Do What You Love and The Money Will Come...

IMHO, the worst advice ever. 

I prefer the Japanese Ikigai to do:   What you love; What you are good at; What the world needs; and What you can be paid for.

For more on  Reflections and Musings, check back every Saturday  for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

YMMV

In 2012, I received shocking results that showed I had 4 90+% blockages in my heart arteries.  I took four stents to correct the issue OK, I had high cholesterol and high triglycerides.  I immediately went on a low fat diet advocated by Ornish and Esselstyn.  Their diet results were compelling.  Virtually, every participant lowered their cholesterol and didn't require further treatment.

In 2024, I did a stress test followed by a angioplasty.   The result was 80-90% blockage in the LAD.   I was disappointed.   My strict diet didn't prevent future blockages.  Though disappointed, I realized the YMMV even when one followed all the steps.   I started with robotic CABG but ended up open heart surgery, again contrary to expectations.

Yeah, despite all my actions, the blockages came back.  I came to realize that couldn't control all the factors.

I've concluded the same is true for financial situations.  I  did everything "right."  Then came the Great Recession.  We lost over half our savings.  We recovered, but it wasn't do to our actions.  It was luck and that's why I've concluded YMMV, despite doing all the "right" things.

For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial nor health advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

My Sources of Retirement Income

Here are my approximate percentages of income sources for 2024.

53% Interest and Dividends

27% Social Security

20% Rental Income

0%  IRA/401K withdrawals

We have no pension.  

Having interest rates in the 4-5% range has been a great benefit.  My plan is for interest rates to continue in the 4-5% range until 2030.  If interest rates drop, we may need to make some IRA withdrawals or sell some stocks for a Long Term capital gains.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

How Much Did I Need to Retire?

More than I thought.

I estimated that I would need to 20 times my final base salary to comfortably retire since neither of us had a pension. 

It did work, but it was really tight.  

What happened:

• The Great Recession of 08/09 happened right after I retired.   Reduced our retirement accounts by nearly 50% and it took several years to recover.
  
  
• Interest rates dropped to nearly 0%.   I was counting interest rates being around 5% for most of my retirement.
  
  
• While my spouse and received retiree health insurance at reduced premiums, our two minor children had to pay full premiums for health coverage.
  
  
• I retired at 49, which meant I wasn't eligible for Social Security.

What helped:

• The market recovered and my retirement accounts recovered.
  
  
• Early on, we paid off our mortgage which significantly reduced our monthly expenses.   We had already paid off our cars and didn't have any credit card or student loan debt.
  
  
• I had deferred compensation payments for 7 years during my fifties.
  
  
• We were able to avoid using any funds from our tax advantaged retirement accounts.
  

What made a difference:

• Interest rates are now at 4-5% making CDs and Bonds good income generating investments.
  
  
• The stock market recovered and is much higher than when I retired.   
  
  
• We were lucky and our parents left an inheritance equal to about 50% of our own savings.   We haven't spent any of the inheritance principal, only the earnings, and the principal has increased with the growth in the economy.
  
  
• I started taking Social Security benefits before full retirement age.
  
  

Bottom line:  I believe a significantly higher retirement savings amount is needed than when I retired.  If retiring early (e.g. in the fifties), I'm guessing 30-40 times final salary in savings.  If already receiving Social Security payments or a pension, perhaps towards the lower side.

For more on  New Beginnings, check back every Sunday for a new segment.

This is not financial nor retirement advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Trying to be Relevant Again

A while back, my nephew told me that being successful was much harder for him than for me.   He has no interest in my ideas and opinions on being successful.   It's as if I'm invisible and don't exist.   I can understand.  My path to success was graduate from college, work for a large corporation, and retire after being their for my entire career.   That doesn't happen anymore.

Also, when I started working, my retirement goal was to save $1 million, put it in a 5% CD and live off the interest for the rest of my life.  After all, that would be 150% more than my starting salary.    Today?  $1 million is far from enough and risks running out of money in retirement.  I should have made my goal $1 billion in retirement savings.

To become relevant again, I'm trying to give my kids a head start.    We'll pay for college and graduate school so that they have no student loan burden.   I'm also contributing a Roth IRA account equal to the maximum allowed or their annual pay, which ever is lower.   Finally, we're taking the opportunity to enjoy our time together and create exciting memories in great family vacations, which I didn't do as a child.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

I Fought the IRS and..

I won. AMA.

I filed my 2024  tax returns early this year, on March 7, 2025.  I was getting a $362.27 refund.   I checked Where's my Refund in April and was informed that the IRS corrected multiple calculation errors on my tax return and I owed over $1800.   Arrrgh!

Since I registered on the IRS website, I decided to check a transcript of my return, before receiving the notice.   A quick check showed the IRS had made transcription errors.  To note, I still file a paper copy of my tax return, usually filled in by hand.  However, this year I used the PDF fill in forms to type the numbers to avoid transcription errors.   In addition, the IRS didn't allow a American Opportunity Tax credit because I forgot to put the student's SSN on the form, even though it was on the first page of the tax return for being a dependent.

Essentially, there were two errors.   The omission of the SSN and the IRS transcribing a $57.78 loss as a $5778.00 loss, which was caused multiple calculation changes.

Even though I had not received the official notice in the mail, I called the IRS and an agent answered the phone within 10 seconds.  Note, I made the call at 7AM.   The agent read the notice and the transcript and advised me to wait for the official notice since there were "too many" calculation errors.  She advised that I would have to amend my return.

I don't have a issue with doing a amended return, if needed.  However, as I told the agent, the amended return would be my original return, since it was correct.  But I would wait for the official notice.

A couple weeks later, I got the notice and called in during the afternoon.  This time the wait was 30-50 minutes.  The first two agents claimed they didn't know how to adjust my corrections on the phone.   I decided to call back about an hour before closing and got a third agent, who understood exactly my points and agreed to make the corrections that duplicated my original return, over the phone.

The next morning, I called back at 7AM, and only had a 5 second wait.  (This is a pro tip to call the IRS amendment and notice department at the beginning of the day).  I asked why I didn't see the adjustment.  She explained the changes had been made and had been submitted for approval.

Yesterday, I received a notice that the IRS had made the changes.  I checked Where's my Refund and I'm getting a $362.40 refund, $0.13 more than originally requested.

Supers Saver 1   IRS 0 for 2025.

For more on  The Practice of Personal Finance, check back every Wednesday  for a new segment.

This is not financial nor tax advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Creating a Retirement "Paycheck"

Since retiring in 2007, we typically have withdrawn funds monthly from our taxable accounts to pay for living expenses.   Last year, I decided to automate the process to simplify our lives somewhat.  For reference, I do not have a pension, but I am receiving Social Security payments since 2022, which gave me the idea.

In our brokerage accounts, there is a feature that allows automatic distribution of dividends and interest on a frequency (daily, weekly or monthly) chosen by the owner.  We chose monthly.   Now, we receive a monthly payment in the form of a ACH deposit to our checking account.

Unlike a paycheck, the amount varies month to month since I did not structure the income from CDs, bonds and dividend stocks to be equally distributed on a monthly basis.  That would have been way too much work.   Sometimes the distribution is greater than our expenses and other times, it is lower.   On the lower months, I can adjust by making a withdrawal, but by then I know exactly what is needed, instead of estimating the entire months needs.

For more on  Reaping the Rewards , check back every Friday  for a new segment.

This is not financial nor retirement advice. Please consult a professional advisor.

Copyright © 2024 Achievement Catalyst, LLC

Off Topic - Presidential Election

This year's Presidential election is the toughest one I've ever voted in. My dilemma is that I don't like either of the major party candidates.

I've decided NOT to vote for either of the two major party candidates.  I believe they are both fiscally unsound with their proposed money giveaways and tax cuts.   I've looked at the minor party candidates and I don't agree with the majority of their policies.   So, I've started considering the independent candidates, many of whom are write-candidates.  

My summary after doing a brief review is that many of the independent candidates are too extreme,  fringy, or single issue based.  Fortunately,  I did find a couple moderate write-in Presidential candidates that I did like.  The one I like the best is John Cheng.

According to his Campaign Website, he wants to eliminate deficit spending and reduce the national debt.  That makes sense to a financial blogger like me.   After all, that is what I consider important in personal finances:  spend less that you make and don't go into debt.  I also agree with many of his other policies such as guaranteeing Social Security and Veteran benefits, simplifying the tax code, establishing term limits for Congress and the Supreme court and increasing legal immigration.

At this point, I'm writing in John Cheng for President, even though it is highly unlikely he will be elected.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial nor voting advice. Please consult a professional advisor.

Copyright © 2024 Achievement Catalyst, LLC

Checking College Bills

Over the summer, our daughter received a bill for fall semester in college. She assumed the bill was correct.  As with all bills, I reviewed the bill in detail.   I found two incorrect charges.

1. The school automatically billed us for Health Insurance, despite us having our own health insurance and deleting it last year.  The billing office explained that the college automatically bills for health insurance and expects the student to remove it if not needed.
   
   
2. There was a small surcharge for a room where students are allowed to remain during breaks.  My daughter did not request this service.  Her roommate did, but wasn't charged.

My coaching lesson for my daughter is to check all bills, especially big ones, in detail.  Don't assume the billing organization did it correctly.

For more on Strategies and Plans check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2024 Achievement Catalyst, LLC

Cost of McDonald's Meal in the 60s

First, let me say that eating out, even fast food, was a "special treat" in the 60s.   We rarely had meals away from home and McDonald's was affordable.   I recall that my mom, sister and I went to McDonald's for a meal.  Each of us had a hamburger, French fries and a soft drink.  Cost:  90 cents.   Hamburgers were 15 cents, French fries were 10 cents and a drink was 5 cents. An ice cream cone was 5 cents a scoop.  Those were the days.

Nowadays,  we don't eat at McDonald's much.  However, four subs at Subway for our family is about $40+.   Sheesh!

Unfortunately, fast food is neither cheap or fast right now.  We chose to spend a little more and eat at sit down made to order meals.  

For more on Crossing Generations  check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2024 Achievement Catalyst, LLC