Ok! We’re back to the digital mailbag to answer your questions.
In this Q&A episode we take a deeper dive on I Bonds, forming a solid plan for our financial lives, how to catch up on saving later in life, ideas on how to free up time from the many distractions in our lives, my daily structure and routines, and the best way to invest for compound growth.
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Previous Q&A Posts
Your Questions Answered: Volume One
Your Questions Answered: Volume Two
Your Questions Answered: Volume 3 (Podcast)
Your Questions Answered: Volume 4 (Podcast)
Q1: More questions on I Bonds: Does the return included taxes? Is the return worth it after taxes? Can I avoid taxes by buying I Bonds in my child’s name? (00:01:11)
I Bonds: A Novel Way to Save Cash (Clipping Chains)
Buy I Bonds in Your Kid’s Name: You Can, But Should You? (Finance Buff)
More on the I Bond education tax inclusion (TreasuryDirect)
Q2: Goal-setting exercises and how to make a plan for my financial life. (00:09:17)
Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones (James Clear)
The Simple Systems to Kicking Monetary Ass
Tracking Your Spending: The Ultimate Task
Net Worth: It’s Really Going to Matter…Someday
Q3: Savings vehicles for a home downpayment. Short- to medium-term savings. (00:18:49)
Your Questions Answered: Volume Two
I Bonds: A Novel Way to Save Cash
Q4: How can I catch up on saving later in life? (00:24:31)
EP 28: Compound Growth: Can I Catch Up Later?
Automation: The Dirty Little Secret to Spending Less
The Simple Systems to Kicking Monetary Ass
Tracking Your Spending: The Ultimate Task
Taking Social Security benefits early (SSA)
EP 23: Erik Jenson: Real Estate Investing with Training Wheels
EP 27: Homes and Vans with Tien and Brandon Rooney
Q5: How can I give myself time to learn more about personal finance (or anything else)? (00:32:50)
Deep Work: Rules for Focused Success in a Distracted World (Cal Newport)
Digital Minimalism: Choosing a Focused Life in a Noisy World (Cal Newport)
Q6: Can you tell me more about your daily structure and routines? (00:37:46)
Q7: What is the best way to invest for compound growth? (00:42:23)
EP 16: The Boring Guide to Successful Investing (Part 1)
EP 19: The Boring Guide to Successful Investing (Part 2)
Expense Ratio & Fees: They’ll Hose You Big Time
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I generally like your podcast / articles and almost always agree with everything you say. I would encourage you to do some math on the decision about weather you should not take social security at 62. My math makes the break even into my mid 80’s and that’s not even considering letting investments grow and compound since taking social security at 62 will allow that much more to remain in the market.
My analysis has been confirmed by others as well.
https://esimoney.com/a-deep-dive-analysis-of-when-to-take-social-security/
At the end of the day, I would rather a bird in the hand versus 2 in the bush.
Yeah, I assumed someone would jump on this. Thanks, Chris for this alternative and thoughtful take.
Ultimately the answer is complex and depends a lot on your expected longevity, which is impossible to know.
If someone is nearing a traditional retirement and has not saved and invested a ton of money (and they aren’t planning to live three more decades), I’m not sure the math will favor the early SS benefits.
Either way, ultimately I’m trying to get people to focus most on saving now, and then we can just be delightfully surprised at whatever SS benefits we receive!