The financial industry is full of anecdotes and stories by writers (myself included) providing their own perspective on events. The FIRE (financial independence, retire early) movement is blessed with many blogs and podcasts discussing the early retirement journeys. But anecdotes never tell the whole story, so I want to give you some numbers on the FIRE movement. These numbers were assembled by a Harris Poll conducted for TD Ameritrade. How Many People Are Aware of the FIRE Movement? 11% Know about FIRE 26% Are familiar with the concept but not the term 63% Are not familiar with … [Read more...]
When the Lights Go Down in the City
Recent power outages in Manhattan served to remind everyone of what losing electricity in a high-density city means. The NY Post reported: Power outages struck much of Manhattan for five hours Saturday evening, plunging subway stations, Broadway theaters and skyscrapers in the heart of the Big Apple into darkness on the 42nd anniversary — nearly to the hour–of the 1977 blackout. Officials said some 73,000 residents were without power at the height of the outage, which officials preliminarily blamed on an Upper West Side manhole fire affecting an underground transformer. The power went … [Read more...]
Captain’s Log from Your Survival Guy’s Fourth of July Weekend
Here are some observations from Your Survival Guy’s Fourth of July weekend, when my family and I took our boat—the Tom Sawyer—to Mattapoisett to visit my parents, and on the way home got stuck in the fog (more on that shortly). Family trips are a little different now than they were a few years ago when the four of us (plus our dog Louis) would travel by boat. This year our daughter had “things” she needed to do, and met us by car. This worked out well since Louis is not a huge fan of the boat. He loves it when it’s at the dock or on a mooring. But when it’s underway, he’s less sure of … [Read more...]
The IRS is Coming after Your IRA with this Hidden Tax
More sausage is being made down in Washington D.C.—never a good thing especially when “revenue” and “IRA” are used in the same sentence. It’s called the SECURE Act, which laughably stands for Setting Every Community Up for Retirement Enhancement. It sailed through the House 417-3 and is expected to pass under unanimous consent by the Senate. The insurance industry loves the Secure Act. Uh-oh. At the heart of their love affair with this foul ball is the introduction of annuities as investment options for 401(k) plans. The reason they haven’t been offered in the past is because … [Read more...]
Cook County Residents Forced from Their Homes
Chicago-area politicians have given their constituents something special this year, a major property tax increase. In a state already near the top for income taxes, residents of Chicago and Cook County are facing property tax bills that have skyrocketed. In the face of property tax bills that have even climbed by 60%, some residents are being forced by the bills to move out of the area. Dana Kozlov reports for CBS: Property tax increases in Cook County are going beyond sticker shock. For some families it’s life-changing, and they say they will have no choice but to move. “This is out of … [Read more...]
Rush’s “La Villa Strangiato”: It’s OK to Die Twice
If you’re a fan of the band Rush, then you know the beginning of the song “YYZ” hits you like a dog whistle. The same rings true for “La Villa Strangiato” on Exit Stage Left, perhaps the band’s best live recorded album and guitar intro by Alex Lifeson. I remember Lifeson explaining not too long ago that he can no longer play the beginning of “La Villa Strangiato” like he once could, and how hard it was for him to learn it, never mind create it. Repeating genius is near impossible. It’s why being the best at what you do can be painful. You die twice. But it doesn’t mean what you … [Read more...]
The Powerful Case for Term Limits
A good friend of mine recently sent me this video of Nick Tomboulides from the Heartland Institute making the case for term limits right to the people who need them-the Senate. Watch Tomboulides below. … [Read more...]
If You Are in Pain, this May Help. It Helped Me
Are you in pain? Does your body ache? Well, it’s called life. But there’s something you can do about it. We all have heard about mind over body. This is different. Let me introduce you to the late Dr. John E. Sarno, who during his life helped relieve the pain of people like Harvard Medical School grad and guru of alt medicine Dr. Andrew Weil, Curb Your Enthusiasm and Seinfeld creator Larry David, TV personality John Stossel, and shock-jock Howard Stern. What Dr. Sarno has done for them and for others is to understand that sometimes our mind-body connection is disconnected. Our … [Read more...]
How Can You Save Money for Your Grandchild?
The short answer is, early. The earlier you can start saving for your grandchild, the greater the impact you'll have on their life. Take a trip with me. Let’s say you help a grandchild get into the savings game when they’re born by contributing $525 per year to an account you establish for them. (I favor UGMAs for this purpose). You diligently save each year for her first 21 years. Then when she turns 22, she continues along the same path, saving $525 on her own each year until she’s 64. Look at my table below to compare her success to someone who begins his investment savings at age … [Read more...]
These Americans Are Never Going to Retire
A poll conducted by The Associated Press-NORC Center for Public Affairs Research found that 23% of Americans don't expect to stop working during their lives. Andrew Soergel writes in The Washington Times : “The average retirement age that we see in the data has gone up a little bit, but it hasn’t gone up that much,” says Anqi Chen, assistant director of savings research at the Center for Retirement Research at Boston College. “So people have to live in retirement much longer, and they may not have enough assets to support themselves in retirement.” When asked how financially comfortable … [Read more...]