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Apex Money Posts

Two years of Apex Money!

Good morning, Apexians, and happy second anniversary. Two years ago today, Jim and I started this site on a whim. We wanted to share some of our favorite money stories from around the web, from major news sites and from tiny blogs, from household names and from folks you’ve never heard of. We’re glad you’re here for the ride.

Let’s take a look at the money stories we’ve collected for you today.

How my father lost his life savings by making one fatal investment mistake. [Mouthy Money] — “Eventually he had to confess to my stepmother that he had lost most of their life savings. This inevitably caused a rift between them and had further ramifications that continued for the rest of their lives. This entire incident was, of course, deeply traumatic for the whole family.”

How to build financial flexibility into your life. [Wallet Hacks] — “The idea I take from FIRE is that by saving aggressively and investing prudently, you give yourself options. You can retire early but you aren’t required to retire early. You can switch jobs to something more fulfilling. You can take time off and create your own sabbatical. If you’re financially independent, you control your time. It’s all about financial flexibility. And there are a lot of different ways you can build financial flexibility into your life.”

Unicorns and Keynsian economics. [Happily Disengaged] — “Personally, I’ve struggled with spending, even on cheap trivial items, because I’m trying to save as much as I can. It can feel as though I’m hurting my future self when I spend. But if I can think of spending as a source of good that we can share with others, it makes it a lot easier.”

Lastly, here’s a recent video that I loved. I’m not sure why other than it’s a young family bonding together through communication. The father is deaf, so the parents are raising their young daughter with both English and American Sign Language.

I’ve always wanted to learn ASL but have never made the time. Someday. Someday.

Tomorrow I’ll be back, my friends, with one last day of links for the week. See you then.

Buying a house in 2021.

It’s one of those days when we’re going to start with the video. I like it. A lot.

While working through the archives of my personal blog, I rediscovered this little gem. It’s the parable of the trapeze by Danaan Parry. Apparently, I liked it nine years ago. I like it today too.

I feel as if, right now in 2021, I am swinging along on a comfortable trapeze bar and that I need to swing to the next one. And…I’m a little scared. One source of this trepidation is my current housing situation. Kim and I sold our home last month and are looking for another. As you might have heard, it’s a crazy time to buy. Our stories today reflect that.

Buying a house in 2021. [One Frugal Girl] — “So when our agent said the next house would sell for over $700,000, we offered $80,000 over the listing price. Does that seem crazy? Most definitely. How do I feel about paying that much above the asking price? Honestly, not too bad. Is this house worth the amount of money we paid? Maybe not, but it is the best house we’ve found in over a year of looking.”

Why the housing market won’t crash any time soon. [Financial Samurai] — I’ve shared a lot of articles about how insane the housing market is right now. Our first article today is a view from the other side. There are folks out there — many folks, actually — who think the housing market will not crash anytime soon. In fact, some argue that it’s only going to continue to soar for the foreseeable future.

What I learned from decluttering more than 400 items. [A Lawyer and Her Money] — “I have previously thought feng shui was utter crap but most of its prescriptions hold true, even if the rationale is flawed. One can’t hold clutter anywhere in the house without it affecting some part of your life. Your junk drawer isn’t harmless – it’s a message telling you that junk gets free rent in your home and your head. It’s a message telling you that you have to put up with this crap. But that’s just not true.”

Okay, that’s it for today. I’ll be back tomorrow with more, my friends. See you!

If you’re still worried, you’re not wealthy.

Today is Tuesday, my friends, and it’s a day like any other day. And yet it’s a day that brings me joy. You see, after hitting a record high 47 celsius (116 fahrenheit) yesterday, temperatures returned to normal last night here in Portland. This morning, it’s a pleasant 20 degrees (67 f).

Because it was so hot yesterday, I didn’t do any computer work. Whenever I tried to use my machine, the fan ran incessantly. I decided to give it a break. That means I’m a few hours late with today’s links. But have no fear! Now they’re here!

If you’re still worried, you’re not wealthy. [A Wealth of Common Sense] — “After a certain point you just have to control what you control and then let the chips fall where they may. If you have a good handle on your spending, live below your means, max out your retirement contributions to the best of your ability, diversify your investments and plan ahead for your financial future, that’s about the best you can do.”

Why American women everywhere are delaying motherhood. [The Baltimore Sun] — “For decades, delaying parenthood was the domain of upper-middle-class Americans, especially in big, coastal cities. Highly educated women put off having a baby until their careers were on track, often until their early 30s. But over the past decade, as more women of all social classes have prioritized education and career, delaying childbearing has become a broad pattern among American women almost everywhere.”

Renting is cheaper than buying, almost everywhere. [The New York Times] — “Although rents show signs of recovering, it’s still a good time to sign a lease. A recent study by LendingTree found that median housing costs were lower for renters than for homeowners with a mortgage in all 50 of the largest U.S. metro areas.”

Why many Americans cannot see the wealth gap between white and black America. [FiveThirtyEight] — “These kinds of misperceptions are consequential. Failing to understand the nature of racial inequality can make it difficult to generate effective solutions to the problems it causes.”

And that’s it for this Tuesday. I’ll be back tomorrow with more of the best from the world of personal finances. See you then.

How to stay cool without blasting the A.C.

You guys, it’s h-o-t. Seriously. I’m melting.

On Saturday, Portland set an all-time record high temperature of 42 degrees (which is 108 to those of you still using fahrenheit). Today, which is Sunday, we’re expected to hit 44 or 45 (110 to 112). And today today (which is Monday, when you’re reading this), we’re again supposed to see temps of around 44.

All this might be fine if Kim and I had air conditioning. But we don’t. At the house we just sold, I installed a massive A/C system suitable for a home twice the size. But this rental has no A/C. It’s like an oven. It’s 12:43 as I write this and the outside temp just hit 40 (104f). Inside, it’s a humid 30 (86f).

Kim and I are going to cool off by heading to the movie theater (In the Heights). But first, I’m going to gather some money links for y’all. Let’s start with a story about how to stay cool when the weather is hot.

Five ways to stay cool without blasting the A.C. [Popular Science] — “If you’re ecologically minded, you can look into installing renewable power for your house or buying energy from renewable sources. But whether you care about the environment or just hate the giant bill at the end of the month, one easy fix is to use less air conditioning.”

What fee-only financial advice really means (and why it matters). [Kiplinger] — “When you hire a fee-only fiduciary investment adviser to manage your investments, develop a financial plan, or both, you alone are paying a financial professional who is legally and professionally committed to acting solely in your best interests — otherwise known as the fiduciary standard. They don’t get paid by investment or insurance companies to sell their products.”

The perfect number of hours to work every day? Five. [Wired] — “For those employers that are able to contemplate new ways of working, the pandemic has created the space to start thinking about how best to do that. At the same time, it has forced those who had already embraced radical change to rethink their strategies.”

How what we eat has changed over the years. [Flowing Data] — “The United States Department of Agriculture keeps track of food availability for over 200 items, which can be used to estimate food consumption at the national level. They have data for 1970 through 2019, so we can for example, see how much beef Americans consume per year on average and how that has changed over four decades.”

Speaking of eating: It’s time for us to head out to find some A/C. We’re going to splurge on sushi before we watch our movie. I’m eager to let the cool air wash over me…

40 Life Lessons from 40 Years

I love a good “X Lessons from X Years” post and was a fan of this one:

40 Life Lessons from 40 Years [The Minimalists] – “1. Letting go is not something you do. It is something you stop doing. You stop pretending every thing is precious. You stop clinging to material possessions and toxic relationships. You stop acting like busy is a good thing. You stop posturing as if achievements make you, you. If you let go of the thing but not the attachment, you will get dragged.” That’s just the first lesson – they get better and better!

(#29 is a powerful one and #39 is probably the most important one)

A Scheme to Blow Up the Housing Market Backfired Spectacularly at the Supreme Court [Slate] – “In 2016, a group of wealthy investors hatched a lawsuit to dislodge $124 billion from the United States treasury and transfer a chunk of the money to their own pockets. The investors attacked the Federal Housing Finance Agency, a powerful executive agency that regulates Fannie Mae and Freddie Mac. Their plan was to force a settlement that would enrich shareholders by transferring billions of dollars back to the mortgage giants and release them from government control. … It is difficult to overstate how badly this scheme backfired.” hahahah, law is complicated. 🙂

Google will show employees how their pay may change if they move offices [CNET] – “Google on Tuesday rolled out a tool for its employees to request office changes or apply to become fully remote workers, as companies around the world look to a post-pandemic work environment and try to figure out the logistics of managing a more sprawling work force.”

No one likes to take a pay cut but if your employer made it crystal clear that your compensation would be adjusted based on your location, I think it’s fair. If you want to work remotely, you can and you will know exactly what you will be paid. No one is making you move so this seems like the best approach, from all the ones I’ve seen.

Americans are quitting their jobs in droves [The Economist] – “Beware the simple solution to a complex problem. In recent weeks at least 25 states, all with Republican governors, have cut off federal unemployment benefits. This is in spite of the fact that the programmes in question are fully funded to early September and cost the states nothing. Kim Reynolds, Iowa’s governor, blamed the payments for “discouraging people from returning to work”. In fact, argues a report from Morgan Stanley, a bank, it is likely that those benefits are “no more of a factor than other impediments” that stymie the return of workers to their old jobs. Child care is harder to come by than before the pandemic, and employees with health concerns may remain wary about returning to full-time in-person work.”

Have a great weekend!

Coast FI

Coast FI is the version of Financial Independence where you’ve reached your “retirement number” ahead of actual retirement. Your net worth is at a point where its growth, even at a modest rate, will get you to the retirement number you seek in retirement. This means that you could stop saving completely and still be OK.

I’m not here to debate the concept (don’t forget inflation everyone!) because it’s not important. A Coast FI number exists for everyone, it’s just a question of what that number is.

I did, however, want to highlight what happens when you hit that number. It’s a lot like actual retirement because you do stop saving because your income drops to zero.

But what do you do? How do you make that mindset change? It’s very challenging (especially if you are the type that identifies with your work… that’s a whole different transition) and the first post goes into it a little bit with someone who hit Coast FI early:

I Didn’t Save Any Money Last Month [Financial Mechanic] – “I bought things that struck my fancy in the window, I picked up bouquets of flowers to bring home, and I put groceries in the cart without checking the price tag. This is extremely different to how I usually operate (and obviously not a privilege everyone can afford). Over the years I have written about frugal adventures in other countries, my low grocery spending, and how I furnished my apartment with secondhand goods. I usually save 75-85% of my paycheck after tax. This is the first time I’ve ever not saved a penny.”

Speaking of coasting, how about a two part interview with someone who has a portfolio that generates $360,000 in dividends each year? Bob from Tawcan.com has a two part series that explains it all (one caveat, they are in Canada so US readers may not recognize some of the accounts they have access to but everything else still adds up):
Living off dividends – How I’m receiving $360k dividends a year & paying almost no taxes – Part 1 and Part 2

This video of a horologist working his magic on a Tissot watch is mesmerizing:

Did anyone else get super anxious when he started pulling all the pieces out???

How automation can reduce your stress

Automation is fantastic and I use it whenever I can. I haven’t scheduled a credit card payments in years.

Automation is more than just doing this automatically for you. Sometimes it appears in unexpected places and in unexpected ways.

For example, during the past year and the pandemic, we also started using a meal subscription plan. At different points of the year we had used Sunbasket, Marley Spoon, and Hello Fresh for 2-3 meals a week. These plans are expensive, clocking in roughly at around $15-20 per meal per person.

What they did, however, was remove the need to decide about two meals a week. Instead of having to decide what to make, and get the groceries for it, we could pick from a list. When you’re juggling four kids, all of whom are at home and need attention, it was completely worth it. Heck, given all the money we were “saving” on daycare, we were still far and away “ahead” on our expenses!

Anyway, end of story time, check out this post because I really like the first bullet point of dedicating a power hour:

5 Things I Started Automating That Drastically Reduced My Stress [The Financial Diet] – “You have another busy work week ahead and none of the “to-do’s” got done this weekend… for the fourth weekend in a row. I know this feeling better than most; I check off all the items on the procrastinator’s list. From never folding the laundry the day it comes out of the dryer to forgetting to follow up on those doctor and dental appointments after three. reminder calls. So I recently began implementing a few relatively easy changes that have helped drastically reduce my stress.”

This next story is not hyperbole and not clickbait, it’s just a sad story of a single bad investment.

How my father lost his life savings by making one fatal investment mistake [Mouthy Money] – “At first the news seemed encouraging, but soon it became clear the business was going south and Dad’s money was going with it. I’ll never know the full story, but it seemed to me he was badly advised (to put it kindly) by the relative concerned and quite probably cheated by the main shareholder, though it was all technically within the law.”

My big takeaway is that communication is important. The author’s dad never talked to his stepmother about an investment of their life savings – huge red flag. In fact, it doesn’t sound like he talked to anyone (except the relative who got him in) which is a problem. Not sure what anyone could’ve done to prevent this but it goes to show it’s important to talk.

Now that we’re firmly into the summer, remember to wear sunscreen!

Watch this video: (hat tip to Neville for sharing this via his Friday emails on Copywriting)

The video isn’t trying to convince you to wear sunscreen but when you see the vast difference it makes under UV light, you get why it’s important. 🙂

The importance of your own projects

It’s always important for a person to have a project they’re working on that’s outside of their work, school, or other “obligations.”

When you spend too much time on your “job,” you often integrate it too closely with your sense of self. This runs into problems whenever people retire (or otherwise leave their job). If your sense of identity and worth come from your job, not having one can be very challenging.

A Project of One’s Own [Paul Graham] – “A few days ago, on the way home from school, my nine year old son told me he couldn’t wait to get home to write more of the story he was working on. This made me as happy as anything I’ve heard him say — not just because he was excited about his story, but because he’d discovered this way of working. Working on a project of your own is as different from ordinary work as skating is from walking. It’s more fun, but also much more productive.”

It pairs nicely with this video by Elizabeth Gilbert on Distinguishing Between Hobbies, Jobs, Careers, & Vocation:

Now for something fun – here’s a story about how the government set up a fake bank to catch drug traffickers:

Episode 418: How The Government Set Up A Fake Bank To Launder Drug Money [Planet Money / NPR] – “One day in the early 1990s, a man walked into the U.S. embassy in Ecuador. He said he had information somebody would want to hear — information on how to go after some of the most powerful drug traffickers in the world. The man worked as a money changer. He said he was getting a lot of requests from traffickers who had a problem: They had so much cash that they didn’t know what to do with it. They couldn’t figure out how to launder their money. What they needed was an offshore bank to help them. On today’s show, we hear how two U.S. agents — one IRS, one DEA — created a fake offshore bank to catch drug traffickers.”

How I Made $2,500+ Last Month by Charging Scooters

I love a good side hustle and Joe always delivers.

This time, he revisits his side hustle charging scooters wherein he also makes it very clear that he does not recommend it. He does it because he’s old and retired. 🙂

How I Made $2,500+ Last Month by Charging Scooters [Retire by 40] – “Last month, I made $2,510 by charging scooters. It was our best month ever! The side hustle income can almost cover our entire living expenses in May ($2,769). I shared this in our monthly report and received few requests for more details. So today, I’ll share how the whole scooter charging side hustle works. I started doing this side gig two years ago.” A fun little recap of how my blogging friend Joe made $2500 charging scooters. I enjoyed his post a few years ago on the same subject and this one shows the reality of this little side hustle.

The Fresno Drop [99% Invisible] – “In September 1958, Bank of America began an experiment—one that would have far reaching effects on our lives and on the economy. After careful consideration, they decided to conduct this experiment in Fresno, California. The presumption was that no one was paying much attention to Fresno, so if the plan failed, it wouldn’t get a lot of media attention.”

Today We’re Eating the Winners of the 1948 Chicken of Tomorrow Contest [Modern Farmer] – “In the 1950s, a broiler chicken lived a full 16 weeks. The faster and heavier method that won the contest was amplified by confinement, and while the chickens come out of those cages fatter, they tend to get sicker, too. They have insatiable appetites, which leaves them stressed, as evidenced in their poor reproduction capabilities, cardiovascular failure and skeletal problems. They’ve been pumped with so many antibiotics, they’ve developed resistances. The chickens’ weak legs and overworked hearts strain every week their lives are extended. We’re still eating the Chicken of Tomorrow today – but maybe it’s time to hold another contest.”

The best-kept secret in investing.

Our first piece today blew my mind. Seriously, it taught me something new.

I often get questions about where people should park there money to “get a good return safely in the short term”. I’ve always said that it can’t be done. Turns out, I’m wrong.

Writing in The Wall Street Journal (so, probable paywall unless you know how to bypass such a thing), Jason Zweig shares the safe, high-return trade hiding in plain sight.

The bottom line: The Series I Savings Bond is currently yielding an inflation-protected 3.54% per year. You can purchase a maximum of $10,000 per year. You must hold the bond for at least a year, and if you cash it in before five years then you pay a penalty equal to three months of interest. Even with that penalty, this is far and away the best short-term investment I’ve seen in recent years.

[Hat tip to Michael Kitces for sharing this info.]

Speaking of inflation, our next article explores current worries about rising prices…

Prices are rising. Should we be worried about inflation? [Physician on Fire] — “Inflation is an intrinsic part of our current economic system. That’s both good and bad. It can steal our dollars’ value, but it’s a sign of widespread economic growth—and that benefits us all. And when concerns arise, we can usually protect ourselves from inflation’s grasp using tested investment methods.”

And we’ll close things out today with a piece that debunks one of my most-loathed pieces of “common knowledge”: that Millennials are somehow economic victims, another lost generation.

No, Millennials aren’t poorer than previous generations. [Of Dollars and Data] — “Millennials seem to be accumulating financial assets at the same rate that GenX and Baby Boomers did. Of course, financial assets aren’t the only metric that matters, so let’s look at total net worth (assets – liabilities) as well.”

And that’s it for today. No video, I’m afraid, but that’s because these three pieces are just too good. You should read them instead of laughing at funny animals. 😉

We’ll be back next week with more of the best from the world of personal finance. See you then.