Do This Before Retiring

I don’t care that my personal finance posts never resonate, I will continue to write about it when the spirit moves me. Deal with it.

Nick Maggiulli could teach me a lot about how to write about personal finance. His first book, Just Keep Buying, sold 400,000 copies. And his brand new book, The Wealth Ladder, is getting tons of attention on several of the pods I listen to.

The inspiration for this post is a friend, let’s call him, IE. IE is planning to retire in the spring of 2027. He appears to have his personal finance shit together. Good paying job. Lots of passive income. And he’s been riding equities up.

On the downside, he’s showing signs of irrational exuberance. He seems to think the stock market, near all-time highs, will continue its run. Or maybe he’s just trolling us in the group text?

His target retirement date was carefully determined based upon his normal “spend rate” combined with lots of planned post-retirement traveling.

I’m guessing he hasn’t modeled exactly what a market worst case scenario might do to his plan. Before retiring, model exactly what a market worst case scenario might do to your total net worth. Put differently, don’t tip-toe around “sequence of returns” risk, dive head-first into it.

How to do that? Calculate your net worth, excluding your residence(s)* because as the saying goes, you have to live somewhere. Adding in any home equity only makes sense if you plan to seriously downsize upon retiring.

Next, take the total amount of money you have invested in equities and divide it by two as if there was a 50% correction. So, in IE’s case, let’s make a wild ass guess and say he has a net worth of $3m, $2m in equities, $800k in fixed income, and $200k in cash.

IE would create a second spreadsheet showing his adjusted net worth after a 50% correction in the stock market. He’s “post-market correction” net worth would be $2m or one-third less than today. Print the “Bear Market spreadsheet” and let it sink in.

Only then can can IE determine 1) whether his asset allocation makes sense and 2) whether the spring 2027 timeline still makes sense.

Because he’s a friend, I will not be charging him for this advice. Some, no doubt will say, my advice is worth what I’m charging for it.

*plural if your DDTTM and have an extensive real estate portfolio

Sentences To Ponder

Happy Gilmore 2 edition.

“Like the first film, the sequel proves moronic, witless and relentlessly vulgar. Which is to say, Happy Gilmore fans will love it.”

Believe it or not, I have not seen the original, but being in desperate need of comedic relief, I’m in no position to be finicky. So go ahead, queue it up.

Postscript. Approximately 6 minutes of the first 60 were smile, if not, laugh inducing. After that, it became unwatchable.

Sarabande from Bach’s Fourth Cello Suite

Zachary Woolfe, the classical music critic of the New York Times, offers this enticing invite. “In Just a Few Minutes, This Music Will Change Your Day“. The subtitle reads, “Calm and graceful, this cello piece by Bach slowly dances through hopefulness, longing and introspection.”

Is there anyone in more desperate need for calm, grace, and hope than me?

I listened. And I don’t know if it changed my day, but it did make me think that classical music could be a pillar of my eventual recovery.

Dig Woolfe’s conclusion.

“The cello suites were probably written around 1720, when Bach was employed by a German prince. He spent much of his career working for churches, so this was a rare period in which he got to focus on secular works. There was no need for his music to be about anything, to have any practical use. He could simply celebrate instruments and the full range of what they could do, quietly pushing them to their limits.”

Beautiful. Bach’s sarabande and Woolfe’s framing of it.

Scheffler For The Win

Not the fleeting kind that ends in hoisting a trophy. The real “meaningful life” kind.

Scottie Scheffler, the world’s #1 rated golfer, is winning more tournaments than anyone else and just asked at one of the most honest and provocative sports pressers in recent memory, “What’s the point?” You don’t have to be a golf junkie to watch/appreciate it.

Maybe his perspective is even more impressive than his game. He somehow knows fame is fleeting. And ultimately, unfulfilling. Especially compared to family.

I quit competing in triathlons after conducting a mental exercise. I thought to myself that if I truly committed to consistent training, age group wins at decent races were possible. And qualifying for the Kona World Championships. And these best case scenarios didn’t move the needle nearly enough for me to continue racing. I concluded, “What’s the point?”

There is one convincing reason for aging weekend warriors to keep entering races. Races provide many the needed motivation to train.

Back in my earliest triathlon racing days, I integrated swimming, cycling, and running into my life to the point that I regularly do some combo of all three each week*. Thus, that rationale doesn’t hold for me. I get “out the door” without signing up for anything. But, I suspect I’m an outlier in that respect.

*Haven’t swam in July yet. Father/Mother, forgive me, for I have sinned. My excuse is I’m allergic to something in the lake. And it seems like a crime to swim indoors in July.

Paragraph to Ponder

Susan Rothchild in The New York Times:

“My son, Chauncey, died a few years ago of a fentanyl overdose. He was a brilliant, eccentric autodidact, an excellent farmer and chef, but he chose to work as a carpenter and plumber. He was not good at either job. Yet, when he offered to build my new bathroom, I said yes. Now every time I take a shower and see the dribbles of grout on the wall, stand on the still-unattached drain plate or get drenched using the hand nozzle with a mind of its own, I think of him. I will never get them fixed.”

Two Worlds

Public and private. All of us behave a little or a lot differently whether we’re in public or not. In extreme cases, people live “double lives”.

The dichotomy between Lynn’s public life, by which I mean when friends and family visit, and private one, where I’m the only person around, is so glaring that it got me thinking.

Specifically, I’ve been pondering why she’s not just okay when friends and family are around, but especially smiley (and today, extremely giggly) and physically better than normal. There’s a wonderful lightness. I guess it makes sense learning what we’re learning about the importance of close interpersonal relationships to our overall health and well-being.

But man, the whiplash that comes when friends and family leave is intense. And disorienting.

When home alone she pops boosters between timed meds and her body is off and on, and when on, she’s bored, and she struggles with any sense of purpose. There’s a heaviness.

Why am I telling you this? Not sure. Maybe to help you mentally prep for this phenomenon if you’re ever a primary care giver. Or maybe I’m letting you in hoping for some sort of connection.

Last night, I had an epiphany. A tough one that I was hesitant to share with Lynn because I expected a negative/defensive reaction.

I told her I had an observation I wanted to share with her. “You have a restless spirit.” There, I said it. Fortunately, I was wrong, because she didn’t argue the point. She listened carefully as I told her I missed her, that it felt like all of her time and attention was taken fighting her Multiple Systems Atrophy. That there was no time or attention left for me.

That I felt more like an employee than best friend.

Most people confined to a wheelchair and unable to do hardly anything independently watch a lot of tv and read. Since Schitt’s Creek ended, Lynn doesn’t watch tv and her reading glasses, despite repeated trips to the optometrist, aren’t working well enough for her to read much.

Thus, when alone, if she’s feeling okay, she’s in constant motion searching for something to do. Anything to do. Or she’s laid out on the couch waiting for her meds to kick in. The only time she’s not on the move is when her body completely quits or she’s asleep.

Our convo, mostly about how dying is scary and spiritual malaise, deepened. She cried and said she didn’t know “I loved her that much”. I took in what I think was her deeper message, “I didn’t know I’m that lovable.” I told her lots and lots of people love her.

I told her I was having a hard time dealing with her restlessness and with her constant MSA fight. That caring for her took all my energy, that there was no leftover energy to just hang. And that it would be really sad to spend our final months or years together not really together.

Case in point. Saturday and Sunday nights I throw dinner together for the fam and then sit at the kitchen island with my own dinner while one or both daughters join their mom at the dining room table. Hell, during the week I do it too, leaving Lynn to eat by herself. Yeah, you’re right, I am a lowlife.

While I am a lowlife, I probably deserve a few points for being vulnerable and risking the convo. Sadly, in part, I risked it because soon we won’t be able to have back-and-forth conversations of that sort.

But not being especially centered myself these days, it’s really tough to take on her anxiety about dying, her exasperation at MSA’s relentless progression, and her general unease and utter restlessness. Especially given the cost that restlessness is taking on our friendship. For now.

Postscript: We ate dinner together. Afterwards, there was more slow dancing in the kitchen. The roller coaster keeps rolling.

Pop Culture Wins

The Bear has cast a spell on me. I watch it in a transfixed state rooting for the restaurant and every single character. I’m doing my best to limit myself to one episode a day before dozing off. I slipped up today and watched Episode 4.9 in the middle of the day. Whether to watch the season finale tonight is one of the great ethical questions of our time.

Episode 4.9 produced not just the normal watery eyes, but actual tears thanks to Jamie Lee Curtis who they should just give whatever awards she’s eligible for. Tour de force.

I see critical headlines about the show’s lack of direction and slippage and just laugh. “Not reading that or that or that.” Because the writers are all wrong. Every season, hell, every episode is perfect.

Criticize the show and prepare to throw down.

Then there’s Haim’s new album, “I Quit”. Haim is single-handedly giving young hetero males hope. Their songs and vids are unabashedly hetero. And fun. And funny. Dig this lyric from “Take Me Back”.

“Alana lost her head when she had a crush
Billy St. Reams didn’t wanna fuck
Bad GPA, couldn’t get it up”

I don’t know BSR, but there’s no way he deserved that!

Here’s a different track from the album.

Extra credit if you know which one of the three love interests is on The Bear.