My First Million

A luxurious Alaskan cruise doesn't come cheap

2006-03-12T20:10:35-08:00

Things are coming together for our upcoming cruise to Alaska. I�ve now booked round trip economy class tickets for two totaling $1,549.46. And booked two nights in Vancouver -- the departure city -- at a top hotel. The hotel was booked as part of a package through the cruise line ...

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Individual Medical Ins.: This could be good news for early retirees!

2006-02-21T16:26:24-08:00

AARP has teamed with United Heath to offer major medical insurance. At least in my state the offering is unique in one key area: If you have been under a qualified plan for at least 1-year (with your employer for example), and have used your Cobra extension, you can join ...

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Prudent (and no-cost) Valentine�s Day gift for your significant other

2006-01-10T10:24:20-08:00

If you�re a regular at pfblog, there's a good chance you're also the financial wizard in your household. But have you considered how your less financially-savvy significant other would fair if tragedy were to strike, rendering you unable to tend to your family's finances? You�ve likely already addressed the basics ...

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My four funds: 2005 year-end annual returns

2006-01-03T08:58:06-08:00

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Individual health insurance sucks!

2005-12-27T15:49:53-08:00

I have written before of my medical insurance mess. I just got my next quarterly bill from Assurant / Fortis and the rate has increased exactly 27.46% from a year ago! The rate is now up to $2,193.54 quarterly* with a $5,000 deductible. And to make matters worse -- last ...

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5.00% APY for 13 month CD. Can you top this rate?

2005-12-07T01:05:32-08:00

I�m looking for a place to park some cash and found this rate. If you can top this, please leave a comment so others may benefit. Small print...

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iPod / MP3: A unique gift idea for that special music lover

2005-12-03T09:00:44-08:00

If someone special on your shopping list happens to be one of the 30+ million iPod / MP3 owners, here's an idea for an add-on to help them get the most from their portable player...

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What age should you buy long-term care insurance?

2005-11-10T00:01:00-08:00

Recently a reader asked what age I thought was ideal for buying long-term care insurance. In this post I share my thoughts on the pros and cons of buying at a younger age vs. waiting until retirement. The majority of people hold off shopping for LTC insurance until their late ...

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I picked up Bose MediaMate speakers for 40% off; Great powered speaker for iPod, MP3 & computer

2005-10-26T14:26:16-08:00

[10/31/05 - I'm midway though the purchase process. After more research, I've decided to make a few changes. While the Bose MediaMates at $60 / pr. are a great value -- especially for home use -- I've decided to look for something more portable. Stay tuned for an update after ...

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I�m close to purchasing the new Apple iPod -- but with an audiophile twist

2005-10-25T00:01:21-08:00

I�m about to invest upwards of $700 in a high-end iPod system. This amount consists of birthday money (I�m now 50!), plus $200 earned writing this blog the past few months. Bottom line, I intend to make this a truly �frivolous purchase.� [10/31/05 - I'm midway though the purchase process ...

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11 questions to answer prior to buying long-term care insurance

2005-10-10T01:02:32-08:00

Morningstar recently published an article titled "The Ins and Outs of Long-Term Care Insurance." The article addresses 11 questions you should answer prior to investing in LTC insurance coverage. Personally I believe that LTC insurance is an expensive, but worthwhile investment. Read Morningstar's article. Learn the specifics of my MetLife ...

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My Balanced Fund: Q3 2005 YTD review

2005-10-02T19:01:46-08:00

Has my balanced fund continued to outperform a broadly diversified balanced index fund? What, if anything, am I giving up in tax efficiency for being in an actively managed vs. passively managed index fund? For this post, I used Morningstar's "fund compare" tool to review YTD return and tax efficiency ...

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My Bond Fund: Q3 2005 YTD review

2005-10-02T09:24:32-08:00

Has my bond fund continued to outperform a broadly diversified bond index? How is my fund doing when compared to individual bonds? What, if anything, am I giving up in tax efficiency for being in an actively managed vs. passively managed index fund? For this post, I used Morningstar's "fund ...

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My International Funds: Q3 2005 YTD review

2005-10-01T21:00:58-08:00

Have my international funds continued to outperform a broadly diversified international stock index? What, if anything, am I giving up in tax efficiency for being in actively managed vs. passively managed index funds? For this post, I used Morningstar's "fund compare" tool to review YTD returns and tax efficiency for ...

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I. Can my retirement plan stand the test of time?

2005-09-28T00:09:00-08:00

Financial experts tell us: �Withdraw no more than four percent of savings a year; allocate investments in a balanced mix of stocks and bonds, etc." This advice, while good, is generic �- and does not take into account the many peculiarities of my financial situation. Rather, as a cautious, semi-retired ...

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II. 42 more years of rising expenses (it's not a pretty sight)

2005-09-28T00:08:00-08:00

This graph is Fidelity's projection for my annual income and expenses. My comments follow the graph. [View first post in this series.] My annual income / expenses

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III. My current plan passes by a wide margin

2005-09-28T00:07:00-08:00

With my total outlay projected to grow to an eye popping $319,970 / year, how well does Fidelity think my current retirement plan will weather the test of time? To come up with the results below, Fidelity's retirement program ran my current financial plan through "at least 250 historical market ...

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IV. What�s the max I can safely spend each year?

2005-09-28T00:06:00-08:00

I also wanted to know how much more I could "safely" spend. So I played with expenses to determine what point I become exposed to a 10% chance of running out of money at age 92. The results below assume expenses begin at $6,444 / month*. My comments follow the ...

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V. What happens if I assume more market risk?

2005-09-28T00:05:00-08:00

While my current plan and asset allocation are on solid ground, I wondered what will happen as I continue to increase the allocation to equities in my portfolio (which I am doing via dollar cost averaging). So in this test, I compare my current asset allocation with Fidelity's recommendation ...

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Just booked my �06 cruise to Alaska. Here's why I chose Radisson Seven Seas...

2005-09-20T08:31:39-08:00

This post lists the reasons behind my choice of ship, along with detailed cost. Let me start by saying that my wife and I are pretty frugal in most aspects of our lives: We don�t have cell phones or premium cable, and my wife is a fanatic for clipping coupons ...

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Step 0: Putting index funds through their paces

2005-09-17T00:05:00-08:00

Based on responses to my earlier posts, it's clear many readers feel strongly about their index funds, as I do my managed funds. These comments demonstrated depth of knowledge -- and shall I say -- no shortage of enthusiasm :) While I am generally pleased with my current investment plan ...

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Step 1: Select asset allocation

2005-09-17T00:04:00-08:00

Recently Morningstar published an article titled "Model Portfolios for Retirees." The article presents five asset allocation options, ranging from preservation to aggressive...

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Step 2: Choose the funds

2005-09-17T00:03:00-08:00

In Step 1, I selected Morningstar's Growth Portfolio for retirees. Now it's time to choose the funds...

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Step 3: Calculate 1, 3, 5 & 10 year returns

2005-09-17T00:03:00-08:00

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Step 4: View the results

2005-09-17T00:03:00-08:00

The chart below shows 1, 3, 5 and 10 year returns for: - Morningstar's Balanced Portfolio - Morningstar�s Growth Portfolio - Dodge & Cox Balanced

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Step 5: Find more funds like D&C Balanced

2005-09-17T00:02:00-08:00

Is D&C Balanced a fluke, or have other funds demonstrated similar consistency of performance? Using Morningstar�s fund screener, I went looking for funds with characteristics and performance similar to my D&C Balanced...

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Opted for double medical coverage; A costly form of �early-retirement insurance�

2005-09-14T10:05:29-08:00

Plan to retire early? Have you figured out how you�ll maintain medical coverage until reaching Medicare at age 65? If the answer is no, this post may interest you...

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Pro-indexers, what do you recommend for someone facing retirement?

2005-09-13T08:00:20-08:00

Thanks to everyone who has already contributed to the index fund debate. I believe many readers, myself included, are benefiting from your comments. Pro-indexers are building a good case for indexing long-term investments -- but what do you recommend for someone facing retirement, with a need to live off their ...

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Do these new factors make actively managed funds more compelling?

2005-09-12T04:00:32-08:00

Today the index fund debate continues with two posts: One clearly pro-index -- and this from Fidelity Observer -- asking pro-indexers for their response to new factors that make managed funds more compelling. Any takers?

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Like managed funds? Reading this might change your mind

2005-09-12T04:00:30-08:00

Today the index fund debate continues with two posts: One posing new questions for pro-indexers -- and this -- featuring the writings of John C. Bogle of Vanguard fame. If, like me, you invest in actively managed funds and have not yet studied Mr. Bogle's findings, you owe it to ...

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Announcing the index fund debate

2005-09-09T09:27:36-08:00

Over time, are all actively managed funds a loser's game? Are investments in index funds -- like the S&P 500 -- really as smart as pundits lead us to believe? Answers to these questions impact my pocketbook. And after viewing reader's thoughtful comments to my original posts on this topic ...

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Readers have challenged 1stMill's preference for actively managed funds

2005-09-08T01:00:42-08:00

Several readers posted comments to my recent: Why I no longer own an S&P 500 index fund. Most comments pointed to the benefits of index funds and asset allocation. And a number of comments challenged the thinking behind my preference for actively managed funds. At risk of sounding like Tom ...

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Here�s why I no longer own an S&P 500 index fund

2005-09-05T09:30:05-08:00

In the latter half of the '90s I had an S&P 500 index fund, which I exited as the market went south. This post lists the rationale behind my decision to -- at least for now -- avoid S&P 500 index funds. Note: The S&P 500 index represents approximately 70 ...

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Beyond cash: More ways you can help hurricane and flood victims

2005-09-03T13:47:15-08:00

In our household, my wife has taken the leadership role in terms of providing relief to hurricane victims. Here are a few things she�s doing I thought worth sharing: - We are donating used clothing and personal items to a local church that will transport them to victims. - Today ...

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Buying mutual funds: This money-saving tip often overlooked by mainstream press

2005-08-29T09:15:52-08:00

This post shares a tip that may help you avoid hefty sales charges when buying mutual funds.

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Three reasons why I no longer buy or sell individual stocks

2005-08-27T08:20:44-08:00

My luck (read: skill) buying and selling individual stocks sucks. As best I can tell I am not alone. This post lists three reasons why, a number of years ago, I decided to leave the buying and selling of stocks in the hands of professionals (managed accounts and mutual funds).

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My Net Worth Growth, Part 3: Doing these ten things helped me quickly reach $100,000

2005-08-25T15:30:59-08:00

[10/10/2005 - This post was originally included in a series that I have decided to put on hold. It has now been reclassified to Money Saving Tips.] As a college grad in the late 70s, my starting salary was around $17,000. Yet only a few years later my net worth ...

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Weiss Research, a large publisher of financial newsletters, is spamming me

2005-08-25T07:39:24-08:00

The man pictured below is Dr. Martin D. Weiss. He bills himself as �...this country's leading consumer advocate for financial safety.� His company, Weiss Research, claims to be one of the largest publishers of (paid) print and electronic financial newsletters in the U.S. Some running as high as $5,000 a ...

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What is the single biggest contributor to reaching your retirement savings goals?

2005-08-23T08:30:41-08:00

This is from a newsletter published by Fidelity... �The amount you set aside today and each month is the single biggest contributor to reaching your retirement savings goals and enjoying a successful retirement.� I concur. What do you think? about - portfolio - feedback - disclaimer

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How do you keep daily tabs on your stocks & mutual funds?

2005-08-22T08:25:31-08:00

This post features four simple ways to keep day-to-day tabs on your stocks and mutual funds. If you know of others, please feel free to add a comment.

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Attention mass affluent: Here�s one publication you can�t afford to miss

2005-08-20T07:13:45-08:00

If you are lucky enough to be part of the mass affluent -- that is a household with $100K - $1 million to invest -- you may be finding publications like Money & Smart Money sometimes too basic to really help with some of the issues you now face. So ...

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How I shave 43% off my internet cable bill

2005-08-19T09:34:10-08:00

I really hate recurring charges. But having high-speed internet access is one luxury I simply can�t do without. But even here I found a way to save a few bucks.

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Insurance: 3 reasons why you may want to assume more risk

2005-08-18T07:40:46-08:00

When it comes to insurance, my philosophy is to self-insure for the small stuff. Today I present three reasons why I believe this approach could help many people save money over the long run.

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A real estate investment that could have profited $500,000 (or more)

2005-08-17T07:01:44-08:00

Last night I returned from a four day weekend in New York City. The guy sitting next to me on the plane just happened to live in a pricy lake-front development where I once owned investment property.

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My solution to a budgeting problem

2005-08-12T10:02:56-08:00

Prior to coming up with the solution below, I found it difficult to know whether I was within budget for any given month. My problem was two-fold: (i) Credit card bills often contained job-related expenses that would eventually be reimbursed, and (ii) Occasional expenses like the annual property tax bill ...

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Could a mentor help you reach your goals?

2005-08-09T08:45:55-08:00

Let�s say there�s an aspect of personal finance, investing or your career that you find new or a bit confusing -- here�s something to consider... Find a mentor. That is someone who can give you advice without wanting to sell you something. Certainly family and friends are a good place ...

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Saving money by using Regular Gas

2005-08-06T09:15:04-08:00

The owners manual for my car* recommends Premium Gasoline at an Octane Rating of 91 or Higher. With gas prices on the rise, about a year ago I hit the Web to determine if I really needed high octane. I found several articles supporting the fact that high octane was ...

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Deal on wheel alignment

2005-08-05T22:54:34-08:00

Next time you take your car in for wheel alignment, ask the dealer if they offer a Multiyear Wheel Alignment Service. Recently I bought a five-year agreement from NTB. And the breakeven point was somewhere around 2-3 alignments. NTB also sells one and three year packages.

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My Net Worth Growth, Part 2: Performance relative to benchmarks

2005-08-04T19:45:26-08:00

This is the second in a series where I review my personal finances over the past 25 years (read Part 1). This post is confined to investment return over the last decade, and answers the question: How has my investment portfolio performed compared to the benchmarks? Note: If you are ...

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Social Security: Maximum monthly benefit and a few related tidbits

2005-08-02T10:50:30-08:00

This post seeks answers to these questions: - Assuming full retirement age, what is the theoretical maximum for today�s social security benefit? - About how much have I forgone by retiring in my late 40s? Recently I called the Social Security Administration to request an update to my estimated benefits ...

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