[This piece was written some time ago. Publication was held until after the trial concluded.]
I began this week with a fear of the unknown. I am going to trial for the first time in my career. The weird part is that it is for the legacy of a career I’d already left behind.
Nearly three years ago, I made the leap of faith from a clinical role to an administrative position to fulfill a dream I’d held of working in population health.
I’ve had the opportunity to work with and learn from people I respect and admire. It’s been a (mostly) fascinating and somewhat surreal experience: I have a seat at the table where I previously might not have been offered a position as a waiter.
So it’s a strange irony that years after leaving a career in emergency medicine behind, I have a case going to trial.
My only prior experience was a stressful case that was ultimately dismissed with the legal language equivalent of, “We dismiss all charges provided you don’t countersue us for filing a frivolous lawsuit.”
That long-ago case was extremely depleting. I had a toddler, my wife was pregnant with our second child, and we’d put in a bid on a home. The bank almost denied us a loan because it considered the lawsuit an uncertain risk. It was only after intercession by my attorney (to whom I feel eternal gratitude) that the loan was offered and we closed on the house.
It was an awful feeling to think that the vulnerable, often down on their luck folks in the ER I’d dedicated my life to assisting could turn on me in an instant. For a solid year after that experience, every patient I saw felt like a land mine just waiting to blow up in my face. I practiced a medicine that leaned more defensive. I charted excessively, thinking it my documentation might serve as legal armor in the future. Eventually my practice and outlook returned to normal and my paranoia faded.
I enjoyed a stable period where my practice of medicine was more rewarding than depleting, I extended my runway by cutting back my clinical workload, and I felt more present for those I cared about on a day to day basis. Until this case appeared.
Without getting into specifics, this case is the worst of my emergency medicine nightmares become reality, summarized as young person + bad outcome. All the fears I’ve felt at one point or another during a two decade career in medicine have converged in a perfect storm.
I’ve gone through the Kubler-Ross stages of anger, denial, bargaining and (a protracted state of) depression to arrive at acceptance. It took about a year and a half to get throguh those other stages. Arriving at acceptance before the trial has given me a clarity of purpose that the other stages denied me from seeing.
We gave great care to this patient. My goal is to convey to the jury how, amidst the uncertainty and chaos of the ER, we consider risk factors, clinical presentation and physical exam findings in their totality, and apply our knowledge of the prevalence of disease and judgment to arrive at the most likely diagnosis.
When you do that ethically and well, you do right by your patients.
Even for bright, thoughtful and reliable people, some diagnoses and presentations are going to be so rare or so outlandishly unusual that reasonable, experienced clinicians applying the best clinical judgment will not catch every case.
I have a clear mental picture of what I want to paint for the jury. This is what it is to be an emergency physician caring for someone during a period of uncertainty. This is what it is to try to separate signal from noise. This is what it is to go the extra mile for a patient.
This is why, if given the choice, you would want someone like me on the front line to care for you or your loved one.
It’s an extremely weighty and fraught task to take on.
And despite the tremendous burden of having this trial held over me for years, like a sword of Damocles, I am resolute in wanting to make my case to those who will judge me.
What is Retirement: Origins and Limits Of the Traditional Concept
As most people understand, retirement has long represented a post-work period in life where a person ceases working and settles into a quieter pace. For many people, retirement is a dream of as much as several decades of hard work followed by an idealistic period around age 65 of travel, family, and hobbies. This view of retirement definitely reflects the structures instituted in history, especially in the mid-20th century when Social Security emerged in the United States and other parts of the world.
This model was, to a great extent, determined by life expectancy and economic factors of the time. Lives were shorter, so 65 proved a realistic endpoint for active employment. The retirement age, with industrialization, became an indicator of economic independence, and retirement with financial security ensured by government and employer pensions allowed employees to step aside from full-time employment without financial instability. Yet, this model is becoming less relevant. Today’s retirees, thanks to increased life expectancy, may well live into their 90s, creating a retirement that could last nearly 30 years or more. With healthier lifestyles, medical advances, and changing economic conditions, we are living longer and, in many cases, are capable of longer, too. Despite these shifts, many cling to traditional ideas about retirement. But is “work until you’re 65 and then stop” a concept still serving us? Is it not just a hangover from an era when that was quite literally all most people could expect – lower life expectancy and lifestyles using up people more quickly? Traditions are comforting but clearly less applicable in the rapidly changing world of today with far more fluid concepts of work and life.
Maybe by clinging to the old model of retirement, we deny ourselves the prospect of a fuller, more energetic second phase of life. The more we perceive retirement as a next step rather than an end, the richer this stage of life can be.
Why We Should Rethink Our Retirement Plans
Rethinking retirement allows us to become more mentally, emotionally, and physically engaged in life and thus raises our quality of life. For many people, “retirement” could well be that period when long-cherished dreams and ideas finally find realisation, allowing self-discovery and instilling a sense of purpose. This open opportunity for ourselves to have greater control and freedom over how we live later in life. Research has shown that as people age, staying mentally active, socially connected, and purposeful greatly affects health and length of life. Merely to expect retirement to be a time of stagnation and rest inadvertently propels feelings of boredom, loneliness, and sometimes depression. In fact, many find their identity, purpose, and fulfilment in their work or just being useful in some fashion.
Whether to retire should not be the question; rather, how to design retirement for a future in which longer, healthier lives will demand richer, more engaging experiences. It may be just this: a more personalised, flexible approach to retirement which opens the door to a happier, more enriching life, one in which the ongoing changes keep us growing and adapting well beyond the conventional limits.
Five New Ways to Reinvent Your Retirement Plans
Reinventing retirement can be a journey of unlimited possibilities-rewardingly so. Following are five ways to make it truly unique and fulfilling:
Consider a Phased Retirement: Instead of an abrupt halt in work, it is actually a gradual transition into retirement. The concept of phased retirees is one in which the number of working hours is gradually reduced over time to work one’s way through emotional and financial changes. Working less intensely, you can devote more time to hobbies, volunteering, or family, and the change will increasingly seem organic and balanced.
Professionalize a Passion Project or Hobby: For many, retirement is being retired long enough to finally do what you really want to do. Take any hobby or skill and consider ways you could make it at least a small business or consultancy. Not only will it provide income and satisfaction, but it also keeps you active and learning something new.
Stay Active by Learning: Many retirees readjust and find satisfaction in returning to school or learning new skills. Learning through formal programs, workshops, or online courses opens new venues and ideas. Many universities offer reduced tuition or even free courses for senior learners.
The novelty – seeing new things or mastering new, unfamiliar skills-mimics, mental sharpness and embeds creativity. You will be joining a community of learners with similar ideas – open friendships and support networks that guarantee more richness in retired years.
Mentor or Volunteer: Giving something back can be a very rewarding method of applying one’s talents and experience. Many organisations need volunteers or mentors who have professional experience. Therefore, this is a very good chance to make a real contribution, not by cutting social ties and/or activities. For instance, giving mentorship to young professionals can allow you to feel deeply purposeful and positively touch people’s lives. In the same vein, community volunteering at such an age keeps your perspective fresh and makes your insight into the world much richer and wiser because of contact with different generations of people.
Travel with a Purpose: For lovers of travel, one can extend tours or vacationing by including community service or immersion into cultures. This will make travel much more enriching and purposeful; allow yourself to contribute to communities all over the world, see the wonders of newer places, and enjoy yourself in due course.
By redefining what retirement can be, we empower ourselves with greater intention, joy, and curiosity in living. Reinventing retirement invites a sense of freedom and novelty that assures this phase of life will be vibrant, continuing what thus far has defined it.
Early Retirement and How to Make It Work for You
For those who do want a normal retirement, another option: early retirement. If correctly planned, one can enter into a comfortable retirement year before the age of 65. This is more often than not an urge towards financial independence and an existence that is more purposeful. Early retirement might just provide you with time for what really matters in your life, whether that is time for relationships, personal growth, or creativity.
Prioritise Financial Independence: Aggressive saving or wise investment forms the bedrock of early retirement, more often than not translating to being debt-free and holding substantial flows of assets to finance living independent of a traditional income. Smart investment decisions are to be taken in low-cost index funds, real estate, or other growth-oriented options. With good planning, you will quickly advance your timeline and, further on, make room to cover surprise expenses. Financial independence is more than just a number; it’s the freedom to shape and mould your life without constraint.
Minimalist Lifestyle: Most early retirees have moved towards minimalism to save more. By reducing unnecessary expenses, you can allocate more money toward investments and savings. The simpler life you lead, the faster you may reach financial independence, and it may also make early retirement more sustainable.
Utilise Tax-Advantaged Accounts: Doing the most with retirement accounts, such as IRAs and 401(k)s, will provide some cushioning. Health Savings Accounts do much good, too, as they allow you to make tax-free contributions toward medical expenses, which are usually a high expense during retirement. You use your accounts intelligently to maximise growth with reduced tax burdens. Early access to some funds may incur penalties, but knowing the rules ahead can let you work out withdrawals strategically.
Consider Passive Income Streams: Investment in dividend-paying stocks, rental property, and royalty from literary, artistic, and intellectual work can give one active revenue generation without dint of personal exertion. Furthermore, diversity of incomes brings about a sense of security and stability impervious to economic volatility. Even a modest passive income might go a long way to significantly supplement your savings, thus allowing flexibility in one’s retired life.
Proposal for Flexibility and Adjustments: Early retirement requires a good plan, but at the same time, it should allow for flexibility in approach and periodic review of the plan. The finances may be impacted by changes in the economy, inflation, or other unexpected happenings. A flexible approach will better equip you to adapt constantly to the changing scenario. A plan that accommodates change enables you to stay resilient enough to adeptly meet life’s uncertainties. While this might take some getting used to, knowing it could be part of the journey allows you to embrace early retirement with confidence.
For traditionalists, early retirees are dangerous or bohemians; for them, the early retiree simply maximises freedom from obligation in order to pursue a self-determined rhythm of life.
Spend Windfalls Wisely: Many times, an unplanned wealth bump -an inheritance or unplanned fortune- may arise. If you’re lucky and this happens to you, extra care will need to be taken to handle those monies correctly to stay on track with early retirement. Business Heir hunters can also be in a position to help you locate unknown or unexpected inheritances that can help add to the financial security of your portfolio. It’s wise to reinvest such inheritances and use that unplanned money to set up your financial base on which to enjoy a comfortable, stress-free retirement for many years.
Retirement is no longer a one-size-fits-all model. It’s time to break free from traditional moulds and imagine retirement as an open-ended journey where the possibilities are as endless as the life we envision.
Life is about the journey, not the final destination. Make your retirement planning a pleasant trip by reading this week’s terrific links.
A summary of 428 retirement articles. The Retirement Manifesto
Saving for retirement isn’t a strict formula. The Humble Dollar
Permit yourself to spend during retirement. Morningstar
Politics shouldn’t dictate your retirement portfolio. OptimistiCallie
Don’t le…
The post I Don’t Like Mondays…..When Is My Retirement? appeared first on A Teachable Moment.
This post is part of my ongoing Military Scholarships series. December is such a busy month, you might as well go ahead and get started on these important scholarship applications now. Allied.com Military Scholarship Deadline: 15 December 2024 Description: This is a very niche scholarship for veterans, active duty service members, and their dependents. Applicants… | Read More…
The post December Military Scholarships for Service Members, Veterans, Spouses & Kids appeared first on KateHorrell.
“If all you have is a hammer, everything looks like a nail.”
We’ve all heard that phrase, alongside the concept of having “the right tool for the job.”
I submit that many people in the retirement planning community (especially online in DIYer circles) do not have the right tools or mental models for including long-term stock market returns in their financial plans.
Example 1:
I saw this question on Reddit this week:
Howdy! Currently 26, I can FIRE at 45 if I get 8% returns. What percent returns for the stock market do you guys use planning for 20+ years out? The 100-year average is 10%, but most retirement calculators have returns set at 6%. The difference between 6% and 10% is huge in terms of how much money gets built up. I’m not sure if 8% is too hopeful or if that’s realistic for planning purposes. Cheers.
The first 3 answers came in, and I cringed a bit.
Answer 1: For long term like that I always used 7.2% to be pessimistic and because it makes the mental math really easy. At 7.2% your assets double every 10 years.
Answer 2: 7% is typically used (to include the average of 10% plus 3% for inflation). This gives you money in today’s dollars for reference. The money you will actually have will be higher (hopefully) in proportion to increased spending.
Answer 3: Well, consider the fact that the SP500 has returned 37% over the past year, and almost doubled (87%) over the past 5 years. Crashes do happen, as we’ve seen in 2008, 2020, and 2022, so you have to factor in that you may have a down year (~20% loss). But those are typically good opportunities to use any cash you may have (HYSA) to buy solid stocks that may be undervalued temporarily.
Let’s use these three answers to explain the right and wrong ways to think about future stock market returns.
Lesson #1: We Just Don’t Know –> Add Variance
One of the three answers above is better than the other two (Answer 2).
But we need to start our lessons today by addressing the fact that none of the answers highlighted that:
- We have no idea what future returns will be, and…
- While we can use past returns as an intelligent reference point, we should add significant levels of potential variance into those past returns.
I understand the desire for shortcuts…“Let’s just pick one number…how about 7% per year?”…
But such a shortcut blacks-out so much essential information. This article dives into some of those details: Average Returns vs. Actual Returns.
A better approach starts with varying the long-term average. Perhaps it’s 5%, 6%, up to 10% per year over the long run. That seems reasonable.
BUT! We must also vary the actual yearly returns that lead us to our long-term average. We must consider how the sequence of returns risk could affect our portfolio. More so, we must consider how multi-year negative shocks will affect our psyche.
Those realities are not captured when a smooth average is used. That’s a problem.
Lesson #2: How to Capture Inflation?
The second of the three answers above does a reasonable job of capturing the difference between nominal returns and real returns. This article dives into the details: Accounting for Inflation in Retirement and FIRE Planning
Much like varying our stock return assumptions, we must also vary our inflation assumptions.
Lesson #3: Pessimism and Ease
The first answer above reads: “For long term like that I always used 7.2% to be pessimistic and because it makes the mental math really easy. At 7.2% your assets double every 10 years.”
I get it. It’s a convenient short-hand.
But I have two rebuttals.
Most importantly, we need to go back to Lesson #1. Picking a single annual return doesn’t reflect reality.
I also want to address the idea of “intentional pessimism.” I understand the desire for including factors of safety. But I’m quite wary of overly conservative assumptions. Further reading: The Crushing Cost of Conservative Retirement Planning
Lesson #4: Lack of Perspective
Answer #3 above is, by far, the most dubious.
Yes, the S&P 500 has performed amazingly over recent years. If we included dividend reinvestment (which I don’t think our answerer did), recent performance has been:
- 1 Year: 37%
- 5 Year: 110%
- 10 Year: 256%
Amazing!
But our questioner is 26 years old, hoping to retire at 45, and then hoping to live another 30, 40, 50 years beyond. If history is to be our guide, looking at the most recent 1-, 5-, or 10-year timeline is simply inappropriate.
DIYers need to be wary of “the blind leading the blind.” That’s precisely what this answer is.
What Should You Do Instead?
What should you do instead of making these mistakes in long-term stock market projections?
Ben Carlson recently published this article (he was answering a question specific to a 22-year timeline). Take a look, and I’ll some comments below :
First, these are real returns. Inflation has already been factored in and subtracted out. That’s why the average is (coincidentally, haha) 7.2%.
But look at the variance! Many of the 22-year periods that ended in the 1980s saw less than 4% annualized real returns. Many of the periods ending in the 60s and the 90s/early 00s saw greater than 10% annualized real returns. That is a huge variance that’s not captured with the answer “just assume 7% per year.”
And going back to one of my old articles (Decades of Zero Return), we must also be aware of this chart:
While the long-term average is, indeed, our ~10% returns minus ~3% inflation = ~7% real returns, there have been multi-decade periods of zero return. Smooth averages gloss over that fact.
I mean…just imagine it! What would it be like to live through a 20-year period where your supposed 7% annualized return ends up actually being 0%?!
We must do better.
First, use tools and programs to your advantage. A couple weeks ago, I showed you the wonderful outputs from Engaging Data. That’s one of many online websites that can help visualize past market returns and/or illustrate levels of variance in future market returns.
If you’re comfortable in Excel or other spreadsheet software, start there! Build a 50-year retirement timeline, reference a single cell as your “Average Return” (which is easy to change), and then use a RANDOM function to vary each year’s return. It’s a little sticky, as stock market returns don’t follow a Normal distribution, nor a Uniform Distribution. But directionally, you’ll be better served.
Use Monte Carlo analysis. We use it every day at work to conduct retirement projections for our clients.
I don’t want to totally bash “using the average.” If I’m doing literal back-of-the-napkin math for someone, my go-to numbers are 9-10% for diversified stocks, 4-5% for diversified bonds, 3% for inflation. But I know the limits of such simple assumptions, and I know when not to use them. I urge you to do the same.
Thank you for reading! If you enjoyed this article, join 8500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week. You can read past newsletters before signing up.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
Looking for a great personal finance book, podcast, or other recommendation? Check out my favorites.
Was this post worth sharing? Click the buttons below to share!
What caught my eye this week.
There is an interesting article in the Financial Times this week that explains that new build properties aren’t as small as we’ve all been led to believe:
It turns out that, rather than shrinking, new homes have become larger.
The frequently used 76 sq m figure is simply wrong and does not reflect the reality of the recent housing market. A housing market analyst tracked the source of this figure to a report published in 1996 that was based on new builds in the 1980s and early 1990s […] the smallest on average of any period.
Unfortunately, the 76 sq m continues to appear in new articles and reports — a true zombie statistic.
Instead, new homes have actually been getting larger and are now slightly bigger, on average, than existing homes.
Apparently Help to Buy – or Help to Buy Bigger, as wags dubbed it – drove the building of more suburban four- and five-bedroom homes, at the expense of fewer city centre flats.
This doesn’t match what I’ve seen in London, of course.
But hey! It’s a big country out there…
Neal Hudson’s article is full of interesting facts. Give it a read if you’re interested in property (and please consider subscribing to the FT if you read a lot of these search links. I do and it’s a treat!)
Breathing space
With Labour aiming to see 1.5m new homes being built – um, someday – I presume this apparent trend for roomier living space will need to be reversed.
Especially as the listed housebuilders’ focus on making bigger ‘executive homes’ targeting DINKYs to rattle around in might be yet another reason why young people find nice no-frills starter flats so hard to snag.
I’m all for higher-density development. Provided the model is classy areas like London’s Maida Vale or Paris’ famously beautiful mid-rise boulevards. Not the high-rise horrors of yesteryear, obviously.
But I suppose that the desirable urban apartment model might face an uphill battle while lockdown – and the near-universal desire for a bit of outdoor space it inspired – is still fresh-ish in our memories?
Have a great weekend.
From Monevator
Reduce tax on savings by parking cash in gilts [Members] – Monevator
UK and Europe dumps on Trump – Monevator
From the archive-ator: How I got mixed up in this FIRE business – Monevator
News
Note: Some links are Google search results – in PC/desktop view click through to read the article. Try privacy/incognito mode to avoid cookies. Consider subscribing to sites you visit a lot.
Bank of England cuts rate to 4.75% but hints at fewer to come – BBC
House prices have hit a new record, says Halifax – This Is Money
Mortgage rates to stay higher thanks to Reeves and Trump – iNews
Iceland’s four-day work week seems to be working out – CNN
Foreign buyers eye Japan’s empty houses, but experts warn of risks – CNBC
The ten fastest-growing scams of 2024 – This Is Money
Is Germany’s business model broken? [Search result] – FT
The US market is top-heavy and expensive – Apollo Academy
Trump 2.0 mini-special
People really hate inflation – The Belle Curve
Francis Fukuyama: what Trump unleashed means for America [Search result] – FT
Presidential terms, recessions, and bear markets – A Wealth of Common Sense
Trump 2.0 and the effect on UK investors – FT
VWRL salutes the new king – Simple Living in Somerset
The psychology of America’s divided politics – The Next Big Idea
Breaking down the election results – Slow Boring
Lessons from the post-Civil War era – Politico
Here’s hoping Trump’s VC supporters have his number – Newcomer
Identity politics isn’t working – Noahpinion
Has the US presidency become a dictatorship? [Podcast] – Freakonomics
Products and services
The trend for ‘copycat’ ETF tickers – Bloomberg via Yahoo
Student loan overpayments reach £80m this year. Are you due a refund? – Which
Open an account with low-cost platform InvestEngine via our link and get up to £50 when you invest at least £100 (T&Cs apply. Capital at risk) – InvestEngine
Why are university tuition fees going up in England, and who’s affected? – Guardian
“I lost £15,500 to a Revolut bank transfer scam” – Which
Is Amex Platinum’s £400 dining credit card worth a look? – Be Clever With Your Cash
Beautifully renovated homes, in pictures – Guardian
Comment and opinion
Slaying some of the biggest passive investment bogeymen – FT
Big inheritances can be a sign of underspending and poor planning – Morningstar
When did this bull market start? – Of Dollars and Data
Mohamed El-Erian: Budget puts Labour on the right track – Guardian
14 money lessons from 40 years of living – Mr Stingy
The great post-Budget pensions rethink [Search result] – FT
Retire without regrets – Harvard Business Review
The ‘happiness plateau’ doesn’t exist – Bloomberg via Advisor Perspectives
Remember, remember – Klement on Investing
Breaking down the magic of portfolio diversification [Nerdy] – CAIA
Naughty corner: Active antics
Was the Polymarket Trump whale smart or lucky? – FT
Bloated balance sheets in Japan – Verdad
Cash! – The Brooklyn Investor
Headlam isn’t right for a UK dividend portfolio – UK Dividend Stocks
No, higher corporate tax rates do not reduce profits – Klement on Investing
Kindle book bargains
I Will Teach You To Be Rich by Ramit Sethi – £0.99 on Kindle
Eat That Frog! Get More of the Important Things Done by Brian Tracy – £0.99 on Kindle
Growth: A Reckoning by Daniel Susskind – £0.99 on Kindle
A Confederacy of Dunces by John Kennedy Tool [Not financial, just a fav] – £0.99 on Kindle
Environmental factors
UK sales of used EVs hit a record – This Is Money
Many of the big indoor farming startups have shut down – PitchBook
Robot overlord roundup
What AI knows about you – Axios
Writes and write-nots – Paul Graham
AI search could break the web – MIT Technology Review
Off our beat
Read more books – Not Boring
What’s behind Big Tech’s return-to-office mandates? [Podcast] – The Verge
How China is like 19th Century America – Construction Physics
How startups stopped being fun – Crunchbase [h/t Abnormal Returns]
What if America keeps getting better? – Drezner’s World
1,100 emails, a 90% open rate, and why people still ghost you – Nerd Processor
Can Starbucks make a comeback? – The Eater
And finally…
“There is no reason to sell a rising stock.”
– Nicolas Darvas, How I Made $2,000,000 in the Stock Market
Like these links? Subscribe to get them every Friday. Note this article includes affiliate links, such as from Amazon and Interactive Investor.
The post Weekend reading: home truths appeared first on Monevator.
Back in August, I decided I would take some time off from social media.
Since I don’t use social for personal use anymore, it was mainly just taking some time off the AR X/Twitter account to take a breather.
Even though I built the AR account up to nearly 20K followers and helped to drive many new newsletter subscribers to this blog, it was starting to consume too much of my mental power and frankly becoming a bit of a bad habit!
X was the first thing I checked every morning and the last thing I checked at night.
That’s not healthy!
On one hand, I love the rush of posting something on X and seeing how it resonates.
But on the other hand, it becomes yet another dopamine hit that you end up chasing.
I already experimented with this a bit a few years ago, when I locked my phone in the safe for 24 hours.
That was a really good learning experience and something everyone should do every once in awhile!
From that experience, I assumed that taking a break from X might also end up lowering the amount of time spent on my phone…
Well, that assumption turned out to be completely WRONG!
In fact, not only did I NOT spend less time on my phone, I ended up spending MORE time on my phone!
I swapped X out for fantasy football, reading news articles, or tinkering with a few of my side hustles.
So after 2.5 months, it is pretty clear that while X was perhaps a bit of a bad habit for me, it was completely replaceable!
Removing X from my phone didn’t end up saving any time at all.
But it did reduce some stress!
All that aside, the main learning from the entire last few months is that I don’t MISS it.
While I love connecting and responding with all of you on X, after nearly 4 years of it, it had started to feel like a chore.
I didn’t retire early to start a new job hanging out on X full-time!
I started on X in 2021 to network and promote my blog. And frankly, for that, it has worked like gangbusters.
Except that X does take a mental toll.
So while I still greatly enjoy writing and building an audience of like-minded individuals, it simply may no longer be on X.
I want to continue to connect with those who don’t want to get sucked into the rat race forever.
That is the true goal of this site.
I want to connect with other people who have also retired early.
I want to HELP those who want more from this life to go out there and find it.
I want to show what is possible with a good decade of hard work and a small bit of fiscal responsibility.
So while I still need a bit more of a vacation from X, I don’t plan on taking a vacation from writing anytime soon!
More from AR
- Yep, I locked my cell phone in a safe for 24 hours
- It’s Time to Quit Your Addiction to The News!
- The Art of Letting Things Slip Through The Cracks
The post My Social Media Sabbatical first appeared on Accidentally Retired.
Donald Trump will be the next US President and he has promised radical changes to federal regulations around food, healthcare, water, immigration, and taxes. There are huge price increases looming in our future because of all these things. Every day life in the US is about to get eye wateringly expensive. This is a list […]
The post Everything to Do, Buy and Prepare For Trump’s Second Term appeared first on Bravely Go.
Every two years or so, I get a new phone – usually whatever is the newest iPhone available. In this most recent case, I noticed the battery on my iPhone 13 Mini was getting weak, so I decided it was time to upgrade to the latest iPhone.
Getting a new phone isn’t something that comes as a surprise to me. I keep track of all the phones I’ve ever had in my life and I pretty much always get a new phone around the 2-year mark (this time around, I went a little longer than two years, but it was still right around the timeline for when I get a new phone).
For most people, a new phone is a big purchase. The phone manufacturers know this too, so to increase their sales, they set up plans that allow you to pay for the phone monthly, rather than all upfront. It seems a lot of people opt for this route so they can afford to buy a new phone.
I don’t make monthly payments for most things in my life, but you may be surprised to learn that I’m technically always making a monthly payment on a new phone. But, this comes with a twist. Instead of making this monthly payment to the phone company, I make this monthly payment to myself.
What exactly does all this mean? Here’s how it works.
Paying Myself For My New Phone
The nice thing about phone prices is that they’re fairly predictable. I know that, in most years, the type of phone I get will cost around $1,000 (maybe a little bit more with inflation and additional features, but I’m in the ballpark at least). I also know that I’ll probably get a new phone about every 2 years (or around 24 months).
Knowing all this, I charge myself a “monthly bill” of $41 per month, which is automatically paid into a savings account specifically designated for a new phone. I’ve been doing this every month for almost a decade now. The amount I have in my phone account can vary depending on how often I get a new phone, but for the most part, I usually have more than I need for a new phone since I’m not always getting a new phone exactly every 24 months. I also sometimes buy phones that are less than $1,000 and the interest I earn on my phone account gives me a small boost as well.
Paying myself this way works out perfectly. I don’t notice the $41 “bill” that I charge myself each month and when the time comes that I need a new phone, I have money in my phone account ready to go. By using this strategy, I never feel a pinch when I make this large purchase.
I Do This With Other Things Too
Billing myself for a new phone isn’t the only time I use this strategy. I use this same strategy with other large, regular purchases too.
My computer is another high-priced item that I buy on a fairly regular basis. Historically, I tend to upgrade my computer every 5 years and I’ll typically pay around $1,200 to $1,300 each time I buy it. Knowing this, I bill myself $21 each month to go towards a new computer.
You can do this with basically anything that you know you buy on a regular schedule. It doesn’t have to be a very expensive item either. For instance, I pay myself for yearly subscriptions and my annual bar dues. These costs aren’t much for me and don’t really impact my budget or cash flow, but it’s still nice to have a chunk of money to pay these costs without thinking about it.
You can also do this for things that have an expected lifespan, although this takes a bit more planning and guessing. For example, a few years ago, my dryer broke and I ended up having to buy a new one, which was a pain because it was an expensive, unexpected purchase. After that happened, I looked up how long a washer and dryer are expected to last and now I save a set amount each month, with the idea that in 10 years, I’ll have the money set aside if I do need to buy a new washer and dryer. If nothing happens, I can leave the money sitting there or potentially use it for something else.
You Can (And Should Do This Too)
There are a lot of things that you can bill yourself for. You don’t need to do this for every regular purchase you make (it’d be pretty hard to do that), but you can easily pick a few things that make sense to you and regularly set aside money for those purchases.
At a minimum, I think a phone is something that everyone should bill themselves for. Figure out a timeline that works for you, then automatically set that money aside each month.
As for how to do this, what you’ll need is a bank account that allows you to create sub-savings accounts and lets you automate transfers. I use Ally Bank, which is my favorite bank account (I use it for my primary checking account, as well as my primary savings account for short-term and medium-term savings goals).
If you’d prefer not to clutter up your main bank account with a bunch of sub-savings accounts, you can also use a different bank that lets you make sub-savings accounts. Big banks like Discover, Marcus by Goldman Sachs, and Capital One 360 all work well for this strategy.
Once you have the sub-savings account set up, it’s just a matter of figuring out how much you need to save and how long you have to save for it. Then, you just automate a monthly transfer into that account. You set this up once and then I promise you that you’ll forget about it and be pleasantly surprised later when you have a stack of cash ready to go.
Final Thoughts
This strategy I use of charging myself a monthly bill for an expected large purchase isn’t anything new and ultimately, it’s a very basic strategy. However, it’s a strategy that, in my experience, despite being so simple and easy to do, very few people actually do.
For most people, I think saving for a new phone is a good basic starting point, as that’s something that is expensive and most people are buying fairly regularly. A new computer is another good thing to set money aside for – again, it’s something that most people are buying fairly regularly and is expensive.
If you bill yourself for these types of purchases, you’ll remove a lot of the stress that comes with making these purchases later. It’s doing simple things like this that’ll set you apart from others when it comes to your money.
Related
<!–
–>
Dental care is crucial for overall health, but the high cost of dental treatments often leaves many people without access to necessary services. Many adults wonder if free dental clinics are available and, if so, how they can access these resources. Fortunately, there are options for affordable dental care, including clinics that offer free services to those in need. In this article, we’ll explore whether free dental clinics for adults truly exist and how you can find them.
1. What Are Free Dental Clinics for Adults?
A free dental clinic for adults is a healthcare facility that provides dental services at no charge to eligible individuals. These clinics often cater to low-income individuals or those without insurance, helping them access essential dental care such as cleanings, fillings, and extractions. Free clinics may be run by nonprofit organizations, universities, or government agencies. They are often staffed by volunteer dentists or dental students who work under supervision to provide care. While they may not always offer comprehensive dental services, they can help with immediate dental needs at no cost.
2. Who Qualifies for Free Dental Services?
Eligibility for free dental services typically depends on factors like income, insurance status, and location. Many free dental clinics are specifically designed for low-income adults who cannot afford private dental insurance or out-of-pocket costs. Some clinics may also prioritize individuals who are elderly, disabled, or homeless. It’s important to check with each clinic about their specific requirements and whether they have any application processes. Proof of income or identification may be required to determine eligibility, so it’s best to gather necessary documents beforehand.
3. Where Can You Find Free Dental Clinics?
Finding free dental clinics can be easier than you think if you know where to look. A good starting point is the National Association of Free and Charitable Clinics (NAFC), which maintains a directory of free and low-cost clinics across the U.S. Local health departments or community centers may also have information on free dental services available in your area. Another valuable resource is dental schools, where students perform dental procedures under the supervision of licensed professionals. Many universities offer discounted or free dental care as part of their training programs, so be sure to inquire about such opportunities.
4. What Services Are Offered at Free Dental Clinics?
Free dental clinics typically offer a variety of basic dental services, but the scope of treatments may vary depending on the clinic’s resources and staff. Common services include routine cleanings, X-rays, fillings, extractions, and sometimes emergency dental care. However, more complex procedures like root canals, crowns, or cosmetic dentistry may not be available. Some clinics may also provide preventive care such as fluoride treatments or education on proper oral hygiene. It’s important to contact the clinic ahead of time to confirm which services they provide and whether they can accommodate your specific dental needs.
5. Tips for Accessing Free Dental Care
To successfully access free dental care, it’s essential to be proactive and prepared. First, research local free dental clinics and inquire about their eligibility requirements and available services. Keep in mind that many free clinics may operate on a first-come, first-served basis, and some may have long waiting lists, so it’s a good idea to plan ahead. Be ready to provide any necessary documentation, such as proof of income or ID, to expedite the process. Additionally, consider looking for temporary dental care events, like dental outreach programs or mobile dental clinics, which may provide free services periodically.
Free Dental Care is Within Reach
While finding a free dental clinic for adults can take some effort, it is certainly possible with the right resources and preparation. By exploring local clinics, dental schools, and government programs, you can access affordable or free dental care. Whether you’re in need of routine cleaning or emergency care, free clinics can offer vital dental services when you’re on a tight budget. Don’t let financial barriers keep you from maintaining your oral health—start researching your options today and take advantage of the resources available to you.
The post Are There Really Free Dental Clinics for Adults, and How Can You Find One? appeared first on Thousandaire.