Does F.I.R.E. Prevent Divorces?
.Does F.I.R.E. Prevent Divorces?
By FIRECracker April 26, 2021
The F.I.R.E. movement, which stands for Financial Independence, Retire Early.
In my last post about not losing yourself in retirement, reader Steve posted an interesting question in the comments:
“Any thoughts on the FIRE couples that get divorced? One would think that not having money issues (the #1 stressor for married people) and achieving a monumental goal together would strengthen that bond, but apparently there is more to it.” –Steve
This got me thinking. If money, which is the #1 reason why couples break up, is no longer an issue, why are FIRE couples still getting divorced?
Now, I’m no relationship expert and this is me taking a wild stab at it, so feel free to take it with a grain of salt. Having seen some friends and family get divorced for reasons other than money, I’ve noticed that marital problems don’t just drop on a couple by surprise and then explode their marriage like a grenade. Instead, they pile on gradually like a gentle snowfall. And because it sneaks up on you, you don’t realize until it’s too late that you’re trapped in a blizzard, praying you won’t die a horrible frostbitten death.
7 Common Money Arguments in Marriage
.7 Common Money Arguments in Marriage — And How to Tackle Them Together
By Jeremy Brown Apr 20 2021, 5:31 PM
From misaligned financial visions to lack of follow through on previously set financial goals, these money arguments are very common.
Arguments about money are about more than money. In every heated discussion about overspending, mismanagement, bills being ignored, issues of envy, guilt, shame, fear loom large. Financial therapists and counsellors understand this, which is why, in addition to helping with brass taxes financial decisions, they also look at the emotions behind money arguments. This better helps individuals and couples gain a better sense of the complex mechanisms at work so they can make better decisions and have fewer arguments.
“For many people, the thought of entering financial coaching or money counseling means something is or has gone wrong,” says AJ Bishop, Chief Executive Officer and the Founder of My Wealth Conscious Coach. “Sure, they understand and know they have a disconnect around money, but it’s not an unworkable topic.
3 Important Lessons I Learned from Collecting Baseball Cards
.3 Important Lessons I Learned from Collecting Baseball Cards
MAY 10, 2021
A few weeks ago my dad asked me to list a few baseball cards on eBay. The cards were 2001 rookie cards of Ichiro Suzuki and Albert Pujols. To my surprise, each card sold for several hundred dollars really fast. Listing those cards brought back old memories of collecting baseball cards as a kid. This post goes over three important life lessons I’ve taken into adulthood from my time collecting baseball cards.
My Saturday nights as a pre-teen were often spent swapping baseball cards with friends. My best friend lived three houses up the street and was my main trading partner. We’d often have sleep-overs filled with wrestling videos, video games, and an all-out baseball card exchange.
Yes, I was (and still am) a huge nerd.
Sleeping with Cash
.Sleeping with Cash
Andrew Forsythe May 6, 2021
HERE AT HUMBLEDOLLAR and in many other places, this point has been made: The best investment portfolio isn’t the one that’s theoretically or empirically superior. Rather, it’s the one that lets you sleep at night. What I’ve found, as far as my portfolio goes, is that the necessary prerequisite for a good night’s sleep is one thing above all else: an oversized cash reserve. By that, I mean a cash hoard that can handle not only the most likely contingencies, but also unexpected ones—and then some.
I typically keep enough cash to finance our normal expenditures for at least six years. In fact, with the current bubbly stock market, I’m above that level. To back that up, I also have a decent allocation to bond funds, consisting mostly of an intermediate-term municipal fund in a taxable account and total bond market index funds in retirement accounts.
Three Reasons Why Inflation Is Rising. Two Of Them Aren’t Going Away
.Three Reasons Why Inflation Is Rising. Two Of Them Aren’t Going Away
Notes From the Field By Simon Black May 5, 2021 Cancun, Mexico
A remarkable thing happened yesterday that tells you everything you need to know about inflation. In the morning, US Treasury Secretary Janet Yellen stated bluntly that “interest rates will have to rise somewhat to make sure that our economy doesn’t overheat. . .”
For economists, an ‘overheating economy’ means inflation. So she was essentially saying that rates would have to rise to prevent inflation. Yet hours later, she completely reversed herself, saying that interest rates would NOT have to rise because “I don’t think there’s going to be an inflationary problem.”
Why Financial Strain Is So Harmful to Your Health
.Why Financial Strain Is So Harmful to Your Health
A conversation with Dr. Michael Stein on the toll simply not having enough money takes on your body.
BY DREW MILLARD March 29, 2021
A 100 bill's face is covered with a mask as a doctor would wear. Anton Petrus
In an address to the nation earlier this month, President Joe Biden marked the one-year anniversary of the coronavirus pandemic by announcing that all American adults would be eligible for the COVID vaccine by May 1. If we all get vaccinated, he said, “there’s a good chance you, your families, and friends will be able to get together” on the Fourth of July “and have a cookout.” The implication was that we will finally have passed the apex of the virus, and that, slowly but surely, things will once again begin to feel normal again.
Except that’s not how things work, really. We have spent the past year in the throes of a public health crisis which quickly brought with it an economic one to match. Nearly a year after the initial shock of 22 million Americans losing their jobs at the onset of the pandemic, 18.7 million people are still filing for unemployment. This is to say nothing of those who have been without a job for so long that they are no longer technically counted as members of the workforce. While plenty of people are going to emerge from the pandemic in better financial shape than ever, many others have felt the sting of financial precarity in ways that affect their ability to pay for their housing or food. We will be dealing with the economic consequences of the pandemic for years.
The 7 Money Personality Types
.The7 Money Personality Types, says psychology expert—how to tell which one you are (and the pitfalls of each)
Published Wed, Apr 28 2021 12:51 PM EDT Ken Honda, Contributor
We often stress about the importance of financial literacy, such as gaining a strong understanding of how money works and having the resources to make informed decisions. But when it comes to establishing financial health, one thing most people fail to consider is their money personality type — or their approach and emotional responses to money.
We each have our own beliefs and emotions about money, and they are mostly shaped by our individual life experiences (e.g., passed down from our parents or influenced by our current situations).
In my 10-plus years of researching the psychology of money and happiness, I’ve found that there are seven distinct money personality types. Typically, we fall into a combination of many types, and not just one.
Don’t Ever Give Up: Surviving 10 Years Of Prison
.Don’t Ever Give Up: Surviving 10 Years Of Prison
Updated: 12/04/2019 by Financial Samurai
When I was in high school, I got in a lot of trouble. As a result, I often wondered if anybody would ever give me a chance at life. Because I ended up receiving multiple chances despite my screw ups, I’ve learned to be more thankful and not take things for granted. I also developed an affinity for people who also had a rough time growing up, but found a way to make things work.
The following is a guest post from Bill, a man who spent 10 years in prison before getting on the path to financial freedom. Hopefully his post will give you the motivation to stick with things when times are tough and not lose faith that everything will turn out OK in the end.
Be Prepared For The Next Black Swan
.Be Prepared For The Next Black Swan
By Larry Swedroe
“Measures of uncertainty that are based on the bell curve simply disregard the possibility, and the impact, of sharp jumps… Using them is like focusing on the grass and missing out on the (gigantic) trees. Although unpredictable large deviations are rare, they cannot be dismissed as outliers because, cumulatively, their impact is so dramatic.”
— Nassim Taleb, The Black Swan: The Impact of the Highly Improbable
Over the course of the first two decades of the 21st century, equity markets faced three “black swan” events: the attacks of September 11, 2001, the Global Financial Crisis that began in late 2007 and the COVID-19 pandemic. Each resulted in steep falls in equity prices. The term “black swan” was a common expression in 16th-century London that described impossibility. It derived from the old-world presumption that all swans must be white—because all historical records of swans reported that they had white feathers.
Thus, a black swan was something that was impossible, or nearly impossible, and could not exist. After the discovery of black swans in Western Australia in 1697 by a Dutch expedition led by explorer Willem de Vlamingh on the Swan River, the term metamorphosed to connote that a perceived impossibility may later be found to exist.
How People Get Rich Now
.How People Get Rich Now
April 2021
Every year since 1982, Forbes magazine has published a list of the richest Americans. If we compare the 100 richest people in 1982 to the 100 richest in 2020, we notice some big differences. In 1982 the most common source of wealth was inheritance. Of the 100 richest people, 60 inherited from an ancestor. There were 10 du Pont heirs alone. By 2020 the number of heirs had been cut in half, accounting for only 27 of the biggest 100 fortunes.
Why would the percentage of heirs decrease? Not because inheritance taxes increased. In fact, they decreased significantly during this period. The reason the percentage of heirs has decreased is not that fewer people are inheriting great fortunes, but that more people are making them.
How are people making these new fortunes? Roughly 3/4 by starting companies and 1/4 by investing. Of the 73 new fortunes in 2020, 56 derive from founders' or early employees' equity (52 founders, 2 early employees, and 2 wives of founders), and 17 from managing investment funds.
Feel Better
.Feel Better
Jonathan Clements Humble Dollar| April 10, 2021
WARREN BUFFETT doesn’t have the best investment record over the past three decades. That accolade apparently belongs to Jim Simons. Buffett also isn’t the world’s richest person. In fact, he hasn’t held that title for the past dozen years and currently ranks No. 6, with barely half the wealth of today’s richest person, Jeff Bezos. I doubt Buffett feels bad about this. Is your surname neither Simons nor Bezos? I don’t think you should feel bad, either.
Money can be maddening—if we let it. There will almost always be some parts of our portfolio whose performance disappoints. There will always be some folks who are wealthier. But whether it’s our investment performance or our overall net worth, we shouldn’t let ourselves be bothered by our relative standing. Why not? Here are five reasons.