September 2024 Best of the Web

I share an early retiree case study and resources to help you build a solid financial foundation. Resources will also help you assess risk, deal with uncertainty, and challenge your mental models.

Finally, I close with an encouraging study about aging and cognitive abilities. Let’s dive in!

Falling Interest Rates

Many “experts” and prognosticators see the recent Fed rate cuts as the first of a series that will send rates progressively lower. I don’t think trying to predict the future is a particularly good use of time. So instead I’m going to share a few takes on the topic from writers who I respect for their study of economic history.

Jason Zweig writes What’s In a Cycle?

Ben Carlson explores Rate Cuts & Historic Market Analogues.

Carlson also uses data to provide a reminder that just because you have a thesis that seems to make sense, it doesn’t mean things will play out as you anticipate. He writes What Happens to the Money Market Cash On the Sidelines?

Early Retirement Case Study

Jordan Grummet invited one of his listeners, Sandi Mccoy Kramos, and me for a “Community Episode” podcast titled Can I Retire? We planned to discuss a Bezinga article about an early retiree case study. 

As we started talking Sandi revealed she would be retiring early within the year. This led to a more interesting real-life case study. For those of you who enjoy the case studies I publish on the blog, you will enjoy this conversation. Check it out.

Personal Finance Foundations

William Bernstein answers the question Why Should You Care When Stocks Plunge?

A lot of people get caught up in the minutiae of investing. One thing we all need to do is to choose a brokerage to hold our investments. Jeremy Zuke breaks down the pros and cons of the “Big 3” Fidelity, Schwab, and Vanguard to help you make this decision. How to Choose a Custodian for Your Accounts.

Mike Piper explains an important and often misunderstood concept in tax planning. Effective vs. Marginal Tax Rate in Retirement: Why Taxes Don’t (Usually) Cause People to Go Broke.

Meg Bartelt writes that you should Look Out for These Mistakes in Your Estate Plan.

A common issue I work on with planning clients is figuring out an exit on real estate investments gone bad. The common cause of these poor outcomes is entering into these investments underestimating the level of work and/or risk involved. I love the conversation from the ChooseFI podcast with Scott Trench: Real Estate 2024 Update.

Trench is the president and CEO of the real estate investing platform BiggerPockets. I appreciate his sober assessment of what it takes to be successful as a real estate investor generally, and particularly in today’s market.

Mental Models

Earlier this year, I wrote a popular post comparing managing risk and evaluating decisions made in the face of uncertainty in the mountains as an analogy to retirement planning.

If you found that post valuable, I highly recommend checking out the conversation on the White Coat Investor Podcast between host Jim Dahle and Carl Richards.

Peter Attia interviewed Marty Makary on The Drive podcast. This is a fascinating conversation exploring group think, cognitive dissonance, and blind spots that we are all susceptible to when making decisions.

Upsides to Aging

I frequently write about the risk of cognitive decline which can occur with age. I’ll close with a more hopeful perspective. Lydia Denworth writes Many Older People Maintain and Even Gain Cognitive Skills.

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[Chris Mamula used principles of traditional retirement planning, combined with creative lifestyle design, to retire from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. After achieving financial independence, Chris began writing about wealth building, DIY investing, financial planning, early retirement, and lifestyle design at Can I Retire Yet? He is also the primary author of the book Choose FI: Your Blueprint to Financial Independence. Chris also does financial planning with individuals and couples at Abundo Wealth, a low-cost, advice-only financial planning firm with the mission of making quality financial advice available to populations for whom it was previously inaccessible. Chris has been featured on MarketWatch, Morningstar, U.S. News & World Report, and Business Insider. He has spoken at events including the Bogleheads and the American Institute of Certified Public Accountants annual conferences. Blog inquiries can be sent to chris@caniretireyet.com. Financial planning inquiries can be sent to chris@abundowealth.com]

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