Retirement is a different game. You’ve spent decades building wealth. Now comes the harder part - turning it into a paycheck that lasts. I’m Jesse Cramer. I help DIY investors turn their savings into a clear, cohesive retirement plan. Join 4000+ weekly readers and 20,000+ podcast listeners.
Is "Opportunity Cost" Math Ruining Your Retirement Mindset? 🧠
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Good morning! Today's email includes... The latest "Ask Me Anything" episode - featuring opportunity costs, TIPS, and asset location. Why a small 10% difference can lead to infinite differences - in both health and wealth. Stop Eating!! It's Costing You BILLIONS!Well...that headline isn't quite true. Though some people like to frame "opportunity cost" as the monster sapping your very life-force. In this "Ask Me Anything" episode, I tackle (3) great retirement finance questions... First - opportunity cost is 100% valid, but can become misleading and counterproductive when used poorly (and it's used poorly a lot). Second - TIPS (or inflation-protected bonds) are an interesting tool. But are they right for a retirement portfolio? Third - a question about turning a bunch of "random" accounts, stocks, bonds, etc, and creating one cohesive portfolio from them.
PS - more than 20,000 of you listened to the podcast in May - an all-time high. Thank you for listening and sharing my work with others!!! A Small Swing Makes an Infinite DifferenceA tidy bit of math popped into my head this weekend. Depending on many factors, adults require between 2,000 and 3,000 calories per day. Let’s use a round number: 2,500 calories. We’ll say that 2,500 calories per day allows us to maintain a stable weight. We also know that a pound of body fat is estimated to contain 3,500 calories. Hypothetically (…or, based on experience...), if I ate 5% too many calories for a full month, that would equal an extra 3,750 calories (5% = 125 extra calories per day…multiplied by 30 days). That’s almost exactly one pound of body fat. And if I ate 5% too few calories for a full month, I would lose almost exactly one pound of body fat. Let’s magnify that small 10% swing – from 5% too much to 5% too little – over months and years. It compounds massively. Just one little pound per month…but for years and years! It creates an infinite difference in health outcomes – from morbidly obese to lean and healthy. Just a small 10% swing. The same logic applies to your money.
What Are *Your* Questions?My most popular episodes are the "ask me anything" episodes. Check them out here:
I'm collecting questions for AMAs 19 and 20. Retirement Planning Can Be Complex...Retirement is a puzzle, and most people are missing a few pieces. But I help fix that. I'm a Partner at a fee-only fiduciary retirement planning firm. We work with clients all over the USA. We help you answer those tough retirement questions:
If you're planning for retirement, visit PlanWithJesse.com and let's start a conversation.
Until Next WeekThank you for reading, listening, and writing back. People like you send me questions every day. Go ahead! I'd love to hear from you.
Until next week, Jesse |
Jesse Cramer
Retirement is a different game. You’ve spent decades building wealth. Now comes the harder part - turning it into a paycheck that lasts. I’m Jesse Cramer. I help DIY investors turn their savings into a clear, cohesive retirement plan. Join 4000+ weekly readers and 20,000+ podcast listeners.
Good morning! Today's email includes... The 14 biggest risks in retirement - and how to beat them. [Part 2 of a two-part series] A funny connection between investing and the weather - and our strange perceptions of both. The 14 Retirement Risks - and How to Beat Them In these two episodes, Jesse applies Charlie Munger's principle of inversion to retirement planning, arguing that instead of defining success alone, investors should first identify how retirement plans fail and then design...
Good morning! Today's email includes... The 14 biggest risks in retirement - and how to beat them. [Part 1 of a two-part series] A funny connection between investing and the weather - and our strange perceptions of both. The 14 Retirement Risks - and How to Beat Them In this episode, Jesse applies Charlie Munger's principle of inversion to retirement planning, arguing that instead of defining success alone, investors should first identify how retirement plans fail and then design strategies...
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