Survivor Bias

I hear a lot about financial success stories and how people achieved it.   Real estate, social media influencers, internet selling and more.  The trouble is that I only hear about a the people that were successful.  I don't hear about those that failed using the same strategy or process.

That would be like only talking to people who won Mega Millions or Powerball jackpots and learning about the strategies they used to pick willing numbers and ignoring all the people who used the same strategies and didn't win.

Yes, it's great to hear the success stories of Bill Gates, Elon Musk, Jeff Bezos, and Mark Zuckerberg.   However, it's not a guarantee of success since there are many others that followed similar paths without the same lever of success or even failure.

Remember, go with strategies that have a high probability of success and even then, 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

Bought Silver When It was Low

Lucky me.   Really, it was luck.

In 2014, I was buying junk silver coins (pre 1964 dimes, quarters and half dollars) when silver was about $20/oz.  I was paying 11 times face value, or $1.10 for a silver dime.  At the time, silver was out of favor and would continue to be out of favor until 2024.

The price of silver starting going parabolic in 2025.  Silver hit an all time high of $84/oz over the weekend.    The price of a silver dime is about $6.07 at that price of silver or about 61 times face value.

I still have the coins that I bought in 2014.   At this point, I don't have a plan to sell, but I will be very tempted to sell if the price of a silver dime reaches $10.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Final Tax Adjustments for 2025

The next few days are the final days for making adjustment that can affect the 2025 tax return, except for deductible IRA contributions that can be made until April 15, 2026.   For us, that means making charitable donations, making medical purchases, such as prescription eyeglasses,  and selling any stock market losses, to reduce our taxable income for 2025.

Although we have been doing the above for the last few months, some of our income, such as long term capital gains for mutual funds, didn't come until the last few days.  In several cases, the gain was higher than estimated which required making further deductions to offset the additional income.  

Next year, I will be better prepared earlier since I have a better understanding of the new tax laws and their effects.   Also, I expect the capital gains distributions from mutual funds to be much lower in 2026.

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 Inflation of Groceries is Confirmed for Our Household

Last week, my spouse complained to me, for the first time, about how much she was spending on our groceries and how much she saved by buying items on sale.     Her main point was, "I used to spend X on groceries.  Now, I'm spending 4X for the same purchases!"

My spouse has always been a "buy want I want and not look at the price" grocery shopper.   She has not complained about prices even though they have been rising since 2020 and COVID.  Not any more.  She is noticing and complaining.

When my spouse notices the difference in prices, it has be really big change.

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

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

Copyright © 2025 Achievement Catalyst, LLC

Avoid Being the Investor Fish

A "fish" in poker is a losing player, typically inexperienced or unskilled at the game.  In the world of investing, one needs to overcome being a potential fish. 

Here's what I have learned:

• There are numerous investment options:  Stocks, Bonds, Bank products, Insurance products, Private equity/credit.   
• There are numerous advisor costs:  High fee/high touch, no fee/minimum advice, assets under management (AUM) fee, insurance product commissions, hourly only fee
• There are accessibility and flexibility option:  accessible anytime or locked up for months or years.
• There a different levels of risk:  Low, Medium and High

It was important for me to sort out which of these options worked best for me.  To start, I wanted low fee, low risk and high accessibility.    Thus, I used bank products initially, savings account and CDs.   Next, I moved to stocks in self directed accounts with discount brokers, for lower fees, which has now become no fees.   I tried advisor managed accounts, for a 1% AUM fee for part of my investments.   I typically have not done insurance products, such as annuities or whole life policies,  yet due to the higher fees and lower accessibility.  I have been offered private credit opportunities, but have not invested.

I have since moved away from managed accounts, since I have concluded that very few consistently outperform the S&P index.   Thus, I will be mainly investing in the stock index funds in the future and only a few individual stocks.

At this time, I believe my choices are giving us the appropriate balance of returns, safety and income needed.   We still need to evaluate the results when a significant economic downturn occurs.

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

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 joining 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.

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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