Here’s why…IMO

R Quinn | Oct 29, 2025

If there were red down arrows on Facebook I would have received so many in the last week, their system would have crashed. I have taken on the seniors who failed to plan for their retirement and now blame the system for their situation along with those who think they should not pay property taxes for schools or any taxes at all once they reach age 65 - because they paid their dues plus those Many say without a mortgage you should not pay property taxes, that with a mortgage you don’t own your home - not true of course. You own your house, but with a lien on it for the loan amount. If you didn’t own your house, how could you sell? You own your car too, even if you have a loan. It’s not so much the warped views on paying taxes that drives me nuts, but that so many of these people seem to think no planning or saving was required during the 40 years between starting work and retirement. Don’t believe me? “I have done the math and I will lose my house when I retire in 5 years.” Needless to say, this person needs to adjust his spreadsheet assumptions. 😁 I suggested he not retire in 5 years. I can’t repeat the reply, but I think he meant mind your own business. Is there such a thing on Facebook? I should have suggested a remedial math class. Yeah, ok, it’s true, I have little patience for people like this. One reply to my comments called me an idiot, another said I don’t understand and asked how old I was. I told them I understood very well and was 82. “ You should know better,” was the reply. That’s the problem I do know better. I point out to these complaining folks they had those 40 years to prepare. That comment does not go well. I don’t understand why, it’s a fact, right? “ Lost mine (house) when my husband passed. For SS you have to choose one income to collect on. Now tell me that's not robbery!!!!” Robbery? Choose? I asked if her husband had life insurance? Was that an unfair question? Hey, the way I see it if you are going to put your ignorance on display for the world to see, a question is justified. There is nothing to suggest among the thousands of post that these are poor people or even very low income. There is much to suggest they have been clueless for a long time. Since many comments are from women, it also seems they were not involved in family finances or had irresponsible husbands leaving them in a poor financial position. Some of these supposed seniors now complain “they” changed the retirement age to 67. I point out there is not a fixed retirement age, retire whenever you like. The comments add up on that one. What bothers me more than anything else is that these seniors are so willing to shift the tax burden (and perhaps the income burden) to younger people and to think getting old is a free pass on responsibility. 😢 Maybe we should expand The Villages into a state of its own where all seniors live and think about their lifelong mistakes and are required to read HumbleDollar each morning before heading off on their (pretty expensive) golf cart. 🛺🛺🛺🛺🛺🛺🛺🛺🛺🛺🛺🛺🛺

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