Recent Content
I’ve had a few clients reach out to me over the past couple weeks (the last week of December 2024 & first week of 2025) with similar concerns:“How and why did my account go down at the end o…
I’ve had a few cli…
I’ve had a few clients reach out to me over the past couple weeks (the last week of December 2024 & first week of 2025) with similar concerns:“How and why did my account go down at the end of 2024?!”The short answer: accounts are down because the market is down, and the market is down due to inflation and interest rate fears that were stoked by the December 17/18th Federal Reserve meeting.But that’s not what I want to focus on today.Instead, I want to focus on the true genesis of the question: these clients noticed a 1% to 2% drop in December, and that was cause fo…
Jesse Cramer
January 8, 2025 
Have you heard this year’s version of Wall Street’s favorite joke?“We’re going to predict how the stock market does this year!“Woof. Yikes. Why?!1-year stock predictions are…
Have you heard this …
Have you heard this year’s version of Wall Street’s favorite joke?“We’re going to predict how the stock market does this year!“Woof. Yikes. Why?!1-year stock predictions are pointless. We’d all be better off accepting that fact.Risk, Reward, Timelines, and MoreTime and again, I want to ensure every long-term investor understands the relationship between risk and reward.A guarantee – a.k.a. zero risk – comes with the least reward. That “zero risk asset” is a short-duration US treasury note or a high-yield bank account.As we seek out more re…
Jesse Cramer
January 3, 2025 
Most personal Finance experts would tell you that cars are a terrible investment. Cars are a “necessary evil,” a steep price to get from Point A to Point B. You’re leaking Money on a depreciatin…
Most personal financ…
Most personal finance experts would tell you that cars are a terrible investment. Cars are a “necessary evil,” a steep price to get from Point A to Point B. You’re leaking money on a depreciating asset.They’d tell you to avoid debt a car as best you can. Owning a depreciating asset is one thing, but it’s far worse to borrow money against that asset.And they’d tell you that leasing a car might be even worse because you won’t even own it at the end of the day! You’ve got all the negatives of purchasing or borrowing, but without the benefit of, you know, owning the car. …
Jesse Cramer
December 31, 2024 
Friend-of-the-blog Christian has done something remarkable. He’s lost ~85 pounds over the past 7 months, dropping from ~280 pounds to ~195. Kudos, Christian!Inspired by Christian’s success, my…
Friend-of-the-blog C…
Friend-of-the-blog Christian has done something remarkable. He’s lost ~85 pounds over the past 7 months, dropping from ~280 pounds to ~195. Kudos, Christian!Inspired by Christian’s success, my own health has sharpened into focus. I have the data to support this – I’ve gained 8 pounds over that same period that Christian’s lost 85. I’ve gone from “slightly overweight” to “assuredly overweight.”I’m heavier than I’d like. Slowly but surely, I’ve been moving in the wrong direction. I used to be in much better shape, and Christian asked me at the gym this morning, …
Jesse Cramer
December 18, 2024 
I met with a family a few weeks ago for an introductory conversation. I’m always interested to learn about people’s history with money. It’s an open-ended question that allows for a multitude of…
I met with a family …
I met with a family a few weeks ago for an introductory conversation. I’m always interested to learn about people’s history with money. It’s an open-ended question that allows for a multitude of interesting answers.This family explained that ~20 years ago, they received a significant lump sum payment. They reached out to a financial professional (a stock broker, e.g. Merrill Lynch or Morgan Stanley) in their town and entrusted him with their new-found money.That advisor recommended a single “hot stock.” You probably know where this is going.Within a couple months of…
Jesse Cramer
December 12, 2024 
Here’s a fun question from friend-of-the-blog CJ:“I was hanging out with family and friends around Thanksgiving, and I wanted to gauge their opinion on something interesting:Who is more f…
Here’s a fun quest…
Here’s a fun question from friend-of-the-blog CJ:“I was hanging out with family and friends around Thanksgiving, and I wanted to gauge their opinion on something interesting:Who is more famous globally: Taylor Swift or Cristiano Ronaldo?Almost everyone I asked [for reference, readers: CJ is about 30-years old and lives near me in Western NY] quickly said, “Taylor Swift.”…but I’m not so sure. Because when I pressed them Why?, the answer usually came down to, “Because she’s more famous to me.”Hmmm. Very interesting!What do you think, reader? Who is m…
Jesse Cramer
November 29, 2024 
The end of the year flies by. One day, you’re eating turkey and pecan pie and taking a well-deserved nap. Next thing you know (or so it seems), you’re counting down the New Year’s clock to welco…
The end of the year …
The end of the year flies by. One day, you’re eating turkey and pecan pie and taking a well-deserved nap. Next thing you know (or so it seems), you’re counting down the New Year’s clock to welcome 2025.If you’re not careful, the holiday season will fly by (in a sleigh?) before you can do these 5 intelligent things in your financial plan.Conduct a Year-End Financial ReviewEvery year, I run a year-end financial review. A year-end financial review looks back and summarizes seven important areas:Spending (including Unexpected Expenses)IncomeSavingNet Wort…
Jesse Cramer
November 21, 2024 
“If all you have is a hammer, everything looks like a nail.”We’ve all heard that phrase, alongside the concept of having “the right tool for the job.”I submit that many people in the…
“If all you have i…
“If all you have is a hammer, everything looks like a nail.”We’ve all heard that phrase, alongside the concept of having “the right tool for the job.”I submit that many people in the Retirement Planning community (especially online in DIYer circles) do not have the right tools or mental models for including long-term stock market returns in their financial plans.Example 1:I saw this question on Reddit this week:Howdy! Currently 26, I can FIRE at 45 if I get 8% returns. What percent returns for the stock market do you guys use planning for 20+ years out? The …
Jesse Cramer
November 9, 2024 
There are a few broad categories that trigger people to reach out to me.Retirement planning is biggest. Major life changes (marriage, divorce, having kids) is a common reason, too.Another one…
There are a few broa…
There are a few broad categories that trigger people to reach out to me.Retirement planning is biggest. Major life changes (marriage, divorce, having kids) is a common reason, too.Another one, albeit slightly more unique: “I have a good handle on our finances, but I want to get you involved because my spouse needs someone trustworthy. If I get hit by a bus, I want you already involved to fully take the reins.”But somewhere in the Top 5 most common reasons is the rationale for today’s article:“I received a BIG sum of money…and I have no idea what to do next!”…
Jesse Cramer
October 30, 2024 Much ink has been spilled on the 4% rule, including here on The Best Interest.The short and sweet definition? The 4% rule is a retirement strategy that suggests withdrawing 4% of your portfolio…
Much ink has been sp…
Much ink has been spilled on the 4% rule, including here on The Best Interest.The short and sweet definition? The 4% rule is a retirement strategy that suggests withdrawing 4% of your portfolio’s value annually, adjusted for inflation, to ensure your savings last for a 30-year retirement.If you’d like to dive deeper on some nuance of the rule, read this: Updated Trinity Study and the 4% Rule.And if you’d like to avoid the common mistakes of using the 4% rule, read this: You’re Probably Using the 4% Rule All WrongToday, though, I want to show you some compelling data…
Jesse Cramer
October 24, 2024 
‘Twas the night before Christmas, etc. etc., and you’re jazzed. Christmas is great! Morning comes, you let the dog out to pee and fix yourself some coffee. Fresh cinnamon buns! Soon it’ll be tim…
‘Twas the night be…
‘Twas the night before Christmas, etc. etc., and you’re jazzed. Christmas is great! Morning comes, you let the dog out to pee and fix yourself some coffee. Fresh cinnamon buns! Soon it’ll be time to open presents.You bend down low by the Christmas tree, and there, behind the nicely wrapped boxes and doo-dads, you see…a plain bag full of puzzle pieces? …With YOUR name on it?!I think you’d immediately face three burning questions: The first and most obvious: What the hell?! Whose sick idea is this?Second, once you’ve accepted this strange reality: Are you s…
Jesse Cramer
October 15, 2024 
I started a great dialogue with “Carl” in August and immediately felt a kindred Lifestyle connection. Carl and his wife, “Colleen,” are about my age, with young children, and they earn a healt…
I started a great di…
I started a great dialogue with “Carl” in August and immediately felt a kindred lifestyle connection. Carl and his wife, “Colleen,” are about my age, with young children, and they earn a healthy-but-not-astronomical income ($160,000 pre-tax, which puts their family in the ~75th percentile). Carl reached out to share some exciting news: Their family surpassed $1M in net worth at age 35. They are millionaires. I prodded Carl and Colleen for the tips, tricks, hacks, and pitfalls on his path to millionaire status. Yes, he’s been reading and listening to The Best Interest for a …
Jesse Cramer
October 9, 2024 
Whether you’re a dedicated DIYer or prefer to lean on professional guidance, the truth is clear: smart financial planning can save you a lot of money over time.Below, I’ll share some recent e…
Whether you’re a d…
Whether you’re a dedicated DIYer or prefer to lean on professional guidance, the truth is clear: smart financial planning can save you a lot of money over time.Below, I’ll share some recent examples of tactical planning moves I participated in, including how much money was saved.COVID PanicIn March 2020, you could be forgiven for thinking: “the world is ending, and I want to sell everything.”But with proper perspective and an investment policy statement – both hallmarks of sound financial planning – many investors stayed the course.They rode the stock mark…
Jesse Cramer
September 22, 2024 
After a recent podcast episode, a listener asked me to expound on debt’s “silent assassination technique.” Debt is not a cobra that unexpectedly strikes from the undergrowth. It’s a python you…
After a recent podca…
After a recent podcast episode, a listener asked me to expound on debt’s “silent assassination technique.” Debt is not a cobra that unexpectedly strikes from the undergrowth. It’s a python you stupidly take out of the cage and allow to slither around your torso until you suddenly realize it’s squeezing harder than you can handle.In this post, you’ll find some simple math to show you how stifling debt interest can be.Of course, we need a disclaimer. Not all loans are the same. Some loans are perfectly acceptable to hold on your balance sheet. Namely, loans with low intere…
Jesse Cramer
September 16, 2024 
It can be fun to ponder the details of your specific portfolio allocation. Should it be 70% stocks? 75%? Maybe even 80%?! We had a terrific question from reader “Vince” about just this idea:…
It can be fun to pon…
It can be fun to ponder the details of your specific portfolio allocation. Should it be 70% stocks? 75%? Maybe even 80%?! We had a terrific question from reader “Vince” about just this idea:Winning the Game: Retiring at 57 with $4.2MThose conversations move the needle and are essential to an overall financial plan.But there are far more critical portfolio questions to ask yourself. FAR more important. Namely questions like…How would you have acted on September 12, 2001?How about during March and April of 2020?What about during the depths of 2007 & 2008?…
Jesse Cramer
September 13, 2024 
The bachelor party decided to go to the casino. I happily went along for the ride. The behavioral finance nerd in me was ready to witness fascinating behavior. Gambling can certainly be entertaining, …
The bachelor party d…
The bachelor party decided to go to the casino. I happily went along for the ride. The behavioral finance nerd in me was ready to witness fascinating behavior. Gambling can certainly be entertaining, but it’s not financially savvy. As long as you know that, you’ll be ok – albeit a little lighter in the wallet.This particular casino had an engaging “loss leader.”* They offered $15 in free casino credit to new gamblers. The scheme, of course, is cynical. They hope those free bets hook you, knowing that a regular gambler will surely lose back more than the free $15 over a long peri…
Jesse Cramer
September 4, 2024 
In August 1979, Warren Buffett wrote an article for Forbes attacking the herd instinct of investors. The late 1970s were tough for the American Economy, and the stock market reacted harshly.B…
In August 1979, Warr…
In August 1979, Warren Buffett wrote an article for Forbes attacking the herd instinct of investors. The late 1970s were tough for the American economy, and the stock market reacted harshly.Buffett wrote,“…the future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty actually, is the friend of the buyer of long-term values.” Warren BuffettThe future is never clear. Let Buffett’s Wisdom sink in. Uncertainty surrounds us, like fog on the highway. Risk is omnipresent. Say it with me: risk is omnipresent. Only our perce…
Jesse Cramer
August 28, 2024 
Friend-of-the-blog Anthony is a personal friend who read my very first articles when I shared them on Facebook. He’s seen The Best Interest grow over time. A couple of years ago, I told him tha…
Friend-of-the-blog A…
Friend-of-the-blog Anthony is a personal friend who read my very first articles when I shared them on Facebook. He’s seen The Best Interest grow over time. A couple of years ago, I told him that The Best Interest wasn’t what I wanted it to be. I felt directionless at the time, and was considering hanging up my writing gloves for good. And, in fact, I did hang up my podcasting microphone for a couple years.He responded, “You know Jess…you can’t see the picture if you’re standing inside the frame. I’m outside the frame. So trust me when I say: You’ve got something sp…
Jesse Cramer
August 22, 2024 
