Jonathan Clements's Blog, page 33
June 6, 2025
Do You Worry About Money Every Day?
An article in Employee Benefits News paints a dim picture of retirement. One that may reflect the real world beyond the HumbleDollar community.
Here again we are relying on a survey so who knows how accurate, but I bet worrying and anxiety over money in retirement is not uncommon. Can you imagine retiring with no clue about the viability of your finances?
It says retirees are struggling to make their savings stretch.
According to Schroder's 2025 U.S. Retirement Survey, retirees are increasingly concerned about their financial security once leaving the workplace.
Only 40% believe they have saved enough for retirement.
62% admit they are unsure how long their savings will last.
92% worried about inflation eroding their assets and 86% citing higher-than-expected healthcare expenses.
Not fun; 36% report that money-related anxiety is affecting their overall health, 25% have lost sleep over financial concerns, and 27% spend an hour or more each day worrying about money.
Here again we are relying on a survey so who knows how accurate, but I bet worrying and anxiety over money in retirement is not uncommon. Can you imagine retiring with no clue about the viability of your finances?
It says retirees are struggling to make their savings stretch.
According to Schroder's 2025 U.S. Retirement Survey, retirees are increasingly concerned about their financial security once leaving the workplace.
Only 40% believe they have saved enough for retirement.
62% admit they are unsure how long their savings will last.
92% worried about inflation eroding their assets and 86% citing higher-than-expected healthcare expenses.
Not fun; 36% report that money-related anxiety is affecting their overall health, 25% have lost sleep over financial concerns, and 27% spend an hour or more each day worrying about money.
The post Do You Worry About Money Every Day? appeared first on HumbleDollar.
June 5, 2025
Quinn Explores the Question: Are Doctors Overpaid?
Are doctors overpaid?
That’s a tricky question for several reasons. Getting good data is hard and mostly based on surveys, there are variations across the country and among specialists plus few doctors work a 40 hour week.
If you are a patient and your doctor provides life saving care, I suspect what they earn doesn’t matter, it wouldn’t to me. In any case, chances are you aren’t paying the bill yourself.
After looking at the data from several sources, my opinion is that doctors are not overpaid even though U.S. physicians earn more than in other countries.
American doctors earn two to three times as much as in European countries, not adjusted for cost of living being higher in the U.S. And of course, the U.S has, shall we say, a unique market-based healthcare system.
Another big difference is the cost of medical education and training. In European countries physician education is highly tax-payer subsidized or fully paid or to use a misused word “free.” In the U.S. many new doctors graduate with a $200,000 to $250,000 in debt.
General the highest paid doctors are orthopedic surgeons they make an average $202 an hour. The lowest paid are pediatricians at $103 and hour, but even OB/GYNs only make $130 and hour. The key is the hours worked.
Looking at it another way Orthopedic surgeons earn on average $543,000 a year and pediatricians $258,000. In some surveys cardiologists are up there at $582,000, but others have them at $506,000. You can explore the data here.
There is a high cost in different ways as a result of the American view on paying for health care. I’m pretty sure we have it wrong.
That’s a tricky question for several reasons. Getting good data is hard and mostly based on surveys, there are variations across the country and among specialists plus few doctors work a 40 hour week.
If you are a patient and your doctor provides life saving care, I suspect what they earn doesn’t matter, it wouldn’t to me. In any case, chances are you aren’t paying the bill yourself.
After looking at the data from several sources, my opinion is that doctors are not overpaid even though U.S. physicians earn more than in other countries.
American doctors earn two to three times as much as in European countries, not adjusted for cost of living being higher in the U.S. And of course, the U.S has, shall we say, a unique market-based healthcare system.
Another big difference is the cost of medical education and training. In European countries physician education is highly tax-payer subsidized or fully paid or to use a misused word “free.” In the U.S. many new doctors graduate with a $200,000 to $250,000 in debt.
General the highest paid doctors are orthopedic surgeons they make an average $202 an hour. The lowest paid are pediatricians at $103 and hour, but even OB/GYNs only make $130 and hour. The key is the hours worked.
Looking at it another way Orthopedic surgeons earn on average $543,000 a year and pediatricians $258,000. In some surveys cardiologists are up there at $582,000, but others have them at $506,000. You can explore the data here.
There is a high cost in different ways as a result of the American view on paying for health care. I’m pretty sure we have it wrong.
The post Quinn Explores the Question: Are Doctors Overpaid? appeared first on HumbleDollar.
Gimme a Reason
When we deploy our hard-earned dollars, we all have our financial reasons. But are we focusing on the right thing? Consider four examples:
Homes. When folks buy a home, they’ll often dwell on the potential price appreciation, the tax benefits and the advantages over renting. But I’d contend there are two reasons that are even more compelling: Buying a home locks in our housing costs and, with every monthly mortgage payment, forces us to save.
Health insurance. Yes, health coverage helps with medical bills. But forget the size of the copays and the deductibles. When I look at health insurance, I see two huge financial advantages: We benefit from the discounts that insurers negotiate with medical providers, and our annual cost is limited by the out-of-pocket maximum. Everything else, I’d argue, is secondary.
Auto insurance. We carry auto insurance so we’ll be covered if we crash the car, right? Sure, that’s one of its roles. But the repair cost of a bad crash pales next to the financial hit we’d face if we hurt or killed others in an auto accident. That’s why I see the primary role of auto insurance as providing liability protection, and why most folks should probably also add to that coverage with an umbrella-liability policy.
Portfolios. Many folks buy investments for their income—the dividends from stocks, and the interest from bonds and cash investments. There’s nothing wrong with that. Still, when we think about why we should buy the three key asset classes, I believe it’s better to think of them in terms of the role each plays in a portfolio.
Specifically, I’d view stocks as a portfolio’s engine of growth, bonds as the financial shock absorber and source of spending money in the event of a drawn-out bear market, and cash investments as the place to go for immediate portfolio withdrawals.
Homes. When folks buy a home, they’ll often dwell on the potential price appreciation, the tax benefits and the advantages over renting. But I’d contend there are two reasons that are even more compelling: Buying a home locks in our housing costs and, with every monthly mortgage payment, forces us to save.
Health insurance. Yes, health coverage helps with medical bills. But forget the size of the copays and the deductibles. When I look at health insurance, I see two huge financial advantages: We benefit from the discounts that insurers negotiate with medical providers, and our annual cost is limited by the out-of-pocket maximum. Everything else, I’d argue, is secondary.
Auto insurance. We carry auto insurance so we’ll be covered if we crash the car, right? Sure, that’s one of its roles. But the repair cost of a bad crash pales next to the financial hit we’d face if we hurt or killed others in an auto accident. That’s why I see the primary role of auto insurance as providing liability protection, and why most folks should probably also add to that coverage with an umbrella-liability policy.
Portfolios. Many folks buy investments for their income—the dividends from stocks, and the interest from bonds and cash investments. There’s nothing wrong with that. Still, when we think about why we should buy the three key asset classes, I believe it’s better to think of them in terms of the role each plays in a portfolio.
Specifically, I’d view stocks as a portfolio’s engine of growth, bonds as the financial shock absorber and source of spending money in the event of a drawn-out bear market, and cash investments as the place to go for immediate portfolio withdrawals.
The post Gimme a Reason appeared first on HumbleDollar.
June 4, 2025
When the Spreadsheet Gets Real
I’m 58 and my wife is 56. We’ve been planning our retirement with care and intention for years—no debt, solid retirement savings, a well-diversified portfolio, and a liability-matching plan (LMP) that covers us until Medicare kicks in. We’ve talked through our priorities, run the numbers, and built our plan together. The core approach to our plan was heavily influenced by Bill Bernstein and Wade Pfau's writing and we are content with a good funded ratio.
One thing we agreed on early: when one of us loses or leaves work, we both retire.
Now, the time may be here. There’s a strong possibility I’ll lose my job in the next month or two, and while our Excel models say we’re ready, I’m realizing the emotional side of this transition is much harder than I expected. The idea of not working, shifting from saver to spender, and stepping into a whole new identity—it all feels very real now, and a little overwhelming.
We’re committed to retiring together, as we planned. But I’d love to hear from others who’ve walked this road:
What practical steps did you take as the date approached?
What helped you navigate the emotional side of leaving work—especially when the choice wasn’t entirely yours?
How did you manage the first few months after the transition?
What surprised you most about this phase of life—good or bad?
Looking back, is there anything you wish you had done differently in preparing for the leap?
I know we’ve done the work on the numbers. Now I’d love help making peace with the next step. Your insights would mean a lot.
The post When the Spreadsheet Gets Real appeared first on HumbleDollar.
Jonathan Is Everywhere on the Internet
Another great link from Mike Piper’s Oblivious Investor newsletter is this interview on the Bogleheads Podcast:
https://bogleheads.podbean.com/e/episode-82-jonathan-clements-jason-zweig-and-christine-benz-are-special-guests-on-this-podcast-host-rick-ferri/
https://bogleheads.podbean.com/e/episode-82-jonathan-clements-jason-zweig-and-christine-benz-are-special-guests-on-this-podcast-host-rick-ferri/
The post Jonathan Is Everywhere on the Internet appeared first on HumbleDollar.
Jonathan is Everywhere on the Internet
Another great link from Mike Piper’s Oblivious Investor newsletter is this interview on the Bogleheads Podcast:
https://bogleheads.podbean.com/e/episode-82-jonathan-clements-jason-zweig-and-christine-benz-are-special-guests-on-this-podcast-host-rick-ferri/
https://bogleheads.podbean.com/e/episode-82-jonathan-clements-jason-zweig-and-christine-benz-are-special-guests-on-this-podcast-host-rick-ferri/
The post Jonathan is Everywhere on the Internet appeared first on HumbleDollar.
“Most Revealing Question in Personal Finance”
I receive Mike Piper’s Oblivious Investor newsletter. Today I saw the above interesting title of an article he linked to
https://www.advisorperspectives.com/articles/2025/05/19/revealing-question-personal-investing-how-warren-buffett-helps-answer
The question was: What is the lowest risk-free, after-tax, after-inflation rate of return you would accept in order to forgo all other investment opportunities for the rest of your life?1
Although the article itself was waaaay too technical for my pion mind, my knee jerk answer was 2%. I’m not greedy.
What is your answer?
https://www.advisorperspectives.com/articles/2025/05/19/revealing-question-personal-investing-how-warren-buffett-helps-answer
The question was: What is the lowest risk-free, after-tax, after-inflation rate of return you would accept in order to forgo all other investment opportunities for the rest of your life?1
Although the article itself was waaaay too technical for my pion mind, my knee jerk answer was 2%. I’m not greedy.
What is your answer?
The post “Most Revealing Question in Personal Finance” appeared first on HumbleDollar.
Who Will Care for Us? by Dennis Friedman
At age 74, I like to think our retirement is pretty much set in stone. Most of the big health and financial decisions—Medicare, Social Security, Roth conversions—have already been made. But there’s one concern I’ve been thinking about a lot lately: how will Rachel and I get the help we need if we can no longer take care of ourselves?
Our family is spread out across the country, and we have no plans to move closer to them. Even if we did, we wouldn’t want to burden them with caring for us.
The odds are that one of us will need care as we age. According to the Center for Retirement Research at Boston College, about 80% of retirees will require some level of long-term care—ranging from minimal help to extensive support.
Many seniors face this health care challenge. The U.S. Census Bureau estimates that the number of elderly people aged 85 and older will nearly double by 2035 (from 6.5 million to 11.8 million) and almost triple by 2060 (to 19 million).
At the same time, The New York Times reports a shortage of workers in the care industry, largely driven by low wages. This issue could be worsened by the current administration’s immigration crackdown, which affects a workforce where 28% of long-term care workers are immigrants.
According to CareScout, the price of some long-term care services—such as assisted living communities and nursing home care—rose as much as 10% in 2024, while the general inflation rate rose by 2.9%. A CareScout survey found that the national median monthly cost in 2024 was $6,483 for a home health aide, $5,900 for an assisted living community, and $10,646 for a private nursing home room.
Facing a future with both a shortage of long-term care aides and rising costs makes getting the help you need a difficult task.
We’ve looked into Continuing Care Retirement Communities, or CCRCs, which offer a range of care—from independent living to skilled nursing—all in one location. At first, we thought it was a smart solution, and it still might be. However, most CCRCs require large entry fees—sometimes hundreds of thousands of dollars—which we feel is a significant financial gamble.
Yes, some contracts offer refundable fees, but they usually come at an even higher cost. Our biggest concern is whether a CCRC can uphold the terms of a Type A contract, which states that they will not evict you if you run out of money or significantly raise your fees—except for cost-of-living adjustments—even when you require a higher level of care, such as assisted living or skilled nursing.
Will this type of model be sustainable when we’re facing a future with a shortage of workers and rising costs? Or will it resemble the long-term care insurance industry, where we’ve seen significantly higher premium increases and reduced coverage over time?
There are other types of CCRC contracts, but we would only be interested in one that guarantees lifetime care with predictable costs.
Instead of a CCRC, we’re considering another option: avoiding entry fees and paying a monthly fee for an assisted living and memory care community. There’s one not far from where we currently live, and if we needed more care, there’s a skilled nursing facility and a hospital nearby.
This type of care also presents its own set of problems. Will there be room when we need it? And when is the right time to move—especially if we’re still mostly independent? There’s also the risk that we could run out of money under this arrangement.
There’s always the option of staying in our home and hiring a home health aide. To plan for that possibility, we would follow the financial guidelines recommended by Carolyn McClanahan, a physician and certified financial planner who was interviewed for The New York Times article.
She suggests “planning for two to three years of long-term care needs, and up to five years for those at higher risk of dementia or with good health and longevity prospects.” We would probably fall into the latter category, which would require us to set aside five years of funds for care for each of us.
To reduce the amount of money that needs to be set aside, Dr. McClanahan advises married couples that one spouse should apply for long-term care insurance. That’s something we’re considering. Rachel is still in her 60s and has no preexisting conditions, so she would likely qualify for coverage.
Our current healthcare system doesn’t seem to offer a perfect solution. There are uncertainties no matter which direction we go.
Over lunch recently, a close friend shared how difficult it has been to care for his wife, who has dementia. After our conversation, I realized his journey is about more than just finding long-term care—it’s also about seeking peace of mind and preserving dignity.
Whatever we decide, we want to make the choice on our terms—while we still can.
Our family is spread out across the country, and we have no plans to move closer to them. Even if we did, we wouldn’t want to burden them with caring for us.
The odds are that one of us will need care as we age. According to the Center for Retirement Research at Boston College, about 80% of retirees will require some level of long-term care—ranging from minimal help to extensive support.
Many seniors face this health care challenge. The U.S. Census Bureau estimates that the number of elderly people aged 85 and older will nearly double by 2035 (from 6.5 million to 11.8 million) and almost triple by 2060 (to 19 million).
At the same time, The New York Times reports a shortage of workers in the care industry, largely driven by low wages. This issue could be worsened by the current administration’s immigration crackdown, which affects a workforce where 28% of long-term care workers are immigrants.
According to CareScout, the price of some long-term care services—such as assisted living communities and nursing home care—rose as much as 10% in 2024, while the general inflation rate rose by 2.9%. A CareScout survey found that the national median monthly cost in 2024 was $6,483 for a home health aide, $5,900 for an assisted living community, and $10,646 for a private nursing home room.
Facing a future with both a shortage of long-term care aides and rising costs makes getting the help you need a difficult task.
We’ve looked into Continuing Care Retirement Communities, or CCRCs, which offer a range of care—from independent living to skilled nursing—all in one location. At first, we thought it was a smart solution, and it still might be. However, most CCRCs require large entry fees—sometimes hundreds of thousands of dollars—which we feel is a significant financial gamble.
Yes, some contracts offer refundable fees, but they usually come at an even higher cost. Our biggest concern is whether a CCRC can uphold the terms of a Type A contract, which states that they will not evict you if you run out of money or significantly raise your fees—except for cost-of-living adjustments—even when you require a higher level of care, such as assisted living or skilled nursing.
Will this type of model be sustainable when we’re facing a future with a shortage of workers and rising costs? Or will it resemble the long-term care insurance industry, where we’ve seen significantly higher premium increases and reduced coverage over time?
There are other types of CCRC contracts, but we would only be interested in one that guarantees lifetime care with predictable costs.
Instead of a CCRC, we’re considering another option: avoiding entry fees and paying a monthly fee for an assisted living and memory care community. There’s one not far from where we currently live, and if we needed more care, there’s a skilled nursing facility and a hospital nearby.
This type of care also presents its own set of problems. Will there be room when we need it? And when is the right time to move—especially if we’re still mostly independent? There’s also the risk that we could run out of money under this arrangement.
There’s always the option of staying in our home and hiring a home health aide. To plan for that possibility, we would follow the financial guidelines recommended by Carolyn McClanahan, a physician and certified financial planner who was interviewed for The New York Times article.
She suggests “planning for two to three years of long-term care needs, and up to five years for those at higher risk of dementia or with good health and longevity prospects.” We would probably fall into the latter category, which would require us to set aside five years of funds for care for each of us.
To reduce the amount of money that needs to be set aside, Dr. McClanahan advises married couples that one spouse should apply for long-term care insurance. That’s something we’re considering. Rachel is still in her 60s and has no preexisting conditions, so she would likely qualify for coverage.
Our current healthcare system doesn’t seem to offer a perfect solution. There are uncertainties no matter which direction we go.
Over lunch recently, a close friend shared how difficult it has been to care for his wife, who has dementia. After our conversation, I realized his journey is about more than just finding long-term care—it’s also about seeking peace of mind and preserving dignity.
Whatever we decide, we want to make the choice on our terms—while we still can.
The post Who Will Care for Us? by Dennis Friedman appeared first on HumbleDollar.
June 3, 2025
What About Gold?
I know nothing about buying gold or in any way holding it in a portfolio. TV is full of ads to buy gold coins. If you buy them, how do you sell them and to who?
Anyone have any words of wisdom about buying gold in any form?
Is gold a viable investment for most people?
Anyone have any words of wisdom about buying gold in any form?
Is gold a viable investment for most people?
The post What About Gold? appeared first on HumbleDollar.
What about gold?
I know nothing about buying gold or in any way holding it in a portfolio. TV is full of ads to buy gold coins. If you buy them how do you sell them and to who?
Anyone have any words of wisdom about buying gold in any form?
Is gold a viable investment for most people.
The post What about gold? appeared first on HumbleDollar.
