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My Favorite Room

"That’s going to be fun to have Dana. When we last had a home, I had a space set up in our small garage. A row of kettlebells lived along one side. Pullup bar overhead, with gymnastics rings on it, and assorted other things on the wall. It had a mat in two pieces that would lean against the wall when not used, and be on the floor and connected in less than a minute. Oh and we parked our cars in there as well. Back out the car, put down the mat, boom. Second mat on the other side too when desired. Not that it was my favorite room but I do miss it. "
- Michael1
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I will still take the dividends

"Jack thanks for sharing. It’s interesting too that while you can read stock analysts saying that circumstances have changed and Berkshire should start paying a dividend, many (most?) individual shareholders are strongly against it. They have heard and internalized Warren’s advice."
- Michael1
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What would you do if you received this text from your child as I did this morning? 

"So sorry to hear of these difficulties for your family, Dick, especially your sons and wives. They are blessed to have your emotional and financial support, as well as your physical proximity. Must be comforting for your grandchildren as well. My prayers are with you."
- Linda Grady
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When $2000 Isn’t Worth the Hassle

"When money and principles clash I can get uncomfortably stubborn, and this situation would qualify. Still the sum is not great enough to justify legal pursuit. Trashing the company online could result in them going after you. So at the end of the day, and with a very bad taste in my mouth, I’d walk away. Grrrrrrrrrrrrrrrrr."
- DAN SMITH
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A Wedding Too Far

"Mark, have you considered gifting appreciated stock to your daughter, so she pays tax at her (hopefully) lower rate -- ideally zero tax based on her Married Filing Jointly (or Separately for that matter) status? I did this several years back. My daughter paid $0 in taxes since she was in the 0% MFJ bracket. There is a limit to what you can give in one calendar year, without dipping into your lifetime Unified Credit Amount for Estate & Gift Tax purposes: $19,000 x 2 = $38,000 annual gift exemption amount in 2026 for couples. $20,000 x 2 - $40,000 annual gift exemption in 2027. If you make gifts over both tax years, you could potentially transfer up to $78,000. Hopefully not that much, though, for your wallet's sake. Good luck!"
- ostrichtacossaturn7593
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On Being a “Healthy” Person

"Thanks for this. In my case, my high CAC officially makes me a person with cardiovascular disease, and the reason I described myself as “healthy” is that, thankfully, at 66 I’ve not had any adverse cardiac events or even symptoms, and I do pretty robust cardio 4-5 days a week (heart zones 3-4 most days) with no ill effects. My Lp(a) number alone probably wouldn’t have gotten me approved for Repatha in 24 hours. As you note, Lp(a) is a risk factor, not disease itself. If I could go back 10-15 years, I’d have gotten myself under the care of a cardiologist sooner and probably would have been on a statin years ago, which might have prevented at least some of the calcification. But I felt fine, never had bad “regular” LDL numbers, and didn’t know from Lp(a). So other than being aware of bad family history, I didn’t have enough information as a layperson to be more proactive. So oh, well—onward, as you say!"
- DrLefty
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What to do about the new ID.me login requirement at TreasuryDirect

"My experience creating an ID.me account can be best described as "hinky," glitches that indicated a misstep but then seconds later it worked. I also got several "retry" prompts. Based on a comment on this thread I expected trouble, and an interview process, because my credit is frozen, but nope, I was able to establish the account anyway. Yes, I'll be sticking with "hinky" to describe the process."
- Ted Tompkins
Read more »

The Silent Committee

"It’s great to hear from you, Rick! Thank you for the thoughtful comment!"
- John Goodell
Read more »

The Ultimate Tail Risk

"I think the situation needs addressing, but I think you have prescribed the wrong tool. Congress can regulate AI through ordinary legislation. Legislation is vastly easier to change as technology evolves. Constitutional provisions are intentionally difficult to change. And we have very little idea what "AI" will mean 30, 50 or 100 years from now."
- John Katz
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Free Breakfast

"Just finished my free hotel breakfast. For the first time, there was a tip jar next to the buffet. No need to seek out the worker."
- Marilyn Lavin
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Locking it in

"Thanks Martin. I figure that it's ok to imprecise, so long as the total plan works out."
- greg_j_tomamichel
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My Favorite Room

"That’s going to be fun to have Dana. When we last had a home, I had a space set up in our small garage. A row of kettlebells lived along one side. Pullup bar overhead, with gymnastics rings on it, and assorted other things on the wall. It had a mat in two pieces that would lean against the wall when not used, and be on the floor and connected in less than a minute. Oh and we parked our cars in there as well. Back out the car, put down the mat, boom. Second mat on the other side too when desired. Not that it was my favorite room but I do miss it. "
- Michael1
Read more »

I will still take the dividends

"Jack thanks for sharing. It’s interesting too that while you can read stock analysts saying that circumstances have changed and Berkshire should start paying a dividend, many (most?) individual shareholders are strongly against it. They have heard and internalized Warren’s advice."
- Michael1
Read more »

What would you do if you received this text from your child as I did this morning? 

"So sorry to hear of these difficulties for your family, Dick, especially your sons and wives. They are blessed to have your emotional and financial support, as well as your physical proximity. Must be comforting for your grandchildren as well. My prayers are with you."
- Linda Grady
Read more »

When $2000 Isn’t Worth the Hassle

"When money and principles clash I can get uncomfortably stubborn, and this situation would qualify. Still the sum is not great enough to justify legal pursuit. Trashing the company online could result in them going after you. So at the end of the day, and with a very bad taste in my mouth, I’d walk away. Grrrrrrrrrrrrrrrrr."
- DAN SMITH
Read more »

A Wedding Too Far

"Mark, have you considered gifting appreciated stock to your daughter, so she pays tax at her (hopefully) lower rate -- ideally zero tax based on her Married Filing Jointly (or Separately for that matter) status? I did this several years back. My daughter paid $0 in taxes since she was in the 0% MFJ bracket. There is a limit to what you can give in one calendar year, without dipping into your lifetime Unified Credit Amount for Estate & Gift Tax purposes: $19,000 x 2 = $38,000 annual gift exemption amount in 2026 for couples. $20,000 x 2 - $40,000 annual gift exemption in 2027. If you make gifts over both tax years, you could potentially transfer up to $78,000. Hopefully not that much, though, for your wallet's sake. Good luck!"
- ostrichtacossaturn7593
Read more »

On Being a “Healthy” Person

"Thanks for this. In my case, my high CAC officially makes me a person with cardiovascular disease, and the reason I described myself as “healthy” is that, thankfully, at 66 I’ve not had any adverse cardiac events or even symptoms, and I do pretty robust cardio 4-5 days a week (heart zones 3-4 most days) with no ill effects. My Lp(a) number alone probably wouldn’t have gotten me approved for Repatha in 24 hours. As you note, Lp(a) is a risk factor, not disease itself. If I could go back 10-15 years, I’d have gotten myself under the care of a cardiologist sooner and probably would have been on a statin years ago, which might have prevented at least some of the calcification. But I felt fine, never had bad “regular” LDL numbers, and didn’t know from Lp(a). So other than being aware of bad family history, I didn’t have enough information as a layperson to be more proactive. So oh, well—onward, as you say!"
- DrLefty
Read more »

What to do about the new ID.me login requirement at TreasuryDirect

"My experience creating an ID.me account can be best described as "hinky," glitches that indicated a misstep but then seconds later it worked. I also got several "retry" prompts. Based on a comment on this thread I expected trouble, and an interview process, because my credit is frozen, but nope, I was able to establish the account anyway. Yes, I'll be sticking with "hinky" to describe the process."
- Ted Tompkins
Read more »

The Silent Committee

"It’s great to hear from you, Rick! Thank you for the thoughtful comment!"
- John Goodell
Read more »

The Ultimate Tail Risk

"I think the situation needs addressing, but I think you have prescribed the wrong tool. Congress can regulate AI through ordinary legislation. Legislation is vastly easier to change as technology evolves. Constitutional provisions are intentionally difficult to change. And we have very little idea what "AI" will mean 30, 50 or 100 years from now."
- John Katz
Read more »

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Get Educated

Manifesto

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.

Truths

NO. 120: INFLATION is the friend of borrowers, but the enemy of savers. If you have money invested, you need to earn an after-tax return that outpaces the inflation rate—or your money will lose purchasing power. But if you’re a borrower, inflation is good news, because it allows you to repay the money you owe with depreciated dollars.

think

OPPORTUNITY COST. Whenever we make a financial choice, we give up something else, which may be a better use for the money. If we buy one item, we can’t spend the dollars on other items, either now or in the future. When we devote money to one goal, we have less for other goals. When we buy one investment, we’re effectively choosing not to buy other investments.

act

TAP HOME EQUITY to trim other debts. If you have high-interest auto loans or credit card debt, you might set up a home equity line of credit and then use it to pay off these higher-cost debts. That’ll reduce the interest you pay. You won’t, however, save on taxes. Thanks to 2017's tax law, such home-equity borrowing is no longer tax-deductible.

My Money Journey

Manifesto

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.

Spotlight: Abuse

Numbers Game

IT HAPPENED AGAIN. For the third time in two years, our credit card number was stolen. I learned this yesterday when I received the now-too-frequent question from Chase: “Do you recognize this gas station purchase for $1?” We live nowhere near the station in question, so I knew something was amiss.
I appreciate Chase’s diligence in identifying such transactions, and the fact that we won’t be held liable for any fraudulent charges. Still, I’ve grown weary of the whole process of cancelling credit cards,

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A Dirty Business

ON MONDAY, MAY 2, I logged onto my Chase bank account—and discovered my balance was $992.43, many thousands of dollars less than I expected. My first thought: I’m going to get hit with a low-balance fee.
That, alas, should have been the least of my worries.
I clicked through to see the account details, and discovered that check No. 1126 had been made out to Milton Cherry for $7,000. But none of the writing on the check was mine,

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For Safety’s Sake

ON JUNE 15, THE NEWS was broken by The Oregonian of a massive hack at Oregon’s Department of Motor Vehicles, apparently leading to the theft of sensitive details about most of Oregon’s 3.5 million holders of a driver’s license or ID card. Incidents like this, along with the huge 2017 Equifax hack, give criminals cheap and easy access to key personal information that many organizations routinely use to verify our identities and screen our credit applications.

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Anti-Social Behavior

A QUARTER OF ALL reported losses from fraud in 2021 originated on social media, according to the Federal Trade Commission, and those losses cost about $770 million.
Yes, social media is a popular way to keep in touch with family and friends, receive news and get information. According to Pew Research, 73% of people ages 50 to 64 used social media in 2021, as did 45% of those ages 65 and over. But using social media requires vigilance.

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Leave It at Home

MY WALLET WAS STOLEN many years ago when I was traveling on business. I had gotten onto a crowded elevator at my hotel. The last person to get on was a woman who pretended to get her heel caught in the elevator door.
The thieves were a young couple—and they were real pros. While we were focused on her, her partner proceeded to open the flap of my handbag and help himself to my wallet.

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Wrote and Grew Rich

IF YOU GOOGLE “best business books of all time,” you’ll find Napoleon Hill’s Think and Grow Rich at or near the top of the search results, ahead of works by luminaries such as Ben Graham and Jack Bogle.
Truly helpful business analysis requires the reader to pay attention to evidence backed by boring data, a formula that’s hard to sell to the masses. Books like Think and Grow Rich or Jim Collins’s Good to Great offer the reader questionable assumptions built on anecdotal evidence,

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Spotlight: Kondrack

Bagging It

IT'S BEEN A YEAR since New Jersey banned all plastic bags from grocery stores, and yet I’m still wandering into our local store without my reusable bags. You would think I’d have gotten the memo by now. I used to keep the bags in the trunk of my car—but out of sight, out of mind. As a visual reminder, I now keep them inside my car on the passenger side. But they might as well still be in the trunk. Maybe I should hang them around my neck. While walking through the parking lot during my last food shopping venture, I saw another shopper heading in the direction of the store, bogged down with bags, which reminded me that I’d forgotten mine—again. I’m on line at the checkout when I notice the shopper ahead of me has a neatly folded, organized pile of reusable bags. They’re uniform in size, color and pattern, with the logo on the bag matching the store we’re shopping at. Meanwhile, I have a motley wad of bags in various sizes, shapes, colors and patterns—some with a psychedelic melange—and almost all of which were freebies from various sources. I have bags with logos from three different supermarkets in my area. I feel a little sheepish when I hand over some of the bags at checkout in the Wegmans food store, while trying to hide my bag with the Aldi store logo emblazoned on it. One of my bags announces, “Surely Not Everybody was Kung Fu Fighting,” which would leave you completely lost unless you’re old enough to remember the song. I also have a bag with a New York attitude that reads, “You Got a Problem With That?” And from the Sopranos: “Fughgeddaboudit.” My logic is that, if others think I’m a thug, it might keep…
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A Diamond Wedding Anniversary

I wore a gown of Chantilly lace—the sun caught the sparkles in my bridal headdress. My husband was resplendent in his tuxedo—the sun was shining on a beautiful April morning —Our wedding day, 60 years ago, April, 1965. While The choice of a spouse is among the most important decisions most people ever make,  it’s a choice that comes with no guarantees of long term happiness.  That said, we all have an ideal vision of the person we would like to marry.  But once that exciting someone comes along all previous expectations vanish. Rich and I are as different as two people can be but sometimes that difference can be a powerful attraction.  We saw in each other the deep and abiding life values that were rooted in our faith and personal beliefs.  It’s  been our strongest bond, giving us a solid foundation to become united in every way possible.  We simply stood the test of time in a deeply committed relationship and we’re so grateful to still have each other. In the lyrics from “They Say it’s Wonderful”  these words still set my heart aglow: “To hold a man in your arms is wonderful, wonderful… in every way… so they say.. —from the musical “Annie Get Your Gun.”
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Luxury Liner Living

MOST OF US REACH a point in retirement where we think about downsizing. This happened most recently for us when my husband was replacing batteries in our smoke alarms. This required him to stand on a ladder and look up, triggering a bout of vertigo. This and other elder episodes, happening as we try to perform simple, everyday tasks, caused us to rethink our ability to remain in our current home. We’re not decrepit yet, but we are slowly succumbing to the vagaries of aging. Many retirees choose to move to 55-plus communities. For those a little further down the road, there are assisted-living facilities and continuing care retirement communities. Today, we also have the choice of 55-plus “resort living” communities, described by the owners as “upscale.” Translation: expensive. These are independent living apartments where you pay rent on a month-to-month lease. There’s no buy-in or one-time fee. These communities are portrayed as "cruise-ship-style living.” The amenities include executive chefs providing three meals a day, an array of snacks, salads and sandwiches for in-between noshers, room service, free wi-fi and utilities, weekly housekeeping and concierge service. Pets are allowed, and there’s a host of additional services. My interest in this style of living was piqued when construction began on a resort living community close to my home. A friend asked me to accompany her to an information seminar given by the management. I also wanted to learn more about this Utopian-sounding existence. There’s no home upkeep, no cooking or shopping for food, no worrying about home repairs, lawn care, snow removal and so on. The salesman giving the presentation was top-notch, with a resonant, booming voice that even those with diminished hearing couldn’t fault. It all sounded like Nirvana, but being a “kick the tires” kind of person, I’ve decided to reserve…
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Dreaming of a Jewish Christmas

There aren’t many people left on my Christmas card list. it becomes shortened with each passing year, but for more than 50 years, we have received a card from someone I never met whose name is Ben Goldberg. My husband retired 17 years ago and Ben is a man he worked with. Ben is not a Christian, but he sends a lovely card— no personal message, just signs his full name and that’s it. Somehow as strange as it might seem, Ben’s greeting adds a special meaning to our Christmas. Meanwhile, I hope that some of you have watched the PBS special,  I’m dreaming of a Jewish Christmas. -A documentary about Jewish songwriters and their connection to Christmas music, including Irving Berlin and Mel Tormé. I love how they rearranged a few traditional Christmas carols like Deck the Halls, in “Hora” Tempo…lively  Jewish wedding dance music.  Very clever. If you have an on-demand feature with your cable subscription, you may be able to pull it up or it will probably air again before Christmas.  Mazel tov! and Merry Christmas.
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Fox in the Henhouse

ALBERT EINSTEIN reportedly once said, “The hardest thing in the world to understand is income taxes.” Which makes me wonder: How did I end up wandering into this mind-boggling field?  I like knowing how my money gets taxed because it helps me better control our finances. By managing taxes, we can significantly boost how much money we have for retirement. Why is the tax system so complicated? The system is trying to do more than just collect taxes. Congress uses the tax code to try to achieve economic and social goals, and then relies on an overburdened IRS to deliver on those plans. It would be far better for the IRS to concentrate its efforts on collecting revenue—its primary purpose—and let other federal agencies monitor social policies. The U.S. tax code is a master class in complexity. If you prepare your own return, you need a lot of patience and usually find yourself reading the instructions more than once. Today’s tax laws unnecessarily burden America's taxpayers and make voluntary tax compliance far too difficult. The two top dogs in tax-preparation software are TurboTax and H&R Block. I’ve also had good results with FreeTaxUSA. It supports most tax situations and forms, without incessant handholding. It charges if you want live help, and also for state tax returns. Now, the IRS wants to get in on the action. Its new Direct File pilot program, a free tax-filing program, is currently available in 12 states. The program doesn’t prepare state returns, nor can you use it if you itemize deductions, have more than $1,500 in interest income or claim certain tax credits. In other words, as currently designed, it’s only meant for people with simple tax situations. The thinking is that, if the pilot plan is successful, it’ll be expanded to handle more complicated returns. Some…
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Hearing Voices

READING ABOUT FINANCE can be a little dry at times, so I occasionally turn to TV for relief, relaxation and a little entertainment. What am I drawn to? More than anything, it hinges on a person’s voice. For instance, I like listening to Neil Cavuto on Fox Business Network. His interviews with business leaders are usually interesting and his demeanor holds my attention. He comes across as earnest. My parents were transplanted New Englanders, so I never had a heavy Brooklyn accent, but just a hint of one, thanks to being raised there. I worked hard to lose it, but it still slips out when I’m tired. I guess you can take the girl out of Brooklyn but not Brooklyn out of the girl. I’m always glad when I tell people where I’m from and they say, “You don’t sound like you’re from Brooklyn,” as if I were expected to say “dees” for “these,” “dem” for “them,” and “doze” for “those.” I still remember the late Marty Zweig, a regular panelist on Wall Street Week with Louis Rukeyser. He was an erudite investment advisor and financial analyst, and contributed many articles to Barron’s. He had a certain charm and an interesting personality, and hid his persona behind a  humble, “regular Joe,” almost woebegone demeanor. I recall him saying he liked rock and roll, had a jukebox and enjoyed salsa dancing. He had a wry, dry sense of humor. I find a pleasant, well-modulated and cultured voice can be so much more interesting and pleasant to listen to than someone who yaps away. It allows the listener to better take in the message that’s being conveyed. I once worked with someone whose voice can only be described as mellifluous. When he spoke, I was almost transfixed. It was like listening to…
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