Simple Money: A No-Nonsense Guide to Personal Finance - Tim Maurer (2016)
NOTES
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1. Simon Sinek, “How Great Leaders Inspire Action,” TEDx Puget Sound, September 2009, http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en.
Chapter 1 Enough
1. John D. Rockefeller, John D. Rockefeller on Making Money (New York: Skyhorse Publishing, 2015).
2. John D. Rockefeller Sr., quoted in Ron Chernow, Titan: The Life of John D. Rockefeller, Sr. (New York: Vintage Books, 2004), 189.
3. Carl O’Donnell, “The Rockefellers: The Legacy of History’s Richest Man,” Forbes.com, June 11, 2014, http://www.forbes.com/sites/carlodonnell/2014/07/11/the-rockefellers-the-legacy-of-historys-richest-man/.
4. Daniel Kahneman, Thinking, Fast and Slow (New York: Farrar, Straus, and Giroux, 2011).
5. Brad Klontz, Ted Klontz, and Rick Kahler, Wired for Wealth (Deerfield Beach, FL: Health Communications, Inc., 2008).
6. Pablos S. Torre, “How [and Why] Athletes Go Broke,” Sports Illustrated, March 23, 2009, http://www.si.com/vault/2009/03/23/105789480/how-and-why-athletes-go-broke.
7. James A. Finley, “What Could Happen to You: Tales of Big Lottery Winners,” AP, Friday, May 17, 2013, http://usnews.nbcnews.com/_news/2013/05/17/18323470-what-could-happen-to-you-tales-of-big-lottery-winners.
8. Susan Bradley with Mary Martin, Sudden Money: Managing a Financial Windfall (New York: Wiley, 2000).
9. Susan Bradley, quoted in Moira Somers, “Advising Clients with Painful Money Legacies,” September 24, 2014, http://www.suddenmoney.com/index.cfm?fuseaction=blog.details&ArticleId=22.
10. Byron Katie with Steven Mitchell, Loving What Is: Four Questions That Can Change Your Life (New York: Harmony Books, 2002).
11. This number is actually down quite substantially thanks to an infusion of cash from the Spanish government, fueling a plan to transform the dump into a landfill and displace the residents of La Chureca. Unfortunately, this has actually increased the desperation of the remaining residents as their source of sustenance has dwindled in size. Additionally, most of the major cities in Nicaragua have a similar dump with a similar population.
12. El Colegio de la Esperanza, (the School of Hope).
Chapter 2 Values
1. Benjamin Franklin, The Autobiography of Benjamin Franklin (New York: Touchstone, 2004), 67–68.
2. Ibid., 66.
3. Ibid., 72.
4. Ibid., 74–75, italics in original.
5. Claire Díaz-Ortiz, “What a Dreamboard Can Do for You,” http://clairediazortiz.com/why-you-need-a-dream-board/.
Chapter 3 Riding the Elephant
1. Daniel H. Pink, Drive (New York: Riverhead Books, 2011).
2. Ibid.
3. Jonathan Haidt, The Happiness Hypothesis (New York: Basic Books, 2006).
4. Chip Heath and Dan Heath, Switch: How to Change Things When Change Is Hard (New York: Broadway Books, 2010).
5. Ibid.
6. TD Times Staff, “How Is a Next Action List Different from a To Do List?” February 10, 2011, www.gettingthingsdone.com/2011/02/how-is-a-next-action-list-different-from-a-to-do-list/.
Chapter 4 Calling
1. Os Guinness, The Call: Finding and Fulfilling the Central Purpose of Your Life (Nasvhille: W Publishing Group, 2003), 4.
Chapter 5 Time
1. Ryan Carson, “7 Do’s and Don’ts for Founders,” The Naïve Optimist, http://ryancarson.com/post/25580650719/7-dos-and-donts-for-founders.
2. Ibid.
3. Claire Diaz-Ortiz, “When Is the Best Time to Respond to Emails?” http://clairediazortiz.com/best-time-to-respond-to-emails/.
Chapter 6 Perspective
1. Andrea Coombes, “Retirement Savings: How Much Is Enough?” MarketWatch, February 16, 2013, http://www.marketwatch.com/story/retirement-savings-how-much-is-enough-2012-09-12.
2. Ibid.
Chapter 7 Essentials
1. Bill Fay, “Demographics of Debt,” Debt.org, http://www.debt.org/faqs/americans-in-debt/demographics/.
2. A standard ARM has an interest rate that adjusts with prevailing interest rates, but the option ARM actually allowed the borrower to choose their mortgage payment and also allowed that payment to be low enough that the mortgage balance would increase instead of decrease. The commission for these products was double the typical mortgage commission.
3. “Mortgage Payoff Calculator,” Bankrate, http://www.bankrate.com/calculators/mortgages/mortgage-loan-payoff-calculator.aspx.
4. Tim Chen, “American Household Credit Card Debt Statistics: 2014,” nerdwallet, http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/.
5. “Credit Card Calculator,” Bankrate, http://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx.
Chapter 8 Financial Statements
1. One-time $60 fee, as of May 5, 2015.
2. Rick Kahler, The Financial Wisdom of Ebenezer Scrooge (Deerfield Beach, FL: Health Communications, 2006), 3.
Chapter 9 Investing
1. Brian Wimmer, CFA, Sandeep Chhabra and Daniel Wallick, “The Bumpy Road to Outperformance,” Vanguard research, July 2013, https://pressroom.vanguard.com/content/nonindexed/7.5.2013_The_bumpy_road_to_outperformance.pdf.
2. Ibid., 2.
Chapter 10 Education
1. David Greene, “Education Is Priceless but the Pricetag Is Hefty,” Morning Edition, May 10, 2012, http://www.npr.org/2012/05/10/152392452/education-is-priceless-but-the-pricetag-is-hefty. Quotes in this section are taken from the transcript of this interview.
2. Steve Odland, “College Costs Out of Control,” Forbes, March 24, 2012, http://www.forbes.com/sites/steveodland/2012/03/24/college-costs-are-soaring/.
3. Janet Lorin, “College Tuition in the U.S. Again Rises Faster Than Inflation,” Bloomberg, November 13, 2014, http://www.bloomberg.com/news/articles/2014-11-13/college-tuition-in-the-u-s-again-rises-faster-than-inflation.
4. Dylan Matthews, “The Tuition is Too Damn High, Part VII—Is Government Aid Actually Making College More Expensive?” The Washington Post, September 3, 2013, http://www.washingtonpost.com/blogs/wonkblog/wp/2013/09/03/the-tuition-is-too-damn-high-part-vii-is-government-aid-actually-making-college-more-expensive/.
5. “Tuition and Fees,” Harford Community College, https://www.harford.edu/student-services/paying-for-college/tuition-and-fees.aspx.
6. “Tuition & Costs,” Towson University, http://www.towson.edu/main/admissions/tuitionaid/tuition.asp.
7. “2014–2015 Medical Student Cost of Attendance,” Johns Hopkins Medicine, http://www.hopkinsmedicine.org/som/offices/finaid/cost/1415med.html.
8. “Qualified Education Expenses,” The Internal Revenue Service, http://www.irs.gov/Individuals/Qualified-Ed-Expenses.
9. Kathryn Spica, “Morningstar Names Best 529 College-Savings Plans for 2014,” Morningstar, October 21, 2014, http://ibd.morningstar.com/article/article.asp?id=669116&CN=brf295.
10. Christina Couch, “College 529 Prepaid Tuition Plans at Risk,” Bankrate, November 3, 2009, http://www.bankrate.com/finance/college-finance/college-529-prepaid-tuition-plans-at-risk-1.aspx.
11. John D. McKinnon, “Obama Drops Plan to Raise Taxes on ‘529’ College Savings Accounts,” The Wall Street Journal, January 28, 2015, http://www.wsj.com/articles/obama-drops-plan-to-raise-taxes-on-529-accounts-1422390991.
12. Chris Guillebeau, “The One-Year, Alternative Graduate School Program,” June 6, 2013, http://chrisguillebeau.com/the-one-year-alternative-graduate-school-program/.
Chapter 11 Retirement
1. “Retirement Planner: Full Retirement Age,” Official Social Security Website, http://www.ssa.gov/planners/retire/retirechart.html.
2. Jeffrey B. Miller, “$10 Billion in Unclaimed Social Security Benefits,” MarketWatch, September 13, 2013, http://www.marketwatch.com/story/10-billion-in-unclaimed-social-security-benefits-2013-09-13.
3. “IRA Deduction Limits,” IRS, http://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits.
4. “Amount of Roth IRA Contributions That You Can Make for 2015,” IRS, http://www.irs.gov/Retirement-Plans/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-For-2015.
5. http://www.irs.gov/publications/p544/ch02.html#en_US_2014_publink100072479.
Chapter 12 Financial Independence
1. Anne Tergesen, “Live Long and Prosper. Seriously,” Businessweek, June 26, 2005, http://www.bloomberg.com/bw/stories/2005-06-26/live-long-and-prosper-dot-seriously.
2. “Health and Retirement Study,” University of Michigan, http://hrsonline.isr.umich.edu/.
3. “Holmes-Rahe Life Stress Inventory,” The American Institute of Stress, http://www.stress.org/holmes-rahe-stress-inventory/.
Chapter 13 Estate and Legacy
1. “AirTran—Babysitters,” YouTube, https://www.youtube.com/watch?v=ASg9dlhrjEc.
2. Warren Buffett, quoted in Richard I. Kirkland Jr., “Should You Leave It All to the Children?” Fortune, September 29, 1986, http://archive.fortune.com/magazines/fortune/fortune_archive/1986/09/29/68098/index.htm.
3. “Estate,” The Free Dictionary Legal Dictionary, http://legal-dictionary.thefreedictionary.com/estate.
Chapter 14 Insurance
1. “What Are the Odds of a Shark Attack?” The Wildlife Museum, http://www.thewildlifemuseum.org/docs/content/2113/sharkattackodds.pdf.
2. Josh Sanburn, “Top 10 Oddly Insured Body Parts: Merv Hughes’ Mustache,” Time, September 1, 2010, http://content.time.com/time/specials/packages/article/0,28804,2015171_2015172_2015195,00.html.
3. “Driving While Texting Six Times More Dangerous Than Driving While Drunk,” State University of New York at Potsdam, http://www2.potsdam.edu/alcohol/files/Driving-while-Texting-Six-Times-More-Dangerous-than-Driving-while-Drunk.html#.VT5i_q1Viko.
Chapter 15 Life
1. “Check Your Risk,” Manulife (risk calculation tool), http://www.manulifesynergy.ca/index.jsp?resourceID=844&Gender=Male&Smoker=No&Age=40.
2. If you’re wondering about the impact of inflation on this calculation, there are two reasons why I’m not giving it much mention. First, while we’re anticipating a 5 percent withdrawal rate, a diversified balanced portfolio should make more than 5 percent over time, the balance of which goes to offset inflation.
While I realize “safe” withdrawal rates for retirement accounts have fallen from 5 percent to 4 percent (and in some cases even lower), I’m not as concerned about the impact of inflation here because life insurance isn’t designed to be a life-long lottery ticket, but a financial bridge to one’s future life. If you believe that your situation is one uniquely predisposed to inflation risk, you might consider using a multiple of 20 (instead of 15) and/or using 4 percent as your divisor (instead of 5 percent).
Chapter 16 Disability Income
1. If you make $50,000 per year, instead of $75,000, you would produce $3,770,063 over the next 40 years. If you make $100,000 per year, you would produce $7,540,126 in 40 years. What if you make more but are closer to retirement? Well, if you make $150,000 today, you’ll generate more than $7 million in just the next 30 years. If you make $250,000 today, you’ll generate $6.7 million in just the next 20 years.
Chapter 17 Long-Term Care
1. “What’s Medicare?” Medicare.gov, http://www.medicare.gov/sign-up-change-plans/decide-how-to-get-medicare/whats-medicare/what-is-medicare.html.
2. “What Are the Different Parts of Medicare?” AARP, http://www.aarp.org/health/medicare-qa-tool/what-are-the-different-parts-of-medicare/.
3. “Medicare,” LongTermCare.gov, http://longtermcare.gov/medicare-medicaid-more/medicare/.
4. “Benefits Provided by the Federal Long Term Care Insurance Program: Activities of Daily Living,” The Federal Long Term Care Insurance Program, http://www.ltcfeds.com/documents/outlineofcoverage/outlineofcoverage_benefitsprovidedadl.html?ooc.
5. Phyllis Shelton, “Long-Term Care Insurance,” Thou Shalt Honor, PBS, http://www.pbs.org/thoushalthonor/ltc/.
6. Christine Benz, “40 Must-Know Statistics About Long-Term Care,” Morningstar, August 9, 2012, http://news.morningstar.com/articlenet/article.aspx?id=564139.
7. “Costs of Care,” LongTermCare.gov, http://longtermcare.gov/costs-how-to-pay/costs-of-care/.
8. Kathleen Ujvari, “Long-Term Care Insurance: 2012 Update,” AARP Public Policy Institute, http://www.aarp.org/content/dam/aarp/research/public_policy_institute/ltc/2012/ltc-insurance-2012-update-AARP-ppi-ltc.pdf.
Chapter 18 Home and Auto
1. Chris Kissell, “6 Things Home Insurance Won’t Cover,” Bankrate, http://www.bankrate.com/finance/insurance/things-home-insurance-wont-cover-1.aspx.
Chapter 19 The Top 10
1. Caroline Ratcliffe, et al., “Delinquent Debt in America,” Urban Institute, http://www.urban.org/research/publication/delinquent-debt-america.
Chapter 20 Behavior Management
1. Barbara Roper, quoted in Sheyna Steiner, “How the Fiduciary Standard Protects You,” Bankrate, June 19, 2012, http://www.bankrate.com/finance/investing/fiduciary-standard-1.aspx.
2. Ibid.