As an independent businessperson, I've been enrolled in health insurance through the Affordable Care Act practically since it went into effect. Due to an unprecedented buildup of bile, the current administration radically shortened the open enrollment period for plans offered on the ACA marketplaces, which will lead to somewhat fewer people enrolling in time for their coverage … [Read more...] about It’s not too late to enroll in health insurance
Survivorship bias is one of those rare ideas that is at once instantly accessible and incredibly powerful. The classic explanation of survivorship bias is when a mutual fund company advertises the 5-year or 10-year returns of the funds it offers, without reporting the 5-year or 10-year returns of all the funds that didn't survive 5 or 10 years, since they were closed for … [Read more...] about Survivorship bias everywhere
One of the first posts I wrote here was about the 529 scam. I explained that 529 plans are a way for wealthy individuals to permanently shield an almost unlimited amount of assets from taxation, and that the scam was made sustainable by the very large number of middle class people saving a very small amount of money who are absolutely convinced that 529 plans are a way to save … [Read more...] about The effect of estate tax repeal on the 529 scam
Every once in a while you come across a seemingly insignificant coincidence that gives a different perspective on a question you thought you understood the answer to. I had one of those moments the other day when, for the second time in the course of a few weeks, a popular economics Twitter account dismissed my suggestion that he open a high-interest checking by saying "That … [Read more...] about The real reason arbitrage opportunities last so long
The title of this post may sound like a rhetorical question, but I assure you I don't mean it that way. It's a question I've been pondering for a while as I come across weird datapoints from the history of home financing around the world. A 30-year fixed-rate mortgage is maybe best defined by what it is not: it's not a one-year floating-rate mortgage. What would a one-year … [Read more...] about What is a 30-year fixed-rate mortgage?