This is reasonablewillthrill81 wrote: ↑Wed Oct 16, 2019 12:16 pm An HSA is probably the single best tax-advantaged account out there due to its triple-tax advantage (i.e. no federal income taxes ever when used to pay for qualified medical expenses). As such, I would suggest that if you absolutely have to reduce your total contributions to tax-advantaged accounts, reduce your 401k contributions, but not to the point that you lose any employer matched contributions.
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- Wed Oct 16, 2019 12:22 pm
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
Re: HSA and/or 401K
- Wed Oct 16, 2019 12:21 pm
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
Re: HSA and/or 401K
Don't forget these are likely to increase as well with a new/larger house. 1) Property Taxes 2) Insurance 3) Utilities 4) Furnishings 5) Upkeep you have already indicated that commuting will triple, so those costs and time considerations will also increase. I have considered these. If you truly must move then consider a smaller house than the one you have your eyes on currently, maybe something a little larger than your current house. Not wanting a larger house, just a better location. Don't be house poor either. No interest in McMansions. You are 54 and have indicated you want to work until 67. That is not guaranteed, especially in the corporate mid-management. I am keenly aware of this. Can you increase your household income ? My wife's ...
- Wed Oct 16, 2019 12:13 pm
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
Re: HSA and/or 401K
The plan is to put enough down on the new mortgage to have the same monthly payment that I currently have.
BTW: not a bigger house, just a more desirable location. Bigger mortgage though, but with better long term prospects.
- Wed Oct 16, 2019 12:03 pm
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
Re: HSA and/or 401K
If I continue to stay where I am, my house will continue to decline in value (it took me almost ten years to get above water from the mortgage crisis. I don't want to experience that again). That will not be financially secure at all. Then I will have to sell my house at a real loss.
Would it be better to use money from my Roth for part of the down payment?
Would it be better to use money from my Roth for part of the down payment?
- Wed Oct 16, 2019 11:50 am
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
Re: HSA and/or 401K
I am aware of that, but the financial situation is not the only consideration in a relationship. Neither of us are big spenders and we are not looking for anything more than a basic house. It is more about location. My current location is in an older neighborhood that is changing over and declining. But it is a ten-minute commute. The new area we are looking at has a 30 minute commute but the houses are about twice the price.KlangFool wrote: ↑Wed Oct 16, 2019 11:41 am
If you have to pay a 50% downpayment in order to afford the mortgage, you cannot afford the house.
<<I have never been as financially secure, considering my emergency fund and savings accounts.>>
How does buying an expensive house improves your financial security? It does not.
KlangFool
- Wed Oct 16, 2019 11:20 am
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
Re: HSA and/or 401K
Let me provide some more information that may change your responses.
I just turned 54. I will probably retire at 67. I have never been as financially secure, considering my emergency fund and savings accounts. We currently live in my house which is too small for our needs. I would like to maintain the same house payment because I do not have 30 years to pay off a mortgage. I would be stretching it if I had to double my mortgage payments.
I just turned 54. I will probably retire at 67. I have never been as financially secure, considering my emergency fund and savings accounts. We currently live in my house which is too small for our needs. I would like to maintain the same house payment because I do not have 30 years to pay off a mortgage. I would be stretching it if I had to double my mortgage payments.
- Wed Oct 16, 2019 9:57 am
- Forum: Personal Investments
- Topic: HSA and/or 401K
- Replies: 19
- Views: 1103
HSA and/or 401K
I have had an HSA at work only for the last two years. I have fully contributed to my 401k this year. I also just got married last year. My wife and I are saving to put down at least 50% on our next house, which we would like to buy in the next year or two. I was thinking of reducing my HSA contribution and putting it toward the down payment.
I have read that an HSA is better than a 401k as a savings plan. Should I reduce my 401k contribution by the same amount instead of the HSA contribution?
I have read that an HSA is better than a 401k as a savings plan. Should I reduce my 401k contribution by the same amount instead of the HSA contribution?
- Fri Mar 08, 2019 8:15 am
- Forum: Personal Investments
- Topic: Oppenheimer???? Stay out of this or help???
- Replies: 29
- Views: 3253
Re: Oppenheimer???? Stay out of this or help???
With $2 million, why don't you just tell her to get a bunch of laddered CDs?
She has won the game; security is everything. No fees to worry about.
I agree with the previous post about showing the fees to her.
She has won the game; security is everything. No fees to worry about.
I agree with the previous post about showing the fees to her.
- Thu Mar 07, 2019 8:46 am
- Forum: Personal Investments
- Topic: Max 401k and Roth IRA Amounts
- Replies: 4
- Views: 531
Re: Max 401k and Roth IRA Amounts
Thanks everyone!
- Thu Mar 07, 2019 8:24 am
- Forum: Personal Investments
- Topic: Max 401k and Roth IRA Amounts
- Replies: 4
- Views: 531
Max 401k and Roth IRA Amounts
If I contribute the maximum to my 401k, can I also contribute the maximum to my Roth IRA? In both cases I am qualified for the catch-up contributions.
Another way of asking is if there is a total amount that I can contribute without occurring some kind of penalty.
I plan on paying the full Roth IRA amount for 2018 soon; I don't want any trouble.
Another way of asking is if there is a total amount that I can contribute without occurring some kind of penalty.
I plan on paying the full Roth IRA amount for 2018 soon; I don't want any trouble.
- Mon Apr 03, 2017 4:00 pm
- Forum: Personal Investments
- Topic: Is this the time to invest?
- Replies: 6
- Views: 1335
Re: Is this the time to invest?
Do whatever lets you sleep at night. It is your money.
- Tue Mar 21, 2017 8:17 am
- Forum: Personal Investments
- Topic: Retirement Plans in a New Small Business
- Replies: 6
- Views: 1018
Re: Retirement Plans in a New Small Business
Thank you for the replies.
I do not intend to have employees. But you never know; unexpected growth may require them.
So, the employer portion of a solo 401k seems like the best option? Allowing me to save up to 20% of my total income between the two jobs?
I do not intend to have employees. But you never know; unexpected growth may require them.
So, the employer portion of a solo 401k seems like the best option? Allowing me to save up to 20% of my total income between the two jobs?
- Mon Mar 20, 2017 11:13 am
- Forum: Personal Investments
- Topic: Retirement Plans in a New Small Business
- Replies: 6
- Views: 1018
Retirement Plans in a New Small Business
I am in the beginning stages of starting a new small start up business. I anticipate it will be a part-time job for the first few years at least.
Is there a way to shelter any income from this business? I am vaguely familiar that small businesses can have versions of the IRA or other plans.
Can I shelter money in addition to my regular contributions to my 401K and Roth IRA?
Is there a way to shelter any income from this business? I am vaguely familiar that small businesses can have versions of the IRA or other plans.
Can I shelter money in addition to my regular contributions to my 401K and Roth IRA?
- Fri Mar 17, 2017 12:53 pm
- Forum: Personal Investments
- Topic: Keeping money liquid or investing?
- Replies: 20
- Views: 3314
Re: Keeping money liquid or investing?
I was hoping to catch someone who is an expert at making money grow with lower risk and preserving capital. You need to be really cautious here. You may be thinking that you can invest without the risk of losing your principle. If the stock market takes a tumble then your investments WILL go down, and may take years to recover. Are you okay with that risk? BTW: Index funds go down when the market goes down; they are not "safer". Your first order of business is to have six to twelve months of all your expenses in a nice secure place like a credit union. This is your emergency fund. Never touch it unless you have a real emergency. You cannot then save enough money and earn enough returns to overcome that 5.5 percent drag. Pay off t...
- Wed Mar 15, 2017 3:34 pm
- Forum: Personal Investments
- Topic: "Don't time the market" vs. "Buy low, sell high"
- Replies: 69
- Views: 8786
- Thu Feb 23, 2017 8:07 am
- Forum: Personal Investments
- Topic: How is my Boglehead Progress going??
- Replies: 6
- Views: 1439
Re: How is my Boglehead Progress going??
It looks like you are doing well.
Skipping international bonds will make life easier when you rebalance: http://www.etf.com/sections/features/22 ... =1&start=2
Skipping international bonds will make life easier when you rebalance: http://www.etf.com/sections/features/22 ... =1&start=2
- Thu Feb 23, 2017 8:00 am
- Forum: Personal Investments
- Topic: S&P at 22 times multiple
- Replies: 40
- Views: 6288
Re: S&P at 22 times multiple
I was about to write a whole litany of obvious predictions but that would just be snarky.
Yes, the S&P is higher but so what? If your asset allocation is out of balance then rebalance. If you are feeling uncomfortable about losing too much in a downturn then your asset allocation is wrong for you. You should change it to something more conservative and then stick with it.
Remember, when it goes down you get to buy shares cheaper. Dollar cost average your purchases and avoid the emotion.
Don't try to time the market; all the evidence is against you: viewtopic.php?f=10&t=79324
Yes, the S&P is higher but so what? If your asset allocation is out of balance then rebalance. If you are feeling uncomfortable about losing too much in a downturn then your asset allocation is wrong for you. You should change it to something more conservative and then stick with it.
Remember, when it goes down you get to buy shares cheaper. Dollar cost average your purchases and avoid the emotion.
Don't try to time the market; all the evidence is against you: viewtopic.php?f=10&t=79324
- Wed Feb 22, 2017 1:02 pm
- Forum: Personal Investments
- Topic: Switching from target retirement
- Replies: 10
- Views: 1211
Re: Switching from target retirement
You will be so bored with investing that you will spend time responding to questions on forums.
That is a good thing.
That is a good thing.
- Wed Feb 22, 2017 1:00 pm
- Forum: Personal Investments
- Topic: investing
- Replies: 2
- Views: 345
Re: investing
If you compare the Going Fishing Portfolio to a Three Fund Portfolio you will find that the TFP covers the same sectors with fewer funds.
Go with a TFP or even one of the target date funds. Simplicity is better; avoid unnecessary complexity.
Go with a TFP or even one of the target date funds. Simplicity is better; avoid unnecessary complexity.
- Wed Feb 22, 2017 9:59 am
- Forum: Personal Investments
- Topic: Help with choosing funds
- Replies: 11
- Views: 1443
Re: Help with choosing funds
You will be moving the money laterally. When there is a dip your old fund will go down to. Move it and do not worry.Dman2525 wrote:Would this be a bad time to switch my entire 401k to theae funds with the prices being so high? Is it smarter to wait for low share prices when the market drops?
Also, If you want to mimic the total stock market with what you have you can follow one of the formulas found here: https://www.bogleheads.org/wiki/Approxi ... ock_market
- Wed Feb 22, 2017 9:53 am
- Forum: Personal Investments
- Topic: Switching from target retirement
- Replies: 10
- Views: 1211
- Tue Feb 21, 2017 4:24 pm
- Forum: Personal Investments
- Topic: Bond allocation
- Replies: 3
- Views: 699
Re: Bond allocation
Post some details of the fund. It sounds like a Stable Value Fund.
- Fri Feb 17, 2017 3:48 pm
- Forum: Personal Investments
- Topic: Two Comma Club
- Replies: 200
- Views: 48000
Re: Two Comma Club
Personally, I am working on my second million. The first one was way too hard!
- Wed Feb 15, 2017 8:25 am
- Forum: Personal Investments
- Topic: Can I unify all my investment accounts in one?
- Replies: 39
- Views: 3568
Re: Can I unify all my investment accounts in one?
Many people here buy individual stocks but the general rule of thumb is to limit them to no more than 5% of your total portfolio.lext wrote:And excuse me if I sound clueless, but is buying individual stocks frowned upon here? Is this forum for funds only? I like index funds alright, and I do have those in my accounts. But I see nothing wrong with buying the right basket of stocks too.
- Wed Feb 15, 2017 8:19 am
- Forum: Personal Investments
- Topic: How to simplify an existing portfolio?
- Replies: 22
- Views: 2559
Re: How to simplify an existing portfolio?
This could be simpler by eliminating international bonds: http://www.etf.com/sections/features/22 ... =1&start=2
- Tue Feb 14, 2017 2:24 pm
- Forum: Personal Investments
- Topic: Closed my Roth IRA due to political uncertainty - mistake???
- Replies: 102
- Views: 9956
- Wed Feb 01, 2017 8:46 am
- Forum: Personal Investments
- Topic: Untangling from Edward Jones
- Replies: 38
- Views: 6889
Re: Untangling from Edward Jones
Have you decided how you are going to invest the money once your transfers are complete? I would get all of your money away from EJ and into Vanguard. Don't agonize over the fees. Just pay them and consider that they were the cost of tuition for learning about financial matters. Keeping your money at EJ will cost you more in the long run and add lots of complexity. You can invest in just one fund at Vanguard, choose one of the target date retirement funds. It really can be that easy. It is cheaper and way simpler than your old mess of funds. The target date funds follow a lazy portfolio theory. If you want to see how Vanguard will manage your money you can see how they do it by reading here on something pretty similar. https://www.boglehead...
- Mon Jan 30, 2017 7:23 am
- Forum: Personal Investments
- Topic: Untangling from Edward Jones
- Replies: 38
- Views: 6889
Re: Untangling from Edward Jones
retiredjg wrote:In the meantime, if your EJ rep has authorization to buy and sell without your approval, put a stop to that.
Do this first before you move anything.
- Fri Jan 27, 2017 11:43 am
- Forum: Personal Investments
- Topic: Universal Life
- Replies: 16
- Views: 4116
Re: Universal Life
Cash it in and donate the money.
- Tue Jan 17, 2017 10:33 am
- Forum: Personal Investments
- Topic: My co-worker boasting about his investments. What do you think about his selections?
- Replies: 57
- Views: 7163
Re: My co-worker boasting about his investments. What do you think about his selections?
Send this to your co-worker:
viewtopic.php?f=10&t=79324
This too:
https://www.dropbox.com/s/vt9xqyjws0ank ... a.JPG?dl=0
At a recent Christmas party, someone I just met mentioned that he had just retired and was spending his time managing his investments. He was bragging about his recent gains. I asked him to tell me about his losses. To his credit he quickly admitted to having those too.
viewtopic.php?f=10&t=79324
This too:
https://www.dropbox.com/s/vt9xqyjws0ank ... a.JPG?dl=0
At a recent Christmas party, someone I just met mentioned that he had just retired and was spending his time managing his investments. He was bragging about his recent gains. I asked him to tell me about his losses. To his credit he quickly admitted to having those too.
- Mon Jan 09, 2017 3:52 pm
- Forum: Personal Investments
- Topic: Rebalance into cash
- Replies: 44
- Views: 4725
Re: Rebalance into cash
Spend some time reading this:
viewtopic.php?f=10&t=79324
Be honest with yourself: you are not that smart. Wouldn't it be better to stop looking at your balances and just make your monthly contributions? Do this and over time you will be ahead of most investors. Invest monthly whether the market is up or down. Ignore the noise.
viewtopic.php?f=10&t=79324
Be honest with yourself: you are not that smart. Wouldn't it be better to stop looking at your balances and just make your monthly contributions? Do this and over time you will be ahead of most investors. Invest monthly whether the market is up or down. Ignore the noise.
- Thu Jan 05, 2017 4:25 pm
- Forum: Personal Investments
- Topic: Pros and cons of having a 3 fund portfolio at Schwab and another at Vanguard?
- Replies: 26
- Views: 4434
- Wed Dec 21, 2016 2:48 pm
- Forum: Personal Investments
- Topic: Help with 3-fund portfolio. Asset allocation and fund choices
- Replies: 2
- Views: 878
Re: Help with 3-fund portfolio. Asset allocation and fund choices
What other funds are available in your old 401k? You need to move all of that money to a lower cost fund, preferably a 500 index fund.
Consider all of your money as one pile and then use the funds you have avalable in the most efficient manner. Here are some guidelines:
https://www.bogleheads.org/wiki/Asset_a ... e_accounts
Consider all of your money as one pile and then use the funds you have avalable in the most efficient manner. Here are some guidelines:
https://www.bogleheads.org/wiki/Asset_a ... e_accounts
- Tue Dec 13, 2016 7:38 am
- Forum: Personal Investments
- Topic: Investing Novice
- Replies: 4
- Views: 628
Re: Investing Novice
More reading:
viewtopic.php?f=1&t=6211
viewtopic.php?f=1&t=6212
A good starting place:
viewtopic.php?f=10&t=88005
viewtopic.php?f=1&t=6211
viewtopic.php?f=1&t=6212
A good starting place:
viewtopic.php?f=10&t=88005
- Tue Nov 29, 2016 2:53 pm
- Forum: Personal Investments
- Topic: New To Bogleheads. Considering Roth IRA re-arrangement
- Replies: 7
- Views: 916
- Wed Nov 16, 2016 9:02 am
- Forum: Personal Investments
- Topic: facebook
- Replies: 45
- Views: 9420
- Mon Nov 07, 2016 7:18 am
- Forum: Personal Investments
- Topic: Just getting started - Requesting guidance
- Replies: 11
- Views: 1388
Re: Just getting started - Requesting guidance
I agree with this advice. Keep it simple.retiredjg wrote:For now, I'd suggest just using a Target fund that contains everything rather than worrying about all those funds.
- Fri Oct 14, 2016 8:19 am
- Forum: Personal Investments
- Topic: Safety in gold ?
- Replies: 37
- Views: 4600
Re: Safety in gold ?
+10 on this advice. Keep his money in an FDIC insured bank (or the equivalent for a credit union). If he has more than $250,000 in the bank, tell him to move the excess to another bank because that is the limit of insurance per institution.Valuethinker wrote: His best bet is bank CDs, within the FDIC limits per individual per institution.
With the FDIC behind it, essentially he cannot lose money.
If he complains about low interest rates than explain to him that he has to take more risk to get a (possibly) better return. Which I am sure he does not really want to do.
- Fri Oct 07, 2016 2:58 pm
- Forum: Personal Investments
- Topic: Is it a good time to buy Total Bond Index (SCHZ) ?
- Replies: 18
- Views: 2882
Re: Is it a good time to buy Total Bond Index (SCHZ) ?
Bonds are for security, not growth. Yes it is a good time to buy because that is what your asset allocation says to do.
- Thu Sep 15, 2016 8:23 am
- Forum: Personal Investments
- Topic: New to this...do you have multiple index funds in a Roth IRA?
- Replies: 12
- Views: 2004
Re: New to this...do you have multiple index funds in a Roth IRA?
This is a pretty common situation that many encounter. These will help to get the general idea:
https://www.bogleheads.org/wiki/Asset_a ... e_accounts
https://www.bogleheads.org/wiki/Approxi ... ock_market
https://www.bogleheads.org/wiki/Asset_a ... e_accounts
https://www.bogleheads.org/wiki/Approxi ... ock_market
- Tue Sep 13, 2016 1:35 pm
- Forum: Personal Investments
- Topic: Is A Two-Fund Portfolio All You Really Need?
- Replies: 44
- Views: 11864
Re: Is A Two-Fund Portfolio All You Really Need?
Just be sure your Target Date funds are low cost. Some unscrupulous providers have them in 401Ks with significantly higher expense ratios than Vanguard would provide outside of a 401K.
- Fri Sep 09, 2016 3:24 pm
- Forum: Personal Finance (Not Investing)
- Topic: Vanguard 8/17/16 Article: "A New Approach to Retirement Spending"
- Replies: 31
- Views: 4266
Re: Vanguard 8/17/16 Article: "A New Approach to Retirement Spending"
It's a Profit Deal!!!!pubman wrote: But it appear to me that the intent of the article was to promote the for-fee Vanguard Personal Advisors Services by saying the average Vanguard investor is unable to handle his/her investments in retirement.
https://www.youtube.com/watch?v=fKBRtdp2e98
Vanguard does have to make money in order to offer us services at a low cost.
- Tue Aug 30, 2016 3:29 pm
- Forum: Personal Investments
- Topic: Admiral Shares for Target Retirement Funds
- Replies: 18
- Views: 15163
Re: Admiral Shares for Target Retirement Funds
keep_the_change wrote:Don't you have to weigh in the cost of taking capital gains? Not everything is just about the difference in fees. If you can contribute 5-10k/mo into your account, this may not be a problem for account balances under 700k, but as the portfolio reaches 1M it may become more and more difficult to balance the portfolio with just cash and dividends, at which point you have to start selling funds to keep yourself properly balanced. Not really a problem in non-taxed retirement accounts, but certainly this should be taken into consideration for standard taxed accounts, no?
Why are you asking questions in a four year old post?
- Wed Aug 24, 2016 2:14 pm
- Forum: Personal Investments
- Topic: Concerned I'm investing at peak
- Replies: 31
- Views: 5293
Re: Concerned I'm investing at peak
What if You Only Invested at Market Peaks?
http://awealthofcommonsense.com/2014/02 ... ket-timer/
http://awealthofcommonsense.com/2014/02 ... ket-timer/
- Tue Aug 23, 2016 10:49 am
- Forum: Personal Investments
- Topic: Boglehead advice in Chinese?
- Replies: 10
- Views: 1533
Re: Boglehead advice in Chinese?
Perhaps you can contact some bookstores where large Chinese communities are located, like in California. Picking up a phone would be best I think.
Assuming there are any bookstores left.
Assuming there are any bookstores left.
- Tue Aug 23, 2016 10:45 am
- Forum: Personal Investments
- Topic: High Income and Confused
- Replies: 21
- Views: 4224
Re: High Income and Confused
I am a refugee from Edelman. Please do not use them. I was paying 2% a year plus underlying expenses. In the long run that would have been ruinous to my retirement. Skip the Gone Fishing Portfolio. You can get similar results from simpler portfolios, like the Three Fund Portfolio and similar Lazy Portfolios. Less complexity is better. Adn don't fret about finding the "best" or "perfect" portfolio. No one know ahead of time which will be the best. Just concentrate on the basics and you will get there. The enemy of a good plan is the search for the perfect plan. Only invest when you feel comfortable making the switch; no hurry. Some reading: https://www.bogleheads.org/forum/viewtopic.php?f=1&t=6211 https://www.boglehea...
- Mon Aug 22, 2016 2:02 pm
- Forum: Personal Investments
- Topic: where to start with investing
- Replies: 9
- Views: 1543
Re: where to start with investing
This should get you started:
viewtopic.php?f=1&t=6211
viewtopic.php?f=1&t=6212
http://www.etf.com/docs/IfYouCan.pdf
viewtopic.php?f=10&t=88005
After you read more you will feel more comfortable asking questions.
viewtopic.php?f=1&t=6211
viewtopic.php?f=1&t=6212
http://www.etf.com/docs/IfYouCan.pdf
viewtopic.php?f=10&t=88005
After you read more you will feel more comfortable asking questions.
- Thu Aug 18, 2016 3:16 pm
- Forum: Personal Investments
- Topic: Anyone else getting nervous and converting to cash as a short-term move?
- Replies: 116
- Views: 17452
Re: Anyone else getting nervous and converting to cash as a short-term move?
Then you need to familiarize yourself with the basics of boglehead investing and make your first post like this: viewtopic.php?f=1&t=6212Hiwatter wrote: Oh, I'm not freaking out... I have several investment accounts that are still fully invested in Stocks, Bonds and Mutual Funds. I'm very much still "in" the market.
Read this: http://awealthofcommonsense.com/2014/02 ... ket-timer/Hiwatter wrote: I'm just looking for an entrance opportunity with a pile of cash that is sitting idle in my 401k and try to decide if that time is now or later. Yes, I know, I'm breaking a rule by timing the market. I think I'd rather call it "researching the market" before I push all my chips in!
- Wed Aug 17, 2016 4:47 pm
- Forum: Personal Investments
- Topic: What to do with my old 401K?
- Replies: 12
- Views: 1453
Re: What to do with my old 401K?
You could do any one of those, yes.
Rolling it over to a Vanguard IRA will ensure that you have low cost funds to invest in. Just call them and talk to an adviser. They will do the work for you; they do it all the time.
Rolling it over to a Vanguard IRA will ensure that you have low cost funds to invest in. Just call them and talk to an adviser. They will do the work for you; they do it all the time.
- Tue Jul 12, 2016 11:17 am
- Forum: Personal Investments
- Topic: Investing idea, evaluation is needed..
- Replies: 14
- Views: 1344
Re: Investing idea, evaluation is needed..
Red flaglagflag wrote:"...and just sit back and relax receiving royalties checks every month"