Apex Money Posts

This first story scares me a little bit.

I look at U.S. Census Bureau data from time to time and it’s incredible that nearly half of those ages 55 – 66 have NO retirement savings. Zero. It’s astonishing.

Millions of Americans nearing retirement age with no savings [CBS News] – “Millions of Americans nearing their golden years are still financially unprepared for retirement. According to U.S. Census Bureau data, 50% of women and 47% of men between the ages of 55 and 66 have no retirement savings.”

Why your house is a terrible investment [JL Collins] – “So a few weeks back I was at an awards banquet and sitting at our table of 10 with me was a woman I know. She began talking about how she was encouraging her young son to buy a house. You know. Stop throwing away money on rent and start building equity.

I suggested that, since her son was single, living alone and without children maybe he didn’t actually need a house. That if he didn’t need one and since they are lousy investments (and here I gave her a few reasons why this is so), maybe he should consider some alternatives instead. Or at least run the numbers first.

This didn’t sit well and it was a short conversation. It ended when she said, “Well, he’d be better off buying a house than a clapped-out Camaro!”” LOL

ECB confronts a cold reality: companies are cashing in on inflation [Reuters] – “Data articulated in more than two dozen slides presented to the 26 policymakers showed that company profit margins have been increasing rather than shrinking, as might be expected when input costs rise so sharply, the sources told Reuters.” Hmmmm…

A wonderful talk given by former NFL head coach Tony Dungy about the difference between significance and success:

See you next week!

Why Quitting is Underrated [Annie Duke] – “This is the issue with grit. It can get you to stick to hard things that are worthwhile, but it can also get you to stick to hard things that are no longer worthwhile – like after your fibula snaps at mile eight. Throughout our lives, it turns out we are not very good listeners when the world tells us that we should stop.”

Today’s 5-year-olds will likely live to 100. What will their lives be like? [National Geographic] – “According to demographers, today’s five-year-olds have a better chance than ever of living to be centenarians, and by 2050 it’ll likely be the norm for newborns in wealthier nations, such as the United States, Europe, or parts of Asia. That longevity means Peggy, and others of her generation, will live lives that are not just longer, but fundamentally different than the lives of their parents and grandparents.”

J.D. sent this first one along – The Cost Of Retirement Around The World, Mapped [Digg] – “Using Numbeo’s cost of living data, NetCredit broke down how far an American savings account, in USD, would take you around the world in terms of retirement. Their analysis factored in an average retirement age of 61 and life expectancy of 76.15 years to calculate what retiring comfortably meant.”

No one likes to be cheated on but is it ok to cheat on your bank.

Check out what we have for you this week Plutus Family!

Cheat On Your Bank-It’s Not Your Girlfriend. [Bitches Get Riches] — “When it comes to banks, I am a proud philanderer. Practically a libertine! A player! I keep money here, I keep money there… it all depends on what’s most useful and effective for both my long- and short-term money goals. Here’s where I keep my money and why.” (Submitted by J. Money.)

Episode 24: Grants for Autistic Family members with Sheletta Brundridge. [Mom Autism Money] —”You can use this money to fund therapy and healthcare needs, on top of everyday needs like weighted blankets, trampolines, fences, and home security systems. We’ll talk about how to find grants, how to write a successful application essay, and how to avoid scams as you conduct your search.” (Submitted by Tarsha.)

Trust Where You Are. [Millennial Money]— “Remember, this is not a race. This is about building a life you love on your own terms and in your own way. There is no set path. Only your path. All progress is progress.” (Submitted by J. Money.)

The Guardian asked 100 centenarians, or people who are over the age of 100, for their best life advice:

‘Keep your eyes open – and leap into the future’: 100 centenarians’ 100 tips for a life well lived [The Guardian] – “What’s the secret to making it into triple figures? Never stay stuck in the past, keep a diary … and dance while you still can” WOW.

Why Buying Gasoline In the Morning Can Save Money [Len Penzo dot Com] – “Gasoline expands when temperatures rise, but the energy content of gasoline is directly related to its weight, not its volume. The end result of this expansion results is less energy per gallon.”

History is fascinating and it never occurred to me that peopled lived on London Bridge (and, in fact, inhabited bridges was common in Europe!).

Life across the water: exploring London Bridge and its houses, 1209-1761 [The Past] – “When it was completed in 1209, medieval London Bridge was the only fixed crossing of the Thames downstream of Kingston-upon-Thames (until Fulham Bridge was built in 1729). Remarkably, it was also home to some 500 people – equivalent to the population of a small medieval town. In London Bridge and its Houses, Dorian Gerhold has scoured the archives of Bridge House – the medieval charity that managed the bridge – to find out more about the community that lived on this extraordinary structure, as Chris Catling reports.”

One of my favorite phrases, that I never get to use!, is “eating your own dog food.”

It might surprise you to learn that many active managers don’t invest their money in their own funds… they prefer passive index funds. Hmmm…

How Do Active Managers Invest Their Own Money? [The Big Picture] – “Many of the comments from active managers were eye-opening, but none more than “All my own money is in index funds” topped only by “I wouldn’t invest in my own fund.”” You don’t say!

Warren Buffet released his letter to Berkshire Hathaway shareholders for 2022. I enjoy reading these letters and I hope you do too!

2022 Letter to Berkshire Hathaway shareholders – “At this point, a report card from me is appropriate: In 58 years of Berkshire management, most of my capital-allocation decisions have been no better than so-so. In some cases, also, bad moves by me have been rescued by very large doses of luck. (Remember our escapes from near-disasters at USAir and Salomon? I certainly do.) Our satisfactory results have been the product of about a dozen truly good decisions – that would be about one every five years – and a sometimes-forgotten advantage that favors long-term investors such as Berkshire. Let’s take a peek behind the curtain.” Time is your best friend!

One of the challenges of being a saver, especially if it’s something that’s ingrained in you from childhood (as it was with me), is that it’s very difficult to spend.

While I don’t feel visceral pain when I spend money, it’s pretty close that I understand how someone could feel it (if that makes sense).

This podcast episode between Brandon (Mad Fientist) and Ramit was great:

Ramit Sethi – How to Spend (and Actually Enjoy It) [Mad Fientist Podcast] – “On today’s episode of the Financial Independence Podcast, I welcome back Ramit Sethi from I Will Teach You to Be Rich! I needed someone to come on the show to provide some tough love and Ramit was the only person for the job. As Ramit mentioned during our last interview, FIRE people are great at knowing what NOT to spend on but we’re not good at knowing what to spend on.”

You’re not bad with money. But you can get better. [Vox] – “Given its pervasiveness, having debt shouldn’t be a personal reflection on those who have it, yet carrying any amount of debt can be embarrassing and shameful, says licensed marriage and family therapist Nicolle Osequeda, who is also a member of the Financial Therapy Association. However, recognizing how emotions interplay with finances is the key to changing the narrative around your relationship with money. Osequeda offers insight on the insidious ways debt impacts every aspect of life.”

Do you remember Crazy Eddie’s? I remember these as a kid and had no idea this all went down!

The Popular Electronics Chain That Scammed America:

Defying Financial Gravity: Achieving Your First $100,000 [Financial Imagineer] – “Reaching a lofty financial goal such as achieving your first $100k or $1 million is much like defying financial gravity and rocketing into orbit. Just as it takes an immense amount of energy to break free from the gravitational pull of Earth and launch into space, so too does it take a lot of hard work, discipline, grit, and dedication to reach the milestone of your first $100k.”

It’s Okay Not To Boast About Your Wealth And Chase It Aggressively [Making of a Millionaire] – “We don’t know how not to share our wealth with the world because we loop it into our identities. If we don’t have x, y, and z, we’re not sh*t or aren’t doing sh*t right. Wrong. Modest lives are meaningful, too.”

This next one isn’t about money per se but as someone who loves to make stock out of rotisserie chicken (and I worked a summer for Heinz back in the day), I found it fascinating.

Lost in the Stock [Eater] – “This is multinational corporate industrial cooking in its most pure form. The company is not making soup; it is making, according to its website, “savory taste solutions.” It ensures that it is legally safe and sterile, it separates and process the carcass, fat, broth, and meat, and then sells off the broth concentrate to companies who in turn add sugar, or salt, or carrot juice, or yeast extract, or all of the above. Those companies then put a picture of a farm or a kid eating soup on a website and tell you that their soup is just like mom’s. When I asked my Symrise representative why chicken broth from a box in a grocery store will never reduce down to a demi-glace, his answer was technical and plain. “The difference is the total protein content,” he wrote. “A typical Aseptic single strength broth only has 1-3 g protein per serving. The demiglace which you create is much higher in protein.” But I would humbly suggest that the real answer is “because that’s not what the corporations that hired us asked for.””

Now a days, people try to come up with ways to become rich. They may have an invention that took off, or maybe won the lottery. They tried everything to get rich and succeeded. Do they have what it takes to stay rich?

Check out what we have for you this week Plutus Family!

Everyone Says I Need a Roth IRA. Do I really? [Women Who Money] — “What could be more attractive than being able to salt away thousands of dollars each year, have that money grow over decades free of tax, and then withdraw both what you contributed and what you earned in dividends with no tax liability at all?”  (Submitted by Tarsha.)

Do you Have a Treasure Map? [Wallet Hacks] —”The Treasure Map is the qualitative explanation of our financial setup. It is a Word document that explains the purpose of each account, the point of contact, and how each of the pieces fit together. Our treasure map starts with our financial map – which is a drawing of how our accounts are interconnected. Together, they give you a complete picture of our finances.” (Submitted by J. Money.)

Getting Rich vs Staying Rich. [Fi Physician]— “Once you are rich, you aim human capital towards staying rich. While you should keep some concentration going (do what you love or what you are good at), it is also time to take some cards off the table. You’ve got to stay rich, too.” (Submitted by Tarsha.)

As we ease out of the the long weekend of President’s Day, I thought I’d share two articles about work.

And one about a heist!

What really motivates workers (and it’s not money) [The Spectator] – “I recently learned from my assistant the trick of working all morning, taking a few hours off in the afternoon, then working again in the evening. You get more done than you do in a solid day, but it feels like you’re on holiday. In truth this shouldn’t surprise us: the best way to solve a difficult crossword clue is not to stare harder at it, but to go and take a break.”

The mystery of the disappearing vacation day [Washington Post] – “Did you know that Americans are about half as likely to be taking vacation in any given week as they were 40 years ago? Neither did we! When we spotted this alarming trend in an obscure government time series, our eyebrows shot up so far our ears popped.”

Bellagio Bandit: How One Man Robbed Vegas’ Biggest Casino and Almost Got Away [Rolling Stone] – “Tony Carleo stole $1 million in chips – then checked himself into casino’s hotel to live like a king” Wait, what???

If someone walked up to you and asked you how much you made, would you tell them?

27 People on the Streets of New York Talk About How Much Money They Make [The New York Times] – “We asked nearly 400 people to tell us how much they earn. Here are two dozen who actually spoke to us.” 👀

Is $200k a Year a Good Income? [Of Dollars And Data] – “For this reason, I don’t just consider $200k a year to be good income, but a very good income. Even if you reside in a high cost of living area like Manhattan, $200k a year would put you in the top 25% of households according to the U.S. Census Bureau. Yes, that’s the top 25% among some of the highest earning households in the world.”

Finally, a nice good con!

Inside Wealth-Conference Con Man Anthony Ritossa’s Wild Web of Lies [Vanity Fair] – “In short, Sir Anthony’s summits are so chockablock with luminaries that many associated with the event may have failed to ask one fundamental question: Who the hell is Anthony Ritossa? After a yearlong investigation, including interviews with sources from a dozen countries, Vanity Fair uncovered the truth. It turns out he is a Wall Street washout, a world-class con man and an inveterate fabulist with a bogus CV and persona—a 53-year-old Australian who fancifully purports to be an heir to a 600-year-old European olive oil fortune.”

Oh dear!

Enjoy the long weekend, we’ll be back on Tuesday with the next edition of Apex Money!