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Category: General

20 Steps To Take In The Year Before Retirement

20 Steps To Take In The Year Before Retirement [The Retirement Manifesto] – “18 months before retirement, I started a checklist with everything I had to address before retirement. You can start with the 20 items from this post, then add to it as specific tasks come to mind. It was a lifesaver for me and became the roadmap that led my tasks as I made my final preparations for retirement. I listed each month between “now” and “retirement”, then populated various tasks into each month and referred to the list each month to ensure I was on track. It doesn’t have to be fancy. Here’s an actual screenshot from March, with X’s to confirm the tasks were compete:”

Why most gas stations don’t make money from selling gas [The Hustle] – “The goods inside these stores — Doritos, sunglasses, lotto tickets, energy drinks — only account for ~30% of the average gas station’s revenue, yet bring in 70% of the profit.” Wow.

Here’s a great look of paying it forward – the “Patel Motel Cartel” (such rhymes!):

Not a Financial Unicorn

I was never a fan of those “I paid off $300,000 of student loan debt in 4 months” posts. In fact, I rarely believed them.

And while there may be “financial unicorns” out there, I think we need to pay more attention to those who aren’t… and Michelle does a great job:

Not a Financial Unicorn [#moneyhungry] – “I want to talk about the fact that the majority of people making life changing financial changes aren’t financial unicorns and that their efforts are just as valuable to know and hear about-if not even more so. If you’re making significant financial changes in your life and are wondering if it’s worth it? It is and I want to share what the other side of constantly putting your financial foot one step in front of the other looks like. I’m not a Financial Unicorn but my unsexy financial journey has changed my life for the better. For those of you who are on the other side of some epic financial goals, listen to the show and share with a friend or family member who could use some encouragement going into the New Year.”

How I Made $11,520 While Retired In 2021 [A Purple Life] – “So let’s talk about something fun, the surprising amount of money I made in retirement. It’s surprising because outside of dividends, I expected this amount to be $0 after I quit my job in October 2020 to retire at 30. But like a lot of things in life, I was wrong. Let’s get into it!”

Why personal finance blogs are awesome [Financial Chain Breakers] – “We’re real people, and we write about our own financial lives. We talk about the struggles we face and the insights we have as we try to save, invest, and retire. We may have some good ideas, some creative ways of looking at things, or helpful tips about what worked for us. But it’s usually about the human dimension of personal finance—and maybe a little entertainment—rather than the nuts and bolts of the exact financial plan that’s right for you.”

Yes, You Can Beat the Market

Yes, You Can Beat the Market [The Best Interest] – “Clearly, it’s not true to say “you can’t beat the market.” It’s an incomplete statement. It needs more details, more backup. And it leaves people misinformed. We’re going to fix that today. Yes, you can beat the market. But you need to understand how, when, and why.” I’d also add two key ideas – not all investors are trying to beat the market in what they do. Some have different goals.

Second, some may not beat the market every year but have a few exceptional years that draw their average way way up. Think: some of the folks portrayed in the Big Short.

2021 Was One of the Best Years in the Stock Market History [A Wealth of Common Sense] – “So we just had a year in which the S&P 500 hit a new record high in nearly one-third of all trading days, losses were capped at 5% and the index was up nearly 30%. In the grand scheme of things, 2021 was in the neighborhood of the best years in U.S. stock market history, which occurred in the 1950s and 1990s, two of the greatest bull markets of all-time.”

A Simple Framework For Getting Rich [Banker on Fire] – “But if you wake up tomorrow and everyone’s net worth is suddenly $10m, your old benchmark of what constitutes “rich” will no longer apply. The same goes for other “traditional” markers of wealth. The moment everyone drives a Ferrari, owns a Birkin bag, and wears a Patek Philippe is the moment those items lose their ability to denote wealth.”

Get Out of Debt Fast Using Simple Debt Payoff Methods [Personal Finance Blogs] – “Getting out of debt is a great goal. When starting on your debt pay off journey, things can look tough. By making a debt pay off plan, and using the debt avalanche, or debt snowball, method, you can get out of debt faster and get on to living your best life.”

Winning is fun but it’s not everything

Success and winning can be like a drug. But like many drugs, people can take it too far and it can destroy their lives.

This first story about Sumner Redstone is truly sad.

Sumner Redstone: Winning Above All Else. [Neckar’s Insecurity Analysis]- “Sumner Redstone’s story is fascinating in a scary way. Starting with his father’s regional chain of drive-in movie theaters, he battled his way through the full range of competitive forces and often faced them down in the courtroom. First, he fought his suppliers, the movie studios. Then he mastered competitive rivalry by setting up multiplexes, pushing the operators of drive-ins and single screens out of business. He saw the threat in substitution from cable TV and VHS video cassettes, so he bought Viacom (and later Blockbuster). To complete the vertical integration of his empire, he wanted his own studio, Paramount. In the process, he fought new distributors, the cable operators. The peak of his power coincided with the peak of the old-media world. Redstone had triumphed only to be toppled by the arrival of streaming and digital media.”

Here’s a scary stat – Indiana life insurance CEO says deaths are up 40% among people ages 18-64 [The Center Square] – “The head of Indianapolis-based insurance company OneAmerica said the death rate is up a stunning 40% from pre-pandemic levels among working-age people. “We are seeing, right now, the highest death rates we have seen in the history of this business – not just at OneAmerica,” the company’s CEO Scott Davison said during an online news conference this week. “The data is consistent across every player in that business.””

The Future Seen [Humble Dollar] – “At inception, Vanguard’s index fund had been met with skepticism. The fund wasn’t trying to beat the market, just ride along with it. As Fidelity Investments Chairman Ned Johnson told the press, “I can’t believe that the great mass of investors are going to be satisfied with just receiving average returns. The name of the game is to be the best.””

The most satisfying things you’ve ever purchased.

Welcome to the last day of the year! Before we wave good-bye to 2021, I’m here with a few final financial stories to share with you.

What are the most satisfying products and services you’ve ever purchased? [/r/fatFIRE on Reddit] — “Someone posted a question asking how to ensure they get the best product. It got me thinking about the most satisfying products and experiences I’ve consumed in my life. Thought I’d share mine and ask others to share as well.” This is, essentially, a list of expensive things that rich people have bought that they believe were worth the money.

My silent battle with inflation. [Happily Disengaged] — “A few weeks ago inflation came to slap me in the face as I sat in my car ordering two Starbucks coffees with my wife. I thought the dude taking the order had just got my order wrong. So when I pulled up to the window I asked him to repeat the order, then the price…$8 for two coffees! Shit. And I still went through with the transaction.”
How to arrange for your digital legacy. [The Verge] — “If you’re reading this, odds are that you’ve got a lot of digital stuff, both on your own devices and floating around in the cloud: backups, photos, tweets, Facebook messages, texts, you name it. If you’re no longer around to pay attention, these can hang around for a very long time — and some of it may be important to your survivors. (For example, who else has the passwords to your bank accounts and credit cards?)”

To close out 2021, here’s one last video. It’s a mix of fun and financial. Loyal reader Julie (who also writes the awesome One Frugal Girl blog) sent us a 17-minute YouTube segment from Wendover Productions that explains how the airlines quietly became banks.

This is fascinating stuff. If you have a few minutes, you should watch it. The bottom line is that airlines lose money on their core business, transportation. They earn their money on their loyalty programs. No wonder airlines pitch their credit cards so hard!

That’s it for this year. We’ll be back in 2022 with more great stuff. See you then.

How to take control of your time next year.

Good morning, money nerds, and welcome to the second-to-last day of the year! Here at Apex, it’s just a day like any other, which means I’ve gathered some recent cool money news to share with you. Take a look!

How to take control of your time next year. [Women Who Money] — “In my daily routines, I get urgent tasks done. But I wasn’t using blocks of time or scheduling consistent time to work on my resolutions or goals. Nor was I giving a time limit to mindlessly scrolling social media or checking emails.”

Daily habits that can change your life forever. [Becoming Minimalist] — “The direction of our lives is decided more by the daily choices we make than anything else. And these choices are more influential to the person we are becoming than we often realize. Habits become ingrained, automatic, and often slowly creep into your life so subtly that they become routine. So if you want to change your life, start by changing one thing that you do each day.”

Do retirees want constant, increasing, or decreasing consumption? [research paper from the Center for Retirement Research at Boston College] — “When households have assets and their health, they keep real consumption relatively flat over their retirement. This pattern is evident when comparing wealthy and healthy households separately and when the top tercile is ranked by health status. For those with less wealth or with health issues, consumption declines more over time…But the results suggest that the decline most likely reflects wealth and health constraints as opposed to true preferences.”

That’s all I have for you today. Come back tomorrow for one final Apex installment for 2021. It’s gotta be good, right?

“Nine things I learned about productivity this year.”

Welcome, my friends, to another day of Apex Money. As always, Jim and I are out here scouring the interwebs for the most interesting stories about how to master your money — and your life. Here’s what we have for you today.

“Nine things I learned about productivity this year.” [Raptitude] — “In 2021 I began to dissect my lifelong problem of severe procrastination, instead of just wrestling with it…One thing that helped a lot was distilling my observations about the machine into a dozen or so single-sentence ‘laws’ that describe how productivity and procrastination seem to work, at least for me.” [David’s articles always seem like they’ve been written directly to me.]

Single women outpace male counterparts in homebuying. [San Bernardino Sun] — “Homebuyer surveys conducted by the National Association of Realtors over the past 40 years show single females have made up the second-largest demographic among U.S. homebuyers since 1981, steadily overshadowing single guys in the housing market.”

“How we’ve lived on one income for 20 years.” [Women Who Money] — “Living on one salary isn’t for everyone. Each family’s circumstances are different. But we’re fortunate to be able to make it work for us. Hopefully, sharing our story and tips helps other families consider living (and thriving) on one income!”

“My annual budgeting process.” [Budgets Are Sexy] — “Today I’m gonna run through a quick overview of my annual and monthly budgeting process. It’s super simple and doesn’t take me much time — about an hour at the start of every year and 20-30 mins each month.”

By far the biggest cognitive dissonance in my own personal life is this: I believe strongly that animals are smarter than most people credit (and that they lead rich emotional lives) — yet I am an avid carnivore. I love meat. This personal moral crash makes me feel guilty AF…yet I only occasionally commit myself to plant-based eating.

Anyhow, last week I found this 15-minute video that shows a guy keeping a grocery-store lobster as a pet. It’s fascinating. And it’s challenging my status as a self-described “meatatarian” one again…

I’ve long refused to eat octopus because they’re simply too smart and too intelligent. (Yet, I still eat pig. I am a bad man.) Turns out many researchers believe lobster are almost as intelligent as octopi. I don’t eat lobster often. Now, maybe I never will.

Okay, that’s all for today. I’ll see you again tomorrow with more good stuff!

The sad death of the American mall.

Hello hello, Apexians! Sorry I missed yesterday’s update. I blame the Christmas holiday. And snow. We don’t get much snow here in Oregon’s Willamette Valley, and we especially don’t get snow that sticks around. But we got a bunch over the past couple of days, and I’ve been enjoying the weather instead of looking at money articles.

But have no fear. I won’t leave you hanging for two days in a row. Here are some of the stories I browsed today while taking a break from shoveling sidewalks…

I’m 70 years old and can’t spend my savings. [Bogleheads] — “I’m 70, live in northeast U.S. Wife one year younger. I have $6 million in investments and a $1 million mortgage-free house. No debt. $60,000/year in social security (starting right now) and $25,000/year in income from my part-time job as a lawyer (mostly as arbitrator, work from home (before Covid) low stress). I can’t spend money without feelings of anxiety. it’s really painful.”

This block used to be for first-time homebuyers. Then global investors bought in. [The Washington Post] — “These new corporate landlords present serious competition for aspiring home buyers like the Baltimores. The couple has been seeking for years to buy an affordable house for themselves and their three children, now 11, 7 and 6. They want what many families want: good schools and a quiet neighborhood. Global investors, it turns out, were shopping for the same.” [This is a very real problem, and one of the main reasons home prices are so high right now.]

The sad death of the American mall. [Slate] — “The afterlife of a dead mall is interesting. Schools are moving into malls; some students are completing high school in a converted Macy’s in Vermont. A Dillard’s in Texas is now a radio station. Malls are becoming home to community colleges and libraries and offices. The Eastmont Town Center in Oakland, California, is home to a Center for Elders’ Independence, Social Security offices, and a lab.”

Lastly, here’s a silly little 2-1/2 minute video from Big Red Button on YouTube that explores the question: What would your life be like if you sold all your stuff and spend the money hiring people to do everything for you?

It’s not really serious about answering this question. But it’s short and amusing and worth a watch.

Okay, that’s it for today. Assuming no blizzard tonight, I’ll be back again tomorrow with more great money stories. Snow you then. 😉

Merry Christmas and Happy Holidays!

It’s the night before Christmas and all through the house are all of our kids running around. 🙂

If you celebrate Christmas, Merry Christmas. If you don’t, Happy Holidays and I wish you and your family the best. Thank you for reading and supporting Apex Money this year, this will be my (Jim’s) last post of the year as you’ll get a full dose of J.D. to round out 2021!

Have a relaxing rest of your year!

Post FI Notes 013: ESI Money Reflects on 5 Years of Early Retirement [Physician on FIRE] – This one is a fun interview with John from ESI Money, a “financial site that focuses on earning, saving, and investing (ESI) as the three steps to wealth.” I’ve known John in the blogging circles for what’s now close to 16 years. ESI Money is his second (third? I’ve lost count) money blog and all the OGs in personal finance may remember his first site, Free Money Finance. This very moment I am still using a Denali Moostracks mousepad I got from him when he was writing FMF. 🙂

How the man behind Trader Joe’s turned extra-large eggs into a grocery store empire [CNBC] – Some great stories about Joe Coulumbo, Mr. Trader Joe himself. I love these behind the scenes types of stories.

What the Mouse Knows [The Map is Mostly Water] – “The point of maps, guides, and scripts is to distill important information, though in practice it usually means to distill only easy-to-access information. All summaries are compression, and learning to see means looking for the valuable things that are lost in compression. Prosperity is found in seeking the asymmetries in a world that is forever being painted with artificial symmetry.”

Finally, an idea to ruminate on as we enter the peak of holiday season:

👀

The Many Worlds of Enough

“What got you here, won’t get you there” is a phrase I think about a lot.

It’s the idea that what got you to where you are may not fit what gets you to the “next level,” whatever that may be.

There are a lot of things I did when I was younger that helped me achieve the success that I’ve enjoyed. One prime example is a lot of fun quirky side hustles. I did them because 1) I liked making extra cash 2) it satisfied an intellectual curiosity.

The challenge is that it’s also quite distracting. This was fine when I was single, working a 9-to-5 job (or when I was in college), and had relatively few responsibilities or constraints. It would no longer serve me to have a dozen side hustles – it would only take my attention away from the handful of things that are important.

This first post for today talks about this in a bit of an adjacent way. The post has quite a long build up but the pay off is important. The concept of enough, and how you change as a person (vs. moving goalposts but you remaining the “same”) is an important idea. The power of the post is that it continues beyond this idea and starts to explain why someone with massive amounts of wealth would risk it all (or more) just to get even more.

The Many Worlds of Enough [Lawrence Yeo] – “One thing I need to clarify here: this view is very different from the traditional idea of goalpost moving. Goalpost moving implies that once you hit a certain goal, you’ll shift it higher because of whatever new desires emerge. So when we advise people to leave the goalpost as is, we do so by reminding them to think back to the past, and how happy they would have been to be where you’re at now.”

OK this next one is kind of funny in a sad way if you’ve worked in a dysfunctional work environment – General Interference with Organizations and Production [OSS’s Simple Sabotage Field Manual, the OSS would become the CIA after World War 2] – “When possible, refer all matters to committees, for “further study and consideration.” Attempt to make the committees as large as possible – never less than five. Bring up irrelevant issues as frequently as possible. Haggle over precise wordings of communications, minutes, resolutions.”

This last one is so good!

Bros., Lecce: We Eat at The Worst Michelin Starred Restaurant, Ever [The Everywhereist] – “There is something to be said about a truly disastrous meal, a meal forever indelible in your memory because it’s so uniquely bad, it can only be deemed an achievement. The sort of meal where everyone involved was definitely trying to do something; it’s just not entirely clear what.” So much fun to read. And the photos! The citrus foam one is the one that got me. No thank you.