FINANCIaL
FIELd NOTES
How Being Present Increases Happiness in Retirement
I love the game of soccer. I played it growing up for many years and still try to catch as many games as I can. Those who share my love of the game certainly know who Lionel Messi is – arguably the best player to ever play the game. He was recently offered a historic $1.6 billion to sign with a Saudi club. He declined it and surprised the world by signing with a US soccer club owned in part by another great of the game, David Beckham.
Beckham was trying to land Messi for years but knew it was a long shot. Earlier this year he woke up one morning to a shocking text informing him that he had landed Messi. Just recently Messi moved to Miami and had his debut game. As Messi got ready to take the field, thousands of fans and celebrities whipped out their phone to record the moment. As I watched Messi come onto the field, the camera panned to Beckham who was sitting down, patiently watching Messi and fully taking in the moment…
My Thoughts on $1 Trillion of Credit Card Debt
Last week financial news outlets raised alarm bells on consumer credit card debt as it passed the $1 Trillion level.
Let me start by saying that any and all credit card debt should be eliminated first in most situations. It is nearly impossible to get ahead financially while paying 15-25% interest on that debt. Credit card debt is no joke.
But many have used this moment to suggest that the US consumer is overspending on an unsustainable path. “This can’t go on forever.” It may come as a surprise to some that it actually can go on forever…
Don’t Take the Stock Market Personally
Investor Jim Grant once said, “To suppose that the value of a common stock is determined purely by a corporation’s earnings discounted by the relevant interest rates and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin and believed Orson Welles when he told them over the radio that the Martians had landed.”
Investing in the stock market is often viewed as a purely analytical practice that should look something like this…
Staying Put May Be Your Biggest Wealth-Building Tool
Families who were fortunate enough to lock in generationally low mortgage rates before the rapid increase over the past few years have one of the best wealth-building tools available - staying in their homes.
Consider a 35-year-old couple making $200,000/year that took out a $600,000 mortgage on a $750,000 home and were lucky enough to lock in at 3% for 30 years before rates started to rise. Their payment comes out to roughly $30,000/year or 15% of their income…
How Investors Can Be Right and Wrong at the Same Time
One of the most frustrating parts of investing is that you can be right and wrong at the same time. Recent Netflix stockholders know this all too well. The story about Netflix back in 2018 was that their subscriber base was breaking out and that tremendous growth was ahead.
And they were right. Check out these numbers over the past 5 years….
Medicare IRMAA Surcharges and 5 Ways to Avoid Them
IRMAA stands for Income-Related Monthly Adjusted Amount. It is an increase to the standard Medicare Part B and Part D monthly premiums that Medicare recipients have to pay each month if they make over a certain amount.
For 2023, the standard Part B premium is $164.90/month and Part D is $0 (plus your plan premium). Depending on your income, your Part B premiums can go up to $560/month and Part D can go up to $76/month…