Sunday AAR (01JUL2018)
The Sunday After Action Review is a collection of the best articles that we’ve read this week.
Know of a good article or blog that we should read? Please let us know in the comments.
- TRICARE Cost Co-Pay Schedule – TRICARE is one of the least appreciated retirement benefits. There’s nothing dramatic about the military.com chart of the cost of TRICARE. That is until you compare the alternatives. I helped a friend shop for health insurance this week. She’s 53, so similar in age to many military retirees, and also a non-smoker. The cheapest decent coverage that we could find in her area was $720/month. Some reasonable, but not crazy plans were $1200/month. She will pay $8-14K per year. A retired military individual pays $300 per year! For a family, the difference will be even bigger.
- Ten things the “Makers” of the 4% Rule don’t want you to know – We’ve talked about the 4% rule a lot. 4% is the most commonly cited safe withdrawal rate. That means you can safely withdraw 4% of your assets each year forever…maybe. There are a lot of other factors to consider. This is a good explanation of a few.
- Spending Deferred – A dose of reality from the always good Jonathan Clements: “…impressive wealth seems less impressive when we ponder the lifestyle it can support. Make no mistake: It takes a hefty nest egg to pay for a comfortable retirement.” This is the corollary to the 4% rule. Also when you save is just as important as how much you save.
- 36 Obvious Investment Truths – This is a good one to bookmark and review once a year. Investing isn’t that hard, but it’s really easy to do poorly. Minding these “Truths” is a good way to stay on track.
- Warren Buffet Archive – One of the 36 Obvious Investment Truths should be “Do not watch CNBC for investment advice.” They do love them some Warren Buffet though. I totally agree with this point. In May they created the archive and it’s full of good stuff. As I’ve mentioned before Buffet’s letters to the Berkshire stockholders make for excellent (free!) reading. There are lots of other resources on this site. The Q&A videos with Charlie Munger are quite often hysterical.
- Why I left an Airline Pilot Career Worth $8.2 Million – This guy had a “dream job” as an airline pilot. This article is a long and interesting explanation of why that job sucked.
- Why Do So Many People Hate Their Jobs? – Reason number one applies to Josh, the pilot. Some jobs suck. I love reason number two: “Even if you like the work the experience of being paid makes you more likely to not like the job.” The author backs this up well.
- Cost of the Commute – This article breaks down the true cost of driving a car. See the author’s Guide to Bicycle Commuting as well. I’ve commuted by bike for several years. My advice – start during nice weather and just keep riding. As it gradually gets hotter or colder you’ll adapt. If it sticks, you’ll have fun saving a whole lot of loot.