MAKE MONEY ONLINE POSTS: 07/09/19

الثلاثاء، 9 يوليو 2019

3 recognized for leadership at Tobyhanna Army Depot

Great leaders are well-known for motivating their teams, creating trust and empowering others to achieve greatness. These character traits exemplify the careers of three veteran Tobyhanna Army Depot supervisors.Senior leaders and peers applauded Chet Schultz, chief of the Navigation Systems and Flight Control Systems branches, Frank Egidio, Range Threat Systems Project Management Branch chief, and Depot Counsel Marti Verbonitz, chief of the Legal Office, as each administrator was [...]

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Auto-Owners Insurance Auto Insurance Review

MetLife Renters Insurance Review

MetLife is one of the largest global providers of insurance, annuities and employee benefits. On the consumer side, they are well-known for offering health insurance, dental insurance and life insurance along with homeowners insurance.

What many people don’t know is that MetLife also offers renters insurance, a type of insurance many renters purchase in order to protect their personal possessions (but not the building they live in). With renters insurance, consumers can make sure their furniture, electronics, jewelry and other prized possessions would be covered and swiftly replaced in the event of fire, vandalism or another disaster beyond their control.

If you are considering buying a renters insurance policy, you may want to see what MetLife has to offer — and how it compares with other renters insurance policies available today. Keep reading to learn more.

MetLife Renters Insurance: Key Takeaways

Customize your renters insurance to provide the exact amount of coverage you need.
Choose add-ons that can beef up coverage for musical instruments, electronics, sports equipment and luxury items that would be difficult — and expensive — to replace.
Identity Protection Services are included in each MetLife renters insurance policy.

MetLife Renters Insurance Review

Renters insurance should give you peace of mind if you have a lot of pricey personal possessions but don’t yet own a home. MetLife renters insurance protects against tornadoes, hail, fire, theft, vandalism and more. Premiums also tend to be extremely affordable for renters insurance — often less than $15 per month.

While MetLife policies can be tailored to meet your unique needs, each of their policies provides coverage for the following basics:

Personal property coverage: Guarantees that you can repair or replace your belongings in the event of a covered loss. If you need to file a claim, they’ll pay the cost to repair or replace covered items, up the actual cash value of your damaged or stolen property.
Replacement cost coverage: Kicks in to protect you if something happens and you need to repair or replace your property.
Personal liability protection: Provides $100,000 of coverage at minimum. Covers you if someone else is hurt when they’re in your rental apartment or home. This coverage also extends to cover property damage to others when you’re held responsible. Legal costs can also be covered with your policy.

In some states, you can also purchase specialty coverage that extends your basic renters insurance policy. This additional coverage offers higher limits for electronics, luxury items and other important items you may own regardless of how they are damaged or lost. This coverage can be good for $5,000, $10,000 or $15,000 of add-on protection depending on the items you want to cover. You can also qualify for bonus coverage that can replace these items if they break or stop functioning the way they should. Add-on coverage comes with its own $100 deductible.

How to Get a Quote from MetLife Renters Insurance

One of the biggest downsides of buying renters insurance from MetLife is that they don’t offer free estimates online. You can fill out a form and ask to be contacted by an agent, but you can’t find out approximately how much you would pay for renters insurance coverage without speaking to a person.

This puts MetLife at a big disadvantage since many companies that offer renters insurance make it easy to get a quote without ever speaking to someone. Then again, requesting a call shouldn’t be that difficult. To request an agent contact you, all you need to do is head to the MetLife website and submit the following information:

Name.
Address of residence.
Phone number.
Email address.

MetLife Renters Insurance Discounts

If your goal is saving money on insurance — and it should be — you’ll be happy to know that MetLife offers several different discounts you can apply to your renters insurance policy. These include:

Claim-free discounts — Save money when you haven’t filed any claims
Multi-policy discount— Save money for bundling a new renters insurance policy with auto coverage
Protective devices discount — You can also qualify for discounts if you install qualified safety and security devices in your rental unit

How We Rate MetLife Renters Insurance

At The Simple Dollar, we aim to provide a general overview of each insurer’s products and services through a standard rating process. With that in mind, we considered policy offerings and overall customer satisfaction using J.D. Power’s 2018 U.S. Renters Insurance Study. We also measured financial solvency based on reports from A.M. Best, S&P, and Moody’s.

After a thorough research and discovery period, here’s how MetLife stacks up:

Claims Satisfaction: 3 out of 5
Coverage Options: 2 out of 5
Financial Solvency: 4 out of 5
Customer Satisfaction: 2 out of 4
Overall Rating: 2.75 out of 5 stars

The Bottom Line

Renters insurance may seem unnecessary, but you never know what kind of emergencies you will face. No matter where you’re renting, no one is immune to the perils of fire, inclement weather, or theft. Without a renters insurance policy, you won’t have any way to replace any items that were damaged, ruined, or stolen — other than paying out of pocket to replace them yourself.

With a renters insurance policy, you will have protection against all these disasters and others you may have never thought of.

As you continue your search for the perfect policy, make sure to compare several renters insurance policies based on premiums, what they include, and the coverage limits you can qualify for. Also consider calling into MetLife to get a no-obligation quote from one of their agents. With enough research, you should wind up with a renters insurance policy that will help you sleep better at night.

Related:

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Allstate Renters Insurance Review

Allstate was founded in 1931 during the depths of the Great Depression. During that time, visionary leader Robert Wood, a World War I general who was also the president of Sears, knew the country had a growing need for quality insurance products and sought to fill that need through his new venture.

These days, Allstate is a popular American brand that offers auto insurance, life insurance, and homeowners insurance policies. Not only are they known for offering low prices on a variety of products, they are known for the many customer discounts they offer as well as their famous slogan, “You’re in good hands.”

While home and auto insurance are two of the most common types of coverage families need to purchase, Allstate also offers renters insurance. This type of insurance aims to cover an individual’s personal belongings, furniture and valuables — but not the building they live in.

If you’re on the hunt for renters insurance and think Allstate may offer what you need, keep reading to learn more.

Allstate Renters Insurance: Key Takeaways

Apply for a free, no-obligation quote online and without speaking to an agent.
Get coverage for your personal property, personal liability, living expenses, medical expenses and more.
Choose from add-on coverage that can help protection your valuables.
Qualify for discounts that can make renters insurance coverage even cheaper.

Allstate Renters Insurance Review

Like other insurance companies that offer renters insurance, Allstate offers a certain level of base coverage with the option for customers to pay more for add-ons. Most basic policies include a range of coverages that can help protect your personal property like furniture, electronics and luxury items while protecting you against some of life’s “what ifs.”

Coverages offered in Allstate renters insurance policies include:

Personal property coverage: Personal property coverage is at the core of renters insurance since it can repair or replace your belongings if they are stolen or destroyed. Items covered by basic personal property coverage can be clothing, electronics, family heirlooms, furniture and more.
Living expenses: This coverage can reimburse you if you need to move because your rental becomes uninhabitable due to fire, vandalism or other factors beyond your control.
Personal liability: This coverage can pay for legal expenses, medical bills and additional damages incurred if someone is injured on a property you rent and they sue you as a result.
Guest medical: Guest medical coverage will kick in to pay for medical expenses when someone is injured on your property.

In addition to basic levels of coverage, Allstate lets you select special add-ons that can protect you and your personal belongings even more. Optional coverage includes identity restoration coverage that can help protect you from the financial consequences of identity theft. You can also pay more to cover high-priced belongings you want to protect such as expensive jewelry, audio equipment or camera equipment, or irreplaceable family heirlooms.

Flood insurance is also available (and suggested) to renters who are living in an area prone to flooding and the subsequent water damage. Finally, a personal umbrella policy can provide another layer of coverage that can kick in when all your other insurance is exhausted.

How to Get a Renters Insurance Quote from Allstate

One big benefit of getting a quote from Allstate is the fact you can complete the entire process online — and without speaking to an agent. All that’s required for a free, no-obligation quote is heading to the Allstate website and filling out some basic information.

As you prepare to get a free quote, you should plan to submit the following details:

Name.
Birthdate.
Address.
Marital status.
Email address.
Phone number.
Property details.
Claims history.
Preferred coverage options.

Once you’re done with the application process, you’ll get a basic quote for renters insurance. From there, you’ll have the option to tailor your policy to meet your specific needs by adding on additional coverage, tweaking coverage levels or applying special discounts. You always have the option to speak with an Allstate agent if you want to, but you don’t have to.

Allstate Renters Insurance Discounts

Allstate offers several different discounts you can access if you are an existing customer, you own specific theft-prevention devices, or you meet other requirements. Here are the main Allstate renters insurance discounts you should know about:

Multi-policy discount: Save on renters insurance when you bundle your policy with auto insurance coverage.
Safe home discount: Qualify for a special discount if your home has certain safety features like a security system or fire alarms.
Claims-free discount: Qualify for more discounts for remaining claims-free.
Auto-pay discounts: Get a discount for setting up automatic payments or for paying your premiums upfront instead of month by month.
Retiree discount: You can save up to 25% off renters insurance premiums if you’re over the age of 55 and retired.

How We Rate Allstate Renters Insurance

After a thorough research and discovery period, here’s how Allstate renters insurance policies stack up:

Claims satisfaction: 2 out of 5
Coverage options: 3 out of 5
Financial solvency: 5 out of 5
Customer satisfaction: 4 out of 5
Overall rating: 3.5 out of 5

The Bottom Line

If you’re shopping for renters insurance, it’s smart to give Allstate another look. Not only do they offer renters insurance policies that provide a certain level of base coverage, you can pay for add-ons to protect the valuables you cherish the most.

Like all renters insurance policies, Allstate renters insurance may also be less expensive than you think. Get a free quote today and take the time to check out rates and coverage options from at least three other companies.

Related:

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Liberty Mutual Auto Insurance Review

Beyond eBay and Etsy: 5 Online Flea Markets You’ve Never Heard of

American Family Renters Insurance Review

American Family Insurance has become a household name thanks to its catchy commercials and popular insurance policies. Not only does the insurer offer high-qualify and protective coverage for your home and your car, it also offers coverage for boats, recreational vehicles and motorcycles. It even offers life insurance, identity insurance, travel insurance and health insurance.

American Family Insurance even offers renters insurance, a type of insurance coverage that protects a renters personal possessions in the event of fire, theft, vandalism and more. Renters insurance is similar to homeowners insurance in that it can kick in to help you pay for a new place and replace your personal possessions. The big difference: It doesn’t actually cover the building you live in.

If you’re renting and wondering if you need insurance coverage for your electronics, family heirlooms and furniture, the answer is yes. Renters insurance policies are extremely affordable — often less than $15 per month — yet the peace of mind you can gain is priceless.

Keep reading to learn more about American Family Insurance renters policies, what they cover and how to get a free quote.

American Family Renters Insurance: Key Takeaways

Get a free online quote in seconds.
Customizable policies to meet your unique needs.
Choose add-on coverage to protect yourself even more.
Qualify for discounts based on bundling other policies or having a qualifying smart device.

American Family Renters Insurance Review

Like other large insurance providers that offer renters insurance, American Family allows its customers to tailor their policies to meet their needs. This can mean tweaking coverage amounts to ensure all possessions are fully protected, paying for add-on coverage as needed and adjusting deductibles higher or lower to manage costs.

American Family stands out from competitors in a few areas. For example, its 24/7 claims support service helps ensure you’re never left stressing over your belongings or claims details on your own. American Family also offers the MyAmFam app, which helps customers keep track of their premiums, file claims, manage their policy details and more.

While standard American Family renters insurance policies are offered to cover the basics, additional coverage you can purchase includes:

Identity theft protection: This low-cost coverage helps you recover from costs associated with identity theft.
Travel protection: Travel protection can help cover medical bills if you’re injured abroad or reimburse you if your trip is canceled for a covered reason.
Pet insurance: You can also combine insurance for your pet with your renters insurance policy. This coverage can kick in to cover up to $1,000 in veterinary bills.
Home-based business: You can also pay more for home-based business coverage if you’re self-employed and work from home.

How to Get a Quote from American Family Insurance

Applying for a free, no-obligation quote from American Family Insurance is easy thanks to the insurer’s consumer-friendly website. To get a free quote, head to their website and enter the following information:

Name.
Address of residence.
Birthdate.
Type of property.
Information on pets.
Number of people in your home.

Once you fill out the basic information online, you’ll receive a follow-up note that says an American Family Insurance agent will contact you. From there, you can go through all the potential policy details, tweak your coverage to meet your needs and start your new renters policy.

American Family Insurance Renters Insurance Discounts

There are several discounts that can help you pay less for renters insurance from American Family Insurance. Here are the ones you should be aware of and seek out as you apply for a new policy:

Multi-product discount: Save big on your renters insurance policy by bundling several policies together, such as renters insurance plus an auto insurance policy.
Smart home discount: Qualify for a home protection discount if your home has certain home security features.
No claims: You can save even more if you haven’t had any claims for the past five years or more.
Auto pay or paperless discounts: Pay less for your policy if you set up automatic payments or choose paperless statements.
Loyalty discounts: You can qualify for another discount if you’ve been an American Family Insurance customer for several years — or even if your parents are customers.

How We Rate American Family Insurance Renters Insurance

After a thorough research and discovery period, here’s how American Family Insurance renters insurance stacks up:

Claims satisfaction: 4 out of 5
Coverage options 4 out of 5
Financial solvency: 4 out of 5
Customer satisfaction: 4 out of 5
Overall rating: 4 out of 5

The Bottom Line

Renters insurance can be incredibly affordable (premiums are often less than $15 per month), yet not having it could easily cost you thousands of dollars if the property you’re living in is damaged by fire, smoke, vandalism, theft or some other factor beyond your control.

An affordable renters insurance policy can ensure your furniture, electronics and prized personal possessions can be replaced if they are damaged or ruined in your home. Better yet, a renters insurance policy can help cover your costs if you’re forced to find a new place to live.

American Family Insurance offers high-quality policies you should consider, so make sure to get a free quote. Compare rates and policy details among three or more insurance companies to make sure you’re getting the best deal for the coverage you need.

Related:

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Finances Are Taking a Toll on Mental and Physical Health

The unfortunate reality for many Americans is that financial stress is a part of everyday life.

In fact, Americans of all ages say that managing their finances impacts their mental health, according to a study from Merrill Edge.

To break that down further, a shocking 73% of Gen Z, 69% of millennials and 58% of Gen X say their mental health is impacted by financial concerns. Baby boomers appear to be the least troubled by such concerns, at 40%, but even that number is not insignificant.

The Merrill Edge data also finds that 56% of Americans also feel their physical health is affected by their finances. And when it comes to both mental and physical health, women are disproportionately affected by money-related stresses.

The key takeaway is that Americans need help addressing the money-related worries that are keeping them up at night. To help with that effort, we reached out to financial experts across the country to gather tips about achieving a healthy balance between managing your money and maintaining your mental health.

Decide You Want to Take Action

Steffa Mantilla was one of those Americans stressed by finances until she paid off close to $80,000 in debt. The money she owed consisted primarily of student loans and medical debt from the birth of her son.

One of the first steps to relieving mental and physical stress caused by financial angst is to decide that you want to do something about it, says Mantilla, who went on to create a saving and lifestyle website.

“Many times, people are so paralyzed by fear and worry that they don’t take any action,” Mantilla said. “They think that their situation is hopeless, so they don’t bother trying, which usually leads to more debt and stress.”

But taking action can help put an end to the despair, she said.

“Once you’ve decided to change, you’ll have a sense of hope,” Mantilla said. “This hope will allow you to take a positive look at your situation.”

The best course of action to help improve your mental health quickly, Mantilla said, is to take small but significant steps that will act as positive reinforcement.

“With each completed step, you’ll gain more confidence and momentum to continue,” she said. “Even if it’s only saving $20 per paycheck, that small step of saving can matter. Having a small buffer of an emergency fund can turn a lot of stressors into mere inconveniences.”

Balance Short-Term and Long-Term Planning

As we become more conscientious about money and mindful of spending, it’s important to view financial wellness as self-care, said Matt Gellene, consumer banking & investments field adviser and national performance executive for Merrill Edge.

Gellene’s approach to financial self-care begins with establishing a balance between short-term and long-term planning, which he suggests will help alleviate stress.

“When it comes to financial planning, determine your short-term costs and long-term financial milestones,” Gellene said. “Short-term expenses can include entertainment, travel, utilities or even paying off debt, while long-term expenses might include saving for retirement, a college education fund or buying a new home.”

When it comes to achieving long-term milestones, such as saving for a home or retirement, consider using the “set it and forget it” mentality, adds Gellene. You can do this by establishing automatic withdrawals from your paycheck to put aside money for your long-term milestone. This is a good way to jump-start savings habits and set you on the right path to achieve each milestone.

“This way, you don’t have to worry about manually setting money aside money every month for saving,” said Gellene.

More Simple, Attainable Steps

According to the Merrill Edge study, 85% of Americans improved their financial lives in meaningful ways last year. Nearly half (45%) worked at improving their credit score; 43% paid off some or all of their credit card debt; and 35% established an emergency fund by setting enough aside to live on for three months without an income.

“There are simple, attainable steps you can take to achieve your financial goals, whatever they are,” Gellene said. “Laying out a clear, coherent plan — and sticking to it — can help you stay on the path to your goals.”

Not sure where to start?

“Prioritize paying off debt,” Gellene said. “Consider prioritizing payments with the highest interest rate first, since those are the biggest financial strain.”

Stop Comparing Yourself to Other People

Continually working to hold yourself financially accountable can be mentally exhausting. So, while you’re busy pursuing all of these money-related goals, be sure to avoid the mistake of comparing yourself to others.

“Financial comparison, often referred to as “keeping up with the Joneses,” will cause more anxiety, stress and fear than we might think,” said Joshua Hastings, founder of the site Money Life Wax. “Adding the stress of comparison makes life much more challenging.”

Living in a world dominated by social media platforms, such as Facebook and Instagram, makes it even easier and more tempting to constantly compare yourself to others.

“You’re paying off some debt or saving for a wedding, meanwhile, you see your friends who just went out or who got a brand-new car,” said Hastings. “It’s human nature to want what we can’t have. The biggest action step is to either delete your social media apps from your phone, limit social media use to one to two times daily or make sure you do a really good job of keeping everything in perspective.”

Seek Professional Guidance

They’re called professionals for a reason, and if financial matters are causing you a great deal of stress, it may be time to seek assistance.

“Sitting down with a financial adviser can help you identify specific goals and create the roadmap to help get you there,” Gellene said. “An adviser can work with you to develop the appropriate action plan based on what you want to achieve.”

Elisa Robyn, who holds a doctorate in educational psychology and specializes in helping people deal with emotional and psychological issues around money and finances, says a financial adviser may be able to help you truly get to the bottom of the broader issues and challenges you may be having with money.

“Do a deep dive, possibly with a financial adviser, and understand what your real financial situation is,” Robyn said. “How much do you have? Where are you spending money? What choices have you made, and which ones might you want to change?”

Examine areas where you feel overwhelmed. And while you’re at it, consider reflecting on the messages you received about money as a child and young adult, Robyn said.

“What were you taught, and how has that guided your decisions? Which of these decisions are helpful and which are keeping your from building financial security?” Robyn asked.

Ultimately, you will need to learn to make money-related decisions that work for you over the short term and the long term.

If a financial adviser is not within your budget, you might even consider asking a friend or family member who has a track record of financial literacy for help, said Matt Edstrom, chief marketing officer for GoodLife Home Loans.

“For some, being able to just sit down and organize their finances is easier said than done, so in those situations, it’s vital to ask for help. Not everybody can afford a financial planner, especially those who are already in poor financial standing,” Edstrom said. “While finances are typically seen as a personal issue, don’t be afraid to reach out to a close friend or family member. They might be able to correct your path before it veers too far off in another direction.”

Taking these steps should help you make progress rather than remain stagnant in your approach to dealing with money, Edstrom said.

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These 6 Legitimate Companies Will Give You Free Stocks

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners.

Before you ask: Yes, there is a such thing as free stocks. Right? It sounds too good to be true, but you just have to know where to look — and that’s where we can help you.

Collect Your Free Stocks From These 6 Companies

We’re all about freebies. That’s why we researched the best, most legitimate investment companies, apps and trading platforms that offer something for free.

Without further delay, here are seven companies giving away free stocks:

1. iConsumer: $50

Free stock value: 500 shares of iConsumer stock (trading at 10 cents per share, as of June 20, 2019, that’s about $50 worth of stock)

The other companies on this list give you free shares of stock when you open an online brokerage account, but iConsumer is different. It’s a cash-back site that lets you earn shares of iConsumer stock. Think of it like a rewards platform like Ebates or Ibotta — with the added bonus of free stocks.

Shop at more than 2,000 retailers through the portal to earn cash back and shares of iConsumer stock. You can sell stocks at any time.

How to claim your free stock: Create a new account with iConsumer and start earning cash — and stocks — back on your online purchases. When you spend your first $25 through the platform, you’ll get a bonus of 500 iConsumer stock shares.

Available via desktop (browser extension), Apple iOS and Google Android.

2. Swell: $50

Free stock value: $50

Swell Investing is an SEC-registered investment adviser committed to supporting sustainable companies. You can invest in companies that are committed to clean water, zero waste, renewable energy or disease eradication, to name a few.

Swell doesn’t have any trading fees, price tiers or expense ratios. It charges a 0.75% annual fee — that’s about the cost of one coffee ($3.75) per year, if you invest $500.

How to claim your free stock: Swell will give you a free $50 when you sign up, enter the code PENNY and invest your first $50. Then, use that $50 to invest in publicly traded portfolios.

Available via desktop and Apple iOS.

3. Nvstr: up to $1,000

Free stock value: At least $10 and up to $1,000

This trading platform technically rewards you in free money instead of stocks, but you can easily invest your prize. But more on Nvstr before we get to the technicalities.

Nvstr is an online brokerage firm that allows you to build a stock portfolio to fit your needs. Or, if you need some help, you can tap into Nvstr’s machine learning–powered optimization to do it all automatically.

Nvstr does have fees, and they’re a bit higher than other options on this list. You’ll pay a $4.50 commission per trade, though that’s lower than the fees you’ll find at Fidelity, Charles Schwab, E-Trade and TD Ameritrade.

How to claim your free stock: To potentially win up to $1,000 in cash, sign up for an Nvstr account, and you’ll be randomly selected to win $10, $12, $15, $20, $25, $500 or $1,000. The catch: If you win, you can’t withdraw the cash for at least a year, and you must make a trade within that year.

4. Stockpile: $5

Free stock value: $5

Stockpile lets you to buy fractional shares of stock and ETFs. It stands out from the other options on this list because you can also gift stocks to family and friends (the perfect graduation present).

Start with a $5 investment. Once you’re in, there are no monthly fees and no account minimums. However, you’ll be charged 99 cents per trade.

How to claim your free stock: Sign up for a Stockpile account with this referral link, and buy your first stock or e-gift of at least $10 in stock.

Available via desktop, Apple iOS and Google Android.

5. Robinhood: up to $500

Free stock value: $2.50 to $500

If you’re interested in buying and trading stocks, you’ve likely heard of Robinhood; it’s a fan-favorite trading app known for its commission-free trading. Yup — it’s free to buy and trade stocks, options, exchange-traded funds (ETFs) and cryptocurrencies. Plus, there are no account minimums and no maintenance fees.

How to claim your free stock: Sign up using this unique referral link. Once you create your account, Robinhood will give you a free share of stock. The share is chosen randomly (hence why it could be worth anywhere from $2.50 to $500) and can fluctuate with the stock market.

Available via desktop, Apple iOS and Google Android.

6. Acorns: $5

Free stock value: $5

If you’re just entering the world of stock trading, we get it: It can be quite intimidating. Start out slow(er) by investing in ETFs, which are basically fractions of stock.

With the Acorns micro-investing app, for example, you can connect your debit or credit card and choose to round-up your transactions to the nearest dollar. Then, Acorns automatically takes your digital spare change and funnels it into ETFs.

No, you probably won’t get rich investing in ETFs, but it’s a great place to start. Note that Acorns charges a $1 monthly fee for balances under $1 million. However, there are no minimums and no free trades.

How to claim your free stock: When you sign up for Acorns through The Penny Hoarder, you’ll get a $5 bonus. Use that $5 to begin dabbling in ETFs.

Available via Apple iOS and Google Android.

Carson Kohler (carson@thepennyhoarder.com) is a personal finance writer at The Penny Hoarder. She casually dabbles in ETFs.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Is Retirement Flawed?

A few days ago, a reader named Jerry sent me the following quote from the book The 4-Hour Workweek by Tim Ferriss and asked me my thoughts on it:

Retirement as a goal or final redemption is flawed for at least three solid reasons:

1. It is predicated on the assumption that you dislike what you are doing during the most physically capable years of your life. This is a nonstarter — nothing can justify that sacrifice.

2. Most people will never be able to retire and maintain even a hotdogs-for-dinner standard of living. Even one million is chump change in a world where traditional retirement could span 30 years and inflation lowers your purchasing power 2–4% per year. The math doesn’t work. The golden years become lower-middle-class life revisited. That’s a bittersweet ending.

3. If the math does work, it means that you are one ambitious, hardworking machine. If that’s the case, guess what? One week into retirement, you’ll be so […] bored that you’ll want to stick bicycle spokes in your eyes. You’ll probably opt to look for a new job or start another company. Kinda defeats the purpose of waiting, doesn’t it?

This quote is interesting to me for a few reasons.

One, I personally aim to retire shortly after age 50. My hope is to spend my fifties in a state that many would refer to as “retirement” where I’m basically doing things purely because I feel drawn to do them, not out of a financial motive.

Two, I have found significant value in a number of Tim Ferriss’ books and particularly his podcasts. Some of his podcast episodes have sent me down journeys of learning and self-education that have provided a ton of personal value and growth for me.

Three, he makes a pretty persuasive anti-retirement case, at least on the surface, by subtly painting a distorted picture of retirement and then claiming how messed up retirement is.

That being said, I disagree almost entirely with the case that Tim Ferriss made here. Let’s start from the top.

“It is predicated on the assumption that you dislike what you are doing during the most physically capable years of your life.” Wanting to have the financial freedom to be able to disconnect the need to earn an income from the passion for doing work that’s personally meaningful doesn’t mean that you have to hate your current job.

I’ll use myself as an example. I will probably always want to write, simply because it’s something that I enjoy doing. Will I want to write about personal finance and personal improvement for the rest of my life? Probably not, but I haven’t grown tired of it yet. Regardless, I want to have the freedom to choose to write something different if I want to without having to make hard financial choices about my own family’s future.

Retirement doesn’t mean you hate your job. It just means you want the freedom to be able to choose different paths without having to sacrifice the financial security of your life or your loved ones. It means having enough money to walk away and try something else if you want to.

“Most people will never be able to retire and maintain even a hotdogs-for-dinner standard of living.” That’s because they choose not to save for it as a meaningful goal. This does not inherently mean that retirement is bad, it just means that saving for retirement isn’t a goal into which most people choose to invest their money.

It’s like saying “Most people will never be able to achieve the level of fitness needed to climb El Capitan.” That’s true, but it’s because most people are making different choices with how to use their time and energy.

In other words, this statement isn’t an indictment of retirement, but rather an observation about how people choose to spend their money. For example, most people choose to live a paycheck to paycheck lifestyle, and that’s because most people choose other life goals rather than getting their financial life in order. That doesn’t mean that living a life where you don’t live paycheck to paycheck is inherently bad, just like living a life where you’re saving for retirement isn’t inherently bad.

“Even one million is chump change in a world where traditional retirement could span 30 years…” This just tells me that Tim is unfamiliar with the Trinity study.

The Trinity study is an informal name given to a research study done at Trinity University in the 1990s that concluded that a well-invested portfolio should allow a person to withdraw 4% of that balance each year and still have money in the bank after 30 years. If you lower that percentage even a little, to 3.5% or especially 3%, you could effectively withdraw that amount forever, even accounting for inflation.

So, let’s say you had a million dollars in a 401(k) that was appropriately invested (and this isn’t hard to do, but it’s outside the boundaries of what this article is about unless this article approaches the length of a short book). You could withdraw $35,000 per year from that account to live on and adjust it upwards each year to match inflation for the rest of your life. On top of that, you would also have your Social Security income and other benefits such as Medicare. Given that you no longer had work-related expenses like commuting and so on, you’d have a lifestyle roughly equivalent to the average American for the rest of your life. Any more than $1 million cinches you a lifestyle better than the average American for the rest of your life.

Describing one million in your 401(k) as “chump change” indicates either that the lifestyle of the average American is for “chumps” or indicates a really poor understanding of investing.

“…and inflation lowers your purchasing power 2–4% per year.” As I noted above, the Trinity study takes inflation into account. If you have a solid investment portfolio in your 401(k), you can withdraw 3.5% of the balance each year in perpetuity, and it will adjust upward with inflation.

This additional statement mostly makes me believe that Tim Ferriss has never really taken a serious look at lower-risk investment strategies as a backbone for retirement. This is in line with the other content he produces, where his investments seem to mostly center around angel investing for ideas he considers cool and his ongoing income to fund those investments comes from media products like, well, his books and podcasts.

Emotional well-being also rises with log income, but there is no further progress beyond an annual income of ~$75,000.

“The golden years become lower-middle-class life revisited. That’s a bittersweet ending.” The reality is that income above a “lower-middle-class life” – around, say, $75,000 a year or so – doesn’t actually do anything to improve one’s emotional well being. Take a look at the work of the highly respected psychologist Daniel Kahneman, who has spent much of his career studying this issue. In a well-regarded paper by him and Angus Keaton in 2010 entitled High income improves evaluation of life but not emotional well-being, the authors conclude that “[e]motional well-being also rises with log income, but there is no further progress beyond an annual income of ~$75,000.”

$75,000 isn’t very far off the average annual household income of the average American, by the way, which was a subject we talked about earlier.

The point is that more money beyond the “lower-middle-class” life that Ferriss derides here doesn’t actually bring additional happiness or fulfillment. Money simply doesn’t buy happiness.

“If the math does work, it means that you are one ambitious, hardworking machine. If that’s the case, guess what? One week into retirement, you’ll be so […] bored that you’ll want to stick bicycle spokes in your eyes.” As I sit right now, I have a list of projects that I want to work on that will take me longer than my natural life to complete. There are just tons and tons and tons of things that I want to do before my time on this earth expires.

The idea that having enough money in the bank to simply walk away from whatever employment or entrepreneurial opportunities I don’t want to do would somehow equal with being “so bored that [I will] want to stick bicycle spokes in [my] eyes” is just utterly bizarre to me.

Boredom when you retire means that there’s literally nothing else on earth that you’re interested in and passionate about doing other than your current career, and if that’s the case, then by all means you should stay in your current career until they literally shove you out the door with a gold watch in your hand.

I’m not wired like that, though. I don’t think Tim is wired like that. I don’t think most of my readers are wired like that.

I know that there are some people who feel purposeless once they retire, and I think if you’re feeling that way after retirement, you need to do everything you can to find purpose and not just idle away your days.

“You’ll probably opt to look for a new job or start another company. Kinda defeats the purpose of waiting, doesn’t it?” Why, exactly, does the freedom of retirement for an ambitious person have to go directly back to working for an organization or starting a business? To narrow one’s options to just those two things is an extreme narrowing of the possibilities that financial freedom gives to you.

Just a week ago, I was with my family camping in Mesa Verde, without electricity or internet access. A park volunteer stopped by our campsite to greet us and I found myself chatting with him a bit. He was in his late fifties and had always dreamed of being a park ranger, a dream I had when I was in high school. His life took him in a different direction, but he was able to basically retire at age 55 and took on a volunteer job at Mesa Verde, visiting campsites and telling people about the bear-related regulations of the park. That’s what he does about eight months out of the year – he walks through Mesa Verde, going to campsites and talking to campers. The other four months, he loads up his van and travels around the country, visiting his kids and seeing various things, including other national parks.

That’s not a new job. That’s not starting another company. That’s a much different dream.

My dream? I want to spend the late fall, winter, and early spring working as a volunteer in our area and writing novels and/or other books. In May or so, Sarah and I will load up our vehicle and hit the road for three or four months, visiting family and friends and just migrating across America, stopping at places for a few days or a week then moving on to somewhere new.

I don’t hate what I’m doing now; I quite enjoy it, in fact. However, having the freedom to have complete self-control over what I write about and my writing schedule would be pretty nice, as would the ability to just spend the summer migrating from place to place like that, something that’s at least somewhat difficult to do right now due to non-professional concerns.

The big issue in all of this, in my opinion, is the word “retirement.” For some, including Tim Ferriss, the word seems too imply a very specific vision of retirement, where someone just suddenly stops working at a particular age (65?) and just goes home and doesn’t do anything any more, living on just a Social Security check and living a very threadbare existence that’s probably also really boring.

That specific vision requires a number of elements that I strongly reject.

First of all, it seems to assume that a retiree has no other interests or goals aside from their career path that they just walked away from. As I noted earlier, if you’ve just walked away from and walled yourself off from your only real interest and have no capacity for developing new interests and new ways to fill your time, then, yes, you’re going to have a pretty dull life. However, as I also said earlier, I don’t think that this is true for a lot of people.

Second, it assumes that a person has basically no retirement savings other than Social Security. For many people, that’s true, but it’s not an indictment of retirement itself, but an indictment of how people don’t prepare for their own future and overvalue their present life.

The negativity toward this assumption is alluded to when Tim writes about his disdain for “lower middle class” life, but as I pointed out earlier, once you get to roughly the average American income, your happiness level doesn’t really increase. Once you have a roof over your head and food on your plate and clothes on your back and a few friends and enough financial freedom for just a bit of serendipity, more money does not add more happiness to your life. You just raise your expenses a little more and then it all becomes ordinary.

Sarah and I earn a little more than the average American household income, but we save so much that our spending is below that level, and there are a number of things we could easily cut out that wouldn’t really affect our happiness in life. I could easily be less of a hobby dilettante, for example, and cut down on my hobby spending, which is easily my least vital area of spending.

Third, it seems to assume that a person is wasting their time saving and investing for the future because they can’t even “beat” inflation. It is absolutely ludicrous to buy into the idea that a person can’t invest well enough to beat inflation. It’s easy – just put your money into a 401(k) or Roth IRA and put your money into an total stock market index fund or a target retirement fund. Boom. Done. You’re beating inflation with your money. When you decide to stop investing and start withdrawing, calculate 3% of the balance at that point and you can safely withdraw that amount each year, increasing that amount with inflation, and it should last basically forever. In fact, it will likely continue to grow, albeit at a slow rate. Boom. Done. You’re matching inflation on withdrawal.

The real issue isn’t that saving for retirement is a waste of money, but that people frequently choose to not do it in order to raise their current standard of living, not realizing that raising their current standard of living does not add to their happiness with their lives.

Here’s my alternative plan.

Aim to separate your living expenses from your work. Do that by saving for “retirement” using the usual retirement tools – a 401(k), a Roth IRA, and so forth. Along the way, consider how you’re spending money and whether or not those things you spend money on really bring you lasting happiness. (I personally think this is the big difference maker – people rarely consider whether the things they spend money on bring them lasting happiness.) If they don’t, cut those expenses out of your life or at least minimize them, and be particularly careful about any big expenses. When in doubt, wait to buy it and see if you care in a month. Along the way, put as much as you can into an emergency fund, then into getting rid of your debts, then into those “retirement” tools, aiming for a point where you can live your current life off of 3% of the balance of your savings. Treat Social Security as gravy on top.

Eventually, you reach a point where you can do whatever you want without having to worry about living expenses. Ideally, you can do this well before traditional retirement age. Don’t like your job? Quit and do something else. Want to spend a year volunteering in a national park? Go for it. Want to spend two years trying to write a great novel that might turn out to be trash? Go for it. Want to start some goofy business idea? Go for it.

Retirement isn’t flawed, but a really narrow definition of retirement is. If you decide to cut off some of the possibilities, you can certainly create a flawed result. Don’t fall into that trap.

Good luck.

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