Jonathan Clements's Blog, page 16
September 19, 2025
Quick Intro
Hello everyone,
I wanted to share a quick introduction in relation to Elaine’s update. As she mentioned, Jonathan has selected me to help moderate the forum.
Some of you may have seen my previous articles:
Breaking down the tax impacts of OBBBA
How the new tax car loan deduction works
A little about me: I graduated with an accounting degree and became a CPA in 2022. I live in Chicago with my wife. I started investing at 18 and follow the Boglehead principles. Professionally, I began my career at Deloitte and then worked at a few F500 multinationals focusing on tax and data.
I also share tips on X (Twitter), Instagram, and Threads about personal finance, taxes, and investing, and have reached over 350,000 followers in total.
As a moderator, my goal is to help keep this space friendly, informative, and engaging for everyone. I look forward to connecting with all of you, learning from you, and helping HD continue to grow as a positive and supportive community.
I'm excited to be part of the community!
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Have you purchased an appliance lately? Talk about sticker shock.
Through our 56 years of marriage Connie only bought GE appliances and in recent years their Profile line. I have to admit all the washers, dryers, dishwashers, ovens and refrigerators have served us well.
These products are made in the US and the prices show it. Our new fridge was $4,149, the dishwasher $829 and the stove $3,289. Not with all the bells and whistles possible either. You can get a fridge with a Keurig coffee system in the door. We passed on that.
Add up those prices and it is more than my first three new cars combined - purchased in the 1960s of course.
The value of excess cash flow and/or a contingency fund are quite apparent these days. I maintain that such funds are just as important in retirement - perhaps more so - than while working.
On occasion, living frugally in retirement is not an option😩
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Jonathan and website update
My beloved husband, Jonathan, is currently in end-of-life hospice care. While he shared with you that I would be administering the website, I am choosing to forgo this task with his blessing. Going forward, the site will be administered by Bogdan Sheremeta, who has authored several recent forum posts and who has many more to come.
In the months ahead, all subscribers will begin receiving the Humble Dollar newsletter from the following email address: newsletter@humbledollar.com (rather than from Jonathan’s personal email). Some subscribers will receive the newsletter beginning this week. The idea is to gradually introduce this change to ensure that all subscribers receive the email. So please look for sender Humble Dollar.
Jonathan so wants Humber Dollar to live on. In fact, he has written a series of reflective posts that will appear at various times during the next 16 months. But it is up to all of you to continue to participate in the Forum, share your personal finance wisdom, and so much more. Bogdan will now moderate all comments and preserve Jonathan’s spirit, integrity and values while sharing more about himself, his personal finance journey, and his expertise.
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Tastes Great, Less Filling
I’m not talking about Lite beer. The Olive Garden announced new additions to its menu. Smaller portions for lower prices. The article didn’t say how soon the roll out would happen, nor did it say which stores would get the new additions.
This addresses my complaint that portions are too darned big at most restaurants. I don’t like dealing with doggy bags, and sadly, I am the kind of diner that always has room for those last few slices of pizza. Hopefully smaller entrees result in fewer calories consumed. I am not averse to splitting meals, but oftentimes Chrissy and I don’t want to eat the same thing.
It will be interesting how the move affects Olive Garden’s bottom line. On one hand, there’s a lot of markup on restaurant meals, so smaller portions could be a hit to earnings. On the other hand, hopefully the new options bring in more guests. I hope the latter comes to be.
And is Lite beer even sold in Great Britain? If not, consider yourselves lucky.
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Not Staying the Course
THE MOST FAMOUS expression at Vanguard is to ‘stay the course.’ It’s meant to suggest that investors should remain steadfast and not sell stocks in a downturn.
This has proven great advice over the decades, but I’ve not been staying the course lately. I’ve been selling stock funds and buying bond funds this summer. Yet I think my actions would have the blessings of Vanguard founder Jack Bogle, who made the phrase ‘stay the course’ famous.
Mr. Bogle used to have lunch with the crew in the cafeteria, called the Galley in keeping with Vanguard’s nautical naming style. There, he would dispense wisdom to all comers. Bogle advised keeping investing as simple as possible (though not too simple), and this included his ideas about asset allocation.
During one lunch conversation, he said that the adage that you should own your age in bonds was generally correct, but he might make one adjustment. I’m 69 years old, so if I followed the traditional rule, I would invest 69% of my portfolio in bond funds and 31% in stocks.
Bogle suggested tweaking the formula by subtracting your age from 110 and owning that percentage of bonds. By this adjustment to the rule, I would invest 59% bonds and 41% stocks.
At summer’s start, 70% of my retirement assets were in stocks. I’ve profited from being overweight in stocks. So, why not let it ride? Well, I don’t need to make more money in the market. I do need to protect what I’ve got.
When the market briefly corrected earlier this year, I admit I had regrets. After it recovered, I felt I was offered a do-over. I didn't stay the course. After a season of selling, I’ve whittled my stock holdings down to roughly 45%. The remainder is in bonds and money market funds.
I will earn less with this more conservative allocation. I’ll admit I will probably regret it if the stock market continues its historic climb. But taking less risk also appeals to me now that I’ve begun to depend on my retirement savings.
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September 18, 2025
Our Special Relationship
A Family Correspondence. Letter from the Son…
Dear Mom and Dad,
When I stormed out of your house, I was furious. It just didn’t seem fair that you taxed me for my morning tea—especially when it wasn’t even that good. In hindsight, it was probably a blessing. I switched to coffee, which at least wakes me up before my workday rather than lulling me back to sleep.
Of course, it didn’t help that a few years later you burned down my house. It was such a nice, pretty White House, too. Took me ages to rebuild. Did you hear we’ve rebuilt it and we’re adding a ballroom? You should come visit when it’s finished—though please leave the matches at home this time.
Looking back, the events we endured together were not easy. We bled, we argued, we made mistakes—but we also stood shoulder to shoulder when it mattered most. Those sacrifices still ache in our bones, though they’ve done much for the rest of the neighborhood.
Time has a way of softening grudges. At Thanksgiving dinner this year, we raised our glasses to our “special relationship.” We were grateful that we still speak the same language—mostly. I confess, I once worried you might be forced to swap Shakespeare, but thanks to our teamwork, Hamlet still soliloquizes in English.
These days, I have my own house, my own family, and my own bills. You taught me well: I not only charge my kids rent, I’ve introduced them to the fine tradition of “taxation without representation.” They grumble, of course—but I remind them that’s how I was raised.
And yes, I still visit. We bicker, we reminisce, and then we go back to saving the world together—because let’s face it, no one else will do it properly.
Love,
Your sometimes-rebellious but always special descendant,
Reply from Mum & Dad
Dear Child,
We admit, you left home rather dramatically. The tea tantrum was unnecessary—you could have just said you didn’t like the blend. But no, you had to dump it in the harbor and storm out. Typical teenager.
We were disappointed, of course, but we’ve always admired your determination and grit—even if it meant shouting about “liberty” while borrowing our legal system, our language, and—let’s be honest—half of our furniture.
Still, you’ve done rather well for yourself. Coffee seems to agree with you, even if you insist on calling biscuits “cookies” and spelling “colour” without the ‘u.’ (We’re still not over that one.)
Now, about the house. We are truly sorry for setting fire to it. In our defense, we were still rather upset at the time. Call it an overreaction. We’ve regretted it ever since—and we must admit, the new paint job looks smashing. And a ballroom, you say? Splendid! Nothing heals old wounds like a dance floor—though perhaps keep the drapes flame-retardant this time.
We’re proud of how you’ve stepped up when the neighborhood got rough. When certain unpleasant characters came knocking, we were relieved you showed up—even if you arrived fashionably late, as is your habit. Your help kept the whole street from going under.
As for your own family—well, we’re glad you’re teaching your children the same lessons we taught you, even if you’ve put your own spin on them. Charging rent? Taxation without representation? Now you understand what we were trying to do all along.
We may grumble about your music, your movies, and your politics—but the truth is, we’d be lost without you. You may have left the house, but you’ll always be our child. Our very loud, very opinionated, pushy child.
Fondly (and with a stiff upper lip),
Mum & Dad
*Editing assisted by AI. And being an American and not knowing how to think - like a Brit. I let AI give the response from Mum & Dad.
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Forty Dollars Richer, Three Hours Wiser?
Have you ever regretted being frugal? I certainly did this morning. My 5:30 a.m. flight to Alicante in Spain was meant to be the start of a nice break meeting a friend flying in from London, but thanks to my decision to save forty bucks, it became an endurance test.
When I booked the flight, I decided against paying for a reserved seat, thinking I'd play the check-in lottery and get a decent spot for free. That bet didn't pay off. Instead, I was assigned the middle seat, sandwiched between, shall we say, some rather large individuals.
For three long hours, I was crammed in there, all for the want of $40. It was an uncomfortable flight and a reminder that the true cost of a purchase isn't just the price tag—it's also the comfort and peace of mind it provides.
Now, not only do I need to figure out what sunscreen to use, but more importantly, whether I'll pay for a seat on my flight home. Surely I won't be that unlucky twice... right? Maybe I'm not being frugal, maybe I'm just being tight.
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September 17, 2025
Draft 2025 Form 1040 Schedule
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Budget, What Budget? (Know Thyself)
I ran my own business for nearly 30 years. It had a multimillion-dollar turnover with multiple income streams and complex timing around incoming and outgoing payments. Managing this intricate system required meticulous budgeting and continuous use of spreadsheets and accounting software—exactly what you'd expect from a well-run business.
I'm now retired, and in stark contrast to my business experience, on the domestic side of finances my wife Suzie and I don't operate on a detailed budget per se. I know friends who do, but I don't feel the need.
There's a saying that sums it up nicely: "Know thyself." I like to loosely translate this as: know your financial self and your spending patterns. I've had lots of practical experience with this during our long marriage. I would hold that most people have this knowledge if they only look.
Knowing what we spend annually gives us the ability to operate without a budget. We simply pay ourselves a weekly allowance—in our case—for personal spending, and the balance of cash required for regular bills comes from a separate account specifically for that purpose. No hassle and no worries.
Vacations and irregular spending are covered by two further accounts that get funded monthly. Once again, over a long timeframe, our knowledge of vacation habits makes this an easy number to quantify and fund.
Our only unknown is irregular spending. A reasonable assumption combined with an emergency fund should overcome all but a black swan event—which itself should be covered by insurance.
Maybe you would argue this is a budget. I view it as using data and experience to create a self-managing system that requires very little thought or input other than an annual review and inflation adjustment. What do you think? Do we use a budget or not?
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September 16, 2025
Are you actually using the 4% rule?
The 4% rule (or is it 4.7% now?) is supposed to be a simple way to figure out how much you can safely withdraw each year, but I’m curious - do HD members really follow it?
While it’s a decent projection, I imagine there are plenty of circumstances where a fixed percentage needs updating - health expenses, market swings, helping family, inflation surprises, or even big life events like moving or starting a new chapter you hadn’t planned for.
For those of you already retired (or closer to it), I’d love to hear if you actually stick to 4%, or is it more of a guideline you adjust as life happens? If you do withdraw more or less, how do you track or budget for potential changes in next year’s withdrawals?
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