Good morning, HTM Family!

[Hey Chat GPT: “Pretend you are the late Charlie Munger and write a short poem about what true wealth is in life and how to achieve it”]…

✨ In wealth's pursuit, don't lose your sight,
True riches lie not just in might.
Beyond the stacks, the cars, the gold,
A life well-lived, a story told.

Invest in minds, in love, in time,
These treasures grow, their worth sublime.
Build strong bridges, with laughter filled,
For genuine wealth, in connection built.

Seek wisdom's path, with curious mind,
Expand your world, true treasures find.
Live fully, learn, and leave your mark,
That's wealth, my friend, beyond the dark.

So hold close values, true and dear,
Let kindness bloom, cast out all fear.
For in the end, when all is done,
It's not the cash, but life well-won. ✨

*****

A little cheesy, I know… But, A.I. Munger makes some good points!

Growing a fat bank account is great, but to grow true wealth you need to simultaneously invest in other areas of life.

Just something to think about as you go about your week!

Alrighty, now onto the money stuff! 👇👇👇

TO DO

Get An IRS Identity Protection PIN! 🕵️

Last year the IRS received 294,138 complaints of identity theft! 😳 Sneaky thieves out there are filing fake tax returns, and stealing people’s refund money.

Don’t worry, it’s easy to protect against this. The IRS can provide you with an Identity Protection PIN so that nobody (except you) can file tax returns using your SSN or personal info. You can apply for one here and here's a bunch of FAQs about the program.

HOUSING

“Rent Forever” Movement

Over 30% of renters now believe that the American dream does not include home ownership. Folks are less and less interested in buying a house these days, instead choosing to embrace renting for the long haul.

And for good reason… Renting offers a ton of flexibility, more predictable monthly payments, and is a financially smarter decision in most places across the US (right now).

Soooo…. Is renting forever a good strategy?

Here are some things to consider if you’re planning to be a forever-renter:

• INVEST the difference: The only way renters have an upper hand financially is if they invest the savings they would otherwise be putting into that home purchase and regular upkeep. As a renter, you miss out on the forced method of savings that is property appreciation, principal pay down, etc. So you gotta make up for those would-be investments by saving every penny and growing wealth in other ways.

• Know your rights: As a renter it’s really important to understand your rights and keep up with local laws that protect renters. Some states are more tenant friendly than others. Not knowing your legal rights can come back to haunt you. So if you truly plan to rent forever, be sure to find and read your state’s landlord-tenant handbook.

• Get renters insurance: Not all responsibility falls on property owners. Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use. Policies are cheap, too — like $15-25 a month! This makes renters insurance an absolute must-have.

• Stay healthy: A recent study showed that renting is linked to a shorter lifespan! This is due to ongoing financial stress, evictions, and not prioritizing (or not being able to afford) good medical care. So if you’re planning to rent forever, make a plan to stay mentally, physically, and financially fit so you can relax as you age!

• Take advantage of flexibility: Renting gives you potential freedom and flexibility — so make the most of it! Upgrade when you need to upgrade, downsize when you need to, move around, sublet if you can, etc.

• Never say never: Life is always changing. It’s OK for your strategy to adapt as you get older. For those of you that are thinking, “I’ll never buy a house”, try to remain open to opportunities at least. You never know what what paths may open up and what life will throw at you later.

All in all, we’re huge fans of people renting by choice to sock money away into investments. If your dream includes renting forever, you do you! Just be sure to think far ahead and build in contingency plans.

Related stuff:

• 🏡 Numbers: Rent vs. Buy Calculator

• 💻 HTM Blog: Should you Rent vs. Buy? 8 Questions to Help Decide

TOGETHER WITH BETTERMENT*

Put your money to work and your mind at ease with automated investing tech and tax-smart tools designed to help maximize your returns. Learn more.

INVESTING

Mind Those Sneaky Fees! 😳

Talking with a new friend recently, they casually mentioned “my financial advisor only charges us 1%”…

I couldn’t help but cringe... 1% sounds small, but it eats up a huge amount of a person’s investment portfolio after compounding over decades.

Here’s an example of how a 1% fee affects the growth of a $20,000 portfolio over 40 years… 👇👇👇

That 1% fee costs nearly $400k over those four decades! And that’s with only a 20k initial investment.

It’s not just advisor fees that can stunt your growth. Here are some other sneaky fees to watch out for.

Fund Expenses: aka “expense ratios” are fees paid to own mutual funds or ETFs. You won’t see these fees on your statements because they are deducted before your account balance is updated. To check how much you are paying, search the specific fund you’re invested in and look it’s expense ratio. (Index funds usually have the lowest expenses, in the neighborhood of 0.04%, and actively managed mutual funds might average 0.5%. Seems small, but these are huge differences!)

Account Fees: These are notorious with 401k plans where the administration cost is passed onto each participant. It’s usually a monthly or quarterly flat fee just to have an account. It’s one of the reasons we recommend rolling over your 401k to an IRA if you’re with an expensive provider, or consolidating if you have a better 401k option with your current employer.

Transaction Fees: These are one-off fees every time you make a transaction, like paying a trade commission each time you buy a stock, or paying a “sales load” when you buy/sell particular mutual funds.

Some fees are unavoidable, and it’s certainly OK to pay for financial advice if you need it. But researching and revisiting your fees every so often can help you make sure your costs aren’t higher than they need to be. That could lead to a lot more money for you in retirement! And your portfolio won’t have any dead weight slowing the growth.

Related Stuff:

• ⚖️ SEC Bulletin: How fees and expenses affect your investment portfolio

• 👩‍💻 HTM Blog: How to break up with your financial advisor

ICYMI

Buzzing around the interwebs…

Starter Cars 🚗
For those of you car shopping, here are the best cars, hatchbacks, and SUVs under $10k right now per Consumer Reports.

Checked Bags 🧳
Delta, United and AA have all raised their baggage fees this past month. Just a reminder to pack light, pay in advance (it’s more expensive if you pay for that checked bag at the airport), and take advantage of airline credit card perks as some include free checked bags!

Late Fees 💳
A new rule just came into being that put a cap on credit card late fees at $8 (a whole lot less than the current avg late fee of $32!). There’s another way to lower late fees though —> don’t be late in the first place! 😅

Traffic Index 📍
TomTom analyzed traffic patterns in 387 cities across the globe, ranking them by average travel time, fuel costs, and CO2 emissions. Crazy to see how much time we spend in big metal boxes every day!

Credit Scores 👎
The national average credit score dropped for the first time in the last decade (it’s now at 717). Keep your utilization low and make those payments on time, folks!!!

A.I. Tax Filing 💻
Can you use AI to help file your taxes?… While some tax softwares use AI in the background to help enhance system experience, users should be aware that chat bots (like Chat GPT and Gemini) can provide inaccurate advice. It’s still very early days with AI, so beware who you trust for advice with important finance tasks!!!

COMMUNITY

Day #59 of Pantry Challenge… 🍱

@janinebmcdonald1331

#nogroceryshoppingchallenge #thingsyoueatfordinnerwhenyoulivealone

HTM Legend of the Week Award goes to @janinebmcdonald1331 who started a no grocery shopping challenge at the beginning of 2024 and is chronicling her daily meals on TikTok!

Really cool to see folks sharing their money challenges publicly. Saving money, educating others, all while having FUN. Win/win/win!

That’s it for now! Have a great week ahead, and remember to “invest in minds, in love, and in time”. 😉 Until next week,

Best friends out! 🍻