Getting Off Lightly
Andrew Forsythe | Dec 15, 2022
I'VE BEEN A WITNESS to inflation with every trip to our neighborhood H-E-B grocery store. As various articles have pointed out, inflation can disproportionately hurt retirees. Yet recently I stumbled on a piece that argued the reverse, at least for some of us. I think my wife and I fall into that lucky category, and I’m curious if other HumbleDollar readers feel the same. We own our home free and clear, so there are no rent increases to worry about and no mortgage to pay. There isn’t much we can do about the cost of home repairs and maintenance. But we’re in good shape when it comes to property taxes, thanks to generous homestead and over-age-65 exemptions. For our comfortable 2,800-square-foot home on a one-acre lot in a nice neighborhood, we pay $2,619 a year in taxes, plus our annual homeowners’ association fees are just $195. As empty nesters, we’re only buying for two people. That’s quite a contrast to earlier years, when we were raising four kids. Food, clothes, transportation, school supplies, health insurance, dental and orthodontics expenses all made for a hefty domestic overhead. Later, there were high car expenses, including maintenance and insurance. The liability quote for a teenage male driver will really get your attention. And the grand finale—college—was a whole different order of magnitude. We treasure our kids and wouldn’t have done anything differently. But for a long time, we didn’t have much discretionary income. We’ve always been dog people, and have never been without one and usually more. Not long ago, we had four elderly rescues with a variety of medical conditions. The cost of their health care and medications was pretty staggering. You know it’s bad when you have your vet’s phone number memorized. While inflation has affected vet prices, we’re down to…
Read more » You Aren’t Listening
Andrew Forsythe | Sep 24, 2021
WHEN IT COMES to communication, I’m kind of a fanatic. (My wife would say I should drop the “kind of.”) More specifically, I’m a fan of responsive communication. Back in my working days, when I practiced criminal law, I made it a point to return phone calls and emails from clients promptly. It was rare that I didn’t do it the same day. If that meant staying late at the office until I caught up, I stayed late. Whenever I had a client who had had a different lawyer on a previous case, the most frequent complaints were “I couldn’t ever talk to him” or “she wouldn’t return my calls or emails.” I was always sympathetic to these gripes. It really gets my dander up if someone I’m doing business with is nonresponsive. When it comes to dealing with our finances, responsive communication is essential. How hard is it to communicate with the financial companies you use? And what means of communication do they provide? I’ve noticed a growing trend away from email, and toward telephone and “chat.” I dislike this for several reasons. First, I like email because you have a written record—the all-important paper trail. I keep every message of any significance, which is probably why my email cache is so huge. As for “chat,” which every company seems to tout these days, sometimes you can request that a transcript of the chat be emailed to you. If they do (and not all will), that’s good for your records. But based on my experience, I suspect that the chat gig is reserved for the newest hires. I’ve seldom had much luck getting anything but the most basic chores accomplished by “chatting.” [xyz-ihs snippet="Mobile-Subscribe"] As for the phone, which companies tend to push, we all know the headaches. There’s…
Read more » Home, Auto & Umbrella Insurance—“Longevity Benefit”?
Andrew Forsythe | Jan 23, 2025
Recently, and spurred by the horrific fires in L.A., there's been a lot of attention on home insurance, including skyrocketing premiums. Like many people, we have our home, auto, and umbrella policies with the same company, and have seen our premiums increase dramatically in the last few years. I've occasionally heard mention, without much in the way of specifics, of a "longevity benefit" in staying with the same insurance company rather than constantly shopping around and switching. I'm hoping someone with a background in insurance can shed some light on this. First off, is there any truth to it? If so, is the benefit in the form of smaller premium increases for long term policyholders, or a smaller chance of being dropped, or...? Thanks for any insights.
Read more » Weekend Warriors
Andrew Forsythe | Dec 16, 2020
AH, A SECOND HOME—a fond dream for so many. While we try to justify a weekend house as a “good investment,” they’re often bought to fulfill some emotional need. For some, it’s a beach house. For others, it’s a mountain getaway. But for me, it’s always been a place in the country. I’m an introvert. The prospect of getting away from crowds and noise to a secluded place of peace and quiet is my ideal. After marrying and becoming the father of four, I wasted little time before starting to scout the beautiful Texas Hill Country outside of Austin for our weekend getaway home. On many Saturdays and Sundays, I’d load the younger kids into the car. Promising them a great adventure, we’d head out for a long afternoon spent checking out various rural properties for sale. Our older kids were, by then, completely involved with friends and school activities. Meanwhile, my wife was too smart to go. “Let me know when you find it,” she’d say. My first find was a beautiful 25-acre property on a high hillside with spectacular views and a creek below. I thought it was paradise and we had many fun times there. But it didn’t have a house or even a cabin. We built a spacious covered gazebo on the hilltop, but it still meant camping out if we wanted to spend the night. This didn’t bother me. But when I showed my wife the very comfortable tree trunk in the woods, which I thought made for an exceptional open-air potty, she was not impressed. [xyz-ihs snippet="Holiday-Donate"] So, after a few years, I resumed the search. Lo and behold, I stumbled on another incredible place: 83 acres with great views, beautiful trees and half a mile of good creek. Though it was considerably farther…
Read more » The Investing Life
Andrew Forsythe | Dec 9, 2021
MY PARENTS WERE financially comfortable but not rich. Some of their friends, though, were rich. The men always seemed to die before their wives, resulting in a few wealthy widows in my parents’ social circle. I recall glancing at the annual report of a company for which my dad had done some work. One of the widows was listed as a board member and her occupation was stated as “investor.” I asked my dad what that meant and he replied that it meant she had enough money that simply managing it was a part-time job. Through my working career, that intriguing idea stuck in my mind. I think I was forming an unconscious goal that, in retirement, I’d actually have a new job—as an “investor.” I’m retired now, and our net worth doesn’t come close to that of those wealthy widows I remember, and yet managing our financial affairs really does amount to a part-time job. We have investment accounts at Vanguard Group and Charles Schwab, including taxable accounts, Roth IRAs and a SIMPLE IRA from my working days. We also have accounts at Chase, our brick-and-mortar bank, as well as a handful of savings accounts and no-penalty certificates of deposit at various online banks. My wife and I each have a health savings account, with linked brokerage accounts at TD Ameritrade. Recently, we each opened a TreasuryDirect account and made our first Series I savings bond purchases. There’s an old Lincoln Financial variable annuity from back when I didn’t know any better. There’s also a modest trust from my long-deceased grandmother that still requires some attention and oversight. In addition, my old law-firm partner and I own a piece of investment real estate, which has always been complicated but which we hope we can finally sell in our lifetimes.…
Read more » Fashion Statement
Andrew Forsythe | Jun 30, 2022
I'VE PREVIOUSLY written about the dramatic turn my life took when I went from carefree bachelor to husband and proud father of four. With multiple college educations looming, I drastically curtailed my spending, including on my professional wardrobe. Initially, instead of the Hickey Freeman suits in which I’d previously indulged, I was happy with the latest sale at Jos. A. Bank. But eventually, I dipped my toe in uncharted waters—buying clothes on eBay. This comes with risks. It’s difficult to judge how something fits until you try it on. A safer option is a men’s consignment store where you can try before you buy. But while women’s consignment stores are plentiful, men’s tend to be scarce and, when you do find one, the selection can be limited. By contrast, the selection on eBay is vast, and there are ways to mitigate the risk. First, many eBay clothes sellers offer returns, with the buyer only paying for shipping. Better still, some sellers pick up the shipping costs on returns. In addition, reputable eBay clothes sellers will offer not only extensive photos of their wares from every angle, but also the exact measurements. What if you’re buying a suit? That’ll require alterations, but so will a retail suit off the rack. Either way, you’ll be paying for tailoring. There are other ways to mitigate the risk. If there’s a particular brand and model of shoe that you’ve previously owned, you know that—if you find the same one in your size—you’ll probably be fine. I like boat shoes. One of the high-quality brands is Sperry. When my current pair is wearing out, I know that if I can find the same or similar model in an 8½, I’m likely going to have a great fit. I’ve had similar experiences with pricey Alden and…
Read more »
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