Author: Financial Advisor
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Citibank Is Turning a Great Middle-Class Credit Card into a Cheaply Wrapped Debt Trap: It Feels Uncomfortably Unethical to Me
The Costco Anywhere Visa has traditionally been a very good credit card for ordinary middle-class households: no annual fee beyond the Costco membership, and substantial rewards precisely where many families spend money: restaurants, gasoline, and travel. Citibank is now trying to attach a different habit to it: financing ordinary purchases through Citi Flex Pay. And…
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The Retirement Spending Trick: Start “Smiling” Now
Retirement may be more fun when your spending “slides” instead of “smiles”. A question, only partly joking: What better describes retirement spending—a smile or a ski slope? Imagine your retirement. No more work obligations. Plenty of time, and finally the freedom to do “it”—whatever “it” may be. Naturally, you expect to spend more money. Perhaps…
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The Six-Month Emergency Fund Everyone Recommends Is an Expensive Psychological Trick. Here Is Why.
Introduction “Keep six months of expenses in cash so you will not have to sell investments at the worst possible time.” This sounds unquestionably prudent. But what exactly would that “worst possible time” cost? And how much are you paying while waiting for it? The Price of Safety You finally decided to take care of…
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The Arbitrarily Invented Retirement Number
“I would retire if I had $2,3,5, 10 million.” The number sounds precise, but it represents a feeling, not a calculation. No expected spending, taxes, housing costs, or withdrawal rate have been established. Core question: What monthly lifestyle are you trying to finance, where do you plan to live, what asset allocation do you expect…
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It Is Not About Money Until We Remove Money
The Invisible Money Driver in Action Imagine the situation. You are discussing your plans for the next five or ten years with an acquaintance. “I’m getting a bit bored with my current job. Perhaps I should change careers. Nursing might be good. It is easy to find a job.” Why change careers? “Well, my current…