Jonathan Clements's Blog, page 7
August 20, 2025
Rehashing the age 70 thing. Tell Dear Dickie what is it that he doesn’t get about SS at age 70?
I simply cannot understand why anyone living off their investments would use those investments to live on in favor of delaying social security until age 70.
It seems to me that unless there is a gigantic pool of money they’ll never need, they are taking an unnecessary risk using more of their investments sooner rather than later. I think they call it opportunity cost. I used three AI apps and they all had the usual arguments for and against delaying to age 70. They were consistent about taking benefits when you need the money to live on and cautioned about using other assets just to delay.
Yes, I get some of it. A higher monthly SS benefit and with it a possible higher spousal survivor benefit. But part of the value there is the age difference between spouses. Assume age 70 is achieved, the life expectancy for males: is approximately 14 to 15 years. for females: approximately 16 to 17 years. Unless there is a significant younger age difference for a surviving spouse, there is not much time for the higher benefit to be needed - statistically. And you can provide for survivors in other ways.
Is a retirement plan going to succeed or fail based on the higher monthly Social Security benefit starting at age 70? Is that more important than accumulated assets and sustaining, if not growing them, for an extra three years or so? What if the person wants to retire earlier than FRA, is the extended period using more investments before age 70 still valid?
I read these words on Open Social Security “The strategy that maximizes the total dollars you can be expected to receive over your lifetimes is as follows:” Sometimes it is age 70, sometimes not, but I say “so what?”
Why would that be my goal? Besides, that advice does not even consider a persons total financial picture - investments, annuities, a pension.
I’m ready for the 🔻 just show me the real value of the trade off using unsecured money now for the possibility of higher monthly income several years in the future.
The post Rehashing the age 70 thing. Tell Dear Dickie what is it that he doesn’t get about SS at age 70? appeared first on HumbleDollar.
Rehashing the age 70 thing. I’ve tried to avoid this, but it’s like giving up looking for something you lost. Tell Dear Dickie what is it that he doesn’t get about SS at age 70?
I realize I am on the outside looking in, out of sync, ignoring “expert” advice and rehashing the subject, but I can’t help it. I need help here.
I simply cannot understand why anyone living off their investments would use those investments to live on in favor of delaying social security until age 70.
It seems to me that unless there is a gigantic pool of money they’ll never need, they are taking an unnecessary risk using more of their investments sooner rather than later. I think they call it opportunity cost. I used three AI apps and they all had the usual arguments for and against delaying to age 70. They were consistent about taking benefits when you need the money to live on and cautioned about using other assets just to delay.
Yes, I get some of it. A higher monthly SS benefit and with it a possible higher spousal survivor benefit. But part of the value there is the age difference between spouses. Assume age 70 is achieved, the life expectancy for males: is approximately 14 to 15 years. for females: approximately 16 to 17 years. Unless there is a significant younger age difference for a surviving spouse, there is not much time for the higher benefit to be needed - statistically. And you can provide for survivors in other ways.
Is a retirement plan going to succeed or fail based on the higher monthly Social Security benefit starting at age 70? Is that more important than accumulated assets and sustaining, if not growing them, for an extra three years or so? What if the person wants to retire earlier than FRA, is the extended period using more investments before age 70 still valid?
I read these words on Open Social Security “The strategy that maximizes the total dollars you can be expected to receive over your lifetimes is as follows:” Sometimes it is age 70, sometimes not, but I say “so what?”
Why would that be my goal? Besides, that advice does not even consider a persons total financial picture - investments, annuities, a pension.
I’m ready for the 🔻 just show me the real value of the trade off using unsecured money now for the possibility of higher monthly income several years in the future.
The post Rehashing the age 70 thing. I’ve tried to avoid this, but it’s like giving up looking for something you lost. Tell Dear Dickie what is it that he doesn’t get about SS at age 70? appeared first on HumbleDollar.
August 19, 2025
The Most Cited Websites By AI Models
When we ask a question of ChatGPT or Gemini or any other AI LLMs we may wonder about the source of the information contained in the answers. I recently read an article about this. LLMs rely on user-generated content and as we know, not all of these web based sources are accurate and so, neither will the answers be.
“According to an analysis by Semrush, LLMs like ChatGPT reference Reddit and Wikipedia the most for facts. For geographical data, LLMs frequently cite Mapbox and OpenStreetMap.”
Here’s a breakdown of citation frequency:
Reddit.com 40.1%
Wikipedia 26.3%
Youtube.com 23.5%
Yelp.com 21.0%
Facebook.com 20.0%
Amazon.com 18.7%
Tripadvisor.com 12.5%
Openstreetmap.com 11.3%
Instagram.com 10.9%
Mapquest.com 9.8%
Walmart.com 9.3%
Ebay.com 7.7%
Linkedin.com 5.9%
Quora.com 4.6%
Homedepot.com 4.6%
Yahoo.com 4.4%
Etc.
The post The Most Cited Websites By AI Models appeared first on HumbleDollar.
A Record Journey
I went on a little shopping spree last week for some new tunes, ordering some records from a reputable online music store. Like a little kid who just ordered PlayStation 5 from Amazon, I’ve been anxiously tracking my order on the fine United States Post Office website.
I cannot make the following story up.
On 8/11 I placed my order.
On 8/12 the retailer delivered my records to the USPS origin facility in Louisville KY.
So far so good.
On 8/13 the USPS sent my records to their facility in Pontiac MI, a 390 mile drive from Kentucky. About 300 miles into that Kentucky to Michigan drive, my records passed within just one mile of my house. But like Halley's Comet passing by earth, it may as well have been 39 million miles away.
A day later, 8/14, the Post Office sent my tunes 90 miles south to the postal facility in Toledo, about 10 miles from me as the crow flies.
Oh boy I thought, I’ll get my records days before the estimated delivery day, 8/18.
Then on 8/15 the Toledo processing center sent the records back up I-75 to a place called Capac, Michigan, not to be confused with C-Pap or Z-Pack Michigan. Capac is another 113 miles from Toledo, and some 48 miles north and east of their Pontiac visit two days earlier.
On 8/16, the Capac post office sent my records to the Detroit postal facility. I was feeling confident, as they had finally stopped traveling north, away from my Vinyl Resting Place, (this is what I call the room where my record player lives).
At 9PM, still Saturday 8/16, my confidence was shattered, as my music had just been transported north to (drum roll) Pontiac, Michigan, again. I was beginning to feel like Don McLain when he sang “the day the music died”.
At each one of these stops, I assume someone had to pick my package up and scan it in order to provide me with the tracking information, as well as to know what to do with it. My records, along with scads of other freight, were being shifted among various trucks en-route to a myriad of destinations. I was recalling the American Tourister ads from 1980, you remember, when the baggage handler was a Gorilla who destroyed the suitcases. I sure hoped that the box my records were packed in didn’t look like that.
The estimated delivery date was 8/18, but the tracking tool was telling me that my musicians remained locked in the back of a truck still in Pontiac, MI.
The trail seemed to have gone cold. Should I consider hiring Jim Rockford or Thomas Magnum PI before it’s too late. If Stephen Hawking were here, perhaps he could explain this black hole that has eaten my records.
Then at 12:04AM on 8/19 my phone pinged. A text from the Post Office that my package was now in route to its next destination. My heart was beating faster; could the next stop be back in Toledo?
The next thing I remember was a furry bump to my head around 5AM as Sophie the wonder cat alerted me to two missed texts. The first came at 1:52AM when the tunes arrived in Toledo, and another at 4:58AM when they were transferred to Monclova, my home town.
Things were happening fast. A text came at 6:22AM informing me that they were finally out for delivery. And a final text at 10:35AM declaring that Patsy, Johnny, Toby, and George were outside my front door, patiently waiting for me to let them in.
My fears about the gorilla baggage handler abated, as the package was in fine condition.
Both Google Maps and Waze tell me that it’s a 300 mile drive from Louisville to Monclova, but as far as I can tell, my records have traveled about 700 miles.
So the lesson and the moral of my story for you, my HumbleDollar friends, is to never get driving directions from the United States Postal Service.
Have a great day.
The post A Record Journey appeared first on HumbleDollar.
A Contrarian View of a Mortgage
Suzie and I are visiting family and enjoying the Victorian grandeur of the coastal towns of southern England, in particular near Brighton where my brother-in-law recently purchased his first home. He's been expressing nervousness about the new experience of having a mortgage. While chatting during the evening I've tried to soothe his mind with a version of this, I admit, slightly left-field argument. It seemed to help him and I thought I'd share my thoughts.
When my wife Suzie retired in June last year, she was adamant that we pay off our mortgage immediately. I was not in agreement with this idea, as our rate was only 1.35% and there would definitely be a large opportunity cost in doing so. But, as we know, a wife can be very persuasive, and the mortgage was duly repaid, luckily with no early redemption fees.
The oddest thing happened afterwards. I found myself surprised to feel a great sense of relief being mortgage-free, even though carrying the extremely low-rate debt hadn't bothered me at the time. My friends were quite envious of my good fortune, and I admit, I took great satisfaction in reminding them about it, continually. I can only assume this speaks volumes about the psychology of money. It seems making a poor investment choice brought peace of mind.
But I didn't tell my brother-in-law this during our chat, I wove another reality that paradoxically is just as true…We generally see a mortgage as a monthly burden, a necessary evil. It's essentially a financial instrument that allows us to bring future income into the present so we can enjoy homeownership right now.
However, it's worth balancing this common perspective by looking at the positives of a mortgage. For one, your mortgage can be seen as an enforced savings vehicle. Unlike voluntary savings, mortgage payments are a non-negotiable expense. This makes us allocate a portion of our income towards building an asset.
A large part of your mortgage payment goes towards paying down the principal. Over time, as this principal balance decreases, you build equity in your property. This equity is, in essence, accumulated wealth that can be accessed later through a home equity loan or the sale of the property. Myself for instance used the equity as a springboard to initially finance my business. We might even be lucky enough to see the value of our home increase over the term of our mortgage, turning it into a savings account that also exhibits some of the characteristics of an equity return.
Our mortgage allows us to enjoy the benefits of homeownership at an earlier stage than if we had to save the full amount. Can you imagine the difficulty of also paying rent while trying to save for a home? For many, this would be an incredibly hard ask. While we are undoubtedly taking on a large and scaringly daunting debt, keeping our future selves chained to the grindstone, the current and future benefits of homeownership—both personal and financial—make it a truly valuable product deserving of our praise.
So, the next time your mortgage payment comes due, consider yourself a bit of a financial whiz-kid for pulling off such a strategic investment in your future, and a genuine reason to be proud of your savvy financial ability.
Although, for the sake of my counter-narrative on mortgages, I've highlighted the positives, it would be wrong of me not to highlight the risks, like interest rate risk. At one point, in the early 90’s, I was paying north of 13%. The possibility of foreclosure, due to unforeseen illness or unemployment, is another area to consider. But I believe the many positives far outweigh the risks and my brother-in-law along with many others will be best served by this often disliked financial product.
When I think about it, this little thought experiment with mortgages reveals how easily financial products can be reframed and given a positive spin. It's a useful perspective to keep in mind the next time a brochure from an asset management firm lands in your mailbox, trumpeting the latest financial 'must-have'. On this occasion the reframing was to help my brother-in-law but the technique could have a darker use.
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August 18, 2025
Using AI to enhance “independent living”
To see the questions and answers, click on either link below. They are both the same. The words in purple are the prompts or questions.
Scroll to read the AI response. Sign up for POE only if you want to ask questions directly. Alternatively, you can ask a question or comment by replying, and I can continue the AI conversation for you. Do not provide any personal information in your reply.
Poe-Ai
or
https://poe.com/s/1i2Fhiwu6eKgOsTq1Eho
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Knowing Thyself and Investing: Talkin’ Stocks
If you don’t know who you are,
this is an expensive place to find out.
Adam Smith, The Money Game
If you can’t control your emotions,
being in the market is like walking
into a heated area wearing a backpack
full of explosives.
Charles D. Ellis, Winning the Loser’s Game
Valencia Can’t Chill Out
This whole stock market thing is worse than a scam. My mom lost half her money in Apple stock a long time ago (note: Apple lost over 50% in 2008). If it happened to Apple it could happen to anything. She says the stock market is just a casino for rich people. I’m getting the heebie-jeebies just talking about it.
Steve’s response:
Believe me, I know what you mean. Even after sixty years of stock investing, I still get anxious when I hit the “buy” button. Not to get a little antsy when putting your money at risk is a fool’s paradise. Just imagine the fate of people who got slammed by the tech stock collapse of 2001, the mortgage default debacle of 2008 or the 2022 beating brought on by the aftermath of the COVID pandemic. But if they hunkered down and persevered through those bear markets, they enjoyed the monstrous recoveries.
Take your mom’s disastrous experience. But in 2009, just one year later, Apple soared 132%! That’s the Achilles heel of short-term investing, when the market is a roulette wheel and nothing more than a game of chance. Since the market tends to ratchet higher over time, consistent profits are more likely the longer you stay invested. Time in the market is much more important than timing the market. Much research has shown that the investor who stays the course is likely to earn a profit over 80% of the time in ten years and 90% in twenty.
Michael’s No Quant, That’s For Sure
Okay, I get that. But I’m not a math whiz. Numbers are my biggest fault. And I get confused by all those graphs. The squiggles that run across the page look like my dad’s cardiogram. I got a C on my math midterm, but my parents want me to bring it up to a B on the final and the course. I just don’t know. The last thing I need to deal with now is the stock market.
Steve’s response:
I hear you Michael. And yes, math jocks often do have a leg up on the market, but not always. To be sure, the popular quantitative approach might evaluate the desirability of a stock by looking at the ratio of its market price to the company’s earnings. Fundamentalists tend to examine a stock from the “bottom up,” focusing on what the price of the stock should be based on a consideration of statistical measures of the company’s financial health and earnings potential. Technical analysis, on the other hand, uses features of the trend of a stock’s recent price to predict its performance. You might say that analysts who practice the fundamental method give you the “what” to invest in, whereas market technicians tell you the “when” to do it.
A more qualitative perspective, which entails less math, is more likely to take in the whole picture, like the strength of the economy or the financial well-being of the consumer. Qualitative thinkers might anticipate the fallout from the proliferation of artificial intelligence, like the displacement of writers and artists. The qualitative investor may also try to anticipate the possible influence of emerging demographic trends on stock prices, such as the impact of the aging world population on the earnings of pharmaceutical companies. Even more, the qualitative approach ushered in the era of healthy lifestyles and sustainable products.
Farah Fears She’s Missing Out
My mom bought some stocks one-by-one and they bounced around and drove her crazy. She knew about investing in stock funds but warned me they go up slow. If I’m putting in the time, I don’t want to wait forever to see results. I know crypto will get me some action, but my dad says it’s a crapshoot. He calls me the world’s greatest FOMO, a girl who always fears she’s missing out.
Steve’s response:
Playing the market can be challenging and fun, but in the short-run, it’s akin to gambling. Investing for the long-term to meet financial goals like paying for postgraduate study is a serious business. Done with knowledge and patience, you will usually make at least twice of what you could make in a safer but far less rewarding savings account. It may be too late to start investing for college now, but what about your retirement? Will it be Madrid or a part-time job?
Isaiah Works Off the Money Blues
Where am I supposed to get all of this money to invest? My mom is a bank teller and my dad is a bus driver. They are able to see me through a state school, but with two college-bound sisters I would be on my own after graduating. I’m a barista at Temple Coffee every Sunday and looking forward to upgrading my ski equipment. Count me in for working part-time in college because I have big plans for my retirement. I want a chalet in the Swiss Alps and the chance to ski the world’s most challenging slopes. But Uncle Al says you need money to make money and right now I don’t have any.
Steve’s response:
Isaiah, you should be commended for your enterprising spirit. But wow, those are some awesome and expensive plans. In truth, you don’t need s lot of money to make money for your retirement. Almost 18, you definitely have time on your side. You can start with a very small initial investment (like $100) and then a whole lot of diligence and frugality. By that I mean a commitment to save and invest methodically and a willingness to forego some of our society’s temptations like a fashionable wardrobe for freshman year.
Here’s how the game plan would go. Skim $100 from your wages at Temple and plunk it into a stock fund. Then, systematically make monthly contributions of $60 to your account until you reach the consensual retirement age of 65. Assuming stocks continue to grow at the same 10.5% annual rate they have maintained over the last one-hundred years, you will have built a tidy nest egg of one million dollars. Careful down those slopes, Isaiah.. Could be a rich man someday.
Must Lisa Compromise Her Personal Values to Invest?
Hold on. I feel I’m being forced into something I’m not interested in, not interested at all. Painting and playing piano are my thing. I read a lot about them, go to every concert I can afford and visit art exhibits. What’s with this focus on money, anyway? My parents have taught me not to let it become too important and dominate my life. Money can’t make you happy. And where would room be for spirituality? My religion has taught me to live a balanced life of family, friends and meaningful work. I don’t really see a place for money in that. Count me out.
Steve’s response:
So glad someone brought up spirituality before we have to close. Making money need not and should not banish spirituality from your life. This is a sensitive and complicated topic because the various religions teach different views about making money.
I have found it helpful to think of investing in this way. For sure, money can’t make you happy by itself. But devoting a bit of time to plan for your family’s financial future may ultimately allow you more freedom to enjoy favorite activities and passions as an adult. Lisa, given your interests, having a modest stash might enable a season’s ticket to a local concert hall or even a visit to Europe’s fabled art museums when you retire.
A Final Thought
All of us have to make peace with the role of investing in our lives. Setting your moral compass for making money will be a foremost task of your young adulthood.
Thanks for joining me.
The post Knowing Thyself and Investing: Talkin’ Stocks appeared first on HumbleDollar.
Knowing Thyself and Investing: Talkin’ Stocks by Steve Abramowitz
Readers’ responses to an earlier post on volunteering to teach a module on investing in index funds and ETFs to high school students electing to take a new personal finance course were very helpful (and brutally honest!), Consistent with those suggestions, the “text” will be Bogle’s deceptively simple, The Little Book of Common Sense Investing. Evans and Malkiel’s The Index Fund Solution: A Step-By-Step Investor’s Guide is the workbook. What follows will probably be the first overnight reading assignment aimed at defusing some of the reservations teenagers night have about investing in the market.
If you don’t know who you are,
this is an expensive place to find out.
Adam Smith, The Money Game
If you can’t control your emotions,
being in the market is like walking
into a heated area wearing a backpack
full of explosives.
Charles D. Ellis, Winning the Loser’s Game
Valencia Can’t Chill Out
This whole stock market thing is worse than a scam. My mom lost half her money in Apple stock a long time ago (note: Apple lost over 50% in 2008). If it happened to Apple it could happen to anything. She says the stock market is just a casino for rich people. I’m getting the heebie-jeebies just talking about it.
Steve’s response:
Believe me, I know what you mean. Even after sixty years of stock investing, I still get anxious when I hit the “buy” button. Not to get a little antsy when putting your money at risk is a fool’s paradise. Just imagine the fate of people who got slammed by the tech stock collapse of 2001, the mortgage default debacle of 2008 or the 2022 beating brought on by the aftermath of the COVID pandemic. But if they hunkered down and persevered through those bear markets, they enjoyed the monstrous recoveries.
Take your mom’s disastrous experience. But in 2009, just one year later, Apple soared 132%! That’s the Achilles heel of short-term investing, when the market is a roulette wheel and nothing more than a game of chance. Since the market tends to ratchet higher over time, consistent profits are more likely the longer you stay invested. Time in the market is much more important than timing the market. Much research has shown that the investor who stays the course is likely to earn a profit over 80% of the time in ten years and 90% in twenty.
Michael’s No Quant, That’s For Sure
Okay, I get that. But I’m not a math whiz. Numbers are my biggest fault. And I get confused by all those graphs. The squiggles that run across the page look like my dad’s cardiogram. I got a C on my math midterm, but my parents want me to bring it up to a B on the final and the course. I just don’t know. The last thing I need to deal with now is the stock market.
Steve’s response:
I hear you Michael. And yes, math jocks often do have a leg up on the market, but not always. To be sure, the popular quantitative approach might evaluate the desirability of a stock by looking at the ratio of its market price to the company’s earnings. Fundamentalists tend to examine a stock from the “bottom up,” focusing on what the price of the stock should be based on a consideration of statistical measures of the company’s financial health and earnings potential. Technical analysis, on the other hand, uses features of the trend of a stock’s recent price to predict its performance. You might say that analysts who practice the fundamental method give you the “what” to invest in, whereas market technicians tell you the “when” to do it.
A more qualitative perspective, which entails less math, is more likely to take in the whole picture, like the strength of the economy or the financial well-being of the consumer. Qualitative thinkers might anticipate the fallout from the proliferation of artificial intelligence, like the displacement of writers and artists. The qualitative investor may also try to anticipate the possible influence of emerging demographic trends on stock prices, such as the impact of the aging world population on the earnings of pharmaceutical companies. Even more, the qualitative approach ushered in the era of healthy lifestyles and sustainable products.
Farah Fears She’s Missing Out
My mom bought some stocks one-by-one and they bounced around and drove her crazy. She knew about investing in stock funds but warned me they go up slow. If I’m putting in the time, I don’t want to wait forever to see results. I know crypto will get me some action, but my dad says it’s a crapshoot. He calls me the world’s greatest FOMO, a girl who always fears she’s missing out.
Steve’s response:
Playing the market can be challenging and fun, but in the short-run, it’s akin to gambling. Investing for the long-term to meet financial goals like paying for postgraduate study is a serious business. Done with knowledge and patience, you will usually make at least twice of what you could make in a safer but far less rewarding savings account. It may be too late to start investing for college now, but what about your retirement? Will it be Madrid or a part-time job?
Isaiah Works Off the Money Blues
Where am I supposed to get all of this money to invest? My mom is a bank teller and my dad is a bus driver. They are able to see me through a state school, but with two college-bound sisters I would be on my own after graduating. I’m a barista at Temple Coffee every Sunday and looking forward to upgrading my ski equipment. Count me in for working part-time in college because I have big plans for my retirement. I want a chalet in the Swiss Alps and the chance to ski the world’s most challenging slopes. But Uncle Al says you need money to make money and right now I don’t have any.
Steve’s response:
Isaiah, you should be commended for your enterprising spirit. But wow, those are some awesome and expensive plans. In truth, you don’t need s lot of money to make money for your retirement. Almost 18, you definitely have time on your side. You can start with a very small initial investment (like $100) and then a whole lot of diligence and frugality. By that I mean a commitment to save and invest methodically and a willingness to forego some of our society’s temptations like a fashionable wardrobe for freshman year.
Here’s how the game plan would go. Skim $100 from your wages at Temple and plunk it into a stock fund. Then, systematically make monthly contributions of $60 to your account until you reach the consensual retirement age of 65. Assuming stocks continue to grow at the same 10.5% annual rate they have maintained over the last one-hundred years, you will have built a tidy nest egg of one million dollars. Careful down those slopes, Isaiah.. Could be a rich man someday.
Must Lisa Compromise Her Personal Values to Invest?
Hold on. I feel I’m being forced into something I’m not interested in, not interested at all. Painting and playing piano are my thing. I read a lot about them, go to every concert I can afford and visit art exhibits. What’s with this focus on money, anyway? My parents have taught me not to let it become too important and dominate my life. Money can’t make you happy. And where would room be for spirituality? My religion has taught me to live a balanced life of family, friends and meaningful work. I don’t really see a place for money in that. Count me out.
Steve’s response:
So glad someone brought up spirituality before we have to close. Making money need not and should not banish spirituality from your life. This is a sensitive and complicated topic because the various religions teach different views about making money.
I have found it helpful to think of investing in this way. For sure, money can’t make you happy by itself. But devoting a bit of time to plan for your family’s financial future may ultimately allow you more freedom to enjoy favorite activities and passions as an adult. Lisa, given your interests, having a modest stash might enable a season’s ticket to a local concert hall or even a visit to Europe’s fabled art museums when you retire.
A Final Thought
All of us have to make peace with the role of investing in our lives. Setting your moral compass for making money will be a foremost task of your young adulthood.
Thanks for joining me.
The post Knowing Thyself and Investing: Talkin’ Stocks by Steve Abramowitz appeared first on HumbleDollar.
Frugality for fun and profit… but please, not necessity
On occasion I have claimed to be frugal. But after a bit of research, I’m not sure that is always true. For sure we have avoided debt except a mortgage. Our last car loan was thirty years ago and we never had credit card debt, but beyond that my claim of frugality slips a bit. I think we may just be prudent.
When I read a comment about being frugal as part of living in retirement, my tendency is to assume that’s a necessity to make retirement work. That may not be true at all. Some people live frugally because that is their lifestyle before and after retirement.
But are we on the same page defining frugality?
From ChatGPT: Frugal means living within your means and stretching your money without sacrificing your quality of life.
From Grok: Being frugal means living economically by prioritizing value, minimizing waste, and making thoughtful financial choices. It involves spending intentionally—focusing on necessities and long-term benefits over impulsive or excessive purchases. Frugal people often seek deals, budget carefully, save diligently, and avoid unnecessary debt.
From Gemini: Being frugal is about making careful, thoughtful, and intentional choices with your resources—primarily money, but also time and energy—in order to achieve a long-term goal. It's a mindset that prioritizes value and purpose over excessive consumption and waste.
It appears considerable thought and effort must go into most spending decisions along with personal habits. Is that correct, is it always fun or desirable?
Below are examples of frugality. I have indicated which of these I think I can claim. As you can see, I am conflicted. Some yes 👍, some never👎, a few maybe at times 👍👎.
Cooking at home instead of eating out frequently. 👍👎Buying used items (clothes, furniture, cars) instead of always purchasing new. 👎Repairing things (shoes, appliances, clothing) rather than replacing them right away.👎Using coupons, discounts, or sales to save on groceries and necessities.👍👎Cutting unnecessary subscriptions (streaming, gym memberships).👍👎Using public transportation, biking, or carpooling instead of always driving. 👎Energy conservation—turning off lights, lowering the thermostat, or air-drying clothes.👎Buying in bulk for items you use regularly (rice, beans, cleaning supplies). 👎Packing your lunch for work or school instead of buying every day. 👎Delaying gratification—waiting before making a big purchase to see if it’s truly needed. 👍👎Borrowing or sharing items (like tools or books) rather than buying your own. 👎Avoiding brand-name goods when a generic version is just as good. 👎I’m surprised DIY as opposed to hiring someone is not on the list. For me avoiding DIY is a matter of survival - definitely 👎
Honestly, the older I get the less frugal I have become. I just don’t care as much. We still live within our means - meaning our pension and social security income which is a natural constraint on spending. My goal is still to maximize the legacy for our children through minimize use of investments. Although we will do so if necessary.
I don’t advocate living any of the adjectives opposite frugal (lavish, spend thrift), but hopefully frugal living is a life choice - and fun, not a necessity.
Gotta go, on our way out to dinner without a coupon, driving my “newer” car, but wearing eight year old shoes.
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Why Money is Taking Up More Space in My Mind Lately
Recently, I came across an article from The USA Today that hit close to home for me. It reveals that many Americans are now spending nearly four hours a day thinking about money. Some of their concerns are bills, inflation, and housing costs. Although I have different financial concerns, I find myself thinking more about money, too.
What kind of money issues are on my mind? Here are three that keep coming up:
1. Should we be doing more to help my stepson?
I’ve mostly tried to stay in my lane when it comes to finances and my stepson. My wife raised him, and she’s done an amazing job. I’ve never raised a kid myself, so I figure she knows best. He’s got a good job, he’s responsible, hardworking, and completely self-sufficient. He’s never asked us for money, but sometimes I wonder if we could do a little more to make things easier for him.
The only time I really spoke up was around Christmas. We gave the neighbor's sons the same amount of money we gave him, and that just didn’t feel right to me. We ended up giving him more, which I think was the right call.
I think my wife’s take is that he’s doing fine, so there’s no need to mess with that. And honestly, she’s probably right. He’s independent—just like she is—and even if we offered help, he might not take it. But still, I’d like to try. We live comfortably, and if we can make his life a little easier, why not? At the end of the day, though, I trust her judgment. She knows him best.
That question—about offering help when it's not strictly needed—has me thinking more about Rachel and me. What about when we’re the ones who might need help down the road? That brings me to our next financial conundrum: should we move into a Continuing Care Retirement Community (CCRC) while we’re still healthy, or wait until assistance becomes a necessity?
2. Weighing the CCRC option while we’re still independent.
Lately, I’ve been thinking more seriously about whether we should move to a CCRC. But realistically, I’m starting to accept that it’s unlikely to happen.
We love our home and our life, and as long as we can live independently, we’re not eager to give that up. But I also know that waiting too long could close that door—some communities have strict medical screenings, and we may not qualify if we wait until we need assistance. Not to mention the long wait times at some CCRCs.
Even if we were accepted, the financial picture doesn’t really add up. We’d probably only qualify for a Type C, or fee-for-service, contract. That means no guaranteed lifetime care. Entrance fees may be lower, but monthly fees are high, and we’d paying full market rates for assisted living, memory care, or nursing care.
If and when we do need help, it might make more sense to move to a community that offers care without requiring an upfront fee. Yes, we'd still pay market rates, but we’d be doing that anyway at a CCRC. And if we need extra support navigating the healthcare system, we could always hire a healthcare advocate.
For now, we’re choosing to stay where we are. But the question of future care is one we’ll keep revisiting.
3. What's going on in the stock market?
I’ve been thinking about the stock market more often this year, which is unusual for me. The uncertainty surrounding the tariffs hasn’t kept the market from reaching new highs this year. Our savings have been flirting with a personal best.
We have some extra cash from my required minimum distribution that I was thinking about putting into the stock market. But is that a smart move given how high valuations are right now? It seems like everyone’s buying stocks—corporations are spending billions on buybacks, and workers of all ages are putting a record portion of their 401(k)s into stocks. More and more people are buying the dips these days.
But you have to wonder: would people be this enthusiastic if we were coming out of a 10-year bear market? It seems like people prefer buying at record highs rather than when stocks are actually on sale. Maybe because it feels safer when the crowd is buying. So far, it’s worked out. But that doesn’t mean it always will.
Money might not be the only thing on my mind these days, but it’s definitely taken up more space than it used to. Maybe that’s just part of getting older—the world feels a little more uncertain and a little more expensive. That’s why the USA Today article resonated with me. It reminded me that I’m not the only one thinking about these things.
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