By Dr. Jim Dahle, WCI Founder

I received a question via email recently which made me realize that despite writing about Social Security multiple times in the past, there is still a lot of misunderstanding about how it works. I thought it would be useful to write a post about the basics of this important retirement income stream. Other posts about Social Security can be found at these links:

• The Consequences of Ignoring Social Security
• 10 Reasons Not to Take Social Security Early
• Social Security Bend Points – Maximizing Your Benefit
• What’s the Best Age to Take Social Security?
• 5 Reasons to Not Give Up on Social Security
• The Two Best Books on Social Security
• When to Take Social Security: A Pro/Con

Here are the main parts of the email I received:

“My physician husband and I are 61, married 39 years. I have been a stay-at-home mom and thus have only 34 work credits. My husband intends to keep working until at least 67 if health holds. We may wait until 70 to kick in his Social Security benefits.

Is there any reason that I should try to work to pick up the missing six credits to be eligible for myself? I’m not entirely certain what my status is should something happen prior to his receiving any benefits. I understand there are reduced benefits at 62. He has his own disability insurance through his current employer, so I think we are more than covered there. He also has two term life policies totaling $3.5 million, so I could maybe live on that before tapping into Social Security.

He does have a MySocialSecurity account so I know the estimate per month for him each year as it is recalculated, but I don’t quite understand what I am eligible for. Would I be eligible for his entire Social Security benefit if he passed or a percentage? I am assuming even if not, it would still be more than what my own would be with just 40 credits? I currently have none. I have not been employed since 1988.

Am I fully eligible for Medicare at 65 if he should become disabled or pass before 65? If we are both living at 67 and start Social Security then, is there a monthly spousal benefit added in addition to his?”

 

8 Key Facts About Social Security

There are (at least) eight things that everyone should know about the Social Security program.

 

#1 Social Security Is Going to Be There

The first thing to realize is that despite the fear-mongering you hear from time to time, Social Security isn’t going anywhere. Yes, the pot of government IOUs that make up the Social Security Trust Fund will eventually disappear IF there are no changes to how Social Security is taxed and distributed. What does that mean? That means that the program can only pay 77% of promised benefits using current revenues. What is the likelihood of that happening? Well, it’s not zero, but it certainly rounds there. Go ahead. Show me 60 senators who are going to vote for a massive cut in Social Security (much less abolishing the program completely). I’ll wait. Oh? You could only come up with four or five? Me too.

So, how will Social Security be fixed? It’s actually not very complicated. It’s just math. It will be a combination of some or all of the following:

1. Higher Social Security tax rate
2. Higher wage limit (i.e. the amount of income high earners pay Social Security tax on)
3. Higher full retirement age
4. Lower inflation adjustment
5. More means testing on Social Security benefits
6. Lower benefits

Not complicated, but there is a political fight there. The conservatives will argue for lower benefits while the progressives will argue for higher taxes. They’ll wait until the last possible minute and then make some sort of compromise so it works out. I wouldn’t spend any time worrying about it. If you want to worry about a government program for the elderly that could implode, worry about Medicare.

 

#2 You Get Either Your Benefit or 50%-100% of Your Spouse’s Benefit

As the email above demonstrates, lots of people don’t understand exactly how this complicated program works. Admittedly, there is plenty of complexity. But the basics aren’t hard to understand. While you both live, you get either your earned benefit OR 50% of your spouse’s earned benefit, whichever is higher. When one of you dies, the other is left with 100% of the higher of the two benefits.

 

#3 Most People Will Get Less Than They Think

The annual statement you get in the mail or by downloading from MySocialSecurity projects out what your benefit will be. This is what my most recent statement (and my wife’s) showed:

 

 

 

As you can see, the projection now thinks my wife will be better off with her own benefit than half of mine. That wasn’t the case just a few years ago. But that’s not my point. My point is that most people misunderstand this chart. Most people think that this is the benefit they have now earned. That’s not the case. If I quit working today, I would NOT get a benefit of $4,521 per month when I turn 70. That projection assumes that I will continue to work until age 70, earning at least as much in Social Security taxable income each year as I did last year (above the 2024 Social Security wage limit of $168,600). In reality, if I retired today, my benefit would be significantly less.

If you really want to get into the nitty-gritty, you can download your complete Social Security earnings record from the MySocialSecurity website and then plug it into a great calculator like Mike Piper’s OpenSocialSecurity or the SSAtools calculator and find out what your benefit would be if you quit working this year. I’m not sure why the Social Security statements don’t just do this for you. Maybe the government doesn’t want to encourage people to retire early. Or maybe it doesn’t want people to know that their benefit really won’t be going up all that much compared to how much they will pay in future Social Security taxes. I don’t know, but what you need to know is that this is how the process works.

The longer the period of time between when you stop working and when you start taking your Social Security benefit, the less accurate this projection is. Also, the shorter the period of time you have worked, the less accurate this projection is—especially if you are now paying maximum Social Security taxes but have not been doing so for very many years (like an early-career doctor).

When I use the tools at SSAtools, I discover that if I quit working today, my primary insurance amount (what I would get at age 67) is not $3,611 but only $2,637. Big difference. That’s 27% less. For Katie, it’s not $2,943 but $1,464, 50% less.

 

#4 Social Security Is the Best Annuity Deal Out There 

Delaying Social Security to age 70 is the right financial move for the vast majority of people who can afford to do so by living off of other assets until age 70 or by working until age 70. Obviously, there are exceptions—like if you’re diagnosed with terminal cancer at age 62. The reason delaying is such a good idea is that your benefit payment will be higher. That makes sense. It should be higher since it won’t have to be made for as many years since you’re now older and will thus collect benefits for fewer years.

However, this ignores the insurance aspect of Social Security. Not only will it pay out every month until you die, but it is indexed to inflation. Since it includes everybody—not just the healthy people who buy annuities—it is also priced better than the annuities that you can buy from an insurance company (which won’t sell you an inflation-indexed annuity these days anyway). Delaying Social Security is the best deal in annuities on the market. It’s idiotic to take Social Security at 62 and then buy an annuity. You’d be better off living off the assets you’re using to buy the annuity and delaying Social Security.

 

#5 Social Security Is More Than an Old-Age Pension

Social Security is more than just a retirement benefit. It also includes a disability benefit, although this is generally much lower (mine is $3,319 a month) than what most docs get from an individually purchased disability insurance policy. Social Security disability is also dramatically harder to qualify for than a good true own occupation disability policy since it requires the disabled person to not be able to do any work at all.

Social Security also includes a survivorship benefit. If you die, your heirs get a one-time $255 benefit plus a monthly benefit for any kids under 16 and your spouse caring for any kids under 16. In addition, your spouse is covered for a retirement benefit even if they never work a day in their life and even if the two of you divorce. Despite the fact that your Social Security statement talks about Medicare, the two programs are separate and paid for with different taxes.

 

#6 You Don’t Always Need 40 Quarters

The emailer talks about getting six more quarters of work to qualify for her own benefit. As mentioned above, she doesn’t have to do that to get a benefit. She qualifies based on her spouse’s work for 50% of his benefit while he’s alive and 100% of his benefit when he dies. You also don’t need 40 quarters to get a survivor’s benefit if your spouse qualifies. The younger the worker, the fewer credits that are needed to get a survivor’s benefit. In fact, they can be had for as few as six credits in the previous three years. The disability benefit doesn’t require 40 quarters either. The younger you are, the less credits that are required. If you’re under 24, you only need six credits in the prior three years. Even a 41-year-old only needs 20 credits in the prior 10 years.

 

#7 Social Security Has Bend Points

Social Security is a really good “investment” in the beginning. You get a lot of bang for your buck for your Social Security tax dollars when you don’t earn much and haven’t been earning it for very long. That’s why it is kind of a tragedy to see low earners working “under the table.” They wouldn’t be paying much if anything in income tax, and their Social Security taxes would be a great use for their money.

Social Security subsequently transitions twice (technically three times) into a less and less attractive “investment.” These transitions are known as “bend points.” The SSAtools site provides a great demonstration of the bend points. Here are the charts it provides for me and for Katie based on our earnings records.

 

 

As you can see, I am just about at the second bend point. Katie is not, as you can see below:

 

 

Before the first bend point, every dollar of SS taxed earnings increases your Social Security benefit by 90 cents. Between the first and second points, additional earnings increase the benefit by 32 cents per dollar. Between the second and third points, additional earnings increase the benefit by only 15 cents per dollar. At a certain point, additional earnings don’t increase your benefit at all as seen in this generic (although slightly dated) chart.

 

 

Lots of people who are interested in FIRE figure there is little point for them to work beyond the second bend point. By the time you get there, you’ve certainly earned enough money to have saved up enough to live on for the rest of your life, and the Social Security Administration isn’t going to reward you much for additional work. You can use this data in other ways, too. For example, once I hit the second bend point, all else being equal, it makes more financial sense (at least when applied to our personal lives) for WCI to pay Katie more and me less.

 

#8 You Can Get Medicare Based on Your Spouse’s Work

Medicare and Social Security are separate programs with their own associated tax, but I thought this one was worth throwing in as a bonus (and in response to the emailer). Just like you can qualify for a Social Security pension based on your spouse’s work, you can also qualify for Medicare based entirely on your spouse’s work. If your spouse qualifies, there’s a good chance you do too, even if your spouse has died. Here are the rules:

You must be 65 AND one of the following:

1. You are currently married and your spouse is eligible for either Social Security retirement or disability benefits
2. You are divorced and your former spouse is eligible for either Social Security retirement or disability benefits AND you were married for at least 10 years AND you are now single
3. You are widowed, currently single, and were married for at least nine months

 

Social Security makes up a large part of the retirement income for most retirees (for 40%, it’s the only source of income) and a substantial part even for high earners, like most WCIers. (Even if we quit working today, Katie and I would get $60,000+ a year from Social Security starting at age 70.) Make sure you understand how it works.

What do you think? Was any of this information new to you? What have you learned about Social Security that surprised you? Comment below!

The post 8 Things You Must Know About Social Security appeared first on The White Coat Investor – Investing & Personal Finance for Doctors.

Updated November 2024. That space in your wallet or purse is valuable, and you should be the one to get that value. By being smart and picky, you can find offers worth $500+ for a single card, all to encourage you to apply and try it out. This adds up to thousands of dollars in extra income (over $5,000 in 2023). These are the top 10 credit card offers that I would personally apply for right now (or have already). Notable recent changes:

• Added JetBlue 80k, United 60k, BarcAA 70k, Alaska 75k, IHG 100k w/NoAF, Air Canada 100k, Hilton 100k+noAF, British Airways 85k
• Removed CitiAA 75k, Sapphire 60k+$300, Amex Gold 60k+$100, Delta Gold 80k, Bonvoy 185k, Venture 75k+$250, IHG 5FreeNights

This is a companion post to my Top 10 Best Business Card Offers. Small business bonuses are on average even higher than those on consumer cards.

Aeroplan® Credit Card

• Up to 100,000 Aeroplan points. 75,000 bonus points after $4,000 in purchases in the first 3 months. Plus, 25,000 bonus points after $20,000 in purchases in the first 12 months. 100,000 points are redeemable for $1,250 against any travel purchased with Pay Yourself Back. See link for details.
• Free first checked bags on Air Canada flights: one free checked bag for the primary cardmember and up to eight other travelers on the same itinerary.
• Aeroplan 25K Elite Status benefits for the remainder of the first calendar year, plus the following calendar year.
• Up to $100 credit for Global Entry/NEXUS/TSA PreCheck.
• $95 annual fee.
• Subject to 5/24 rule.

British Airways Visa Signature® Card

• 85,000 Avios after $5,000 in purchases within first 3 months. See link for details and redemption tips.
• 10% off British Airways flights starting in the US when you book through the website provided in your welcome materials.
• Free Travel Together companion ticket when you spend $30,000 in a calendar year.
• $95 annual fee.

Hilton Honors American Express Card

• 100,000 Hilton Honors Bonus Points after $2,000 in purchases in the first 6 months Limited-time offer. See link for details.
• No annual fee.
• Terms Apply.

Southwest Rapid Rewards® Plus Credit Card

• $400 statement credit + 40,000 bonus Rapid Rewards points after $3,000 on purchases in the first 4 months. See link for details.
• Southwest still gives everyone two free checked bags.
• Timing for Companion Pass. If you can sign up for this one and perhaps also the small business version, and time the points to post in 2025, you can qualify for a Companion Pass for 2025 and 2026.
• $69 annual fee.
• Subject to 5/24 rule.*

JetBlue Plus Card

• 80,000 bonus TrueBlue points after $1,000 on purchases and paying the $99 annual fee in full, both within the first 90 days. See link for details.
• First checked bag free for the primary cardmember and up to 3 companions when tickets are purchased with your JetBlue Plus Card.
• $99 annual fee.

Chase Sapphire Preferred® Card

• 60,000 Ultimate Rewards points (worth $750 towards travel or transferrable to miles/points) after $4,000 in purchases within the first 3 months. See link for details.
• $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Travel^SM, 3x on dining and 2x on all other travel purchases.
• $95 annual fee.
• Subject to 5/24 rule.*
• Upgrade pick: Chase Sapphire Reserve® Card. Higher travel perks including airport lounge access, higher annual fee.

IHG One Rewards Traveler Credit Card

• 100,000 IHG Rewards club points after $2,000 in purchases within the first 3 months. See link for details.
• 4th Award Night Free (Book 3 nights in a row with points, 4th is free)
• No annual fee.
• Subject to 5/24 rule.*

Barclays AAdvantage Aviator Red Mastercard

• 70,000 American Airlines miles after any single purchase and paying the $99 annual fee in full, both within the first 90 days. See link for details.
• First checked bag free on domestic AA flights ($80 value per roundtrip, per person).
• $99 annual fee.

IHG One Rewards Premier Credit Card

• 140,000 Bonus Points after $3,000 in purchases in the first 3 months. See link for details.
• Free Night after each account anniversary year (valued up to 40,000 IHG points).
• $99 annual fee.
• Subject to 5/24 rule.
• Don’t like annual fees? The no-annual fee Traveler version also has a competitive offer with no annual fee.

Citi AAdvantage Platinum Select Card

• 50,000 American Airlines miles after $2,500 in purchases in first 4 months. See link for details.
• First checked bag free on domestic AA flights ($80 value per roundtrip, per person).
• $0 annual fee for the first year, then $99.

The Platinum Card from American Express

• 80,000 Membership Rewards(R) points after $8,000 in purchases in the first 6 months.
• Up to $200 Hotel Credits, up to $240 Streaming Credits, $200 Airline Fee Credits, $200 Uber Cash, $199 CLEAR Plus credit, $300 Equinox credit, up to $155 Walmart+ credit and more annually! Enrollment is required.
• Up to $120 Global Entry or $85 TSA PreCheck fee credit.
• Premium airport lounge access through the American Express Global Lounge Collection®.
• $695 annual fee.
• Terms Apply.

Capital One Venture X Rewards Card

• 75,000 miles (worth $750 towards travel, or transferrable to airline miles) after $4,000 in purchases within the first 3 months. See link for details.
• $300 annual travel credit. Get up to $300 in statement credits when booking through Capital One Travel.
• Additional 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary.
• Priority Pass + Capital One airport lounge access. Additional cardholders are free, and also get their own Priority Pass!
• Up to a $120 credit for Global Entry or TSA PreCheck(R).
• $395 annual fee.

United^SM Explorer Card

• 60,000 miles after $3,000 in purchases within 3 months. See link for details.
• Free first checked bag for both you and a companion (a savings of up to $160 per roundtrip) when you use your Card to purchase your United ticket.
• Up to $100 credit for Global Entry/NEXUS/TSA PreCheck.
• $0 intro annual fee for the first year, then $95.
• Subject to 5/24 rule.

Citi Strata Premier Card

• 75,000 points (worth $750 in gift cards, or transferrable to miles/points) after $4,000 in purchases in the first 3 months. See link for details.
• 3X points for every $1 spent on Hotel purchases, Air Travel, Restaurants, Supermarkets, Gas Stations, EV Charging.
• Must not have gotten bonus from or closed a Citi Premier or Strata Premier card in the past 48 months.
• $95 annual fee.

Capital One Venture Rewards Card

• 75,000 miles (worth $750 to offset travel purchases, or transferrable to miles) after $4,000 in purchases within the first 3 months. See link for details.
• 2 Miles per dollar on all purchases.
• Up to a $120 credit for Global Entry or TSA PreCheck(R).
• $95 annual fee.

Bank of America Premium Rewards Card

• 60,000 points (worth $600) after $4,000 in purchases within the first 90 days. See link for details.
• $100 annual Airline Incidental Statement Credit.
• Up to $100 credit towards TSA PreCheck or Global Entry application fee.
• $95 annual fee.

Wells Fargo Autograph Journey Card

• 60,000 points (worth $600 towards travel) after $4,000 in purchases within the first 90 days. See link for details.
• $50 annual statement credit with $50 minimum airline purchase.
• $95 annual fee.

Hawaiian Airlines MasterCard

• 70,000 Hawaiian miles after any purchase (of any amount) within the first 90 days. Any 6-digit code will work, like “000000”. The normal offer has a higher spending requirement. See link for details.
• Two free checked bags for primary cardmember when you use your card to purchase tickets directly from Hawaiian Airlines.
• One-time 50% off companion discount for roundtrip coach travel between Hawaii and The Mainland on Hawaiian Airlines.
• $99 annual fee.

Alaska Airlines Visa Card (Bank of America)

• 75,000 bonus miles + Companion Fare voucher after $3,000 in purchases within first 90 days. See link for details.
• Companion fare voucher is “Buy one ticket, get one from $23” ($0 fare plus taxes and fees from just $23).
• Free first checked bag on Alaska flights for you and up to six other passengers on the same reservation (worth $70 roundtrip per person).
• $95 annual fee.

Delta SkyMiles® Gold American Express Card

• 50,000 Delta Skymiles after $2,000 in purchases within the first 6 months. See link for details.
• 50,000 Skymiles are worth at least $500 in Delta airfare with “Pay with Miles” option.
• $200 Delta flight credit after $10,000 in purchases on your card in a calendar year.
• First checked bag free on Delta flights ($70 value per roundtrip, per person).
• $0 annual fee for the first year, then $150.
• There is also a 60k bonus miles offer on the Platinum version.
• Terms Apply.

Marriott Bonvoy Brilliant® American Express® Card

• 95,000 Marriott Bonvoy(R) points after $6,000 in purchases in the first 6 months. See link for details.
• $300 in Annual Dining Credits, valid at restaurants worldwide.
• Priority Pass Select airport lounge membership.
• Automatic Marriott Bonvoy Platinum Elite status.
• Free Night Award upon card anniversary (worth up to 85,000 Bonvoy points).
• $650 annual fee.
• Terms Apply.

American Express® Gold Card

• 60,000 Membership Rewards(R) points after $6,000 in purchases in the first 6 months. See link for details.
• $84 Dunkin’ Credit. Up to $7 in monthly statement credits after you enroll and pay with the American Express(R) Gold Card at US Dunkin’ locations. Enrollment is required.
• $100 Resy Credit. Get up to $100 in statement credits each calendar year after you pay with the American Express(R) Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. Broken down into up to $50 in statement credits semi-annually. Enrollment is required.
• $120 in Uber Cash annually (good towards Uber Eats or Uber rides in the US). Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
• Up to $120 in annual dining credit at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment is required.
• 4X points at restaurants on up to $50,000 per calendar year.
• 4X points at US supermarkets on up to $25,000 per calendar year.
• $325 annual fee.
• Terms Apply.

If you pay off your balances every month, then you can join me and many others in funding a huge chunk of your annual travel budget with cash credits, points, and miles. I mostly use my rewards points on family trips – domestic economy flights, mid-range hotels, and cheap car rentals. If you have credit card debt, you should focus on paying that off first as the interest charges could offset most of the perks.

* 5/24 Rule? Certain Chase cards have a “5/24 rule” which is an unofficial rule that they will automatically deny approval on new credit cards if you have 5 or more new credit cards from any issuer on your credit report within the past 24 months (2 years). This rule applies on a per-person basis, so if you are new, you might want to start with those Chase cards.

60k limited-time offer is back. The United^SM Explorer Card is a Chase-issued credit card that offers unique perks on United Airlines including free checked bags and expanded award seat availability for redeeming miles. Here are the highlights:

• Limited-time offer: 60,000 United miles after $3,000 on purchases in the first 3 months.
• Free first checked bag for both you and one traveling companion on the same reservation (worth up to $160 per roundtrip) when you use your Card to purchase your ticket. Terms Apply.
• Expanded award availability. Having this card makes it easier to find that saver award economy ticket.
• Up to $100 Global Entry, TSA PreCheck® or NEXUS fee credit
• Enjoy priority boarding privileges and visit the United Club^SM with 2 one-time passes each year for your anniversary.
• 2X miles on dining, on hotel stays, and on United(R) purchases.
• 25% back as a statement credit on purchases of food, beverages and Wi-Fi on board United-operated flights and on Club premium drinks when you pay with your Explorer Card
• No foreign transaction fees.
• Your miles don’t expire as long as your credit card account is open, with no limit to the number of miles you can earn.
• Use your miles for any seat, any time, on any United flight.
• $0 introductory annual fee for the first year, then $95.

Keep in mind the following terms and conditions:

This card product is available to you if you do not have this card and have not received a new Cardmember bonus for this card in the past 24 months.

This card is very focused on making it a better experience to fly on United. You have the first checked bag for free on United flights, both for your and a companion traveling on the same reservation. The bag fee is now $40 per person, each way, so that adds up to $160 each roundtrip. Before you board, you might use one of your free United Club lounge passes. You also get Priority Boarding, which helps you find space for your carry-on. While onboard, you get 25% back on your inflight purchases of WiFi, food, and drinks.

Expanded award seat availability. You earn United miles for all your purchases (double miles on restaurants and hotel stays), but then they also make it easier for you to redeem those miles on Saver level tickets with no blackout dates. Expanded award seat availability is another of the top perks from this card, and I’ve found a very significant difference when searching. If you’re constantly trying to find economy tickets for the entire family like me, this is a big deal. Saver Award ticket redemptions start at 12,500 miles one-way within the continental U.S. and Canada.

Another unique feature of this card is that it offers primary coverage on the Auto Rental Collision Damage Waiver. On most other consumer cards, this coverage is offered as secondary coverage, meaning it only kicks in after your personal auto insurance has been exhausted.

Bottom line. The United^SM Explorer Card offers great perks for folks that fly United even just once or twice a year. The card provides lounge passes, a free checked bag, priority boarding, and inflight discounts. There are bonus categories to earn more miles, and special expanded award seat inventory for credit card holders to make it easier to actually redeem those miles for flights.

Also see: Top 10 Best Credit Card Bonus Offers.

Mechanical engineering offers a wealth of career opportunities across various industries. From automotive design to aerospace innovation, mechanical engineers play a crucial role in many fields. Below are five rewarding career paths for mechanical engineers and the top cities where these jobs thrive.  The opportunities are incredibly diverse and hopefully this gives some ideas for those pursuing and ME degree.

1. Aerospace Engineer

Overview: Aerospace engineers specialize in designing, testing, and improving aircraft, spacecraft, satellites, and missiles. They work with advanced technologies, including computer-aided design (CAD) software, to ensure performance, safety, and environmental compliance. These engineers may find themselves designing next-generation rockets, improving airplane aerodynamics, or ensuring spacecraft can withstand extreme conditions.

Top Cities:

• Los Angeles, California: Home to major aerospace companies like Northrop Grumman, and SpaceX, Los Angeles is a hub for aerospace innovation.
• Huntsville, Alabama: Known as “Rocket City,” Huntsville hosts NASA’s Marshall Space Flight Center and numerous aerospace companies.
• Seattle, Washington: As the headquarters of Boeing and many of its top suppliers like Parker Hannafin (formerly Exotic Metals Forming Company), Seattle has a long history in aerospace and offers abundant opportunities.

2. Automotive Engineer

Overview: Automotive engineers design and develop vehicles, from the body and structure to the engine and other mechanical components. The industry is rapidly evolving due to the shift toward electric vehicles (EVs) and autonomous driving technologies, making it an exciting field for mechanical engineers interested in cutting-edge automotive technology.

Top Cities:

• Detroit, Michigan: Known as the “Motor City,” Detroit remains a leading automotive center with major automakers like Ford, GM, and Stellantis headquartered there.
• San Francisco, California: With tech companies like Tesla and autonomous vehicle firms in Silicon Valley, the Bay Area is a prime location for automotive engineers focusing on EVs and self-driving cars.

3. Renewable Energy Engineer

Overview: As the demand for sustainable energy grows, renewable energy engineers work on creating and optimizing systems that harness energy from renewable sources like wind, solar, and hydro. Mechanical engineers in this field contribute by designing efficient turbines, improving energy storage systems, and reducing environmental impacts.

Top Cities:

• Houston, Texas: Known for its energy sector, Houston is increasingly investing in renewable energy, providing a transition hub for engineers with experience in traditional and renewable energy.
• Denver, Colorado: Denver has a growing green energy industry with opportunities in wind, solar, and sustainable engineering projects.

4. Robotics Engineer

Overview: Robotics engineers design and build robots for various applications, from manufacturing to medical procedures. Mechanical engineers in this field apply their skills to create machines that can perform precise and complex tasks. This career is ideal for those interested in automation, artificial intelligence, and the future of manufacturing.

Top Cities:

• Boston, Massachusetts: With renowned institutions like MIT and companies like Boston Dynamics, Boston is a major hub for robotics innovation.
• Pittsburgh, Pennsylvania: Home to Carnegie Mellon University’s Robotics Institute and a growing robotics industry, Pittsburgh offers numerous opportunities.

5. Biomedical Engineer

Overview: Biomedical engineers work on developing medical devices, prosthetics, and systems that improve healthcare. Mechanical engineers specializing in biomechanics, medical imaging, and device design find this field rewarding as it combines engineering principles with healthcare to enhance patient outcomes.

Top Cities:

• San Diego, California: A hub for biotechnology, San Diego offers roles in medical device development, including research facilities and companies like Illumina and Medtronic.
• Minneapolis, Minnesota: Known for its medical device industry, Minneapolis hosts companies like Medtronic and 3M, which provide numerous biomedical engineering opportunities.
• Boston, Massachusetts: Boston’s vibrant biotech and healthcare sectors make it an ideal location for biomedical engineers looking to innovate in medical technology.

Buying a house is tough and it can be even tougher in older neighborhoods that are often highly desirable due to their character and proximity to downtown areas.  If you are someone who loves the idea of walking down streets with large trees and unique homes from these earlier eras.  Here are some things to keep in mind if you want to be a person who puts Dave Ramsey’s wisdom into practice and buy the cheapest house on the street and then get ready to quickly add equity.  The three examples below were all present in a house on the South Hill in Spokane, Washington in the 99203 Zip Code which is among the most expensive in the city.

Overgrown Landscaping that is Easy to Remove

Many older homes have landscaping that was carefully planted over 30 years ago and now has grown to a point where a significant amount needs to be removed.  However, once you remove some of the overgrown portions, what is left is still mature, beautiful landscaping that simply can’t be duplicated in newer homes without spending a small fortune.  This is a perfect example of a house where two trees next to the house are completely covering up the window to the dining room, but once those are removed there is still a fully mature landscape in front of the house.  A day of yard work and a run to the dump could instantly add significant value to the property.

Weird Decisions that Tank Home Value but are Easy to Undo

In older neighborhoods where the homes have been with the same owner for many years, it’s pretty common for decisions to be made that are either a preference of the owner or some simple convenience item that are pretty devastating to a home’s value.  In the same house pictured for this article with the overgrown landscaping there was a bathroom where a shower was removed and then the room was painted a dark red.  This is the type of thing you do when you’ve been in your house for decades and you have the place paid off.   You don’t need the shower and you like the color so go for it.  For many people looking for a house, this is a total deal breaker.  It’s weird and the house only has one total shower so most people will simply walk away and never give it another thought.  However, the bathroom has plumbing hidden behind the new wall and floor and so it is likely a relatively simple remodel.

The dark red paint is a funny one because the entry in the home we currently live in was also painted this same color and along with the ancient light fixture in that area it made it feel like we were entering a cave.  The principle is the same though, it causes an instant ick factor for home buyers, but it only took a couple hours to fix the whole area.

Expensive Updates Complete, Simple Stuff Left Unfinished

This is another one that my wife and I have seen often enough largely because people will fix the biggest eyesore in their house like an old shower, but they are used to the peeling paint in the bathroom so they don’t care to get that fixed.  For an older person, all the little items like painting or replacing light fixtures are a bigger ordeal and its expensive to hire contractors so its not uncommon to only see the higher value items completed.  This is still a situation that can turn off many homebuyers and bring down the overall feel of the home even though a little paint is one of the easiest DIY opportunities.  In a situation like this, the home improvement is simply repainting a few walls and then the value of the bathroom skyrockets.

The big takeaway is that in a softer housing market like it has been in 2024 and likely will be in 2025.  These little items can add up and make houses sit longer and drop further in price than they should.  These issues caused this home to fall $50K from its initial list price and there are hundreds of homes like this in neighborhoods across the country.  A smart, scrappy buyer who pays attention to this stuff and isn’t afraid to get their hands dirty can potentially snag $30K-50K in equity.

What caught my eye this week.

I noticed UK commercial property giant Landsec posted decent first-half results this week.

CEO Mark Allan reckons:

“…property values have stabilised, with growth in rental values driving a modest increase in capital values, resulting in a positive total return on equity.

We expect these trends to persist, as customer demand for our best-in-class space remains robust and investment market activity has started to pick up.”

After four miserable years, things might be looking up for the owners of offices and retail parks.

Is this because fewer people are still working from home, new office supply has cratered, interest rates have stopped going up, or enough of the weaker players have thrown in the towel?

All of the above, I imagine.

But Landsec (ticker: LAND) shares still trade at a 30% discount to net assets, even as those asset values have stabilised. In other words it’s early days and the market is yet to be convinced.

What normally happens next is economic growth reaccelerates, office space tightens, increasingly marginal offices are built, discounts narrow and eventually maybe even turn to a premium, chubby guys in hard hats appear in the Sunday papers touted as ‘the new builders of Britain’, bank lending gets sloppy as the good years roll on, euphoria is misidentified as robust business confidence, and only when a shock finally hits us and the music stops do we discover who borrowed too much.

It could be different this time. Maybe because of WFH. Maybe because of AI. Perhaps self-driving cars will rewrite geography.

It usually feels like something special is going on that could change the game.

Mostly though – big picture – it doesn’t.

The political big dipper

You see the same thing playing out in the wider economy – and more viscerally in this year’s politics.

In the Financial Times John Burn-Murdoch notes how voters globally have punished whoever is in power:

Like everyone and his dog I have my theories about why Trump won the presidency and the Tories lost. There’s a bull market in competing explanations.

The US result is especially perplexing – even terrifying – given how confused voters seem to have been.

In an excellent review of why Trump triumphed, Kyla Scanlon reminds us:

People think that violent crime rates are at all-time highs, that inflation has still skyrocketed, that the market is at all-time lows, and that unauthorised border crossings are at all-time highs.

None of those are true – it’s all the opposite. But those misinformed views informed how people voted.

In blind polling Republicans actually preferred the policies of Kamala Harris! Yet one narrative gaining traction among a certain ilk of terminally online ‘bros’ is that this election saw voters ‘liberated’ from the ‘gatekeepers’ of ‘mainstream media’.

That’s true in as much as many voters believed – and voted on the back of – unrealities that fitted their priors.

Bring back the media gatekeepers, I say.

Tracing the source

Given the universal slap in the face of incumbent parties though, we might do better to look for the global driver of voter unrest, rather than gaze too closely at the minutia of America’s psychodrama.

Inflation must be the culprit. People hate it, and they felt it everywhere.

Partly because global supply chain disruption is – doh – global. But also because everyone suffered through the same pandemic.

For various reasons – natural and mandated – economies cratered in 2020 due to Covid. Many businesses were at risk of going bust, and households of going bankrupt.

People seem to have already forgotten this graph:

Mass unemployment faced the authorities that grim spring. In response they deployed vast support packages and/or stimulus and paid citizens to stay at home. Easier money kept firms on life support.

It worked to prevent a slump. But one way or another – and aided by Russia’s invasion of Ukraine – it eventually gave us inflation a couple of years later, and then higher interest rates to knock the inflation back.

It’s perplexed onlookers that despite a peerlessly strong US economy with record low unemployment and a soaring stock market, voters complained of living through economically awful times.

Few of them now seem to recall those job losses – far less think about the counterfactual of a depression if nothing had been done.

They see much higher prices, feel poorer (despite higher wages in most cases), and rage.

What have you done for me lately

Would they have preferred high unemployment to high inflation?

The trade-off would never have been so simple. But yes, I think many secretly would have.

For most people, unemployment happens to the other guy. In contrast we all feel the pain of inflation.

For now at least the cycle has turned again, and inflation is subdued.

True, swingeing tariffs in the US might upset that soon. But until then, every day people get a little more used to prices at these levels, and they begin to forget what they were so cross about.

Why are interest rates so high anyway, they ask.

Inflation is low. Don’t these central bankers know ANYTHING?

Master market

For those of us who breath the markets, these cycles turn at double-speed. Wheels within wheels.

The markets are like a nervous cabin boy, dashing about a ship that’s steadily forging through the surf.

The ship makes its stately way, over time passing through fine waters, choppy seas, storms, and worse.

But the cabin boy lives out all of those scenarios many times every day in his head.

He sees cyclones from every mast, yelps at the slightest swell, and yet he also wants to break out the rum for a party the moment the sun shines.

Every day is an adventure ride of ups and downs! With enough time however even the stock market’s scatterbrained progress looks inevitable.

Take a moment to remember all the drama of the past five years. Then look at this graph:

Golden years

The funny thing is I didn’t start this ramble to reinforce that equities eventually go up: don’t worry, be happy.

In fact I was going to highlight the latest data on how US equity valuations are getting into rarified air – truly Dot Com Bubble-type multiples.

But like everyone else we’ve been saying similar all year. The US market has climbed on anyway. Even the Trump Bump seems nothing special on that graph above.

I know it’s hard to imagine US stocks not being the only game in town. So it might be an instructive to read this Sherwood article about how gold has actually beaten US equities since the late 1990s.

According to Deutsche Bank data:

The asset of the new millennium has been gold, delivering a real return of 6.8% per year since the end of 1999 despite being a shiny rock that generates no earnings and pays no dividends.

So far, the S&P 500 has averaged total [real] returns of 4.9% over this stretch.

Incredible, no?

So bad were returns from US stocks between 2000 and 2010 that the almighty bull market that began in the rubble of the financial crisis has still barely lifted returns back into ‘adequate’ range.

And US tech in 2010? You could hardly give it away.

Life beyond AI

To return to where I started (thematically on-point, eh) Landsec shares actually fell on its reasonable results.

Because of course they did. Landsec is a forgotten share in a discarded sector that trades on the still mostly-unloved UK stock market.

But it probably won’t always be this way.

Okay – perhaps AI really is ‘all that’, as an ex of mine from the North used to say.

If ChatGPT 2030 can do all our jobs, then presumably we won’t need Landsec’s offices. Nor will most people have money to buy drinks from Diageo (ticker: DGE) or even to buy the houses they browse on Rightmove (ticker: RMV).

Sometimes things really do change. I started including an AI section in the links years ago – before most people had heard of LLMs and all the rest – because of this potential. AI is important because there’s a small chance of something truly seismic, existential even, for humanity.

But there’s no certainty.

Indeed it’s surely more likely that AI is overhyped, that the biggest US tech firms will invest hundreds of billions just to destroy their margins, the US market will accordingly falter, and something else will get a turn on the merry-go-round.

Maybe even boring British shares. After all they’re mostly cheap, pumping out cash, buying back their own stock – and yeah, many could hardly grow more slowly, so the only way is up…

Who knows? Perhaps they’ll be helped along by a global economy that finally forgets the pandemic and frets less about inflation, gets used to interest rates of 4-5% again, and at last goes back to normal.

For a while, at least. Until we go through the wringer again…

Have a great weekend.

From Monevator

Why a global ETF is delisting from the LSE – Monevator

Are building societies still a good place for your money? – Monevator

From the archive-ator: Family investment companies – 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.

Reeves touts pension shake-up to boost economic growth… – BBC

…and as the economy stalls, something better had… – BBC

…but will scale solve the UK’s pension investment problem? [Search result] – FT

Squeeze on rental supply set to push up costs for tenants – RICS

Number of ISA millionaires soars; top 25 hold £8.9m on average – T.I.M.

Retirees may need to pay tax on their state pension from 2027 – Which

Homebase enters administration with 2,000 jobs at risk – BBC

Klarna chooses New York over London for much-anticipated IPO – Guardian

Court: mini-bond firm London & Capital was a Ponzi scheme – This Is Money

Republican voters suddenly feel good about the US economy – Axios

2022 was weird: why 60/40 portfolios are working again [US but relevant] – Morningstar

Products and services

Mortgage rates below 4% disappear as rate cut expectations ease – This Is Money

Why ‘sustainable’ is being dropped from investment fund names – Which

Get up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley. Terms apply – Charles Stanley

Do you need inheritance tax insurance? [Search result] – FT

Amazon Haul is an attempt to take on Shein and Temu – CNBC

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

Are premium cashback and reward cards worth the annual fee? – Which

New cheapest energy deal from EDF could save households £109 – This is Money

Homes for sale in converted buildings, in pictures – Guardian

Comment and opinion

John Reckenthaler: So long, and thanks for all the gains – Morningstar

Don’t worry about what the market is telling you – Behavioural Investment

The US stock market gains 30% in a year more often than you’d think – A.W.O.C.S.

Advice for the kids – Humble Dollar

How to find genuinely good Black Friday deals – Guardian

Time isn’t an asset class – A Teachable Moment

Redefining the terms – Money with Katie

A rant about (a lack of) evidence-based investing – Klement on Investing

Beyond your career  – Humans vs Retirement

Naughty corner: Active antics

The disappearing ‘index effect’ – Alpha Architect

Private market pitfalls: IRR does not equal rate of return – CFA Institute

Crypt-o-crypto

What Trump 2.0 really means for the crypto industry – Sherwood

HMRC and crypto capital gains – This Is Money

MicroStrategy acquires another 27,200 bitcoin for $2bn… – The Block

…and it plans to issue $21bn in stock to buy more – FT

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 [A fav, not about money] – £0.99 on Kindle

Environmental factors

Regime of Unreason dawns in the US – Cold Eye Earth

What you can do – Humble Dollar

Quite parched: global demand for desalination is soaring… – Sherwood

…and what a difference cheap water could make – Unchartered Territories

He’ll try, but Trump can’t stop the clean energy revolution – The Grist

What backlash, anyway? Few ESG investors are divesting – Klement on Investing

Scientists just discovered a coral the size of two basketball courts – Vox

Robot overlord roundup

Lessons from 130 hours in self-driving Waymos – Matt Bell

The deep learning boom caught almost everyone by surprise – Understanding AI

Practical AI: Magic draft style [A few weeks old] – Echo Beach

Ex-ing X etc mini-special

The Guardian has quit X, citing ‘disturbing content’… – Guardian

…but does traditional media just hate what the Internet represents? – Hot Takes

BlueSky got one million sign-ups in a week – Engadget

How to migrate to BlueSky – Fast Company [Here’s us. Nothing doing yet]

Satire site The Onion buys Infowars out of bankruptcy – NBC

“How I escaped the alt-right pipeline” [Video] – YouTube

Off our beat

Are love songs over? [Interactive thingie] – The Pudding

Why some coffee shops are charging remote workers on laptops – Sherwood

China’s monster espionage campaigns – Freethink [h/t Abnormal Returns]

Favourite remote spots in Europe – Guardian

The rise of Nicole Kidman, pop culture folk hero – Stat Significant

‘Middlebrow’ doesn’t mean bad – Vox

Don’t dumb down – Seth Godin

And finally…

“As G. K. Chesterton put it: ‘To be clever enough to get all that money, one must be stupid enough to want it.’”
– Andrew Wilkinson, Never Enough: From Barista to Billionaire

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The post Weekend reading: Again, everything is cyclical, again appeared first on Monevator.

Finding a place to live that balances affordability and quality of life is high on many people’s lists. For those who love the vibrant culture, beautiful landscapes, and thriving cities out West, there are several smaller cities that are still relatively affordable compared to the crazy prices in Seattle or Denver.  Here’s a rundown of some of the best cities in the Intermountain West that still haven’t gotten too crazy expensive like Bozeman or Bend.

1. Spokane, Washington

• Average Home Price: $386K (Zillow)
• Average Household Income: $84K

Spokane offers residents a well-rounded lifestyle at a fraction of the cost of other West Coast cities. The city has a robust job market in healthcare, education, and manufacturing, along with great access to outdoor activities and a relatively low cost of living. With home prices that are approximately half that of nearby Seattle, Spokane has become increasingly attractive to people looking to settle in a smaller urban setting.  Spokane has a growing restaurant scene and has a number of great hikes immediately outside of town.  Check out Riverside State Park or Rocks of Sharon for some examples within 30 minutes of downtown.

2. Boise, Idaho

• Average Home Price: $478K (Zillow)
• Average Household Income: $109K

Boise consistently ranks high on quality-of-life lists, and for good reason. Its booming tech sector, proximity to outdoor activities like hiking, skiing, and river sports, and a low cost of living make it a magnet for young professionals and families. Although home prices have risen over the past few years, Boise still offers great value in terms of housing and income potential compared to other cities.  13^th Street and the North End are some PFB favorites for a nice stroll with a coffee.   Bogus Basin is within 40 minutes of downtown for nearby skiing.

3. Missoula, Montana

• Average Home Price: $558K (Zillow)
• Average Household Income: $89K

Missoula is known for its tight-knit community, rich history, and scenic beauty. As a college town, it has a unique mix of culture, from music festivals to art galleries (Yes, there are a lot of old hippies). It’s also an ideal destination for outdoor lovers, with ample trails and rivers. While incomes are slightly lower than in other cities, Missoula’s is still much less expensive than Bozeman even though it has similar offerings.  The city is incredibly walkable and offers easy access to the river throughout the downtown area.  Additionally, the city is a common stop for major concerts on their way to play the Gorge in nearby Washington.

4. Reno, Nevada

• Average Home Price: $550K (Zillow)
• Average Household Income: $102K

Once known primarily as a gaming destination, Reno has diversified its economy, with strong growth in technology, manufacturing, and logistics. The city is close to Lake Tahoe, which provides endless recreational opportunities, and offers a relatively high average income and moderate home prices compared to the nearby Bay Area in California.  Reno’s proximity to skiing and hiking is second only to Salt Lake City.

5. Fort Collins, Colorado

• Average Home Price: $557K (Zillow)
• Average Household Income: $105K

Fort Collins is a college town with a lively atmosphere, home to Colorado State University. The city attracts both young professionals and retirees with its job opportunities in the tech and research fields, as well as its breweries, music venues, and outdoor recreation. Fort Collins combines a strong household income with a moderate cost of living, especially compared to Denver, but its not so far that you can’t make trips down to enjoy all the pro sports in the big city.

6. Santa Fe, New Mexico

• Average Home Price: $581K (Zillow)
• Average Household Income: $96K

Known for its vibrant arts scene and unique adobe architecture, Santa Fe has long been a destination for creatives, retirees, and young professionals alike. The city’s average home prices are moderate, and it offers a slower pace of life with ample outdoor activities, high-quality dining, and rich cultural experiences. While the average household income is slightly lower than in some other cities on this list, the quality of life often draws people looking for a lifestyle shift.  Santa Fe is close to amazing mountains for hiking and skiing with Taos less than 1.5 hours away.

Please check out the personalfinanceblogs.com  to see the top content in Personal Finance with new articles continually updating.  The Feeds page breaks all the recent content from over 700 bloggers down into categories so you can always find inspiration.

In the world of NIL and still clearing the dust from the imploding of the PAC12, the WSU Football Team is 8-1 and currently sits in contention of the college football playoffs.  This isn’t supposed to happen when many other programs are able to vastly outspend them in NIL deals and when their players can leave now that they sit outside the power 5.  However, on their run this season the team and Coach Dickert are teaching the world some valuable lessons that translate off the football field.

You can always reinvent yourself and be successful

Jake Dickert took over for Air Raid Legend Mike Leach.  Leach threw the ball more than anyone in the nation over his coaching career and built a team to win with a high-octane offense and historically a pretty weak defense.  Dickert came to Pullman and started to shift the team to a defense first philosophy that consistently stays in games by limiting their opponents rather than outscoring them.  This season, the Cougs have turned even more to the run with quarterback John Mateer running for over 200 years in one game and the team as a whole consistently rushing for more yards than they pass for.  It’s a new look for Coug fans, but it has brought a new energy and its ended up in quite a few wins so far.

A Solid Program Can Hold Together Even When Everything is Falling Apart

At the end of last year, the Pac 12 fell apart and WSU was left out in the cold.  Then to add insult, the Cougs start Quarterback, Cam Ward, signed with Miami for an NIL deal that WSU could never touch.  It seemed bleak.  However, Jake Dickert was still there, and its clear that his leadership and program are much stronger than the forces challenging the team.  The Cougs were able to rally to a top 25 ranking and can look forward with hope to the coming years as long as Dickert is still on the Palouse.  One of WSU’s leading receivers this season, Kris Hutson, transferred from Oregon after losing playing time and has been rejuvenated this season with over 500 yards.  Dickert is able to consistently build into players that others have overlooked and its got the WSU program moving in the right direction.

There is Always Hope for the Little Guy – Even When Your Conference Disintegrates

The coolest thing about the run that WSU and Dickert are having is that it proves that even with the massive shift from the NIL, there is still hope for programs that typically haven’t had the greatest recruits and will never have the most money to spend.  Hopefully Dickert keeps his program rolling for years to come and continues to show that the core things that make college football great still matter.  There is still space to build a program and develop players who don’t come in with 5 star recruiting ratings.

This article is part of an effort by personalfinanceblogs.com to celebrate the principles that make for success in life and money.  The ability to find value where others don’t and building a program for a college football team share many of the core elements that make a financially successful person out in the stands.  Hope you enjoyed this article and please check out our featured articles from the best minds in the world of personal finance.

One of the biggest challenges of raising mentally strong kids is that for the process to work, they need to start taking ownership of small aspects of their life.  They can’t have parents who just take charge of everything and are in constant care taking mode.  This is where school lunches come in because it’s a super easy item to hand off and help kids to own from the grocery shopping to packing up each morning.

If kids know they own it, they will step up.

This is the biggest thing for the school lunch hand off.  Parents need to really let them own it and be ready for some potential for a few less-than-ideal lunches.  The huge thing is that if a child detects or experiences that they can hand this back then they will.  This is just human nature and doesn’t mean they are lazy.  If the kids can read that parents are committed and its been clearly communicated, then they will step in and own it.

For our family, this partly happened because I’ve always worked really early and so my wife was solo getting the kids ready for school.  Our kids walk to school and so the morning routine has always been pretty independent.  The funny thing was that we noticed how much the kids would flex the whining in other aspects of life, but the morning lunch routine had just become the norm and so they didn’t fight it at all.

Bringing the Kids into the Shopping Trip

It’s pretty typical that I drag my kids along with me to the store on Sundays when we need to reload for the week.  I tell them that they have to come to make sure that we have what they need for lunch.  We look at the fridge together beforehand, but they are responsible making sure we grab what they need to complete their lunches for the week.

It is good for kids to pull items off the shelf and see the prices for the items.  This helps them start of slowly understand the cost of things and can also spark good conversation if Dad makes them put back a certain item because its twice the price of something that is nearly identical.

A side note on this is that now that my kids are in middle school, this is a cheap trick to get a little extra time with them.  From experience they know that I will forget what they need at the store and so they are willing to come with me to make sure we get it.  The little bits of conversation along the way are a great bonus.

Making the morning routine much more manageable

A big thing that has helped with this lunch routine is that it takes the edge off the mornings getting ready for school.  As I mentioned prior, I’m normally wake the kids up as I head out the door and so it provides one less thing for my wife to worry about as she still helps them get going each morning.

Our lives are plenty busy and so this one little thing to take the edge off each morning is more than welcome.

This article is part of an effort by personalfinanceblogs.com to celebrate the principles that make for success in life and money.  One of the biggest things any parent wants is to set their kids up for this same success and so that will be a reoccurring them on PFB.  Hope you enjoyed this article and please check out our featured articles from the best minds in the world of personal finance.

 

These cities are all midsize metro areas with strong job markets, plenty of downtown restaurants and quality neighborhoods for families.  Each offers reasonable housing costs, which is a major reason to look at the Midwest for anyone thinking about a move.  Two of the top neighborhoods are included for anyone looking to explore these cool cities on Zillow.

1. Grand Rapids, Michigan

• Average Home Price: $274K (Zillow)
• Average Household Income: $78K

Grand Rapids, known for its art scene, breweries, and beautiful riverside parks, combines affordability with a thriving culture. It’s consistently rated as one of Michigan’s best places to live, particularly for families and young professionals.   Access to Lake Michigan and Manistee National Forest also offer fun outdoor recreation within a short drive.

• Eastown: Eastown is vibrant and eclectic, with a strong sense of community and many historic homes. The neighborhood is known for local coffee shops, art galleries, and annual festivals. Housing ranges from quaint bungalows to larger historic homes, with prices often between $250,000 and $350,000.
• Heritage Hill: Known for its historic architecture, Heritage Hill offers beautiful, well-preserved homes dating back to the 1800s. This area appeals to families and those interested in history, with houses typically between $300,000 and $400,000, depending on size and updates.

2. Des Moines, Iowa

• Average Home Price: $204K (Zillow)
• Average Household Income: $80K

Des Moines has been gaining attention for its affordable housing market, low cost of living, and career opportunities, especially in insurance and finance.  The downtown is very accessible thanks to its network of Skywalks which is also great for exploring the city during the winter.

• Beaverdale: Known for its “Beaverdale Brick” homes, this neighborhood has a unique charm with tree-lined streets and a family-friendly environment. Homes here average around $250,000, making it accessible for middle-income families looking for a close-knit community.
• East Village: East Village is ideal for young professionals with its proximity to downtown and vibrant nightlife. The neighborhood has a mix of modern apartments and historic buildings, with home prices varying from $200,000 to $300,000. This area is known for boutiques, art galleries, and excellent restaurants.

3. Fort Wayne, Indiana

• Average Home Price: $230K (Zillow)
• Average Household Income: $77K

Fort Wayne is a rapidly growing city in Indiana with a robust job market as a regional healthcare hub, affordable living, and family-friendly amenities like the Fort Wayne Children’s Zoo and numerous parks.  This city also offers some interesting opportunities for someone looking to fix up an older home and get it at a great price.

• West Central: Known for its historic homes and artsy vibe, West Central has been revitalized over recent years. Home prices vary, with well-maintained historic homes often between $180,000 and $300,000. The neighborhood is close to downtown and has a charming mix of old and new buildings.
• Aboite Township: Aboite Township is a highly desirable area for families, with great schools, parks, and trails. Homes here range from $250,000 to $350,000, with access to shopping and dining nearby. This suburban area provides a quieter lifestyle with an emphasis on family-friendly amenities.

4. Madison, Wisconsin

• Average Home Price: $390K
• Average Household Income: $102K

Madison combines the benefits of a college town with a strong economy and abundant recreational options. Known for its lakes and bike-friendly culture, the city is ideal for outdoor enthusiasts and young families.   Madison has all the vibes of western cities like Portland or Missoula, but at a fraction of the cost.

• Nakoma: A sought-after neighborhood with mid-century homes and a close-knit community, Nakoma is just minutes from downtown. Houses here range from $350,000 to $450,000, often on spacious lots with mature trees. The area is popular for its family-friendly atmosphere and quality schools.
• Willy Street (Williamson Street): Known for its bohemian vibe, Willy Street attracts young professionals and artists. Housing here includes historic homes and condos, with prices generally between $300,000 and $400,000. The neighborhood boasts unique shops, cafes, and a lively arts scene.

5. Fargo, North Dakota

• Average Home Price: $295K (Zillow)
• Average Household Income: $90K

Fargo offers small-town charm with big-city amenities. Known for its low crime rate and high-quality schools, Fargo is an attractive option for families looking for a safe and affordable place to settle down.  The winters in this part of the country are tough, but it is also a great opportunity to embrace hockey and still have some money left over for a quick trip down South in January.

• South Fargo: This area is one of Fargo’s most desirable for families. With modern homes, parks, and shopping centers, South Fargo homes average around $275,000. Residents appreciate the suburban atmosphere and good schools.
• Downtown Fargo: A vibrant urban hub with restaurants, theaters, and boutiques, Downtown Fargo has been revitalized in recent years. The area has a mix of modern apartments and historic lofts, with home prices ranging from $200,000 to $300,000. It’s a popular choice for young professionals who enjoy a walkable neighborhood.

6. Springfield, Missouri

• Average Home Price: $231K (Zillow)
• Average Household Income: $58K

Springfield offers affordable living and is known for its green spaces, outdoor activities, and a relaxed pace. It’s a great choice for those looking for a quieter, family-friendly environment and with the University in town it has a great energy in town during the school year.

• Rountree: Rountree is one of Springfield’s most charming neighborhoods, with tree-lined streets and Craftsman-style homes. Average home prices here are around $200,000 to $250,000. It’s close to downtown and has a vibrant community vibe.
• Phelps Grove: Near Missouri State University, Phelps Grove has beautiful parks and well-maintained historic homes. It appeals to both families and college students, with average home prices between $180,000 and $240,000.