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

Retirement Trap - Investment Advisor Fees

One area that retirees sometimes get over charged on is fees to Financial Advisors for managing investments.    For reference, I am not opposed to fees.    I am opposed to what I consider exorbitant fees for little or no additional service.

IMHO,  a maximum all in fee, mutual fund/ETF expense, commissions and advisor charge, should not exceed 1% for basic investment effort.  I seen cases where the all in fee exceeds 2.5% and sometimes even has a front end load.   

Maybe 10-20 years ago, when brokerage commission were $50 to $100 a trade, a fee over 1% may have been justified.  However, with $0 trading commission and market index ETF expenses of less than 0.15%, it is hard for me to justify and investment advisor all in fee over 1%.

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

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

Copyright © 2024 Achievement Catalyst, LLC

College Aged Daughter Can't Get a Summer Job

My daughter, who will be a 2nd year college student, has been rejected for multiple summer jobs, including Starbucks, Chick-Fil-A, McDonald's, and Target.  Some places don't even bother responding to her application. 

Seems to me the economy isn't as strong as some people propose.

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

Financialization of Single Family Housing

Single family housing used to be an dwelling acquired by individuals to live in.  Owning a house was a goal of many people in the past.    Nowadays, single family housing has become a commodity and is being used to accumulate wealth versus being primarily a dwelling in which people live.

For example, corporations own about 19,000 single family homes in Atlanta, Georgia, controlling as much as 11% of the housing in some neighborhoods.   In addition, AirBNB also has contributed to the financialization of housing, which people buying homes solely for the purpose of short term rentals.

Financialization is driving up the price of houses and making many single family homes unaffordable for young buyers.  In addition, it is driving up the real estate taxes of many long time homeowners, some of whom are retired and only have fixed income.

Instead of corporate ownership bringing down house prices through scale, it has increased prices by reducing competition and controlling supply.

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

Student Loans - Just Say No

Student Loans are the worst consumer loans.

• Student loan debt is a crisis right now. 
• Student loans are offered to 18 year olds who usually have little financial understanding.  Often loans are used for living expenses in addition to college tuition.
• Many student loan borrowers are unable to pay off their student loans
• Student loans, except in extraordinary hardship, cannot be discharged by bankruptcy.

The Consumer Protection Financial Bureau, CPFB, ought to label student loans as Predatory Loans.

Here's my solution:

• Eliminate the federal funded student loan program.   Data shows that it leaves many borrowers with significant debt that they will not be able to repay. IMHO, this program is a failure.
• Enable future student loans to be easily discharged in bankruptcy.  Let the lenders/banks take the risk.

The result?    Tuition costs at many universities would be reduced without availability of easy money.   More people would consider alternatives to a 4 year degree.   Future graduates would no longer have onerous student loan debt for most of their lives.

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

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

Copyright © 2024 Achievement Catalyst, LLC