Jonathan Clements's Blog, page 47
June 20, 2025
Does a Happy Country Lead to Happy Individuals?
I have decided to post this as a separate post, not to distract from Jonathan’s post today, but to further explore the concept of what makes not an individual, but a country happy. If a country is happier as a whole it seems intuitive that the individuals in said country would be happier as well.
I have received some of my highest negative net rating in the past for posting these facts on Humble Dollar but since I am a glutton for punishment will post these facts again:
Every year World Population Review ranks the happiest countries. All five of the nordic countries of Norway, Finland, Sweden, Demark, and Iceland are ranked in the top 7. In the past four years none has ranked lower than 8th.
https://data.worldhappiness.report/table
Finland has ranked as number one for the past eight years, while the US was ranked 24th this year, and no higher than 15th over these four years.
Why is this? Is it because they live on some tropical island where it’s sunny year round? Er, obviously not!
Is this because their personal income tax is so low? No, as of 2023 (the most recent data available) three of the top five highest taxed countries are Nordic, and Finland, the happiest county is the highest at 57.3%. They also have a 24% sales tax, and a 20% corporate tax rate. The US has the 45th highest personal income tax rate.
https://worldpopulationreview.com/country-rankings/highest-taxed-countries
Are the Nordic countries the “richest”? No, Finland, the “poorest”of the Nordic countries in 2025 is ranked 21 richest. Finland’s per capita income is only 61% of the US which is ranked 7th.
https://www.voronoiapp.com/economy/Ranked-GDP-Per-Capita-by-Country-in-2025-5370
Why is Finland so happy? In 2024 US News and World Report listed 5 possible reasons in this article from 2024:
I am not proposing we copy Finland, but perhaps it’s time we as a country should have a serious conversation as to how we can make changes to improve our happiness. It seems that recent changes in our society has us headed in the opposite direction from what has been proven to make a population happy.
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The Surprising Gift of Unhurried Time: My Retirement Revelation
This morning, while sipping coffee in my sunroom, a simple thought occurred – one of those rare insights, I don't have them often! It struck me that since retiring, my morning brew has become more enjoyable. After mulling it over, I pinpointed the reason: time. More specifically, the luxury of extra time to truly savour and embrace the entire coffee experience.
This revelation isn't confined to my coffee cup. It's weaving its way into other aspects of my life too. Take my garden, for instance. It's very large, but now, tending to it has transformed from a chore into a genuine pleasure.
Even my racket sports feel different. Before, I'd squeeze in games during rushed evenings. Now, playing in the morning, with no pressure or looming deadlines, is simply glorious. The entire experience is better. And something as mundane as driving in heavy traffic? It barely registers now. An extra ten minutes here or there is genuinely neither here nor there.
In essence, I seem to have unintentionally become intentional. It's as if I've been handed the keys to a slower, richer pace of life without even realizing I was looking for them.
So, tell me, my fellow Humble Dollar readers – have you been keeping this secret from the rest of the world? This ability of living life on your own terms, of reclaiming time not just to fill it, but to truly experience it?
And just while I'm at it…. Can someone please tell me why you all call coffee Joe????
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Let’s Get Happy
There was no General Social Survey in 2020, when COVID-19 struck. But the following year’s survey found that just 19% of Americans described themselves as very happy—the lowest reading since the survey was first conducted in 1972. The “very happy” group rose to 25% in 2022, only to fall back to 23% in 2024, according to just-released results.
These were the three lowest readings in the survey’s 52-year history. Indeed, over the past half-century, typically between 30% and 35% of Americans have described themselves as very happy.
Why hasn’t America’s happiness bounced back? The 2024 survey also found that many respondents were dissatisfied with their financial situation and pessimistic that their income would improve. In addition, I’d imagine today’s sharp political divisions are influencing the results.
Want to make sure you’re among the “very happy” group? There is, alas, no way to guarantee that. Still, the happiness research conducted by economists and psychologists can help us better understand why we’re happy or unhappy—and it offers some insights into how we might improve our outlook.
We all have a happiness set point. The bad news: It seems we’re genetically predisposed to be more or less happy—and this innate trait is easily the biggest determinant of our happiness level. Some folks will always be happier than others, no matter what life throws at them.
Heard about the big five personality traits? These innate traits—which are hard to change—are correlated with our life satisfaction. Folks score high for happiness if they also score high for emotional stability, extraversion and conscientiousness.
Midlife misery is common. Happiness through life is U-shaped. When do we hit rock-bottom? Economist David Blanchflower analyzed data from across the developed world and concluded the depth of midlife misery arrives at age 47.2.
That sounds right to me. I was in my mid-40s when my Wall Street Journal column began to feel like a chore, and I started casting around for what I wanted to do next.
Our relative standing matters. Richard Easterlin is arguably the father of happiness research. He identified a fascinating paradox: Those with more money say they’re happier, and yet a society doesn’t become happier as it grows wealthier. Why not? We care less about our absolute standard of living and more about our standing relative to others.
What matters is what we focus on. One strategy for boosting happiness: Ponder the good things in our life. This is a key reason that those with higher incomes tend to say they’re happier. When surveyed, those further up the income scale think about their good fortune, and that prompts them to say they’re happy.
Happiness comes in two flavors. Eudaimonic happiness is walking out of the office on Friday evening knowing we got a lot accomplished over the past week. Hedonic happiness is seeing friends right afterwards for a couple of beers and a burger. Hedonic happiness tends to be fleeting, while the glow of eudaimonic happiness has the potential to last longer.
It’s tough to permanently boost happiness. But there are ways to raise our life satisfaction: Keep our commute short. Spend time with friends and family. Volunteer. Give to charity and family. Work on our health. Regularly count our blessings. Favor experiences over possessions. Devote time to activities we’re passionate about.
All this might seem obvious. But it’s easy to lose sight of such things, and instead find ourselves, say, spending money without much thought and not making an effort to see friends.
Money can ward off unhappiness. Yes, our dollars purchase limited happiness. But at the same time, the absence of money can cause great unhappiness. What’s the best way to buy happiness? My advice: Amass a healthy sum in your financial accounts, and quietly enjoy the peace of mind it offers. Not having to worry about money is, I believe, a great privilege.
Jonathan Clements is the founder and editor of HumbleDollar. Follow him on X @ClementsMoney and on Facebook, and check out his earlier posts.The post Let’s Get Happy appeared first on HumbleDollar.
June 19, 2025
Missing you….Or not?
It's a question many of us ponder as we transition into retirement: Beyond the financial aspects, what truly sticks with us from our working lives, and what do we find ourselves missing?
For me, like many others, it's the daily banter and camaraderie with customers and colleagues. There's a unique energy in those professional interactions—the quick jokes, shared challenges, and the general buzz of a workplace. It's a specific kind of social connection that's surprisingly hard to replicate.
I've found a great way to fill that void by increasing my participation in social sports like pickleball. It provides that regular, light-hearted interaction and a sense of shared activity that was so present in my working life.
I'm eager to hear from other Humble Dollar readers.
What aspect of your working life do you miss the most since retiring?And more importantly, what have you done—or are you planning to do—to emulate or replace that missing piece?The post Missing you….Or not? appeared first on HumbleDollar.
June 18, 2025
Status of the Social Security and Medicare Programs
Released:
A SUMMARY OF THE 2025 ANNUAL REPORTS
Social Security and Medicare Boards of Trustees
"Based on our best estimates, this year's reports show that......
The Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, unchanged from last year’s report. At that time, the fund’s reserves will become depleted and continuing program income will be sufficient to pay 77 percent of total scheduled benefits......"
"As in prior years, we found that the Social Security and Medicare programs both continue to face significant financing issues.
The non-health-specific intermediate (best estimate) assumptions for these reports were set in December 2024. The Trustees will continue to monitor developments, reevaluate the assumptions, and modify the projections in later reports."
For more information go to the SS website:
https://www.ssa.gov/oact/trsum/
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Reverse 1031 Exchange
I was encouraged to post here by my cousin, and HumbleDollar columnist, Ed Marsh so here goes - I'm considering a reverse 1031 exchange. I'd have preferred it be a straight 1031 exchange but timing hasn't worked in my favor in that my wife and I found the replacement property unexpectedly and had not intended on selling the relinquished property so quickly. My question is twofold. First - can the QI take title to the relinquished property instead of the replacement property ahead of the sale of said property so that I don't have title to both properties? The reason I think I'd prefer this is I'm not paying cash for the replacement property and lenders don't like a 3rd party holding title to the property they're lending on it seems. Second - is there then a holding period that the QI must hold the funds received for the relinquished property before they can transfer back to me? I'm familiar with the 45/180 day limitations on the 1031 but I'm asking about how quickly the funds will flow to me from the relinquished property. Additionally, any recommendations for a QI that is reputable, knowledgeable, and reasonably priced (do all three exist simultaneously!) is much appreciated.
Thanks in advance,
Chris Marsh
Fayetteville, GA
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Going it Alone by Dennis Friedman
I got the impression they didn’t think I could take care of myself in retirement — that it would be too difficult to go it alone. I get it. From the perspective of my sister and Barb — both of whom have been married a long time — it might seem terrifying to face retirement alone.
I sometimes think about how different my life would be if I were suddenly on my own at age 74. Would my decisions about money, housing, and healthcare be different?
Make no mistake — I think the world of Rachel. She’s the best thing that has ever happened to me. But eventually, many people will lose their companion and be forced to go it alone.
Here’s what I think my life would look like fending for myself as a senior.
Money: Every year, I tell my wife I’m going to drop Vanguard’s Personal Advisor Select as our financial advisor — but I never do. I often wonder, “Are we getting our money's worth?” This year, though, I’m glad we didn’t make a change. With all the market turmoil, it was reassuring to know that she’d have someone reliable to turn to if anything were to happen to me.
If the roles were reversed, would I still keep the advisor? I believe I would — at least for the first year. One of the benefits of having an advisor is the protection from your own emotions. As Warren Buffett said, “The most important quality for an investor is temperament, not intellect.”
After such a terrible loss, I imagine I’d be overwhelmed. Having a trusted, steady hand managing my investments while I found my footing would be a real comfort.
Housing: When Rachel is gone for extended visits to take care of her mother, I realize how much work it is for one person to do the cooking, shopping, laundry, yard work, house cleaning — all the day-to-day stuff. I can do it now, but how much longer can I keep it up if I live a long life?
I wouldn’t have to worry about maintaining the house. We have a great handyman who does excellent work and charges a fair price — and he’s young enough that retirement isn’t on his radar. I could also hire help for house cleaning and yard work. Still, I know I’d eventually want to move.
I don’t want to take a chance on the same thing happening to me as it did to my childhood friend Art.
The last time I spoke with Art, Rachel and I were about to leave for Europe. He was in hospice, alone at home, and down to 95 pounds. He had no partner or children — just a brother nearby who could help occasionally. He even bought his own coffin.
Art was later moved to a hospice facility, but the image of him facing death mostly alone has stayed with me.
To avoid that, I would rent an apartment in an assisted living community where I could get the help I need when I need it. I wouldn’t want to live with anyone, including my family. I’d want my own place, but I’d also want the opportunity to connect with other folks.
I would sell the house — unless my stepson, who lives in Virginia, wanted it. Then I’d rent it out and hire a property management company to oversee it.
The rental income, Social Security, and required minimum distribution would be more than enough to cover my expenses.
Health Care: According to a Washington Post article, “Your chance of developing dementia at some point is uncomfortably high. Forty-two percent of Americans older than 55 will develop the condition during their lifetime, a recent Nature Medicine study estimates. It’s also on the rise: More than 500,000 had it in 2020; by 2060, that’s expected to double.”
Although I don’t show signs of dementia, I’ve been thinking about the possibility of developing Alzheimer’s. I would feel safer and more comfortable moving into a community that offers assisted living and memory care. If I ever needed more care or help navigating the healthcare system, I could hire a healthcare advocate — someone who would make sure I understand my options and receive the best possible care.
When is the best time to make the move and seek help? For me, it’s when I feel my quality of life would significantly improve in a retirement community — where I can focus more on enjoying my day and less time worrying about all the day-to-day responsibilities.
When I think about what life would be like without Rachel, I realize that getting older isn’t easy — and losing someone you love is even harder.
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Is the “Experience Economy” Derailing Millennial Retirement Prospects?
The phone call from my 29-year-old daughter in London recently sparked a familiar parental concern. She and her partner were jetting home not for a family visit, but to catch a Coldplay concert. My mind immediately did the mental math: flights, tickets… easily $500 per person. And then it hit me: this is the third major concert they've attended this year, on top of a holiday to the Canary Islands and my other daughter is at this very moment camping her way around Turkey and Greece.
It got me thinking about the narrative pushed by social media influencers: that "experiences" are the ultimate investment, the truest path to happiness, and undeniably the best use of one's hard-earned money. And don't get me wrong, it's wonderful to create memories and collect those precious moments. But a nagging question persists: Could this relentless pursuit of experiences, often meticulously curated for online consumption, be subtly undermining the long-term financial stability of millennials and their peers? Should they, perhaps, be gently nudged to refocus on something a little less glamorous: retirement savings?
The allure of the "experience economy" is undeniable. It promises rich memories, social capital, and a break from the mundane. But here’s a thought: the first ten years of retirement savings have a disproportionately powerful impact on the size of the final balance. This isn't just financial jargon; it's the magic of long-term compounding at work. Every dollar saved and invested in your twenties and early thirties has decades to grow, multiplying on itself exponentially.
Consider this: the extra compounding generated from those early, consistent contributions could, in fact, be the very funds that provide even more incredible experiences when retirement arrives. Imagine exploring new continents, pursuing passions, or simply enjoying a comfortable, worry-free lifestyle in your later years, all funded by the disciplined choices made decades earlier. It's about shifting the delayed gratification, not eliminating the joy.
I'm grappling with how to convey this message to my daughter without sounding like a broken record or the stereotypical finger-wagging parent. It's a delicate balance between respecting her autonomy and offering genuinely valuable financial insight. But when she's home, I'm considering gently making my case. Wish me luck – it might be the most important "experience" conversation we have all year.
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June 17, 2025
Author of Medicare Advantage Speaks Out
Greenwood once believed private competition would drive innovation and efficiency. But today, he says, MA has been overtaken by “a handful of massive insurers who are gaming the rules for profit.” Overpayments, cherry-picking, and risk-score manipulation are now “endemic.” “It pains me to say this, but the system we helped create is being abused. And it’s not just hurting taxpayers. It’s hurting patients.” “Seniors… are too often finding out — at the worst possible time — that their plan won’t cover what they need.”
While Greenwood still believes there is a place for private-sector involvement in Medicare, he now calls for rigorous oversight, transparency, and enforcement. He also warns against insurers’ predictable scare tactics whenever reform is on the table.
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Interesting White Coat Investor on Lessons Learned Dealing with a LTC Company
Just read this article:
https://www.whitecoatinvestor.com/financial-lessons-father-long-term-care-insurance/
about 10 lessons learned when the author was dealing with obtaining benefits from his father’s LTC insurance company. My parents had policies they bought decades before their deaths. My sister was the DPOA finance so I was not privy to the details of the policies, nor any difficulties she may of had trying to access their benefits.
We don’t have policies, but I figured this information may be valuable to other Humble Dollar readers who do.
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