Tag: NumbersMatter
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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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The Moving Line in Financial Security: From “Never” to “Why Not”
Intro The goal of this note is not to tell you how to live, but to give you a framework to evaluate your own decisions.It is useful to balance the numbers when we talk about expenses in our life.There is a well-known discussion about avocado toast and lattes “ruining” your financial future, or not.Usually, the…