Good Summary of Financial Considerations for New Retirees

What happens financially in the first 3 years after retirement is a great article for people about to retire.  Some key points:

• Your spending patterns shift more than you expect
• The sequence of returns risk becomes your new reality
• Medicare becomes a major budget item faster than expected
• Social security claiming decisions have permanent consequences
• Emergency savings dry up surprisingly fast
• Many retirees face an earlier than expected exit from work
• Retirement well being has declined in recent years

A good read for preparing for potential risks during one's retirement.

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 © 2025 Achievement Catalyst, LLC

Rules for Investing I Wished I Had Used Earlier

I wished I had started using the following investing rules in my twenties:

• Don't lose money in the long term
• Safety first and get reasonable returns
• Don't bet against America
• Keep it simple

My investment accounts and retirement accounts would be higher than they are currently, by an estimated 2-3 times or even more, if I had simply invested in U.S. market index fund.

While I can't change my past, I have learned how to invest better for the long term.  I will follow these rules to invest for my children's savings and retirement accounts.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Consider Donating Highly Appreciated Stock

If one has long gains on highly appreciated stock, it may be beneficial to consider donating the stock instead of cash.   If one sells the stock to donate cash, taxes will need to be paid on the gains.  If one donates the appreciated stock directly, the fair market value (FMV) of the stock can be deducted as a contribution without paying any taxes.

Here is the tax efficiency:

• The contributor pays no income tax on the gains.
• The contributor deducts 100% of the FMV of the stock, if they itemize deductions on Schedule A.
• The receiver gets the FMV of the stock, if they sell immediately.

I've done this several times when contributing to charitable organizations.  It was satisfying to make a larger contribution while also eliminating our income tax liability for long term gains on appreciated stock.

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

Ignoring Elder Social Media Scams

I use very little social media.   For the ones that I use, I mostly get requests from young and attractive women who ask to connect with me.  The requests range from advice, exchanging email/texts, to visiting in my city.   It is obvious these requests are not from people who normally speak English.  

Of course, I ignore and automatically delete.  However, I wish social media sites would use AI to screen out these elder scam requests automatically.

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

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

Copyright © 2025 Achievement Catalyst, LLC

The Challenge for Job Applicants

The job market is going from ugly to really ugly based on the article below.

The US labor market ground to a halt in 2025. The risk in 2026 is that it 'cracks.' 

What can future graduating job seekers do?

There are no 100% sure ways to get a job, only opportunities.  

Here's what I think are the best opportunities:

• Let current personal connections, friends, family, church, and other regular social contacts,  know what job opportunities are of interest. Do this casually in conversation as a no pressure sharing of information.    
• Increase number of social contacts through join organizations or clubs of interest, volunteering, or shadowing careers of interest.
• Attend professional conferences in one's area(s) of interest.  Introduce oneself to other attendees or presenters.  

In 2024, we needed to find a new place to board my daughter's pet snake and hermit crab during spring break.  After boarding with a new veterinarian, I mentioned that my daughter was interested in shadowing a vet.   He gave me his business card and said, "Have her email me."    She did and shadowed him for a day a week during the summer.   At the end of the summer, he offered her part time work during her breaks from school.  

Some would claim this is luck.  My roommate from college would claim this is privilege.  I claim this is creating opportunity.   Of course, YMMV.

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

This is not financial, employment, nor applying advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Higher Take Home Pay for 2026

With the passage of the OBBB bill in July 2025, many taxpayers should be able to get higher after tax take home pay in 2026.   This is because the OBBB tax changes are retroactive to 2025 and and people did not make adjustments to 2025 withholding.   One may want to make W-4 withholding changes for items that will be in effect until 2028.

Some possible adjustments are: 

• No federal tax on tips or overtime.
• Increased standard deduction amounts.
• Senior deduction up to $6000 per person 65 and older.
• Increase in Child Tax Credit to $2200 from $2000.
• Above the line charitable contribution deduction up to $2000 even if one doesn't itemize.

This may result in as much as $50-100 additional take home pay per month even if one isn't earning more.   However, YMMV.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Simple Investing Strategies

Here are some Keep It Simple investing strategies I have seen and I like:

Strategy #1

• Rule #1, don't lose money in the long term
• Rule #2, don't forget Rule#1

Strategy #2

• Safety first
• Reasonable returns
• Simple

Strategy #3

• Don't bet against America

I'm blending these three strategies for my children for long term (at least 20 years or more) investing in their retirement account by buying the S&P 500 index (or growth stock index) for their accounts and holding until they are in their sixties.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Higher Medical Costs from Aging

"If I had known I would live this long, I would have taken better care of myself." ~ Mickey Mantle

"Growing old ain't for sissies." ~ Bette Davis

I didn't expect I would encounter significantly health issues and higher medical costs as I got older. I was wrong,

In my youth, I was very healthy and very athletic.  I played football from second grade through college, where I also played rugby.   I stayed active after graduating by playing rugby, even running a marathon in my thirties.   I rarely ever saw a doctor and usually healed quickly after minor injuries. Even to my early 60s I only had two prescription drugs, a statin and low dose aspirin.

Now, some of the injuries in my youth become chronic issues, such as arthritis of the joints.  In addition, I have severe coronary heart disease, despite no evidence of heart issues with my parents or siblings.  For 2024 and 2025, I have reached my out of pocket maximum with my health insurance.  

I expect further declines in health condition are likely as I continue to grow older and therefore, require increasing medical attention and costs. 

High health care costs is the hidden reason so many retirees run out of money   Both Mickey Mantle and Bette Davis were right about getting older.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Managing Joint Aches and Pains

A noticeable health change in my later 50s and early 60 was the increasing occurrence of slight pain in my knee, ankle, hip and shoulder joints, especially after sports activities such as tennis or skiing. To wrap up 2025, I decided to make appointments with current and new orthopedic doctors for my joint pain, since I have exceeded my insurance out of pocket limits, meaning the visits are 100% covered by insurance.

Here's what each doctor did and said:

• X-rays were taken of each joint.   For the knee and ankle, there was no or little change from previous visit which showed arthritis issues.   For new areas, should and hip, x-rays showed no bone nor arthritis issue.
• Every doctor advised the course of action depends on pain level and negative effect on quality of life.  Action to be taken are as follows in approximate order:
• Rest and/or stretch
• Ice and heat treatment
• Brace
• OTC pain medication
• Prescription injections
• Surgery for replace

Basically, if pain prevents one from doing a desired activity, try the least intrusive treatment.   Move up treatment level if a current level doesn't reduce pain sufficiently to do the activity.  When the pain prevents one completely from daily activities after treatment, then the final course is surgery and replacement. 

Fortunately, I am currently at the rest/stretch treatment for most of my joints and  using a knee brace mainly for more stability.

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

This is not financial, aging, nor medical advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Record High Long Term Capital Gains Distributions

With the excellent stock returns from 2023 to 2025, many mutual funds are making Long Term Capital Gains (LTCG)  distributions in 2025.  For 2025, I expect to receive the highest LTCG distribution since we started owning the funds in 2021.  

It's good because we are receiving almost 3X what we received last year, reflecting that the mutual funds have done well this year.   It's bad because I didn't find out estimates of the LTCG distributions until November  and won't be sure until the end of December of the amount, since some of the November estimates have been low.  As a result, our estimated tax liability for 2025 is slightly higher than I anticipated.

However, since we are still a couple weeks away from the end of 2025, we can sell some positions for a loss and/or make some charitable contributions in 2025 instead of waiting until 2026.   That way, we can reduce our tax liability for 2025 by taking these actions before the end of the year..

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

Replacing Carpeting on Basement Steps with Oak Stair Treads

The carpeting on the stairs to our finished basement is very worn and soiled.  We have tried cleaning it over the years without much improvement, due to the nap being very compressed.

We've hired a wood flooring company to replace the carpeted steps with oak stair treads.   We were offered two options from different companies.   One company quoted doing retro stair treads that are designed to cap the existing treads.  The treads would then be finished in place. The second company quoted putting actual stair treads over the exist treads and adding a scotia.   The treads would be finished before being attached to the exist treads.

In both cases, we would be responsible for painting the risers and stringers after the treads were installed.

Tearing out the current steps and rebuilding new staircase was considered and discussed with another company.  However, they explained they only work with contractors who would do demolition prior to installation.  Thus, much more complex and costly.

We decided to go with the putting actual stair treads, instead of retro stair tread caps for mainly one reason.  The polyurethane was applied offsite and would be cured before being brought into the house.  Thus, less odor from from the finish which would be less respiratory discomfort for the family.  

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

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

Copyright © 2025 Achievement Catalyst, LLC

Already Working on Our 2025 Tax Return

The best time for to work on the current year tax return?  At least a month before the end of the year. That way, one can make adjustments to reduce tax liability for the current year. 

With all the tax changes in the OBBB bill that was passed in July 2025, I started working on our 2025 tax return in September 2025.  The reason is I wanted qualify for as many deductions and credits as possible to minimize our tax liability for 2025 .   

Here are the elements I am managing:

• Charitable contributions.  We are able to use charitable contribution for our itemized deductions to reduce taxable income.  We still have the rest of December to make additional charitable contributions.
• Medical deductions.   We are able to deduct medical expenses for our itemized deductions to reduce taxable income.   Doing a doctor visit in December instead of January will increase itemized deductions and reduced taxable income. 
• Distributions from an inherited IRA.   My spouse inherited an IRA after December 31, 2019, which means it must be fully distributed by the end of the 10th year.  In addition, RMDs must be taken in 2025.   Managing the distributions to be more tax efficient and minimize tax liability for the remaining 6 years will be a challenge and require some analysis and adjusting when to take discretionary income such as investment profits.
• Tax loss harvesting.  To reduce capital gains income, we are evaluating which investments losses to take in 2025.    Losses up to $3000 can be deducted from income on a tax return.

By managing the above elements I can enable us to qualify for the following tax benefits:

• Senior tax deduction.   Up to $6000 deduction per senior 65 or older.
• American opportunity credit. Credit of up to $2500 for up to $4000 of tuition paid for post secondary education.  
• Tax rate on Long Term Capital Gains and dividends lowered to 0%.  The tax rate is normally 15%.

Here are two tax benefits that we qualify for even without managing the above elements:

• Child tax credit.   Increased to $2200 tax credit from $2000 for each eligible child.
• SALT cap increases.   Increases the amount of deduction allowed from $10,000 to $40,000 State and Local Taxes.

In addition, I expect to get a higher that normal refund since we were withholding until October as if the OBBB bill did not pass.  I estimate the OBBB bill will reduce our tax liability by about 50% or more.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Another Call for a Bear Market Crash

Pundits have called 30 of the last 4 major bear markets correctly.  Some people are again calling for a bear market beginning tomorrow, Monday 12/15/25.

Do I know if a bear market is coming?   No.   Am I prepared for a bear market?   I think so.

Currently, are taxable accounts are invested a stock and bond portfolio designed to generate regular monthly income.   Our tax advantaged accounts are similarly invested.    If the market continues to go up, our account will participate in the gains.

If the market drops significantly, I expect to still generate about the same amount of regular monthly income.  Since, we have not have a drop since changing our investment strategy, we shall see if this work.   In addition, I will use some of the cash to buy into market index funds, such as SCHB, SCHG, VOO and MGK, to benefit from buying at discount.

Hopefully, the new strategy will insure us against major financial suffering with a significant bear market.

Disclosure:  I received no compensation from  Schwab nor Vanguard for mention of their index ETFs.

 

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

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

Copyright © 2025 Achievement Catalyst, LLC

Could've, Should've Held the Winner Stocks

I've been reviewing my investing history and saw a few big misses.   My mistake, I sold the big winners after small gains.  I kept the losers, waiting for them to recover, which very few did.

What would have happened if I kept my winners.  I've owned and, unfortunately, sold a number of long term winners.   I have two examples.    

The first one is Google, ticker symbol GOOGL.    I bought 100 shares of GOOGL in 2004 for $8000.   If I had held the shares until today, those shares would be worth a little over $1 million  or 126X.    Of course, I didn't hold it until today.  I don't know for sure, but I probably sold the position around $9000 later in 2004.    A good profit, but not even close to the million I could have had.

The second one is Apple, ticker symbol AAPL.   I bought a 100 shares at 90 in 1990, right before the Desert Storm, which caused a drop in the market and AAPL.    When the shares recovered about a year later, I sold for a small profit.    If I had held those share until today, I would have about $6.5 million or 722X.

Instead, I probably only ended up with $2000-$3000 profit at the most.

Could've, Should've.

On the other hand, my spouse bought GOOGL in 2013 and AAPL in 2016 and held.   She is up 14X and 10X respectively and has more than exceeded her losses.

Of course, every time I sold, it was due to fear of an upcoming crash.   2004 was right after the dot com crash and 1990 was right after the crash of 1987.  And I would have had to ride through the subsequent bear markets of 2008, 2020, and 2022.

Recall also, that some individual stocks either take a long time or never recover.   For example, Cisco, ticker symbol CSCO, just passed it's all time high of 2000 this week.

It's too late for me.  My solution for my kids is to invest in the S&P 500 index or a Large Cap Growth Stock index which naturally stays invested in winners.   Then not sell for 40 years.   Hopefully, that will result in a million dollar return when they retire.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Exceeded Out Of Pocket (OOP) Maximum for Health Insurance

The bad news is I am over my out of pocket (OOP) maximum health care insurance cost for this year.  The good news is I am over my OOP health care insurance cost maximum for this year.

The reason for the bad news?   I am having more health care issues than usual that require medical attention.  When I was younger, I hardly ever went to the doctor, despite having excellent medical insurance. Sometimes I would go 5 years without seeing a doctor, despite being active in sports like rugby.  Since retiring, I have had more reasons to seek medical attention, due primarily due to treatment of coronary heart disease and  age related issues, such as joint pain and arthritis..

The reason for the good news?  Once I meet my OOP maximum, 100% of my medical costs are paid by insurance, including copays and coinsurance.   My cost is now $0 for the rest of the year.   As a result, I am scheduling appointments for some of the non urgent medical issues that I would do in future, right now.    That way I can get an earlier evaluation this year, for no cost to me.

This is the second year in a row that I have exceeded my OOP maximum.   

Of course, everyone's insurance is different and YMMV depending on one's insurance policy.  

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

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

Copyright © 2025 Achievement Catalyst, LLC

Think Accumulation for a Successful Retirement

For me, the accumulation phase for retirement savings was from the twenties until my sixties.  

Twenties - This was the most difficult accumulation period.   During that decade, I bought a house and a car, which created monthly expenses.  I was also paying off my student loan.  My accumulation seemed to grow very, very slowly.

Thirties -  Accumulation was easier bit still seemed to grow slowly   I no longer had a student loan or car loan payment.  I was also able to refinance my mortgage from 12%, to 7%, to 5%.   In my early thirties, I was earning double my starting salary.  By late thirties, I was earning about 4 times my starting salary due to promotions.

Forties - This was out best accumulation time.   I was promoted again and my base salary by the end of my forties was 8 times my starting salary.  This was my peak earning years and as a result we had peak accumulation.

Fifties -  If I had not retired early at 49, this would have continued to be accumulation from wage income.   Part of our accumulation during this time was due to inheritances from our parents who passed away.  

Even with an income increases each decade, I continued to live the same lifestyle in my twenties and  thirties.   We did upgrade our lifestyle to a larger house and new cars in my forties.   However, we still lived below our means.    For example, we still live in the same house, drive the same cars after 20 years, and did our first purchase of a flat screen TV during our fifties.

Definitely, YMMV.  The actions that worked for us to accumulate enough for a successful retirement won't work for everyone.   

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

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

Copyright © 2025 Achievement Catalyst, LLC

Best, Good and Bad Personal Finance Choices

Successful personal finance is about choices, specifically making good choices.   How does one learn to make good or best choices? Experience.  How does one get experience? Bad choices.

The table below shows my opinion about some personal finance choices I've made.  The blue is what I have actually done in the past.  The green is what I do now or just before retiring. The black options I didn't ever do.

	Best, Good, Bad Options
Activity	Best	Good	Bad
Student Loan  Amount Borrowed	None	Less than expected  starting salary	100% of tuition, expenses room and board or exceeds starting salary
Credit Card Use	Pay current balance  ahead of due date	Pay entire balance on time	Pay the minimum  every month
Monthly Spending when I Was Working	Less than 80% of net pay	Less than 90% of net pay	Over 100% of net pay  in my first month

Did I learn from my experiences?   Yes, and I think I improved, especially in monthly spending.   For me the new choices let to financial results that were better.  YMMV. 

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

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

Copyright © 2025 Achievement Catalyst, LLC

Increase Savings, Avoid Living Large

To me, too many people try to be what others consider as financially successful, instead of being what makes them personally financially successful.  Social media and marketing convinces us we need more to be successful, which causes us to never feel successful, because we need more...the newest phone, the coolest car, the best house and dazzling vacations.

Personal finance success first depends on balancing income versus spending when starting out.  Next, personal finance success requires discipline to increase saving more than increasing spending as income grows.  Unfortunately, many people choose to increase spending only as their income increases, instead of saving more and are typically one or two paychecks away from financial disaster.

Don't let living large costs ruin a possible successful retirement.  Instead, choose making one's future self have a successful retirement.

A savings habit can help minimize living large costs that cause financial issues.   Simply, start by saving 10% of one's gross pay.  Put every raise into savings until 20% or more  of gross pay is reached.   Then make the savings automatic.  While the savings won't seem like much at first, before long one will have saved a year's pay.   Invest the savings in a total market or growth index fund.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Become a Millionaire for Only $158.15/month

That's only $5.20 per day, less than the cost of a Starbucks latte.

No, this is not a scam.  Yes, it is possible with two assumptions.   First, the investment has average returns of 10% per year.   Second, the investment is held for 40 years, with all dividends and interest reinvested.  

The annual return is achievable since the S&P index has returned about 11% per year on average over the long term.  If one takes less risk with a 60/40 diversification of stocks and bonds, the return is about 7% a year and more funds need to be invested to reach $1M in 40 years.  If one takes even less risks and invest in CDs/Bonds for a 4%, significantly more funds are need.

	Invest to Become a Millionaire
Monthly (Daily) Contribution	Average Yearly Return	Total Paid	After 40 Years
$158.15 ($5.20)	10%	$75,912	$1,001,083
$381.00 ($12.53)	7%	$182,880	$1,000,053
$846.10 ($27.81)	4%	$405,150	$1,000,872

OK, what if one can only afford $158.15 a month.  The table below shows the impact on average annual returns on the number of years to reach a $1M.

	Invest to Become a Millionaire
Monthly (Daily) Contribution	Average Yearly Return	Total Paid	Years to Reach $1,000,000
$158.15 ($5.20)	10%	$75,912	40
$158.15 ($5.20)	7%	$182,880	52.1
$158.15 ($5.20)	4%	$405,150	77.5

OK, what if one can afford more than $158.20 a month.  The table shows the impact on contribution amount on the number of years to reach $1M.

	Invest to Become a Millionaire
Monthly (Daily) Contribution	Average Yearly Return	Total Paid	Years to Reach $1,000,000
$158.15 ($5.20)	10%	$75,912	40
$263.40 ($8.66)	10%	$110,628	35
$442.41 ($14.55)	10%	$159,300	30

Here's what I'm doing to enable my children to be millionaires on their own.  For my children's Roth IRAs, I'm investing or will invest $159 per month.   For the initial investment, I put $159 into 4 mutual funds/ETFs from Schwab: ETFs - SCHB (Total Market), SCHG (Large Cap Growth); Mutual Funds-SWPPX (S&P 500), SWLGX (Large Cap Growth).   I will monitor returns over the next few months and narrow down to one or two investment options for the future.  Also, based on the analysis above, I will increase the amount contributed when the market declines.

At this point, I am leaning towards the mutual funds, since I can invest an exact dollar amount of $159 each time, whereas I am required to invest in whole shares for the ETFs.

Disclosure: I am not compensated by Schwab for any mentions made in this post.

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

This is not financial, saving, investing nor millionaire advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Spent All My Paycheck Before Next Payday

I ran out of money my first month of working, a few days before my first paycheck. 

When I started working, I was given a one month advance to cover living expenses, which I think was paid back with future paycheck deductions.   Back then, I spent on a cash basis since I didn't have a credit card yet.

I was paid at the end of the month.  With three days left in the month, I ran out of money.  No cash in my pocket.  Fortunately, I didn't have to pay any bills nor buy any essentials such as food or gas.  I was concerned but not worried yet. 

Although nothing bad happened,  I decided that I would manage my money better and never overspend my paycheck again.  One of my better personal finance decisions.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Cash Strapped Millionaires

Here's one reason that millionaires with $1-2 million in net worth don't feel wealthy: they don't have much free cash.   

Most of their net worth is not liquid nor easily accessible.  On average 39% of their net worth is their home, as a result of significant appreciation since 2020 and 33% is in retirement accounts.  Only 17% is in liquid assets, which would be stocks, bonds and cash.  

Combine the above asset distribution debt servicing such as student loans, home mortgage, and car payments.   And don't forget daycare costs. Thus, most of their paycheck is already committed necessary expenses or debt service.  

A million isn't what is used to be 50 years ago.

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

Taxes on Social Security Payments Should Be Eliminated

Contributions to Social Security were taxed before being withheld.  Until 1984, Social Security payments were not taxed.  In 1984, 8% of Social Security recipients paid federal income tax on the payments.   The thresholds for Social Security being taxed were set in 1984 and have not been adjusted for inflation. Today, 56% of recipients pay federal income tax on Social Security payments.

Two bills that have been reintroduced to eliminate taxes of Social Security: Senior Citizens Tax Elimination Act (H.R. 1040) and You Earned It, You Keep It Act.

For more on Reaping the Rewards, check back every Friday 

This is not financial, legislative, social security, tax nor retirement advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Benefits of Doing My Own Tax Return

My dad always did his own tax return.  My father-in-law always did his own tax return.  They both did their returns by hand and mailed them in.    Like father like son.  I also do my own  Federal and State tax returns, without tax preparation software.   However, I do use Excel spreadsheets for entering and doing calculations for each form.  Then I fill out each form and mail in my return.

The only time I didn't do my own tax return was during an international assignment in Asia, which resulted in a very complex tax return that the company did for us.

Here's why I like doing my own tax returns:

• I learn how different types of income (wages, social security, dividends, capital gains, rental, IRA distributions) are treated taxwise and how they can affect my tax liability.
• I can adjust certain types of income (capital gains, IRA distributions) to minimize tax liability.
• I can adjust certain types of deductions (charitable contributions, capital gains losses) to minimize tax liability.
• With the adjustments to income and deductions, I can stay below Medicare IRMAA premium increases and stay in a lower 12% (instead of 22%)  tax bracket.  In addition, staying $251 below the 12% tax bracket limit,  dividends and long term capital gains are taxed at 0% for 2025 tax returns.
• With spreadsheets, I can easily change one or more inputs and immediately see the affect on my tax return. I can't do this as easily on tax preparation software.

Doing it by hand on Excel does require more preparation effort, including reviewing the forms and instructions each year..  I also need to update the Excel spreadsheet every year, but usually there are not major changes for the forms that I use.  Best of all, I can do a real time estimate of our tax liability during the year and make adjustments to income and deductions before the end of the year.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Wawa Gas is a Great Price

I'm a fan of buying gas at low prices.  My dad used to save a penny when gas was $0.28 per gallon.  While that isn't much, it was about  3.5% savings.   

I used to shop for the lowest gas price since there an numerous gas retailers in the area and have decided to buy from two, despite many options from major companies.  First, it was Costco gas, which requires membership, but we have one. Then it was Kroger gas with up to $1 off based on fuel points earned from shopping, and we regularly shop at Kroger.   Both of these gas providers are convenient since they are within a 2.5 miles from our house and on the way to many destinations.

Recently, there has been a new entrant in our area, Wawa.  I've noticed they regularly sell gas comparable to Costco, but no lines and are comparable to Kroger with discounts of $0.40 to $0.60 per gallon when using fuel points.  In addition, Wawa offers no ethanol gas which my spouse prefers.  Recently, Wawa regular gas with ethanol was $2.43/gallon.  Kroger was $2.90/gallon and Costco was $2.30/gallon in today's price check.   

Wawa is becoming my go to gas retailer when away from home for the following a few reasons:  multiple convenient locations, no gimmicks to lower the price, and no ethanol gasoline, which no other local retailer offers.

Disclosure:  I received no compensation for this post.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Maximize Charitable Contribution Now If You Itemize Deduction

For 2026, the first 5% of AGI of charitable contribution will be excluded from itemized deduction.  For example, if one's AGI is $100,000, the first $500 of charitable deductions will be excluded.

If possible, make charitable deductions planned from 2026-2028 in 2025.   One option is to create donor advised fund to cover 2026-2028 charitable contributions and take the itemized deduction in 2025.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Put 2025 College 529 Contributions in S&P 500

I've made our 529 contributions for 2025 on Friday, November 28, 2025.   After much thought, I decided to put the funds in a S&P 500 fund, despite being concerned about market volatility.  My plan is to hold for December and decide what to do year end.   

As of this morning, it appears that I may have made an investment timing mistake.  Instead of investing the contribution maximum, perhaps I should have scaled in 25% each week in December.   Ah, hindsight is 20/20.   We'll see how the rest of December goes.   

Then again, this is a long term investment since some of these funds won't be needed for 6-9 years.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Be One's Own CFO for Personal Finances

Here's a simple strategy of managing personal finances:  50/30/20 rule.   50% for necessities such as housing, utilities, groceries.   30% for wants such as entertainment, eating out and vacation.   20% for savings and investing.   One starts with after tax income and divide up take home pay by these percentages.

The numbers are simple.  The hard part is having the discipline to achieve the numbers and making good choices when the numbers are not initially achievable.

Here my personal priority order:

1. Necessities - housing, utilities, groceries,  necessary debt payments (student loan, car) 
2. Savings/Investments - savings accounts, equities, bonds/CDs
3. Wants - entertainment, eating out, vacations, large purchases

Specifically, I put savings ahead of wants if there are not sufficient funds.

Below are the estimated take home after tax pay, but before state income taxes since that can vary significantly.

	50/20/30 Split
Yearly Income/Monthly After Tax	Necessities	Savings/Investments	Wants
$40,000/$2,848 after tax per month	$1,424	$570	$854
$60,000/$4,187 after tax per month	$2,094	$837	$1,256
$100,000/$6,561 after tax per month	$3,281	$1,312	$1,968

It is rare that people are able to meet the 50/20/30 split rule.  Here are some challenges that people have.   First, necessities often exceed 50% and they neglect to make corrects to reduce spending or increase income.  Another challenge is many people make is prioritizing "wants" over "savings/investments."

Being a CFO means making the corrections needed to get back on track to being successful.

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

Completing Tax Loss Harvesting for 2025

Tomorrow, Monday, December 1, 2025 is the first day I can buy back stocks that I sold for a loss on October 29, 2025 or sell for a loss that I bought on October 29, 2025 to avoid a wash sale.   In all but one case, I will own the stock at a lower cost than when I sold or purchased. 

By doing this, I take a capital gain loss for 2025 and lower my cost basis when I own the stocks again.  I started doing tax loss harvesting with my municipal bond mutual fund back in August 2025.  Completing this final round of tax loss harvesting with reduce my overall 2025 capital gains to about $0, resulting in no tax for gains take in early 2025.

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

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

Copyright © 2025 Achievement Catalyst, LLC

LinkedIn and Reddit are 99+% Enterntainment

I read LinkedIn, and Reddit daily primarily for entertainment value and very, very little educational value.  I occasionally see a TikTok video on Reddit, but otherwise don't visit the site.  I don't read and avoid X, Facebook or Instagram.

Here's why I read these sites primarily for entertainment value:

• LinkedIn - Here's my breakout of posters on LinkedIn.  About 50% are C Level Executives in their company.  About 70% are promoting their company.  About 99% believe they are smarter than me.  My POV is simple.  Why do C Level Executive bother to post on LinkedIn?  Don't they have more important things to do, like run their company?   Promoting your company, business or product?   Well, I'm not impressed.   Smarter than me?  I estimate about 1-5% are smarter than me.   The other 95-99%, I think are overestimating their brilliance.  Or maybe I'm overestimating mine.🤡
• Reddit - I started reading Reddit due to Wallstreetbets subreddit.  Posters win big and post.  Posters lose big and post.   There is balance and entertainment.  People don't always win. There is also a lot of humility and self deprecating humor shown by posters.   Reddit has started showing me the most popular posts from other subreddits such as Am I Over Reacting.  My conclusion is there are a lot of strange people in society doing very strange things, worthy of a sitcom, but is reality.

On rare occasions, I get some perspective or insights that are very useful.  Sometimes, it's confirmation bias, and other times it is new information.   This is one reason I keep reading LinkedIn and Reddit, for that random truly informative knowledge that can be of great use in the future.  Otherwise, I just enjoy the entertainment.

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

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

Copyright © 2025 Achievement Catalyst, LLC

When the Dip Keeps Undipping

During the recent bull market, a great strategy has been to buy every dip.   Almost every time, the market or individual stock have recovered quickly.  Buying the dip last Thursday, November 20, 2025 was another great opportunity.  This happened last Friday, November 21, 2025 when the market rebounded from the previous day's decline.  

Lately, the market keeps undipping.  Buying the dip has been a great strategy.

It works until it doesn't. 

As I posted in Stock Market Volatility is Back, I've prepared our portfolio for this stage of the bull or bear market.  I plan to stay calm, avoid any panic selling and not buy the small dips.  

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

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

Copyright © 2025 Achievement Catalyst, LLC

Create Revenue for Retirement

In retirement, regular and steady revenue is a better metric than net worth or the size of a stock portfolio.  The reason is net worth include illiquid assets, such as one's home, which doesn't create income to cover expenses and a stock portfolio has volatility that may decline when funds are needed to cover retirement expenses.

With 20/20 hindsight, here's what I should have done by age to build retirement revenue.

• Ages 20-40.   Save and invest for growth on a regular (e.g. monthly) basis. Use taxable and Roth IRA accounts.  Invest 90-95% in a total market index fund.  Dollar cost average and invest more funds during dips.   Do not withdraw or spend any of these funds.  With the other 5-10%, invest, buy and sell individual stock that are monitored periodically.
• Ages 50-65. Continuing saving and investing in growth.  Start converting about 7% a year to income producing options:  CDs, bonds taxable and tax free, government treasuries.  Build a stream of steady dependable revenue that can be counted on during retirement.   If you plan to retire earlier than 65, start about 15 years before retirement age.
• Choose age to start Social Security payments to create a payment amount to complements one's revenue from savings.

In my case, I depended on growth investments much too long until my early 60s.  Also, I retired early at 49, much earlier than the timeline above, right at the start of the Great Recession in 2008.  I did take  Social Security at the right time, starting at 64.  

I was lucky to have survived a 2008 retirement due to the stock market recovering over the next 15 years and some deferred compensation payments.  There was no brilliance on my part, just a lot of learning that I should have done some things a bit differently.  Luckily, in 2022 interest rates started rising, which will help maintain our revenue generation until 2028.

My post My Sources of Retirement Income showed our 2024 retirement revenue by class as:

53% Interest and Dividends in taxable accounts

27% Social Security monthly payments

20% Rental Income quarterly payments

Also, we are starting to convert our retirement accounts from growth investments to income producing investments in preparation for when we will be required to make RMD withdrawals.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Health Insurance Morass

My health insurance coverage used to be simple.   When I started working, there was little or no premium charge. I didn't have to worry about in network or out of network.   I paid when I visited and it was all covered.  Over time, it evolved into higher premiums with copays and coinsurance.  

Fast forward to today.    I now have a 1 inch thick book explaining benefits and my responsibility. I have copays, coinsurance, deductibles and varying coverages.   Sometimes, I don't have a good idea of what is covered completely or only limited in coverage.   Some areas seem to be 100% coverage but turn out not to meet all the conditions.   Some times the benefit is more that I expected.

Sometimes the provider doesn't have a good grasp of what is covered and when insurance doesn't provide coverage.

Yesterday, I spend the whole morning reviewing and understanding the coverage I have for one visit.   The previous afternoon, I was in discussion with the provider's billing department discussing why the visit wasn't 100% covered.

Now I have a better understanding of Medicare Annual Wellness Visit coverage and Annual Physical Exam coverage, but it shouldn't take 2 half days worth of effort and phone calls.

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

Revenue Sources by Age

How should one think about revenue and the source?   Here's my point of view.

Revenue sources by age.

• Child -   Parents 100%.   One's parents are investing in one's potential.
• Adolescent -   Allowance provided by parents.
• Teenager -  Allowance and/or part time job.
• Young adult -  Wages from employment or earnings from self employment.
• Middle age adult -  Employment wages/earnings mostly and some investment income.
• Senior adult -  Balance of employment earnings and investment income.
• Retired adult -  Mostly social security, pension and investment income.

Importantly, revenue should be greater than expenses to be financially sound.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Personal Finance is a Business

Here's a simple strategy for personal finance:   Think of personal finance like a successful business.  Own the results.

Here's a hack/tip from business thinking.  Cashflow is a term used for businesses, which is the amount of cash flowing in and out of a business. Keep cashflow greater than $0.  Revenue (wages, interest, dividends, or rental income) in minus expenses (mortgage/rent, utilities, foods, entertainment, debt service) out should be greater than zero.  

Unlike a business though, one should minimize, reduce or eliminate debt service since it doesn't potentially increase revenue, as it does for a business.  Instead, debt service only reduces cashflow for individuals.

Replace debt service expense with an investment or savings expense.  Savings is an investment in one's future, including retirement.  Savings and investments have the potential to create revenue for the future.

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

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

Copyright © 2025 Achievement Catalyst, LLC

2026 Tax Brackets and Related Info

For those that are planning for the 2026 tax year, this article The 2026 Tax Brackets Are Official—Here's Exactly How Much More You'll Pay (Or Save) will provide some key information on the 2026 tax brackets and related info.

Of note, if one is single and expects less than $16,100 in wages with no other income, one will have a federal tax liability of $0.  If that is the case, one can file a W-4 to be exempt from federal tax withholding.  Then if one ends the year with under $16,100 income, no tax federal tax return is needed since tax liability is $0 and no federal tax withholding was done.

The only caution is if one is a dependent, which most college students are.   In that case, one should keep unearned income, such as interest and dividends, below $450 or federal taxes will be owed even if total income income is below the standard deduction of $16,100.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Massive Economic Uncertainty

The only thing that is certain is uncertainty.

Economic uncertainty is making it difficult to have job security, save, invest, make major purchases and plan for the future.

• It's difficult to get hired, both for entry level and experienced.
• Layoffs are increasing even for new hires and long term employees.
• Job interviews are difficult to get even when doing hundreds of applications.
• Starting salaries are no longer commensurate with one's higher education degree.
• Government safety net programs are in flux may be reduced or cancelled.
• Inflation making everything from necessities to housing less affordable.
• ACA health care premiums are subject to government induced volatility resulting in big increases.

Unfortunately, uncertainty is the new reality for everybody, including retirees.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Interesting Bull vs. Bear Markets Chart

Sometimes a chart can mislead one's thinking.

I saw this chart and liked it.  It seemed to support the concept of staying invested since the Bull Market sections (blue) are tall and wide, while the Bear Market sections (red) are short and narrow.  Bigger is much better it appears.

However, when looking at the math, I realized the maximum loss for a Bear Market is 100%.   Thus the height of the Bear Market section is limited, while the Bull Market section has no upper limit.  In addition, a 50% drop in a Bear Market, will require a 100% gain to break even in a Bull Market.  Similarly, a a 25% drop in a Bear Market, will require a 33% gain to break even in a Bull Market.

Yes, Bull Markets are great.   However, Bear Markets are significantly more painful than implied by the chart below.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Will the Stock Market Dip Keep Dipping?

Although the market may rebound this morning, I expect the market to continue to decline, perhaps significantly.   Bitcoin has declined over 30% and META has fallen over 25% in the past month.  

With the current volatility, the direction of the market can change very quickly.  I'm tempted to short some stocks, but I've decided it is too risky if I'm wrong.  I'm going to stick to my plan (My New Strategy for Investing During Market Declines) and do nothing today, expect for maybe closing some SPY puts for a profit.  

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

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

Copyright © 2025 Achievement Catalyst, LLC

Social Security COLA and Medicare B Premiums for 2026

For 2026, Social Security payments will increase 2.8% and Medicare Part B premiums will increase to $202.90 from $185.  The higher payment will start in January 2026.

For more details, see It's official. Medicare Part B 2026 premium will eat a big chunk of Social Security COLA

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 © 2025 Achievement Catalyst, LLC

Surviving Stock Market Volatility

Today, I plan to do nothing in the stock market, neither buy nor sell.    I will not panic sell.    I will not buy the dip. 

I have structured our investments to provide monthly income based on dividend and interest.  I don't expect a decline, even a significant one, to materially affect the expected income payments for end of November and end of December 2025.

The only trade I may make is to sell some SPY January 16, 2026 expiration puts for a 100% or more profit.   My 260 strike puts have already reached that percentage gain, but I currently plan to be greedy and hold longer since I expect the market is in the early stages of a correction at a minimum.

For perspective, a 100% gain is not much in absolute dollars, since each SPY 260 put contract only cost $7 per 100 shares.   However, I would definitely sell at a 1000% gain or $70 per contract.  For this to happen, SPY, currently at $652, would need to fall at least $150 in a few days for a 1000% gain, which is highly unlikely.   In between, the decision will depend on how greedy I feel at the moment and how bearish the market seems.😎   The downside risk is the 260 put contract can easily go to worthless on January 16, 2026, which is only 2 months away.

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 © 2025 Achievement Catalyst, LLC

Dealing With Today's Stock Market Decline

Today's stock market volatility reminds me to be ready to invest if there is a significant decline.  I'm not buying the dips, but am waiting to use My New Strategy for Investing During Market Declines when there is a decline of at least 10%.

In the past, I was always hesitant put money in during a significant decline such as 1987, 2001, 2008, 2020 and most recently April 2025.  My New Strategy for Investing During Market Declines will help me overcome that hesitancy and systematically invest more funds during a pullback.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Arrrgh! - Appliances Linked to Internet

Over the past five years we replaced some appliances and they seem to have the added feature of using an app and being connected to the internet.  These include in order our washer/dryer, garage door opener, furnace thermostat, most recently, our dishwasher.

We set up the washer/dryer because it was novel and we wanted to try it.   However, we have not used the app since setting it up.   We chose not to set up the garage door opener, and don't miss not having the feature.   The thermostat was set up by our installer, but other than showing the outside temperature, we haven't got much benefit.  I have since turned off internet access.   We also decided not to set up the app on the dishwasher, despite having a couple cycles that we would use occasionally on the app, which was disappointing to us.

At this point, I don't feel it's useful or worth the effort to learn how to connect to and use the apps/internet with our appliances.  I didn't need smart appliances before the internet and I don't need them now.  I want my appliances to be self contained and self sufficient for use.  Period. 

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

This is not financial, appliance, app, nor internet advice. Please consult a professional advisor.

Copyright © 2025 Achievement Catalyst, LLC

Know One's Health Insurance Benefits

Understanding insurance eligible benefits and payment amounts is a massive morass for customers. 

My health insurance allows me one physical checkup annually for no charge.  Recently, I received a $30 copay bill from a provider for my annual physical checkup.   I called the insurance company to confirm there should be no charge.  They said yes, but the provider coded it as a regular visit.  I found out the code for the annual checkup.  I called the provider and they said their records show it was my annual physical checkup.  I informed them I was charged and they agreed to resubmit with the correct code.

Hopefully, this will be corrected and I will not pay the $30 bill.

Similarly, I thought I had reached my maximum benefit for my dental plan and started paying cash, at a discount, for my routine preventive visits.  It turns out that my that my allowed routine oral exams and preventive cleanings are not  counted towards my benefit maximum.  I am now working with my dental provider to submit claims and get reimbursed for my cash payments.

When  I was younger, I never was close to the maximum benefit or maximum out of pocket (OOP) ceiling.   Now that I'm older, I have been reaching those maximums on a regular basis.  For the maximum benefit, I sometimes need to delay nonessential services to the next year to have the insurance cover the cost.   For the maximum (OOP), all costs are paid by insurance after reaching the OOP and I want to do my medical services earlier to have the covered 100% by insurance.

It seems managing insurance benefit coverage is another complexity as one gets older.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Use Product Warranties for Replacement or Refund

Five years ago, we purchased a pot filler for kitchen.   About every 1-2 years, the o-rings wear out.   Since the product has a limited lifetime warranty, I call the company and request the parts, which the send free of charge.  Since I can replace the parts myself, the only cost is my time and labor,

We also replaced our faucets several years ago.  The faucets carry a lifetime warranty.  Whenever, the faucets don't shut off completely,  I call the manufacturer and request a new faucet cartridge, which is sent to me free of charge.   Again, my only cost is my time and labor to install the new cartridge.

Recently, I purchased a tennis racquet for my son.  After a month, the frame had cracked in 3 places.  We only noticed the major fracture.  When we took it back to the store, they notice two other minor cracks.  I asked if it would be covered by warranty since it was about a month old.  The sales people said the warranty manager would look at it, but believed that the racquet was above normal wear and tear since there were many scratches on the side of the frame.  I responded that he owned the same brand racquet, but different model, for 2 years with even more scratches and it never cracked.

Two days later, the store manager called and said the company replaced the racquet with no questions asked. 

Using a warranty to fix issues definitely saves money since I don't need to replace the product nor have a repair person service it.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Cost to Have Others Manage Investments

The cost for having an advisor manage one's investments seems high to me, often at 1% per year on Assets Under Management (AUM).    For every $1 million, the cost is $10,000 per year for an advisor's services.  

That seems high to me.  Why?   Because the same advisor will charge 1% for managing $100,000 or $1000.   Does it take 10 times to effort to manage $1 million?   No.  They just increase the holding 10 times.   Similarly, if they are managing $10 million at a cost of $100,000 per year, are they doing 100 times the work versus managing $100,000.

I don't have an issue paying $1000 per year.    However, I don't want to pay $10,000 or $100,000 per year for the same investment service just because I asked the advisor the manage more money in the same investments.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Alternative Investments - Leverage, Risk, and Fees, Oh My

Alternative investments previously made available only to high net worth accredited investors are being made available to main street investors.  Private credit, private equity, hedge funds, and multifamily real estate investments are now offered to investors with $50,000 net worth. 

I have read through several prospectuses from financial advisors and fund principals.  Here is my understanding:

• Much higher potential returns.   Often the returns are in the 10-15% range, much higher than I can get from CDs, bonds or stock index funds. Alternative investments have given higher returns consistently for many years. Of course, returns are not guaranteed.
• Leverage.   Many of the funds use leverage to achieve returns by borrowing funds to boost returns.
• Risk.  Of course, higher returns usually involve higher risk, meaning the possibility of not achieving expected returns or even losing money. 
• Fees.   The cost for participating can be high in the form of fees, which is how the offering party earns money for finding or assembling the alternative investments.  These fees are paid even if the investment does not deliver expected returns.
• Lockup periods.  Many of  these investments have lockup periods of 5-10 years before return of principal or limited withdrawal windows. 

My assessment.    The opportunities look attractive, but the space is getting more crowded and returns are starting to go lower.   

This reminds of the time in 2007 with collateralized debt obligations (CDOs) which grouped subprime mortgage debt in notes that were "safe" since the debt was diversified and a few defaults would not affect them.   They offered higher returns for higher risk that was masked by diversification.   In 2008 there massive defaults which caused the bonds to move towards worthless.   Several investment banking firms when bankrupt, which was followed by the Great Recession.

Are alternative investments for me?  Not so much. I have declined putting funds in alternative investments at this time.   I know I am missing out on higher returns, but I don't want to be investing in them when they stop working and create big losses.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Ia AI Expanding Consumer Consumption?

Not yet.

Every previous economic revolution has expanded consumer consumption via more demand or increase supply.

• The Agricultural Revolution made food available with certainty to more people at a lower cost and effort.
• The Commercial Revolution introduced trade and financial elements such as banking which brought goods at lower costs.
• The First Industrial Revolution introduced mechanization, interchangeable parts and steam power which made many goods cheaper and accessible.
• The Second Industrial Revolution introduced electricity, steel, internal combustion engine and the assembly making more goods cheaper and accessible.
• The Third Industrial Revolution brought transistors/chips, electronics, computers and automation making even more goods cheaper and accessible.
• We're in the Fourth Industrial Revolution with advancement in Internet of Things, Smart technologies and AI.  IMHO, this Revolution has not. broadly expanded consumer consumption and has limited consumption expansion to consumers with high net worth. AI makes corporate expenses lower which stock values, but goods they make are not cheaper becoming more accessible. In fact, more employees are being laid off due to AI which decreases broad consumer consumption.  

How can AI create expanded consumer consumption?  I have a few suggestions.  First, bring down the cost of expenses for necessary goods  Second, create new job opportunities that pay more as old jobs are replaced by AI. Third, create new cost effective business models that significantly improve the financial situation of employees and consumers. 

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

Learn to Manage Own Personal Finances

"Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime." ~  old proverb

Personal finance knowledge and understanding is important for financial success. Personal finance is a skill each person should learn and execute well, starting early in life, even as a child.  It is important for the individual to routinely make good decisions to be successful in their personal finances.

No one knows more or cares more about my financial situation than me.  Not any broker.  Not any investment advisor.  Nor any financial advisor. Personal finance success depends on the my knowledge,  commitment and implementation, not based on an advisor doing the work for me.

As long as I am able to do the work, I will continue to manage our personal finances myself.  If circumstances require an advisor's involvement for additional perspective, I do use their services and I make the final decision on what to do.  For example, I got input from advisors on when to start taking Social Security and on how long our current retirement funds will last, before making my decisions.

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 © 2025 Achievement Catalyst, LLC

My New Definition for "Wealthy"

I used to think wealthy was a specific number.  When I was a child, I though $1 million was wealthy. Nowadays, 10% of U.S. adults are millionaires in net worth but are cash poor, i.e. most of their wealth is in assets, such as their home.

 My new definition is no longer a number, but a state of mind of absolute financial security.  To me wealthy means:

• One has sufficient funds to cover necessary and discretionary expenses for one's life expectancy.
• One has sufficient funds to choose whether or not to work for compensation.
• One has sufficient funds to cover unexpected or emergency expense without using debt.
• One has sufficient funds to cover large expenditures, such as a new car purchase, without using debt.

Of course, "wealthy" people can choose to work or use debt, but they can also choose not to.

 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

Best Age and Worst Age for a Bear Market

Bear markets are inevitable but unpredictable in timing.  It's best to expect them and prepare to protect from or benefit from them depending or your age.

Best Age

In one's twenties, making it a great time to invest in a stock market index of the S&P.  Once can confidently stay invested in the inevitable bear markets that will occur.  Rolling 20 year returns on S&P 500 since 1926 have always been positive.  Roll 10 year returns have been positive except for the years starting with the Great Recession and the Dot Com Bubble.

Worst Age

+/- 5 years from retirement.   The sequence of market returns can significantly impact how long retirement funds will last.  Retire during a bear market and needing to withdraw funds will cause one to run out of money much sooner than someone who starts withdrawing during a bull market.

Disclosure:  I retired in 2007, just before the Great Recession.  I didn't know about the worst age recommendation.  Luckily, I had enough cash and CDs that matured during the first 5 years, such that I did not have to sell equities to cover living expenses. 

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

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

Copyright © 2025 Achievement Catalyst, LLC

Maximum Amount to Borrow for Student Loan

The maximum amount should be a financial decision and not an emotional decision. Consider the impact it may have on your finances over 10 years after you graduate when deciding how much to borrow. IMHO, the best option if taking a loan is one can repay in 10 years or less easily. 

Here is a simple calculation to do before taking out a student loan.

I have read of two different rules of thumb.

1. No more than one's expected salary.
2. No more than 10% of expected take home pay.  

Assuming one's first job is $60,000 per year which is the average for a college graduate. Take home pay for $60,000 is estimated at $4,187 per month not including state income tax deduction.  

Rule #1 maximum is $60,000 borrowed.  That results in a $678 per month payment at 6.39% interest for 10 years.   That's 16.2% of one's take home pay.

Rule #2 maximum is $37,000 borrowed.  That results in a $418 per month payment since 10%  of $4,187 per month take home is $419.   

Both of these seem reasonable for loan payments.   However, what if the starting salary is only $40,000 when one assumed $60,000.     Now, one's take home pay is only $2848 per month.  Now the monthly payment is either 23.8% for Rule #1 or 14.6% for Rule #2 based on borrowing against one's expected salary of $60,000.  Ouch for following Rule #1.. 

With a recommended budget that has 20% of take home pay going to savings and debt, the above student loan examples would take about take up 50 to 138% of that 20% based on assumed or actual starting salaries.   

Instead of thinking of a student loan as an investment, think of paying off a student loan as a future budget item and whether the future payment is affordable.

Disclosure:  Student loans I took had payments of about 5% of my take home starting salary.  Although many years ago, I recall that percentage to very manageable.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Best Time to Plant Grass Seed

Most people assume the best time to plant grass seed is early spring.  The results come a within couple weeks of planting, which is satisfying.  However, the weather can get hot and scorch the new seedlings leading to a thin lawn or one with bare spots later in the summer.

For me, the best time is to seed is mid September to early October.  The weather is cooler and the ground stays moist longer.  The downside is one may not see much grass growing before winter.  However, the seedlings will grow stronger over the winter and give a luscious lawn in the spring.

When neighbors complement me on my lawn and ask who does our lawn services, I proudly tell them I do my own seeding and fertilizing service.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Volatility Will Test My NEW Investment Strategy

My goal is to invest for income and growth.  I am targeting income to be stable, paid monthly and sufficient to cover expected living expenses when combined with social security. This will be done through bond ETFs such as SCMB and SCHZ/BND.   For growth, I plan to but have not executed investing primarily in index ETFs such as VOO (S&P 500) and MGK (Large Cap Growth).   

I have started investing in the bond ETFs.  I am still waiting for the long expected correction before investing in VOO and MGK.

I hope this strategy will make me immune to drops and keep me steadfast in following the strategy.

Friday's volatility was a good test of my commitment to the strategy.  Even with the morning steep declines of several growth stocks, I did not panic sell.  In fact, I started planning on investing in VOO and MGK by setting buy targets.

It's a good thing I didn't not sell any core investments.  The market rebounded and closed about even after being down as much a 1.5% during the day.  Another day of volatility that turned out be a nothing burger. 

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

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

Copyright © 2025 Achievement Catalyst, LLC

Hoping for the Best and Preparing for the Worst

There are currently two seemingly opposing beliefs about the stock market:

• Belief #1: Stocks will keep going up and always buy the dip.
• Belief #2: Stocks are extremely overvalued and a major decline will happen.
  

Both beliefs are right, but differ in timing of benefit, i.e. long term versus short term.

Let's look at each belief.

• Stocks will keep going up and always buy the dip. Over the long term, this belief is correct.  In 20 year rolling periods since 1919, the S&P 500 (or its representation before it was created) is always a gain.   
• Stocks are extremely overvalued and a major decline will happen.  In the short term, this can be true.  The declines average about 1 year and usually last less than 2.7 years.  It usually takes 2.5 to 4.5 years to recover, but may take up to 10 years to return to previous highs as in the lost decade in the early 2000s.

In hoping for the best, I am staying invested with our core holdings.   If the market keeps going up, we will benefit.  If it falls, we can weather a decline that takes up to 5 years to recover.  Additionally, we will stay invested in our our children's long term savings accounts.

In preparing for the worst, we are keeping sufficient cash equivalent funds to cover 5+ years of living expenses and to invest in an index fund such as VOO as the market declines, especially for our children's accounts which will be invested for at least 20 years.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Know Mutual Fund Year Capital Gains Distributions Before December

Since I am retired, I can manage my taxable income received each year.  For tax planners like me, getting Mutual Fund capital gains distributions in mid to late December can ruin a good tax plan, especially if one is on the borderline of receiving tax credits or being in a lower tax bracket.

However, I don't have to wait until December to find out the amount of expected capital gains distributions.  The amount is usually determined at the end of September or October, but isn't paid until December.   I often can find out the expected capital gains distribution in early October or early November by checking the Mutual Fund website. 

With the expected capital gains information, I can plan other sources of taxable income, such as stock tax loss harvesting,  to ensure we know our tax bracket and eligibility for tax credits and deductions for the calendar year.

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

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

Copyright © 2025 Achievement Catalyst, LLC

New Dishwasher Review

Recently I wrote about Replacing Instead of Repairing a Dishwasher based on the cost of repair versus putting that money money towards a new dishwasher.   I'm usually a fan for using cars and appliances until they are beyond repair.  For example, I drive a 2003 F-150, which I have been repairing instead of replacing.

We have bought a Bosch 800 dishwasher to replace a Bosch 800 dishwasher from 2016.   For reference, I received no compensation for this post.

Even though our replaced dishwasher was working well, I've noticed that our new dishwasher cleans much better.  Significant changes have been made to the lower spray arm are such that pots and pans are much cleaner than our previous dishwasher did.   The improvement is a multi armed spray device that can focus on extra soiled pots and pans. 

In addition, the new dishwasher seems to dry out washed items much better that the replaced dishwasher.  One reason is we are now using Jet Dry from the very start.   In our previous dishwasher, we didn't start using Jet Dry until last year, even though the instructions said to use.   As with our previous dishwasher, the new one is extremely quiet.

The dishwasher has many more options than we use. Although the dishwasher has several cycle choices, we typically only use the Auto cycle.   The new dishwasher can be connected to an app via the Internet, but we do not to use that feature.  

Overall, we are very happy with the new purchase.  

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

Hypothetical Impact of Distributing Billionaires Wealth

A common misperception is that billionaires could solve poverty, health care crisis and other wealth gap issues if they transferred their wealth to the rest of the population.  

Let's do the math.

How Much Every American Would Get If Jeff Bezos’ Wealth Was Evenly Distributed

According the article distributing Bezos' net worth of $234B to the entire U.S. population of 340.1 million would result in each person receiving $688.   Not even enough to pay one months rent.

Now let's look at all billionaires.  There are 1135 billionaires in the U.S with a total net worth of $5.7 trillion.  $5.7 trillion is close to the U.S. annual budget of 7.01 trillion and would reduce the $37 trillion national debt ONE TIME.   Distributing $5.7 trillion to 340.1 million people would result in each person receiving a ONE TIME payment of $16,764.   Distributing $5.7 trillion to 128 million households would result in each house receiving a ONE TIME payment of $44,531. 

What could people do with the money?

Average student loan debt: $39,000  Total student loan debt: $1.8 trillion

Average credit card debt: $6,500  Total credit card debt:  $1.21 trillion

Average car loan debt: $24,297.  Total car loan debt: 1.61 trillion

Average rent paid:2000/month    Total rent paid:  $500 billion - $1.4 trillion.

Total amount eliminated: $5.12 - $6.02 Trillion ONE TIME.

IMHO, monetary benefits that are ONE TIME usually do not solve underlying personal finance issue(s).   Taking and using all the wealth billionaires have is not a sustainable solution.

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

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

Copyright © 2025 Achievement Catalyst, LLC