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Apex Money Posts

Living through history

I’m in my early forties and so I was just a kid the last time inflation was like it is today. The 1970s and 1980s experienced quite a bit of inflation but it’s not something you really feel when you’re a kid. I had a middle class upbringing and my parents were frugal but the word “inflation” never came up. We saved money simply because that’s what we did, not because things were getting more expensive.

Compared with the numerous crises of the last 25 years, things being a little bit more expensive seems somewhat… pedestrian. We’ve had the dot com boom and bust, the financial crisis, the housing crisis, numerous conflicts and wars, the Covid pandemic… 7.9% inflation seems manageable?

We’ll see.

Living Through History [Irrelevant Investor] – “These are extraordinary times. The consumer price index increased by 7.9% over the last 12 months, which is the highest year-over-year increase since 1982. It’s a weird feeling, to know that you’re living through history. One day we’re gonna talk about this the same way that our parents talk about the 1970s. Inflation shows absolutely no signs of slowing down. Price increases are broad-based and expanding.”

I’ve only eaten in a couple places that have been awarded Michelin stars and they’ve all been pretty amazing experiences.

I’m common as muck and spent £150 in a Michelin star restaurant to see if it was worth it [Birmingham Live] – “But being that I have a new years resolution to be more intrepid and a desire to truly appreciate everything that Birmingham has to offer, I decided to give Michelin dining a go. Could it ever really be worth the expenditure? I thought, rather I find out than you go and be £150 down and disappointed. So I called.” It was a pleasure to read how much she enjoyed it.

The Enormous Scale of America’s Food Waste [Visual Capitalist] – “Every year, 30% to 40% of food produced in the U.S. is either lost or wasted. This waste occurs throughout the entire supply chain, though the majority of it occurs in downstream channels like households and retailers. Overall, 80 billion pounds of food is wasted each year, representing 242 pounds of food per person.” WOW. Also, this is telling – “80% of Americans discard edible food because they misunderstand the expiration labels.”

Does My Son Know You?

Does My Son Know You? [The Ringer] – There’s no quote I can pull from this article that does it justice, just read it. Really puts things in perspective.

Gimme 20! How just 20 minutes a day to yourself could transform your life [The Guardian] – “When you’re overloaded with work/parenting/caring/domestic admin/stuff to faff around with on your phone, it’s easy to fall into the trap of thinking that every second is accounted for. But recently, I have finally acknowledged the (slightly embarrassingly obvious) fact that life’s to-do list will never be complete; that spending time doing whatever you want will help you get everything else done; that it’s not selfish, but actually practical. And it has been a gamechanger. This isn’t about aspiring to be a CEO type, who rises at 4am to restore their inbox to zero and get a bouffant blow-dry. It’s about taking 20 minutes to reclaim your humanity.”

A lot of eye-opening stats in this thread:

How to live with regret.

It’s Friday, my friends, and this is Apex Money. We’re your source for the highest-quality articles about personal finance (and other stuff). Let’s see what I’ve rounded up for you today…

How to live with your regrets. [BBC Worklife] — “Regret’s fundamental role in our cognition may explain why so many people experience it so frequently. Pink points to one study, from 1984, that examined the conversations of undergraduate and married couples. Within these recordings, regret was the second most discussed emotion after love. The finding fits with one of Pink’s own questionnaires, which asked how often people experience regret. Around 20% of the respondents claimed to feel the emotion all the time’.” Count me as part of that 20% who feels regret all of the time. It sucks.

How to bleed your employer dry before quitting. [Bitches Get Riches] — “If you’re planning to quit voluntarily…you can be strategic. […] And in doing so, you can extract a ton of value back from your employer and/or your government before you go. I’m down to just one month at my job, and I’m systematically going through this list. It will save me thousands of dollars. It will also prevent a lot of logistical headaches for my future self.” This list is less about bleeding your employer dry and more about taking advantage of the benefits you’re owed as an employee. However you look at it, it’s good advice.

To take you into the weekend, here’s an hour-long video describing how one man became a professional anime voice actor in Japan.

I’ll confess. I haven’t watched the entire video yet. But I’ve enjoyed what I’ve seen, and I plan to watch the rest when I have more free time. (I have little free time lately.)

Okay, that’s everything for this week. Jim will be back on Monday to share more great articles about money (and more). Until then, take care!

Seven habits that lead to happiness in old age.

Good morning, money nerds, and welcome to another edition of Apex Money. I have three great articles for you today (and one great video). Let’s get to it.

“How we signed up for health insurance through the ACA.” [Frugalwoods] — “Unless your situation miraculously mirrors mine here in rural Vermont, you’re not going to be able to follow my exact steps. You’re going to have to do your own research in your state for your own circumstances. But all is not lost! There’s a lot we can learn together about how the ACA operates at the federal level. So let’s go on an ACA journey together!” I too recently signed up for health insurance via the ACA. But I haven’t had enough experience with it yet to write about the process.

How to pay off debt fast. [The Money Principle] — “Paying off your debt can be an empowering experience but it is not a walk in the park. A successful debt freedom journey is like a track in the mountain – your head must be right, you must be prepared, know the route and walk that walk. This post covers all important points about paying off debt fast and becoming debt-free, but it is not likely to be enough.” L-o-n-g but excellent article.

The seven habits that lead to happiness in old age. [The Atlantic] — “The best way to maximize your chances of happiness in your 70s is to pursue all seven of these goals with fervor, sort of like balancing your 401(k). But if you can choose only one to pour your heart into, let it be the last. According to the Harvard study, the single most important trait of happy-well elders is healthy relationships.”

Finally, here’s a fun video from 1973. It’s little Stevie Wonder performing “Superstition” live on Sesame Street. Great song. Great performance.

I always liked Stevie Wonder as a kid, but it’s not until I reached my fifties that I’ve learned to truly appreciate him. The man is funky as hell. Great musician.

Okay, that’s all I have for you today. I’ll be back tomorrow to see you into the weekend…

The case for always staying invested.

Howdy, Apexians. Sorry for the lull at the start of this week. As some of you know, my priority lately has been to spend quality time with my cousin as he enters the final stages of his battle with cancer. Collecting fun links about money seems foolish when I could be hanging out with him instead.

That said, here I am with a free Wednesday and no obligations. Sounds like a perfect time to catch up on some reading…and to share the best of that reading with you folks. Let’s dive in…

The responsibility of hope. [Emily Guy Birken] — “We may have a lot of reasons to feel hopeless, and far be it from me to keep anyone from making dark jokes when they feel powerless. But we are not powerless. We can always hope. It’s not juvenile or naïve to hope. It’s the responsible thing to do, because it is the only way we can effect any change.”

The case for (always) staying invested. [J.P. Morgan Wealth Management via reader Michael Laurence] — “Diversification, time in the market and a steady head can help investors achieve their long-term financial goals by avoiding the pitfalls of emotionally driven, badly timed mistakes. When times get tough in markets and make you feel nervous, remember the lessons from tried-and-true investing principles.”

A world shaped by supply. [PDF report from Blackrock] — “Limits on supply have driven the surge in inflation over the past year: a profound change from the decades-long dominance of demand drivers. This fundamentally changes how we should think about the macro environment and the market implications. The key to understanding the muted response of central banks to inflation is not the timeframe but its cause: supply. Much of the 2021 debate overlooked this.” This is a long and heady paper, but it’s very much worth reading.

To wrap things up today, here’s a nerdy but fun 12-minute video that attempts to answer the question: Where does the tone come from in an electric guitar?

Okay, that’s it for today. Because I know I’m headed up to Portland tomorrow to spend more time with my cousin, I’ll take some time this afternoon to draft two more Apex installments for you. That means you can look forward to more tomorrow. See you then!

What’s the Point of a Donor-Advised Fund?

What’s the Point of a Donor-Advised Fund? [Oblivious Investor] – “There are three main reasons why you might benefit from using a donor-advised fund:

You get the tax deduction now, without yet needing to figure out how much you want to give to which charities.
They provide anonymity, if desired.
They make it easier to donate securities (e.g., shares of mutual funds or stocks).”

The Greatest Privilege We Never Talk About: Beauty [Saeid Fard on Medium] – “The benefits of being attractive are exorbitant. Beauty might be the single greatest physical advantage you can have in life*. And yet compared to other other privileges that may arise from race, gender, or sexuality, we don’t talk much about it.” Reminds me of that SNL skit with Tom Brady. 🙂

And to round out the week – here’s a profile of someone I’ve been a fan of for ages – J. Kenji López-Alt. I first discovered him through all of his research at Serious Eats and now I find myself watching his videos on Youtube.

The Scientific Methods of J. Kenji López-Alt (and this one in GQ, I watched the video where he made the noodles he’s eating in that shot)

The thing that I find most remarkable, and this is such a small little thing, is that he uses a lighter to light his gas cooktop (and given by the open of the 1st article, something everyone notices!). I’ve never watch a video where he’s talked about it but I find it fascinating. In a world where it’s easy to talk about the latest gadget or appliance or new technology, his stuff is very much simple yet functional focused.

Have a great weekend!

Buy it for life

13 “Buy It for Life” Items That Save Money and Bring Happiness [Pete of Do You Even Blog guest posting on Budgets are Sexy] – “For the past 5 years, I’ve been working hard to change my shopping habits from one of “save some money now” to “save MORE money over the long run and also own better things.” “Buy It for Life” is now my obsession.” What I find most ironic about the start of this story is that it involves Chapstick, something that I’ve never completely used up. A stick of Chapstick is 100% going to get lost before I ever see the bottom of it.

Buy it for life runs very much counter to the capitalistic, maximize lifetime value of each customer, mentality that many companies have. They’d rather you spend less up front and buy more often. So very few products are buy for life… it’s quite refreshing when they promise and deliver.

Stop Counting Pennies and Focus on the Dollars [Route to Retire] – “I have this problem where I’m always counting pennies in my head. Not literally, but rather that I’m always conscientious of all our spending… to a fault. Don’t get me wrong, being mindful of what you’re spending is a good thing. If you don’t know what you’re spending, it can become very difficult to get ahead. The problem, however, is that counting pennies isn’t as important as focusing on the bigger money. In other words, saving a few extra dollars with some coupons might make you feel great, but if you then go out and buy a brand new luxury car, did it make much of a difference?”

This Is Your Brain On Financial Goals [Accidental FIRE] – “Imagine yourself at age 75. In America age 75 is about a year short of life expectancy for men and 5 years short for women. Don’t just imagine, try to actually picture yourself at that age. What would you look like? Try to imagine the experiences that future-you will have had and what you will learn. Will you be happy at 75? More related to your financial goals – did you save enough money to lead the life you desire in your 70’s? Why should you try to do this depressing exercise? Because scientific studies strongly suggest this type of visualization allows us to anchor our goal directed behaviors. ” And then of course he shows a video by Dr. Andrew Huberman – which is a podcast you should all listen to. I’m a huge Huberman stan.

Wall Street Thinks You’re Dumb

And most of us are… but you don’t have to be. 🙂

Wall Street Thinks You’re Dumb. The Rise of Wise Money [Banker on Wheels] – “My main concern is that a lot of media outlets bucket all retail investors together and are largely ignorant of the rise of two, relatively new breeds on retail investors. Retail investors that are active and smart. With the proliferation of new technologies, large sets of data and insightful research, substacks, closed discourse forums or Twitter, retail is gaining, in some cases, edge. Especially in fast-paced markets. Retail investors with long investment horizon that are evidence-based. This group includes communities like the Bogleheads or diligent savers that aim retire by the time they reach 40. And they successfully execute on it.”

Reports of romance scams hit record highs in 2021 [FTC] – “Online dating can be a great way to find lasting love – or even your next fling. But reports to the FTC suggest it also creates opportunities for scammers. In the past five years, people have reported losing a staggering $1.3 billion to romance scams, more than any other FTC fraud category. The numbers have skyrocketed in recent years, and 2021 was no exception – reported losses hit a record $547 million for the year. That’s more than six times the reported losses in 2017 and a nearly 80% increase compared to 2020. The median individual reported loss in 2021 was $2,400.” Wow!

Why Success Can Feel So Bitter [The Atlantic] – “This kind of pressure might seem inconceivable to you; after all, you probably aren’t an Olympic athlete. But have you ever anchored your happiness in some way to a far-off goal that you could attain only at significant personal cost, that you thought would deliver to you the satisfaction you seek or the success you crave? Maybe it’s finishing a degree, publishing a book, or making a certain amount of money. Nothing is wrong with these goals per se, but if you place your happiness in their attainment, you are setting yourself up for your own version of these bitter Olympic moments. Even if you achieve your goal, you are very unlikely to achieve the happiness you’re after. And you just might find yourself less happy than you were before you reached the mountaintop.” I felt the post-achievement hangover very acutely once and it’s as accurate as described in the article.

Ukraine’s Entrepreneurs Share Their Stories

“I Want to Work and Grow With My Country”: Ukraine’s Entrepreneurs Share Their Stories [Too Ambitious] – “On February 14th, designer Svitlana Bevza showed her Fall 2022 collection at New York Fashion Week. Ten days later she woke up at 5am to the sound of explosions near her home in the suburbs of Kyiv, Ukraine.”

Myth: No One Ever Got Rich by [X] [Lazy Man and Money] – “It ignores that your total money mindset is made up of many beliefs and actions. It’s unlikely that you are going to be frugal in just one area. Usually, if you are saving money on coffee by making it at home, you are also the kind of person who brings their lunch to work. It doesn’t have to be every day, but it’s probably going to happen more often than not.”

Investor Psychology During a Sell-Off [A Wealth of Common Sense] – “After huge gains, some investors are invariably going to find reasons to sell and lock in their gains. And after large losses, some investors are invariably going to find reasons to buy, even when the news continues to look grim.” A quick look at boom and bust markets within the last few decades.

Happiness and why “happily ever after” is a myth [Big Think] – “And they lived happily ever after. It’s the stock ending to many fairy tales, but this bedtime lesson is as make-believe as the stories that teach it. Happiness’s true value isn’t in its everlasting quality. It’s that it makes us antifragile.”

Minsky moments

I love a good framework for thinking about something.

One of my favorite frameworks is the one explained in Ray Dalio’s Principles, beautifully explained visually in this video How the Economic Machine Works. (watch it if you haven’t seen it before)

Another useful one is our first article:

Minsky Moments in Venture Capital [Pivotal] – “Hyman Minsky was a 20th-century economist whose ‘financial instability hypothesis’ is probably the best-known explanation for the boom and bust cycles that characterize public financial markets. But there’s far less examination — in fact, there’s almost none — of how Minsky dynamics apply to private markets.” A very good explanation about the Minsky cycle and boom & bust cycles. It then goes into how it affects venture investing, which is less applicable to everyone else, but the framework is still useful.

A career ending mistake [Bitfield Consulting] – “Instead, I want to talk about another kind of career ending mistake, one that affects more than just the unlucky few. Indeed, it’s a mistake we’re probably all making right now. And that’s not planning the end of our careers.” The article is aimed at technology folks, so it has that in some of its examples, but it’s applicable to everyone in any industry.

“Pack For Your Biggest Fear”: Building my Attitude Fund [Money Gremlin] – ““Pack for your biggest fear”: How hiking advice lead me to accept and prioritize a mathematically “wrong” financial goal.”