I've discussed before the threat of working in "retirement" involuntarily because you haven't saved enough, and must rejoin the workforce to make ends meet. (Read Part I, II, III, and IV of my series on How Many “Retirees” Will Keep Working?). Working through your golden years because you can't afford to stop is an unfortunate reality for too many Americans, but there are some people who, for reasons beyond finances, may find working past retirement age beneficial. Some people enjoy the routine and the social interaction of their jobs. For them, living 30 years of retirement with no plans … [Read more...]

Should you buy a second home? Take a look back at this piece I wrote on October 17, 2018 for some insight into whether or not you should invest in another house.  One of the sticky parts about owning a second home is property taxes. You can't escape them. Even my favored "live free or die," New Hampshire, by example, has the third highest property taxes in the country. California, perhaps surprisingly, has a much lower rate, coming in at #34. But, the median price of a home in California far exceeds that of New Hampshire. My advice to anyone considering a second home is to rent first or to … [Read more...]

In isolated rural areas, college towns can be an oasis of culture. Restaurants, food, events, and more come to college towns thanks to the concentration of young people willing to spend their money on such fare. College towns can be a boon for more than students, though. Retirees can often find themselves comfortably at home in college towns located in states where their money is treated well. In areas with low taxes and low costs of living, a great retirement can be had with access to the sports events, entertainment, and cultural amenities offered by college towns. At US News & … [Read more...]

Last week Facebook revealed a data breach affecting 30 million accounts and shares are down about 27% since July. These and other longer-term problems at Facebook have led several public pension funds to back a shareholder proposal to separate Mark Zuckerberg from at least one of his dual roles as CEO and Chairman of the board. The Wall Street Journal explains though that the problem for the petitioners is Mr. Zuckerberg's “lock on the bulk of Facebook’s supervoting shares, each of which gives him 10 times the votes of average shareholders. According to Facebook’s latest proxy, his share of … [Read more...]

It has been my experience that publicly managed funds, such as pensions, tend to be backward looking. They embody a rear-view mirror way of investing that is, often times, easier to defend to a committee to save one’s job, but not necessarily the best investment strategy, as I explain here and here. In another example of group-think, pensions are trying to “protect” against losses with a “crisis risk offset.” Sounds pretty serious. In reality, it’s a 20-year Treasury bond ETF that is almost guaranteed to lose money in an all but guaranteed rising interest rate environment. Remember, when … [Read more...]

In Part I, I wrote to: You may want to pay attention to what public pensions are buying and, more often than not, do the exact opposite. Case in point, a few years ago this group loaded up on “alt-investments” and hedge funds. Don’t look now, but hedge funds, which charge an exorbitant 2-and-20 (2% per year on your assets under management and 20% of your investment gains), are going out of business left and right. And then, as reported yesterday in The WSJ, the California Public Employees Retirement System (CALPERS) spent more than $2 billion on Southern timberland and harvested the trees … [Read more...]

You may want to pay attention to what public pensions are buying and, more often than not, do the exact opposite. Case in point, a few years ago this group loaded up on “alt-investments” and hedge funds. Don’t look now, but hedge funds, which charge an exorbitant 2-and-20 (2% per year on your assets under management and 20% of your investment gains), are going out of business left and right. And then, as reported yesterday in The WSJ, the California Public Employees Retirement System (CALPERS) spent more than $2 billion on Southern timberland and harvested the trees at depressed prices to … [Read more...]

Early October is a wonderful time to visit Newport, Rhode Island especially Columbus Day weekend. Discover Newport is a great place to find out what's happening each week. Here's what Brittany Lauro wrote about Columbus Day weekend: Columbus Day weekend on the Classic Coast brings with it all the fall feels as festival season kicks into full gear with seven (yup, seven!) fairs, festivals and major events taking over. Stroll cobblestone byways and enjoy special deals at the annual Columbus Day sidewalk sale on Bowen's Wharf where you'll find great deals on unique items from area shops; … [Read more...]

If you like the idea of seeing the country with your spouse, paid leave, matching 401(k) contributions and a joint income of $100,000 per year, then you might like this story about team driving gigs. Simply put, freight companies love team drivers because they deliver loads twice as fast. There’s a lot to like about living part-time on the road. I remember as a kid when we drove across the country in our Winnebago, how cool it was to talk to the truck drivers using our CB radio and also just listening to the chatter. It was Waze before there was Waze, and it was like a game, especially when … [Read more...]