Coping with Inflation in Retirement, What’s the Plan?
Retirees face rising costs as inflation outpaces many fixed‑income assumptions, even though Social Security’s cost‑of‑living adjustment (COLA) typically tracks overall price gains. The 2025 inflation rate of 2.6% led to a 2.8% COLA for 2026, but the CPI‑E, which weights healthcare and housing more heavily, historically climbs about 0.2% faster than the CPI‑W used for COLAs. This discrepancy can erode purchasing power and pressure the Social Security trust fund. Financial planners recommend supplementing Social Security with diversified investments to cushion against unpredictable price spikes.
Prepping to Pull the Trigger
A retiree is approaching a 15% rebalance trigger as the Vanguard Developed Asia Pacific fund sits at a 14% loss. Simultaneously, a sizable after‑tax cash reserve from a business sale sits in a money‑market fund, outperforming other holdings. The investor...
Time to Be Fearful
An investor over‑committed to oil stocks and energy ETFs after noticing falling gasoline prices, seeing his portfolio halve before a rebound restored and grew his position. The experience left him alternating between panic at losses and anxiety about missing further...
Social Security Spousal Benefits
Social Security spousal benefits stop growing once the spouse reaches their own Full Retirement Age (FRA), so delaying a claim until age 70 yields no higher payment. The benefit is capped at 50% of the worker’s Primary Insurance Amount, regardless...
Wrapping It Up
The author reflects on entering retirement’s “fourth quarter,” describing a shift to a passive, globally diversified low‑cost index fund portfolio. He notes upcoming tax complexities, especially looming Required Minimum Distributions, and the decision to claim Social Security early while staying...
Something to Think About
The author has been using a dollar‑cost averaging approach for Roth conversions, accelerating conversions whenever the broader market dips. He now realizes the mistake: the target‑date fund’s share price hasn’t fallen in lockstep with the market because of its 40%...
My Window Is Open – Come In
An ex‑executive shares a heartfelt LinkedIn post urging empathy amid economic turmoil. He highlights how low‑income families, middle‑income earners, laid‑off workers, recent graduates, and seasoned professionals all face heightened anxiety. The author offers personal assistance, encouraging readers to open “windows”...
$3 Trillion S&P 500 Gatecrashers
Three of the largest private tech firms—SpaceX, OpenAI and Anthropic—are slated for IPOs later this year, together representing roughly $3 trillion in private market value. With the S&P 500 valued at about $60 trillion, their entry could reshape the composition of the world’s...
What Happens to Medicare Supplement Coverage when Moving to a Different State?
A soon‑to‑be Medicare beneficiary is weighing how to choose a Medigap carrier while owning homes in Texas and another state, anticipating a possible relocation in five years. The question centers on whether Medigap coverage follows the policyholder across state lines...
Frugal Fitness
Physical therapist Ed Marsh outlines why most people skip exercise—citing lack of time, knowledge, support, money, and motivation—and offers a frugal, low‑cost fitness plan. He emphasizes micro‑workouts, simple home exercises, and leveraging social networks to overcome barriers. The article includes...
The Anatomy of a Threshold Rebalance: April 2025
An investor with a rule‑based policy rebalanced his retirement portfolio in April 2025 after a 15% equity decline triggered by the "Liberation Day" tariff announcement. Using a threshold rebalance, he sold overweight bonds and bought underweight stocks within a tax‑advantaged...
What, Me Worry?
Investors confront two distinct threats to wealth: inflation and market bear markets. Historical data shows bear markets can plunge 20‑50% in months, with recoveries ranging from five months to seven years, while a steady 3% inflation rate trims purchasing power...
Why Marlboro Gold Is Better Than Gold
A forum post argues that Marlboro Gold cigarettes can serve as a more practical crisis‑time store of value than gold. It draws on the author’s experience in high‑security prisons, where tobacco functions as a reliable medium of exchange. The piece...
Sector Fund by Stealth
Retired UK entrepreneur Mark Crothers announced a major portfolio overhaul, reducing his US technology exposure to about 15% and adding Europe and Southeast Asia. He contends that the S&P 500 has effectively become a sector fund because the ten largest tech...
Once Burned, Twice Shy
The article reflects on Fidelity’s Magellan Fund’s disappointing decade after Peter Lynch retired, contrasting it with the Contrafund’s stellar 35‑year run under Will Danoff. Danoff’s 14.04% annualized return outperformed the S&P 500 by nearly 3 points, a rarity for a...
Vanguard’s Transfer on Death Plan Kit
Vanguard announced on September 20, 2025 that it now permits a Transfer‑On‑Death (TOD) designation for joint taxable brokerage accounts. The new option is accessed via an online request, a printable form, and a mailed signature, rather than a fully digital submission. Vanguard’s...
Helping Adult Children, Pt. 2
A family gathered after a grandparent’s death to discuss the adult children’s desire to buy a home. Leveraging lessons from the HumbleDollar community, the parents offered financial support, citing an upcoming inheritance intended for grandchildren. The conversation balanced respect for...
HSA Tips
Health Savings Accounts (HSAs) provide a rare triple‑tax advantage—deductible contributions, tax‑free earnings, and tax‑free withdrawals for qualified medical costs. For 2026, contribution limits rise to $4,400 for individuals and $8,750 for families, with a $1,000 catch‑up for those 55+. Savvy...
New to Building a CD or Bond Ladder?
The author finally built a CD ladder using Fidelity’s automated tool, opting for brokered certificates of deposit to achieve safety and flexibility. By allocating $100,000 into five $20,000 CDs spanning one‑ to five‑year maturities, the ladder can roll over automatically...
It’s Never Too Late
A 46‑year‑old with a $3,055 IRA in 2004 began regular contributions and, despite market crashes, let compounding work for him, growing the account to $961,680 today. The story underscores that disciplined, bi‑weekly investing can transform modest balances into retirement‑ready wealth....
The $9.95 Scam…
The senior life‑insurance market is promoting ultra‑low‑price ads that promise coverage for $9.95 a month, but the fee applies only to a single unit of protection. For an 80‑year‑old, one unit typically provides about $650 of death benefit, meaning meaningful...
A PIN to Protect Your Tax Return
The IRS offers a six‑digit Identity Protection PIN (IP PIN) to safeguard taxpayers from filing fraud using their SSN or ITIN. Anyone with a valid tax identifier can enroll, and parents may obtain PINs for dependents. The quickest method is through...
A Rule of Thumb Is Not a Plan
The article warns that retirement‑planning formulas and withdrawal‑rate rules of thumb are often over‑relied upon, despite being based on backward‑looking back‑tests. It argues that such generic models ignore individual spending patterns, health costs, inflation, and tax changes that vary over...
Critique My Investment Strategy or Lack Thereof
An 82‑year‑old retiree with pension and Social Security holds a mixed portfolio of domestic equities, a single‑stock position, foreign stocks, municipal bonds, and cash, aiming to preserve wealth for heirs and provide survivor income. The current allocation is 55% domestic...
James Choi of Yale Investment Formula Says You Need More Stocks
James Choi, a Yale finance professor, introduced a formula that tailors asset allocation to age, income, savings, and risk tolerance. The Wall Street Journal highlighted that the model often recommends a more aggressive, stock‑heavy mix than conventional rules such as...
Endowment Lessons
The University of Chicago announced plans to sell its Center for Research in Security Prices (CRSP) for about $400 million, a modest price compared with its $11 billion endowment. The move reflects a broader financial strain: operating deficits have grown tenfold since...
How Far Back Would a 40% Drop Take Us?
The Vanguard S&P 500 ETF (VOO) reached an all‑time high of roughly $642 on February 20, 2026. A 20% decline would lower it to about $513, echoing September 2024; a 30% drop to $449, similar to January 2024; and a 40% slide to $385,...
Don’t Give up on Your Part D Costs
The author recounts a recent struggle with Medicare Part D after a prescription fell off the plan’s formulary, raising the out‑of‑pocket cost from the expected $500 to nearly $600. By appealing the denial, the drug was reinstated on the formulary, the...
IRA Flat Tax Proposal
A proposal to replace the graduated tax on IRA withdrawals with a flat 6% rate has sparked a lively debate among retirees and advisors. Commentators argue the low flat rate could trigger a wave of large Roth conversions as individuals...
A Very Sensible Conclusion
The author admits that holding two individual stocks consumes disproportionate mental energy despite representing less than 0.1% of total wealth. He notes strong recent returns—55% and 35% over the past year—but recognizes that fear of missing out and loss aversion...
Keep It Simpler
A retiree shifted assets to an independent RIA seeking broader alternative investments, accumulating numerous illiquid limited partnerships that generate K‑1 tax forms. Over time, several of these alternatives underperformed, exposing the investor to locked‑up capital and heightened tax complexity. The...
