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You are here: Home / Case Studies / Case Study 6: Helping an ill and elderly parent

Case Study 6: Helping an ill and elderly parent

by jlcollinsnh 26 Comments

mother and adult childern

(Not actually Colin, his mother or sister)

Courtesy of Visual Photos

In today’s Case Study reader Colin offers us a chance to take a look at a tough situation many us have had or will have to deal with at some point. Many years ago, I did myself and with a situation eerily similar to Colin’s. His mother is sadly facing a serious illness and, with his help, is sorting thru a mix of investments that appear to have been chosen for the benefit of those selling them.

In this study we’ll see another example of why I don’t like investment advisors and we’ll examine some steps Colin can take to help his mother escape.

While I have already responded to Colin in Ask jlcollinsnh, it occurred to me this is a case that deserves wider readership. Many of you might benefit from the conversation and others might well have useful suggestions for Colin as well. If you do, I hope you’ll add your thoughts in the comments.

Here is Colin’s note:

I recently started reading your blog and I really enjoy all the great articles and advice.

I’m fairly confident when it comes to my own current investments, but I’d like to help my mother get her affairs in order and although I have ideas I’m a bit overwhelmed. I currently live in Germany so I’m somewhat limited with some of the help I can offer when I’m not in the US. I’m currently back in the US through the first week of January.

She was recently diagnosed with two types of cancer. One is a slow moving lymphoma and the other is squamous cell lung cancer which is large cell and less lethal than small cell lung cancer. She thought she was going to have surgery this week to remove a lobe of her lung but the date was moved to February. I came home with the intention to help her with her recovery but now that we have more time and energy I decided with her consent to help her get her home and finances in order.

My mother will be 65 in March and is retired. She receives $1,200 a month from social security. She has $40,000 in investments with Edward Jones of which $30,000 are in a taxable account and $10,000 are in an IRA. I was fairly shocked when I looked at what the taxable account is comprised of:

  • Freeport-McMoran Copper & Gold – FCX $13,876
  • Dawson Geophysical Co – DWSN $6,464
  • Broadcom Corp – BRCM $720
  • Patriot Coal Corp – PCXCQ $42
  • Hartford Balanced Income Fund C – HBLCX $11,071

The individual stocks are all holdover investments from a previous advisor at a different company my mother used.

I asked why no one at Edward Jones had sold the stocks as it is obviously very risky to have so much of ones money invested so narrowly especially at her age. She said that her current advisor wants to sell them but is waiting for the right time. That statement is a red flag to me. My mother did ask the advisor to take a small amount of her money and invest it aggressively.

I’d like to sell all of these stocks and the mutual fund and move most the money into Vanguard Total Bond Market with a small amount in Vanguard Total Stock Market and either a savings account, money market, or cd.

I know bonds are generally placed in tax deferred accounts but her income is so low I think her taxes would be minimal. Patriot Coal Corp is in the process of declaring bankruptcy and I was thinking it may be possible to use some of the capital losses to offset any capital gains. I’m not sure how bankruptcy affects selling stock. I realize that the stock may just be a total loss.

I think my mother would possibly like to stay with Edward Jones as they offer face to face advice (although I’m skeptical of the quality of it). I’m not sure if it would be possible to buy the Vanguard funds through EJ.

Would it be better to wait until the new year to put off paying taxes on the sale of the investments until the next tax year? I believe the Hartford Balanced Income Fund has a deferred load of 1% so I should probably read more about possible costs of selling it. If I transfer the investments to Vanguard from what I’ve read it would be better to transfer them in kind but I’m not sure all that implies.

Her IRA consists of:

  • Franklin Income Fund A – FKINX $4,240
  • Income Fund of American Fund A – AMECX $3,700
  • Lord Abbett Short Duration Income Fund A – LALDX $2,467

I’m slightly less concerned with these investments, but I’m nervous about how heavily they are invested in junk bonds. I didn’t know that mutual funds existed that would invest in dividend paying large cap stocks along with junk bonds. It is an interesting idea but seems overly complicated and risky. I would probably like to move these investments to Vanguard and place them all in Total Bond Market.

English cottage

Courtesy of Lilac  & Lavender

She owns her home with no mortgage in West Virginia on 60 acres in a rural area. Overall the house is in good shape but could use some repairs to plumbing and eventually will need a new roof. I’m sure other expenses will come up as often happens in life. The value is in the range of 80 to 100k. She has no desire or plans to move.

I think a possible asset allocation would be 70% Total Bond Market, 20% Total Stock Market, and 10% mix of savings account, cds, and money market. I like the Total International Stock fund as well (I own some in my AA) but it seems more volatile than is necessary.

She has a life expectancy as little as one year but possibly ten or more. It is really hard to tell at the moment. Besides the cancer she is very healthy and active. She will probably know more after her surgery in February but even then it is very uncertain.

I think it makes sense to have her assets as stable as possible so she can access the money as needed to make larger purchases for car and home repair.

My mother has a will and living will already. My sister and I are her only heirs and we are close and generally agree on how to proceed with all of these issues. My mother seems hesitant to spend the money to go to an estate lawyer but I think it would be good to go to see her options to protect her remaining assets and especially her home from medical debt.

I’m not concerned with inheriting the house or money but I also don’t want her to have to sign it over to the bank or hospital (she doesn’t either). She has been receiving a very generous amount of charity aid from the two hospitals she has been going to but the she has to reapply every six months. Currently she receives a 75% discount from one and a 100% from another. This won’t cover certain doctor’s fees though. She will have Medicaid until Medicare starts the month before she turns 65.

In your opinion does my mother have enough assets to warrant going to an estate lawyer?

It isn’t easy for me to make decisions with someone else’s money, but I don’t feel that my mother’s money is being handled appropriately.

I’ve read quite a few investment books at this point, but I have limited knowledge about issues she is facing. I’d hate to have someone from Edward Jones sell her another front load mutual fund with high fees and costs. I also don’t want her to lose her house. I know the decisions I make are ultimately my own and my responsibility but any advice would be greatly appreciated.

Thank you for your time,

Colin

And my reply:

Hi Colin…

I am very sorry to hear of the challenges your mother is facing with her health and finances. She is fortunate to have you there to help sort thru it all. And it is very fortunate she is open to your help and that you and your sister are on the same page.

You don’t mention what her annual expenses are, but I’m guessing she gets by on the $1200 from Social Security. I’m also going to assume you and your sister are willing and able to kick in to help support her if needed. This will play a role in the idea I’ll be suggesting at the end of this reply.

I am concerned that your mother asked the advisor to take a portion of her money to “invest aggressively.” This is the last thing someone her age and with her limited resources should be doing. Hopefully the advisor was honest enough not to take advantage of that request, but typically that’s like providing chum to sharks. In any event make sure it is off the table.

jaws

You are right to be concerned about her assets being in individual stocks and the advisor wanting to wait to “sell at the right time.” My guess is that this means some, in not all, are trading at a loss. It is foolish to hold on to these hoping for better days.

I agree with your plan to sell them all and redeploy the money at Vanguard in the Total Stock and Total Bond Funds. It is also a good idea to hold some cash for the house and car repairs you foresee. You are correct in that, at her income level, taxes are not much of a concern.

You should be able to sell the shares in the bankrupt company, but of course not for much.

It might be possible to buy the Vanguard funds thru Edward Jones (EJ), but why? You want to take all this and the IRA money out of EJ. Looking at what they have her in, the last thing your mother needs is more free advice from them. Clearly, these investments were made to benefit the broker, not your mother.

Likewise, roll the IRA into Vanguard. You can call Vanguard and they can help with the process. Don’t be surprised if EJ drags their feet and otherwise makes this difficult. It happens all too often. They don’t like seeing the gravy train head out the door.

Since your mother has minimal tax concerns, with the taxable account the easiest thing to do is have EJ sell everything and send her a check. She owes them no explanation. You could also do this with the IRA but you’d have to be sure to reinvest it in the Vanguard IRA within 60 days to avoid any taxes. But again, not a big deal for her.

Since we are near year end and just to spread the tax liabilities a bit, assuming there are capital gains in those stocks (and if not, no tax worries at all), you can sell the taxable stuff this year.

Then in January move the IRA to Vanguard and convert it to a Roth. Theoretically this will be taxable, but again in your mother’s situation a non-event. Once there, she’ll never have to pay tax on any withdrawals from it. Plus the Roth is much more advantageous to you and your sister should you inherit it.

Be sure she lists you as beneficiaries on all these accounts. This avoids probate and insures it passes seamlessly to you. Same with the taxable stuff.

And no, your mother doesn’t have enough assets to need an estate lawyer, but be sure her will is up to date.

As for the house, it sounds like that is where she is most comfortable and since she’s been there awhile and it is mortgage free I see no reason she shouldn’t stay as long as she is physically able.

My guess is that you might get some push back from her on leaving EJ. Sounds like she enjoys the interaction. But she is paying too steep a price. Here’s an alternative that would serve her better.

If you look at the right hand column here on the blog you’ll see an ad for Betterment. In the next few days I should have a post up recommending these guys. Not quite as cheap as DIY with Vanguard, they do provide an exceedingly simple way to invest in a portfolio of index funds. Rather than choosing the funds yourself, you open an account and tell them your goals. The software then suggests the asset allocations to reach those goals. Very simple and effective, and maybe just the level of involvement that your mother will enjoy with out the risk of expensive mistakes or her being sold high-profit-for-the-broker crap.

You mention a concern about losing the house to medical debt, but it is unclear in your comment whether she has that debt now or is concerned she might in the future. Regardless, she might want to consider moving some of her assets to you and your sister, and this is the idea I referred to in the beginning of my reply.

The IRS allows your mother to gift you and your sister each $14,000 with no tax consequences to you or her. If she can get comfortable with the idea, it would effectively take her taxable account from 30K to 6k. Less worry for her and possibly helpful in insuring the charitable benefits she now enjoys. Of course, if the time comes when she needs the money, you and your sister must be prepared to channel it back to her.

Hope this helps. Good luck to you and all the best to your mom!

Addendum #1:

Second thoughts on having mom gift money. From aspiringyogini in the comments below:

“I’m glad to hear that you will be talking to an elder care lawyer. We have consulted one too and have had good results. Your lawyer will very likely urge your mother to NOT give you money, just in case she needs long term nursing care and might need to qualify for Medicaid to get coverage. In order to qualify there is a 60 month look back period and if she has given money to her kids, then she would not qualify. This website echoes that and our elder care lawyer confirmed it too:http://www.elderlawanswers.com/how-gifts-can-affect-medicaid-eligibility-10006”

Addendum #2: 

Also see Prob8’s detailed comment below. He is the author of this guest post:  Death, Taxes, Estate Plans, Probate and Prob8.

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Comments

  1. Brad@RichmondSavers says

    December 11, 2013 at 1:45 pm

    It never ceases to amaze me what vultures so many of these investment advisors really are! The vast majority are just glorified salesmen and they just care about the commission they’ll be earning.

    It’s criminal for someone with such limited assets to be put in those investments…

    I want to wish the best to Colin and his mom!

    Reply
    • Done by Forty says

      December 13, 2013 at 10:29 am

      Agreed, Brad. It is a sad story and health concerns come first, but it angers me to see a professional mismanage an elderly client’s nest egg.

      Reply
  2. Kevin says

    December 11, 2013 at 2:03 pm

    I’d be careful with the IRA funds. If Edward Jones cashes it and sends a check to her, they’ll default to withhold tax. But she’ll need to come up with the full amount to roll over. That’s another reason a direct trustee to trustee transfer is optimal.

    If you’re worried she might be in a taxable situation, maybe convert 1/2 the IRA to Roth now (if you can do it before 12/31) and 1/2 in January. Spread the hit out over 2 years. But with only SS income, she’s likely not paying taxes. Watch out for other tax benefits on the state level though.

    For estate planning, you might just add yourself and your sister as joint owners on the taxable account, if she’s comfortable with that. Otherwise a transfer on death designation might work.

    Good luck Colin, she’s lucky to have you looking out for her.

    Reply
    • CWoods says

      December 12, 2013 at 3:20 pm

      Second that! Definitely do a direct transfer to Vanguard (or whomever else). I did some recently through them and it was really easy and painless.

      Reply
  3. Colin Smith says

    December 11, 2013 at 4:07 pm

    Thanks for your thorough and prompt response. I just wanted to clarify a few questions you had from my post. The $1,200 from SS is enough to cover my mother’s annual expenses but not enough to cover replacing a roof or other major expenses. The cost of living is very low in rural WV and one of the cheapest places to live in the US. My mother is frugal overall and lives comfortably. My sister and I are willing to kick in to and help financially, but my mother is unwilling to accept any money from us. She has been trying to give me money for my plane tickets even though she knows I’m not willing to take it and don’t need it. She just feels that a parent can help their offspring financially but not the other way around.

    We were looking into a lawyer who specializes in elder law more than estate planning. We are hoping to lower or eliminate any contribution my mother might have to make to Medicare part B or D by her still receiving Medicaid. We were hoping a lawyer might be able to help us navigate some of the paper work. We were thinking a few hundred dollar investment in a few hours with a lawyer could possibly save thousands of dollars over the course of a few years in Medicare contributions. This is an area despite researching recently I feel very confused about. My mother currently has minimal medical debt and it may be retroactively paid for by Medicaid. We are worried about future medical expenses. We have a free consultation with an elder law lawyer next week.

    I will take a look into the services offered by Betterment.

    If you have any other questions or would like me to clarify anything else let me know.

    Thanks again,

    Colin

    Reply
  4. Brian says

    December 11, 2013 at 6:14 pm

    Colin,

    I went through a similar situation with my grandfather passing a few years ago. Navigating through Medicare and Medicaid is extremely tough and in certain cases, best done by an attorney. Just make sure that you, your sister, and your mother all feel extremely comfortable with the attorney you work with. You need to be wary of someone that may take advantage of the situation with you being in Germany.

    I apologize for putting a negative thought in your head there but, well, I’ve been there. It’s best to be on your toes. Good luck with everything and have a safe trip back to Germany.

    Brian

    Reply
  5. aspiringyogini says

    December 11, 2013 at 8:03 pm

    Hi Colin,

    You and your sister sound like great kids to your mom and it’s great that you both are working together to help her since it doesn’t go like this for many families — I know first hand since my husband and I take care of his father and things are not great between my husband and his brother.

    I’m glad to hear that you will be talking to an elder care lawyer. We have consulted one too and have had good results. Your lawyer will very likely urge your mother to NOT give you money, just in case she needs long term nursing care and might need to qualify for Medicaid to get coverage. In order to qualify there is a 60 month look back period and if she has given money to her kids, then she would not qualify. This website echoes that and our elder care lawyer confirmed it too: http://www.elderlawanswers.com/how-gifts-can-affect-medicaid-eligibility-10006

    All the best to your Mom and your family, Colin. I wish your Mom a speedy recovery this winter and hope she can continue to live in her own home and community.

    AY

    Reply
    • jlcollinsnh says

      December 11, 2013 at 10:33 pm

      Great info, AY…

      I’ve just added it as an addendum.

      Thanks!

      Reply
  6. Prob8 says

    December 11, 2013 at 11:16 pm

    Colin – good to hear you are visiting with an elder law attorney. Medicaid rules are complicated and it would be a wise use of a few hundred dollars to have your questions answered and to get some guidance in that area.

    Although your mom does not have any concerns about estate tax, she should still have her estate affairs in order. She should have powers of attorney for healthcare and property in place. Someone will need to make financial and medical decisions for her if she can’t make them for herself or just needs help. She should also have a will. Get a price quote from your elder law attorney.

    Assuming she keeps her assets, investment accounts can be dealt with via TOD designations. That will avoid probate as Jim mentions. You should investigate whether your state allows transfer on death deeds for the house too (some states allow this). Your elder law attorney will know the answer to that question. If not, the house and land may need to go through probate unless it is gifted, a trust is used, or your state has generous small estate laws. Again, your elder law attorney will know.

    If a major gifting strategy is employed for Medicaid purposes, your lawyer will likely have all assets gifted at once. This would start the clock on that pesky Medicaid look-back period. Of course, Jim is right on the $14,000 per person per year gift limit. However, the IRS will also allow your mom to give her entire estate in one sitting if she desires. If she goes over the per person/per year limit, she will have to file a gift tax return – although no tax will be due. If real estate is gifted, appraisals may be needed. If gifting is suggested, you should ask about this and the concept of carry-over basis for the house/land.

    Good luck!

    Reply
    • Prob8 says

      December 12, 2013 at 1:44 pm

      One additional thought . . . if your elder law attorney thinks he can help, be prepared for a pretty high price tag. I suggest that you not make any decisions on the spot. Take time to ask questions about how exactly the plan will accomplish your mom’s desired result and if any other, less expensive, ways are available. Keep us posted on how things go.

      Reply
  7. Paul says

    December 12, 2013 at 2:56 am

    Is Betterment only available to U.S citizens?

    Reply
    • jlcollinsnh says

      December 12, 2013 at 8:33 am

      Hi Paul…

      Unfortunately for my international readers: “Betterment currently only operates in the United States, and for regulatory reasons cannot accept customers residing outside the country. A customer must have a permanent U.S. address, a U.S. Social Security Number, and a checking account from a U.S. bank.”

      Reply
  8. CWoods says

    December 12, 2013 at 3:12 pm

    Regarding the house – Couldn’t Colin’s mom sell her house & land to Colin and his sister for $1 and let her stay there? (Then Colin and his sister can pay for the new roof or whatever needs fixing.) In PA, I routinely see sales listed in the paper for $1 when the real/legal assets are transferred to family members.

    Reply
    • Prob8 says

      December 12, 2013 at 8:10 pm

      Assuming PA Medicaid rules are similar to Illinois . . .

      it depends on what they are trying to accomplish. If they just want to get the property out of mom’s name to avoid probate . . . a gift is one way to get it done. Mom will have to file a gift tax return (assuming the value of the property exceeds the annual gifting limit). The children will get mom’s basis in the property – as opposed to a stepped up basis if they were to inherit the property from mom at death.

      If they are trying to qualify mom for Medicaid within the next 60 months, a gift or sale for less than fair market value will not work. Medicaid will find the transaction and penalize mom by not allowing her to qualify for Medicaid for basically the amount of time the gift (or discounted sale price) would have paid for her way in a nursing facility. If course, if mom is able to avoid Medicaid for the 60 month period after the gift there are no problems.

      Reply
    • Whiskeyjack says

      February 14, 2014 at 2:35 am

      I have no legal qualifications, but my mother was looking into this and I’ll throw it out to Prob8 to see what he thinks. She had something similar to a TOD written up for her home. It can be called a “Lady Bird” deed or a deed with retained life estate (possibly the word ‘enhanced’ was in there too). Using that the date of transfer becomes the date of death and it means that the house is inherited at the stepped up value and also avoids probate. No doubt the rules on this vary from state to state and I have no idea how Medicaid looks at it.

      And she still may not let you fix the roof.

      Reply
      • Prob8 says

        February 14, 2014 at 9:36 pm

        Hmm, your comment touches on two different concepts. First is the TOD or transfer on death type of deed. In that type of deed, your mother retains full ownership of the property during lifetime and at her death the property automatically passes to the TOD beneficiaries (note: some states require the beneficiaries to record an acceptance of the gift after death). This is great for avoiding probate as it works much like a beneficiary designation on a life insurance policy. From a Medicaid standpoint, it’s not so good. Medicaid will deem the house as if it is owned by your mom during her lifetime and likely put a lien on the house if she every was accepted to the Medicaid program. Unless your state rules say otherwise, that lien will follow the property upon your mom’s death (assuming it has not been sold during her lifetime and the lien was already paid). On the bright side, you would get a stepped up basis at death. Also, public aid (at least in Illinois) does not usually foreclose on their lien when it comes to real estate. They typically wait for the property to be sold to collect.

        The second type of deed you describe could be a life estate deed. This is where your mom transfers her “remainder” interest in the property but keeps the right to use and control the property for the duration of her life. She could not sell or mortgage the property without the consent of the “remainder” owners. In this case, she is making a “gift” of the remainder interest and she will be subject to a 5 year look back period for Medicaid purposes based on the value of that gift. In Illinois, Medicaid would put a lien on the property during mom’s lifetime (assuming she is accepted into the Medicaid program). At death, they would release the lien (at least this is the way it works in Illinois – you should check on your state rules). This should qualify for a basis step up at death as well.

        To see how Illinois public aid treats life estates, see here: http://www.dhs.state.il.us/page.aspx?item=14931

        Reply
  9. Pura Vida Nick says

    December 12, 2013 at 3:27 pm

    I opened up an Edward Jones account when I was 20, and and finally took the plunge 8 years later and switched to vanguard. It was surprisingly easy for me. I don’t even think I had to talk to EJ. I did it all through VG – they walked me through it. Out of courtesy I called my adviser at EJ to let him know. He wasn’t happy, of course, but my two cents is that it was surprisingly easy for me.

    Reply
    • jlcollinsnh says

      December 12, 2013 at 5:21 pm

      That’s great to hear, PVN…

      …and the way it should be.

      Nice counterpoint to the horror stories I usually hear.

      Reply
  10. Alice says

    December 13, 2013 at 1:47 am

    Sorry, but you missed the boat on this one. The reality is, she will at some point need care, which if its in home care, could cost $5000-$8000 per month and not much less in assisted living or nursing care. They’ll probably have to get a reverse mortgage on the house or sell it to cover her care until she “spins down” into Medicaid. Welcome to the aging of the baby boomers.

    Reply
  11. TK says

    December 13, 2013 at 8:35 am

    I’m actually a financial advisor. I like to think I belong in the minority who actually provides advice and betters my clients situations.

    I’m not sure I agree with the Roth conversion at this point due to the 5 year holding period. I would think you would want to wait until her surgery to have a better idea on if she’ll need it first.

    Reply
    • jlcollinsnh says

      December 15, 2013 at 2:32 pm

      Hi TK…

      Good to have you here and there is certainly a need for advisors who actually put their clients needs first. I’d be very interested in your thoughts on how someone looking can pick an advisor like you out of the crowd.

      As for the Roth you suggestion to wait until after the surgery is a worth considering and the 5-year holding period is a potential consideration.

      My thinking was that her expenses are currently covered, the IRA represents only 25% of her wealth and the Roth offers inheritance advantages. Of course there are a lot of potential variables at play here and only a crystal ball can tell what will turn out for the best.

      Reply
      • TK says

        December 17, 2013 at 10:43 am

        I definitely agree, and with no crystal ball I usually try to go for the more conservative option over the short term.

        Unfortunately, even though I am an advisor I would agree on your take about most of us. The good ones are very few and far between. I think we have some of the best/most intelligent in my office, but I wouldn’t trust my spouse with any of them.

        I’ve been considering looking towards a company like Betterment, so I appreciate your article on them.

        Reply
        • jlcollinsnh says

          December 17, 2013 at 12:00 pm

          Makes sense!

          Interestingly, the good advisors like yourself that I’ve met are even harsher critics of their brethren than I.

          Your comment:
          “I think we have some of the best/most intelligent in my office, but I wouldn’t trust my spouse with any of them.”
          is especially fascinating to me. Care to elaborate?

          As for Betterment, I see them fitting between those who are willing and able to DIY with Vanguard and trying to find a skilled and honest advisor.

          https://jlcollinsnh.com/2013/12/16/betterment-wants-to-give-you-25/

          Anyway, glad to have you as a reader here!

          Reply
  12. JE says

    December 15, 2013 at 1:13 pm

    You advised “move the IRA to Vanguard and convert it to a Roth. Theoretically this will be taxable, but again in your mother’s situation a non-event. Once there, she’ll never have to pay tax on any withdrawals from it.” Aren’t such Roth IRA’s untouchable for 5 years after the conversion? That was my understanding from your last post.

    Reply
    • jlcollinsnh says

      December 15, 2013 at 2:34 pm

      Hi JE….

      That is correct.

      Please see me reply to TK above.

      Reply
  13. Chad says

    December 17, 2019 at 11:34 pm

    My mother is 73 and has been diagnosed with dementia. She is still able to stay in her house but she pays a lady to keep her company during the day and make sure she eats and takes medication. My mom needs $16,000 to cover expenses above SS. Can someone please help me with allocation suggestions and order of accounts to withdraw from please. Current balances are taxable $80,000 IRA $180,000 ROTH $250,000. The IRA is 90/10 S&P 500 & federal money market. Other accounts are S&P 500. My plan was to take the rmd estimated at $7,500 and the rest from the taxable to get to a total of $16,000. I had also thought updating the total allocation to 75/25. Please help. Thank you.

    Reply

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  • Fun with numbers: Historic Stock Market Returns Fun with numbers: Historic Stock Market Returns
  • Let’s talk about what’s up with Bonds, and what ever else you’d like to ask me Let’s talk about what’s up with Bonds, and what ever else you’d like to ask me
  • Today Week Month All
  • Stocks — Part 1:  There’s a major market crash coming!!!!  and Dr. Lo can’t save you. Stocks -- Part 1: There's a major market crash coming!!!! and Dr. Lo can't save you.
  • Why your house is a terrible investment Why your house is a terrible investment
  • How I failed my daughter and a simple path to wealth How I failed my daughter and a simple path to wealth
  • Stocks — Part VI:  Portfolio ideas to build and keep your wealth Stocks -- Part VI: Portfolio ideas to build and keep your wealth
  • Stocks — Part II:  The Market Always Goes Up Stocks -- Part II: The Market Always Goes Up
  • Why you need F-you money Why you need F-you money
  • Stocks — Part V:    Keeping it simple, considerations and tools Stocks -- Part V: Keeping it simple, considerations and tools
  • Today Week Month All
  • When Your Country Becomes a Global Outcast When Your Country Becomes a Global Outcast
  • Staying the Course in War-Time Staying the Course in War-Time
  • How I failed my daughter and a simple path to wealth How I failed my daughter and a simple path to wealth
  • VITA, income taxes and the IRS VITA, income taxes and the IRS
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Archives

  • ► 2023 (3)
    • ► January (3)
      • When Your Country Becomes a Global Outcast
      • Staying the Course in War-Time
      • Pathfinders update from Hh
  • ► 2022 (12)
    • ► December (3)
      • A New Chapter for Chautauqua
      • Season's Greetings!!
      • Fun with numbers: Historic Stock Market Returns
    • ► October (1)
      • Let’s talk about what’s up with Bonds, and what ever else you’d like to ask me
    • ► August (1)
      • The Price of Security
    • ► July (1)
      • Case Study #17: Buying into the market right before a Bear
    • ► June (1)
      • Case Study #16: Helping dad with an inheritance
    • ► May (1)
      • Just inked a contract for my next book, and I want you to be a part of it!
    • ► April (1)
      • The Dinky Diner
    • ► March (1)
      • Chautauqua: A terrible business model
    • ► February (2)
      • Chautauqua is back for 2022!
      • JLCollinsnh.com Enters New Era
  • ► 2021 (14)
    • ► December (1)
      • Season's Greetings!!
    • ► November (2)
      • The new book is out!
      • Are bonds done?
    • ► October (1)
      • Guess what I just finally read for the first time...
    • ► September (1)
      • The negligence that led me to DIY investing
    • ► August (3)
      • Chainsaws and Credit Cards
      • Part XXXVI: Estate Planning 101 -- The Simple Path to an Estate Plan
      • The Simple Path to a Lucrative Career
    • ► July (1)
      • Help Wanted: a new book
    • ► June (1)
      • The Top 9 (Bad) Arguments Against Bitcoin
    • ► May (2)
      • Collins on Crypto
      • The Alfred Hitchcock Path to FI
    • ► April (1)
      • Time to sell?
    • ► February (1)
      • Mariah International: All that glitters…
  • ► 2020 (11)
    • ► December (1)
      • Season's Greetings!!
    • ► June (1)
      • How to give when you have a business
    • ► April (4)
      • Investing with Vanguard for Europeans: 2020 update
      • Part XVII-B: ETF vs. Mutual Fund -- What's the difference?
      • Reviewing the comments on my post of April 1st
      • Why I will no longer be writing this blog
    • ► March (4)
      • My move from VMMXX to VBTLX
      • COVID-19: The unvarnished truth from Doc G.
      • Chautauqua sits out 2020
      • Taking advantage of Mr. Bear
    • ► February (1)
      • Mr. Bear, Podcasts, a good book and why I should be in 100% stocks
  • ► 2019 (11)
    • ► November (4)
      • How we bought our new car
      • The House Hacking Strategy
      • What does buying a new car really cost over the years?
      • Why we bought a brand new car
    • ► August (1)
      • A Guided Meditation for When the Stock Market Is Dropping
    • ► June (2)
      • 7 Days in Heaven: or Why Slowing Down Will Get You There Sooner
      • Quit Like a Millionaire
    • ► March (1)
      • Stocks -- Part XXXV: Investing for Seven Generations
    • ► February (1)
      • Chautauqua 2019 - UK & Portugal - Tickets Now Available
    • ► January (2)
      • Mr. Bogle passes
      • "I wanted the unreasonable"
  • ► 2018 (16)
    • ► December (1)
      • Happy Holidays! and a bit on Mr. Market
    • ► November (3)
      • Truly Passive Real Estate Investing
      • Car Talk: An update on Steve and looking at Leafs
      • Chautauqua 2018 Greece: A week for the gods!
    • ► October (1)
      • On Twitter, gone for Chautauqua and dark on comments till November
    • ► September (2)
      • What we own and why we own it: 2018
      • Tuft & Needle: Our Walnut Frame and Mint Mattress
    • ► August (1)
      • Kibanda Part 5: Pretty, and pretty much done
    • ► June (3)
      • Stocks--Part XXXIV: How to unload your unwanted stocks and funds
      • Tracking your holdings
      • Stocks -- Part XXXIII: Optimism
    • ► May (2)
      • Kibanda Part 4: Quicksand!
      • My Talk at Google, Playing with FIRE and other Chautauqua connections
    • ► March (1)
      • Stocks -- Part XXXII: Why you should not be in the stock market
    • ► February (1)
      • Chautauqua 2018: Mt. Olympus, Greece
    • ► January (1)
      • An International Portfolio from The Escape Artist
  • ► 2017 (15)
    • ► December (2)
      • The Bond Experiment: Return to VBTLX
      • How to Invest in Bitcoin like Benjamin Graham
    • ► October (1)
      • Kibanda Part 3: Running the numbers
    • ► September (1)
      • Sleeping soundly thru a market crash: The Wasting Asset Retirement Model
    • ► August (2)
      • Stocks -- Part XXXI: Too hot. Too cold. Not pure enough.
      • Kibanda, Part 2: Negotiating the deal
    • ► July (2)
      • Time Machine and the future returns for stocks
      • Kibanda: Mr. Anti-house buys his dream house
    • ► June (2)
      • Is there an interior designer in the house?
      • The Simple Path to Wealth goes Audio!
    • ► May (1)
      • Life on the Beach
    • ► April (1)
      • Sell! Sell!! Sell!!! Sell?
    • ► March (1)
      • Vicki comes to Chautauqua: United Kingdom
    • ► January (2)
      • Chautauqua - Ecuador 2017 open for reservations
      • Chautauqua - United Kingdom: August 2017
  • ► 2016 (22)
    • ► December (3)
      • Season's Greetings and other cool stuff
      • Angel Investing, or Angel Philanthropy?
      • Mr. Bogle and me
    • ► November (1)
      • Where did you learn about money?
    • ► October (2)
      • Buy Your Freedom; Rent the Rest
      • So, what do you drive?
    • ► September (2)
      • Stocks -- Part XXX: jlcollinsnh vs. Vanguard
      • A visit to the Frugalwoods
    • ► August (1)
      • What the naysayers are missing
    • ► July (1)
      • Reviews of The Simple Path to Wealth; gone for summer
    • ► June (2)
      • The Simple Path to Wealth is now Published!
      • A peek into The Simple Path to Wealth
    • ► May (1)
      • It's better in the wind. Still.
    • ► April (3)
      • Cool things to check out while I'm gone
      • Stocks — Part XXIX: How to save money for college. Or not.
      • Help Wanted: The Book
    • ► March (1)
      • F-You Money: John Goodman v. jlcollinsnh
    • ► February (2)
      • Q&A - V: The Women of Amphissa
      • jlcollinsnh gets a new suit
    • ► January (3)
      • Chautauqua 2015 Reviews, 2016 registration open
      • Case Study #15: The Scavenger Life -- Freedom first, then Financial Independence
      • 3rd Annual (2015) Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2016
  • ► 2015 (18)
    • ► December (2)
      • Q&A - IV: Strawberry Patch
      • Seasons Greetings! and other cool stuff
    • ► October (2)
      • Personal Capital; and how to unload your unwanted stocks and funds
      • Stockchoker: A look back at what your investment might have been
    • ► September (2)
      • Case Study #14: To Dream the Impossible Dream (and then realize it)
      • Hotel Living
    • ► August (1)
      • Mr. Market's Wild Ride
    • ► June (4)
      • Gone for Summer, an important note on comments and random cool stuff that caught my eye
      • Around the world with an Aussie Biker
      • Case Study #13: The Power of Flexibility
      • Stocks — Part VIII: The 401(k), 403(b), TSP, IRA & Roth Buckets
    • ► March (2)
      • Stocks -- Part XXVIII: Debt - The Unacceptable Burden
      • Chautauqua October 2015: Times Two!
    • ► February (2)
      • YNAB: Best Place to Work Ever?
      • Case Study #12: Escaping a soul-crushing job before you're 70
    • ► January (3)
      • Case Study #11: John, a small business owner in transition
      • Trish and Stan take an Intrepid Sailing Voyage
      • 2014 Annual Louis Rukeyser Memorial Market Prediction Contest results, and my forecast for 2015
  • ► 2014 (29)
    • ► December (2)
      • Diamonds and Happy Holidays!
      • Micro-Lending with Kiva
    • ► November (3)
      • Chautauqua February 7-14, 2015: Escape from Winter
      • Stocks -- Part XXVII: Why I Don’t Like Dollar Cost Averaging
      • Jack Bogle and the Presidential Medal of Freedom
    • ► October (3)
      • Tuft & Needle: A better path to sleep
      • Nightmare on Wall Street: Will the Blood Bath Continue?
      • Help Wanted
    • ► September (1)
      • Chautauqua 2014: Lightning strikes again!
    • ► August (2)
      • Stocks -- Part XXVI: Pulling the 4%
      • Stocks -- Part XXV: HSAs, more than just a way to pay your medical bills.
    • ► July (3)
      • Stocks -- Part XXIV: RMDs, the ugly surprise at the end of the tax-deferred rainbow
      • Summer travels, writing, reading and other amusements
      • Moto X, my new Republic Wireless Phone
    • ► June (1)
      • Stocks -- Part XXIII: Selecting your asset allocation
    • ► May (1)
      • Stocks -- Part XXII: Stepping away from REITs
    • ► April (3)
      • Q&A III: Vamos
      • Q&A II: Salamat
      • Q&A I: Gaijin Shogun
    • ► March (2)
      • Top 10 posts
      • Cafe No Se
    • ► February (4)
      • Chautauqua 2014 preview, closing up for travel and other random cool things that caught my eye of late.
      • Case Study #10: Should Josiah buy his parents a house?
      • Case Study #9: Lars -- maximizing some good fortune and considering "dollar cost averaging"
      • Case Study #8: Ron's mother - she's doin' all right!
    • ► January (4)
      • roundup: Some random cool things
      • Stocks — Part XXI: Investing with Vanguard for Europeans
      • Case Study #7: What it looks like when everything financial goes wrong
      • 1st Annual Louis Rukeyser Memorial Market Prediction Contest 2013 results, and my forecast for 2014
  • ► 2013 (41)
    • ► December (4)
      • Closing up for the Holidays, see you in 2014
      • Betterment: a simpler path to wealth
      • Case Study 6: Helping an ill and elderly parent
      • Stocks -- Part XX: Early Retirement Withdrawal Strategies and Roth Conversion Ladders from a Mad Fientist
    • ► November (3)
      • Death, Taxes, Estate Plans, Probate and Prob8
      • Case Study #5: Zero to 2.6 million in 25 years
      • Case Study #4: Using the 4% rule and asset allocations.
    • ► October (3)
      • Republic Wireless and my $19 per month phone plan
      • Case Study #3: Let's get Tom to Latin America!
      • The Stock Series gets its own page
    • ► September (2)
      • Case Study #2: Joe -- off to a fast start!
      • Chautauqua 2013: A Week of Dreams
    • ► August (1)
      • Closing up shop plus an opening at Chautauqua, my new podcast, phone, book and other random cool stuff
    • ► July (1)
      • They Will Kill You For Your Shoes!
    • ► June (4)
      • Stocks -- Part VIII-b: Should you avoid your company's 401k?
      • Shilpan's Seven Habits to Live More with Less
      • Stocks -- Part XIX: How to think about money
      • My path for my kid -- the first 10 years
    • ► May (5)
      • Why your house is a terrible investment
      • Stocks — Part XVIII: Investing in a raging bull
      • Dining with the Ghosts of Sarah Bernhardt and Alfons Mucha
      • How we finally got the house sold
      • Stocks — Part XVII: What if you can't buy VTSAX? Or even Vanguard?
    • ► April (4)
      • Greetings from Prague & a computer question
      • Swimming with Tigers, a 2nd chance on the Chautauqua, a financial article gets it wrong and I'm off to Prague
      • Storage, Moving and Movers
      • Homeless, and a bit on the strategy of dollar cost averaging
    • ► March (4)
      • Wild Turkeys, Motorcycles, Dining Room Sets & Greed
      • Roots v. Wings: considering home ownership
      • How about that stock market?!
      • The Blog has New Clothes
    • ► February (5)
      • Meet Mr. Money Mustache, JD Roth, Cheryl Reed & me for a Chautauqua in Ecuador
      • High School Poetry, Carnival, cool ads and random pictures that caught my eye
      • Consignment Shops: Best business model ever?
      • Cafes
      • Stocks -- Part XVI: Index Funds are really just for lazy people, right?
    • ► January (5)
      • Social Security: How secure and when to take it
      • Fighting giraffes, surreal landscapes, dancing with unicorns and restoring a Vanagon
      • My plan for 2013
      • VITA, income taxes and the IRS
      • How to be a stock market guru and get on MSNBC
  • ► 2012 (53)
    • ► December (6)
      • See you next year....until then: The Origin of Life, Life on Other Worlds, Mechanical Graveyards, Great Art, Alternative Lifestyles and Finding Freedom
      • Stocks -- Part XV: Target Retirement Funds, the simplest path to wealth of all
      • Stocks -- Part XIV: Deflation, the ugly escort of Depressions.
      • Stocks Part XIV: Deflation, the ugly escort of Depressions.
      • Stocks -- Part XIII: The 4% rule, withdrawal rates and how much can I spend anyway?
      • How I learned to stop worrying about the Fiscal Cliff and you can too.
    • ► November (2)
      • Rent v. owning: A couple of case studies in Ecuador
      • So, what does a month in Ecuador cost anyway?
    • ► October (4)
      • See you in December....
      • Meet me in Ecuador?
      • The Podcast: You can hear me now.
      • Stocks -- Part XII: Bonds
    • ► September (6)
      • Stocks -- Part XI: International Funds
      • The Smoother Path to Wealth
      • Case Study #I: Putting the Simple Path to Wealth into Action
      • Tales of Bolivia: Calle de las Brujas
      • Stocks -- Part X: What if Vanguard gets Nuked?
      • Travels in South America: It was the best of times....
    • ► August (1)
      • Home again
    • ► June (4)
      • Yellow Fever, closing up shop for the summer and heading to Peru y Bolivia
      • I could not have said it better myself...
      • Stocks -- Part IX: Why I don't like investment advisors
      • Happy Birthday, jlcollinsnh; and thanks for the gift Mr. MM!
    • ► May (6)
      • Stocks -- Part VIII: The 401K, 403b, TSP, IRA & Roth Buckets
      • Mr. Money Mustache
      • The College Conundrum
      • Stocks -- Part VII: Can everyone really retire a millionaire?
      • Stocks -- Part VI: Portfolio ideas to build and keep your wealth
      • Stocks -- Part V: Keeping it simple, considerations and tools
    • ► April (6)
      • Stocks -- Part IV: The Big Ugly Event, Deflation and a bit on Inflation
      • Stocks -- Part III: Most people lose money in the market.
      • Stocks -- Part II: The Market Always Goes Up
      • Stocks -- Part 1: There's a major market crash coming!!!! and Dr. Lo can't save you.
      • You can eat my Vindaloo, mega lottery, Blondie, Noa, Israel Kamakawiwo 'Ole, art, film and a ride on the Space Shuttle
      • Where in the world are you?
    • ► March (7)
      • How I lost money in real estate before it was fashionable, Part V: Sold! and the taxman cometh.
      • How I lost money in real estate before it was fashionable, Part IV: I become a Landlord.
      • How I lost money in real estate before it was fashionable, Part III: The Battle is Joined.
      • How I lost money in real estate before it was fashionable, Part II: The Limits of the Law.
      • How I lost money in real estate before it was fashionable, Part I: Impossibly Naive.
      • You, too, can be conned
      • Armageddon and the value of practical skills
    • ► February (6)
      • Rent v. Owning Your Home, opportunity cost and running some numbers
      • The Casanova Kid, a Shit Knife, a Good Book, Having No Regrets, Dark Matter and a bit of Magic
      • What Poker, Basketball and Mike Whitaker taught me about Luck
      • How to Give like a Billionaire
      • Go ahead, make my day
      • Muk Finds Success in Tahiti
    • ► January (5)
      • Travels with "Esperando un Camino"
      • Beanie Babies, Naked Barbie, American Pickers and Old Coots
      • Selling the House and Adventures in Staging
      • The bashing of Index Funds, Jack Bogle and a Jedi dog trick
      • Magic Beans
  • ► 2011 (22)
    • ► December (1)
      • Dividend Growth Investing
    • ► November (2)
      • The Mummy's head, Particle Physics and "Knocking on Heaven's Door"
      • "It's Better in the Wind" or why I ride a motorcycle
    • ► October (1)
      • Lazy Days and School Days
    • ► July (2)
      • The road to Zanzibar sometimes goes thru Ecuador...
      • Johnny wins the lotto and heads to Paris
    • ► June (16)
      • Chainsaws, Elm Trees and paying for College
      • Stuff I’ve failed at: the early years
      • Snatching Victory from the Jaws of Defeat
      • The. Worst. Used. Car. Ever.
      • Top Ten reasons your future is so bright it hurts my eyes to look at it
      • The Most Dangerous Words Your Customer Can Say
      • How not to drown in The Sea of Assholes
      • What we own and why we own it
      • The Ten Sales Commandments
      • My ever so formal and oh so dry CV
      • How I failed my daughter and a simple path to wealth
      • The Myth of Motivation
      • Why you need F-you money
      • My short attention span
      • Why I can’t pick winning stocks, and you can’t either
      • The Monk and the Minister

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