My Wealth Builder

Social Security Payment Uncertainties

2026-07-30T08:00:00.000-04:00

Pensions and Social Security used to create financial security for many retirees due to certainty. However, over the past 30 years, many pensions have gone by the wayside, eliminating this certainty of retirement income. Now the certainty of Social Security payments is at risk.

For retirees, the future of Social Security payments shouldn't be uncertain, yet the sustainability of promised amounts is very uncertain. The latest estimate is that Social Security benefits will be cut 22% across the board by 2032 if Congress does not take action. Since many retirees depend on Social Security payments for everyday expenses, this uncertainty is unacceptable.

Even if Congress does act, the effect on retirees may be different depending on which option eventually passes. The options include: raising the percentage for FICA tax, removing income caps for FICA, doing means testing, capping benefits or combinations of these. The difficulty for retirees is that these solutions possibly change benefits for many retirees, making the future income very uncertain.

Personally, I believe this should be the number one priority for legislation, given the broad impact it has on citizens.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, retirement nor Social Security advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Are SAAS Stocks Back?

2026-07-29T20:00:00.000-04:00

I'm still hodling my buy the dip stocks that were purchased in February 2026. It's been a wild ride. First they appeared to be recovering. Then they dropped to 52 week lows last week. Now, they are up 20-40% in just the first three days of this week. What a roller coaster.

In the meantime, memory and space stocks which were on a tear since the beginning of 2026 are now down as much as 50% in the past month. Muskman is no longer a trillionaire. Muskman has lost his shine, along with the decline of space stocks and TSLA . AI has also become tarnished as its capabilities seem less miraculous than doomsayers claim. On the other hand, SAAS stocks have regained their previous luster.

As I wrote two weeks ago, I've stopped buying the dip. I'm sticking to that right now. However, I'm slightly scaling out of one position, HUBS, since I am a little overinvested in HUBS. Otherwise, I am comfortable hodling my SAAS stock positions for a 100% return by end of year.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Procrastination is Hoarding Eventual Work

2026-07-29T08:00:00.000-04:00

I know hoarding physical items is not good. Same is true hoarding things to do.

Hoarding work creates a backlog of work that still needs to be done. It doesn't go away. Wait long enough and the backlog become insurmountable. For example, delaying saving for retirement can be devastating if one starts in their 60s. LOL.

My solution is to break work into small chunks and lead to small wins. For example, instead of sweating the final savings number for retirement, carve out much smaller monthly contribution and stick to it. For example, saving $158.15 a month for 40 years will become $1 million. I'm using the same principle on my home projects. Instead of carving out a large amount of hours, I put 1-2 hours per day on a project, take a break, and start it up again the next day or even later in the week. I did this with cleaning and staining our deck and I have been able to easily get the flooring cleaned and stained. I'm now doing the same with the slatted walls.

Hopefully, this new strategy and approach will help me get projects done and give my kids a good head start on their retirement savings. I think I will eventually get up to 4 hours a day on our home maintenance/improvement projects. Almost like going back to work again.😎

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial, saving, retirement nor home maintenance advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Pot Filler Leaking - An Annual Maintenance

2026-07-28T08:00:00.000-04:00

We love having a pot filler on our counter top the stove. It is so convenient to fill a pot with water while it is on the stove, instead of carrying the pot to the sink and back. When remodeled our kitchen 5 years ago, we put a pot filler next to the stove.

It worked great for about a year. Then, the pot filler started leaking at the post. Turns out there are silicone o-rings that allow the pot filler to swivel. As it turns out, the o-rings wear out about once a year for us and require replacement. Fortunately, the pot filler manufacturer has a lifetime warranty on the items. They will replace the o-rings at no cost to me. I just have to install themselves myself.

Fortunately, I had the installer add a shut off valve for the pot filler, which means I can shut off the pot filler individually when it is leaking, instead of shutting off the whole house water. There are 4 o-rings that need to be replaced. It took me a couple hours the first time. Nowadays, I can do it in less than 30 minutes. There are another set of o-rings on the swivel arm. They last longer, needing change about every 2 years, which I've done 2 times.

When I bought the pot filler, I had no idea it needed such frequent maintenance. I was surprised since plumbing fixtures, e.g. faucets, need maintenance infrequently, perhaps once every 5-10 years.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial nor plumbing maintenance advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Only Two AI Agentic Interfaces Work For Me

2026-07-27T08:00:00.000-04:00

Most agentic interfaces are horrible. I'm starting to immediately by pass them. My health insurance, my main brokerages, many big box stores and even Amazon have terrible agentic interfaces. All of them do not recognize my specific request of help, and usually offer something unrelated. My immediate request for these organizations is, "Customer service, please," even if I have to say it 30 times. Then I complain to customer service about the pour agentic connection. Their answer, "I know, it's bad."

However, a couple agentic interfaces work great for me: Kroger's and Walgreens'. Kroger will take care of my digital coupon and reward point issues immediately and accurately in the times that I 've called them. Walgreens will take care of my prescription refills immediately and accurately also. No complaints.

From now on, I'm immediately complaining about poor agentic interfaces and asking if my number can automatically bypass them. Otherwise, I will just repeat, "Representative," or something similar, until I get transferred to a real person.

Disclosure: I did not receive any compensation for this post.

For more on Strategy and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Muskman has Lost his Shine

2026-07-26T08:00:00.000-04:00

SPCX, or SpaceX, hit new all time lows this week. To me the appropriate ticker is SCAMX, since it is based entirely on Muskman's credentials, which have been sinking precipitously since SPCX has been offered to the public. Investors seem to be realizing that Muskman is not all knowing brilliant, and maybe he just has been at the right place and the right time.

I have changed my mind about hodling my few shares of TSLA. There are rumors Muskman plans to have SpaceX buyout TSLA. Since Muskman has controlling interest and over 50% of voting shares, he can make it happen. Unfortunately, I believe that will reduce the price/value of TSLA further than it has already declined.

Thus, I plan to sell TSLA on the next bounce which may make my shares profitable again. Probably won't happen since this is more hopium on my part.

For more on Strategies and Plans Ideas , check back every Monday for a new segment.

This is not financial nor stock investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Dunning-Kruger Effect in Personal Finance

2026-07-25T08:00:00.000-04:00

Mastery does not necessarily transfer from one area to another. Brilliant people in one area are not necessarily good at personal finance.

Sir Isaac Newton was a brilliant guy, who gave us the three laws of motion and created calculus. He also famously lost $4 million USD (in today's dollars) in the South Sea Bubble, saying: “I can calculate the motions of the heavenly bodies, but not the madness of people.” Mastery in physics and math did not translate into success in investing.

I've heard of couples making $500,000 annually and living paycheck to paycheck. Others are one missed paycheck away from losing their home or car. Mastery of a high paying job did not translate into success in managing money.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Missing Parts Magically Appearing

2026-07-24T08:00:00.000-04:00

I try to leave parts in "known" places so that I remember to look there again. Often, I can find parts that I have placed over 5 years ago. Recently, I replaced tail lights in two vehicles from parts purchased (due to coming in pairs) over 5 years ago. It has been a relatively good system. Of course, it works until it doesn't. Lately some parts aren't where I thought they would be. Sometimes, I can't find them for months.

However, in the past couple weeks, some parts that have missing for almost year reappeared miraculously, in a place I didn't think I put things. I have a few theories of how this happened.

Gremlins. Yeah, they come around in the evening a surreptitiously move the items.
Multi-verse. OK, I'm moving between parallel universes that are similar, but not exactly the same.
Memory lapse. Unfortunately, this is probably the reason. I put things somewhere and don't remember where I put it.

Currently, very few parts are MIA. I continue to hope that these missing parts will show up...eventually.

In the meantime, I will reduce the number of locations I use for storing miscellaneous parts.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial, memory nor parts storage advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

McDonald's French Fries Sticker Shock

2026-07-23T08:00:00.000-04:00

We hardly ever eat as fast food restaurants nowadays. Maybe sometimes when driving on a trip and we didn't pack enough to eat.

Recently, my son was in a tennis tournament, playing consecutive matches over 5 hours. Although we packed food and drink for the session, we decided to get a quick bite when he had a longer break. He didn't want much, just fries. I ordered large fries, since I wanted to have a small snack too. To my surprise, the large fries were $4.19. Sticker shock.

What happened to the dollar menu, when I remember fries were just $1? My daughter told me that $1 fries are the regular promotional price if one uses the app. Unfortunately, I prefer not to have nor use restaurant apps since I don't like them tracking me. So, I'm not getting the McDonald's app. And I'm not going there in the future. Never again.

Disclosure: I received no compensation for writing this post.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, app nor fast food advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Launching Early and Modifying Doesn't Work When Cutting Metal

2026-07-22T08:00:00.000-04:00

My career was with a company that manufactured a product. Since we had to create and install machinery, we also were diligent and to time to make sure the product was right. We were "cutting metal" and would be committed.

However, for software manufacturing, companies are now launching early and modifying on the fly in market. This makes sense since software updates are fast, cheap, and low cost to do. This works as long as no hardware is involved, which is cutting metal.

Lately, some software firms are moving into hardware by creating data centers. This is cutting metal, and is difficult to adjust on the fly. We've seen this issue as some software firms are now selling compute to companies that need data centers instead of using the hardware themselves.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial, business, manufacturing nor software advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

A Power Washer Is Must Have Tool for Me

2026-07-21T08:00:00.000-04:00

One of my best tools is a power washer. We have used it to clean our wood deck multiple times. The power washer has also been useful on concrete (driveway and porch) , and brick (porch and veneer). Finally, we also power wash our outdoor pots for our plants.

The best part is that we don't use any chemicals, just tap water. Thus, there is no ecological issues with washing.

This is my second power washer, which I researched before buying. The best advice I got was to buy one that had a kink resistant hose. Kinking was an issue on the first power washer that I bought.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial, maintenance, nor do-it-yourself advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Is It Time to Add More Fixed Income?

2026-07-20T08:00:00.000-04:00

Back in 2021, I bought a CD paying 1% because I agreed with Bernanke when he said interest rates would never be high again in his lifetime. Well, Ben is still alive and interest rates are now up to 5%. My 2021 CD matures this year and I can reinvest it.

Historically, 5% has been a very good long term interest rate. I've already put some funds into the 20 year treasury bond yielding a little over 5%. I will wait to see how interest rates move before making our next bond investments.

For more on Strategy and Plans, check back every Monday for a new segment.

This is not financial, fixed income nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Success in Sports is 90% Mental

2026-07-19T08:00:00.000-04:00

"Baseball is 90% mental. The other half is physical." ~ Yogi Berra

My son is starting to learn the truth of that quote for tennis.

Up until a few weeks ago, he was focusing on the physical part, perfecting his forehand and backhand, and improving his footwork. He was doing great in these areas, much better than I ever was. However, he still rarely won a match in local tennis tournaments, even tough his skills were very close to his competitors.

I had told his coach my observation that he was hitting well but wasn't trying to points. His coach's advice was that will come with time and experience.

A couple months ago, I decided to help my son gains some experience. Up until couple years ago, I could play competitively with my son despite him having better form and skills. However, about a year ago, he started to beat me regularly. Yeah, I have some excuses, like recovery from major surgery, but the reality was he got a lot better.

Thus, I decided to work on the 90% mental part. One day, I told him at the start of match he was spotting me 4 games won and letting me have 15 points at the start of each game. He complained that was unfair and almost quit playing. He played anyway and I won both sets.

However, we have continued to do this. Now every point mattered and he needed to work towards winning points, since losing a point was an issue. Before long, he started beating me. Then winning tournaments started happening regularly.

He has made great progress and now I'm upping the stakes. I've started to anticipate and disrupt his rhythm so that I can win points. In addition, I'm taking advantage of his few weaknesses. With him spotting me the same lead, I'm regularly winning a set or two. I expect he will figure out how to overcome my plays and start beating me regularly again.

Yes, sports are 90% mental and my son realizes that much better than if I just explained it to him.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial, parenting, nor sports practice advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

U.S. Issues with Debt and Interest Payment

2026-07-18T08:00:00.000-04:00

Here's a brief article on the current status of the U.S. debt of $39 trillion.

Bessent's Treasury has troubling news for every taxpayer

I expect the economy will be in deep doo-doo in the next few years, if not sooner, if the Federal government doesn't take action to resolve the debt issue.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial nor policy advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Stock Market is Looking Really Ugly

2026-07-18T08:00:00.000-04:00

The market sentiment is worsening. With memory stocks falling precipitously, SAAS stocks still down, AI stocks taking a hit, and even Space stock taking a dive, there doesn't appear anywhere that is protected, except maybe fixed income. Wall Street Bets is now highly negative with numerous losses being posted.

The declines are becoming bigger, the recoveries are becoming smaller, leading to more investors carrying losses. Some may start panic selling. I know I'm starting to feel the urge to close out some of my small gains.

However, I keep reminding myself of our strategy to create a monthly retirement "paycheck," and I stay the course. I continue to hodl the majority of our investment positions, with only sales of peripheral small positions. If the market continues to decline, it will be a first test of our "paycheck" strategy.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial, retirement, nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Volatility is Back and I Don't Care for Now

2026-07-17T08:00:00.000-04:00

First, it was SAAS dropping and not recovering. Now, it's memory stocks dropping 30-40% after a 9 month parabolic run and all time highs last week. What's next?? The answer is: I don't know. The market may go down, stay the same or go up. Hopefully, my new strategy will enable me not to care.

Why? In the past year, I've sent up our investments to create a monthly "paycheck," which will be independent of market volatility. However, since I created the "paycheck" the market has not had a major pullback. Most of the time, it has rebounded quickly.

This time, it may continue downward for a longer period. My immediate reaction will be to do nothing, no adding new positions, and neither selling nor buying for existing positions other that to thin out individual stocks or adding market ETFs.

Will I be agnostic to volatility? I hope so. We shall see.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Being In the Zone

2026-07-16T08:00:00.000-04:00

Sometimes in sports, everything goes one's way. Winning hits, terrific runs, amazing goal scores, terrific shots or streaks and more. I haven't been in the zone much, but when it happens, it's great. The baseball and tennis ball looks like a watermelon and is going in slow motion. The basketball hoop or soccer goal looks 3 times bigger. In football, the gaps on the defense look bigger than a Macke truck and players are in slow motion.

A few years ago, I was subbing in a tennis group despite not playing much. I happen to be in the zone and helped my partner win the championship that night by getting and making shots beyond my normal capability. Recently, my son was in the zone playing in a tennis tournament. He won his matches 6-0, 6-0 and 6-2 for the championship. He didn't seem to be able to do anything wrong and easily won points.

Being in the zone is great. I hope my son experiences the feeling many more times in sports and in life.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, investment, nor sports advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Using Inherited IRAs to Fund Current Roth Contributions

2026-07-15T08:00:00.000-04:00

Here is a great hack for student with summer jobs and zero tax liability.

When my mom was alive, I set up her retirement accounts to have her grandchildren as the beneficiaries. My rationale was that the RMDs for minor children would be much lower than for my sister or me. This has worked out that way. However, it has created the complexity of additional accounts to track and manage.

Now that my daughter is old enough to work, I have a solution that will simplify the accounts and maintain tax free growth of a Roth IRA. First I will withdraw in entirety the traditional IRA over three years, to stay below $450 of unearned income to avoid federal taxes on her income. These withdrawals will immediately be use as Roth IRA contributions. Next, we will withdraw funds from the inherited Roth to fund current Roth IRA contributions.

Over 3-4 years, all the inherited IRA funds will be withdrawn and put in her contributory Roth IRA. Eliminates two accounts that have RMDs (that need to be calculated and withdrawn each year) and funds her Roth IRA completely, without using funds from her current income.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial, IRA, nor tax advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Freezer Not Cold Enough - Fixed

2026-07-14T08:00:00.000-04:00

A couple weeks ago, I noticed the ice cream was softer than usual. I thought it was because it was moved to a different section in the freezer. Then my son noticed the freezer temperature was 10F instead of the target 0F. Ah, the real cause!

In the past, the usual solution was to clean the condenser coils. Our fridge is 23 years old and I've done this two times in the past, with success. However, our condenser coils are underneath the fridge and are not easily accessible. I decide to check for other possible solution.

According to the Internet, there were two possibilities:

Condenser coils are caked with dust and need to be cleaned.
Freeze is too packed and blocking cold air from the vents.

In our case, I expect one or both possibilities could be the cause. I decided to go with cleaning the condenser coils first, which involves unplugging the appliance, removing the lower grill on the front, pulling the refrigerator out, taking off the lower access panel in the back. With a narrow brush, I removed dust near the opening. Using a leaf blower, I blew out dust from the front first. Then I blew out dust from the back. As an added benefit, I vacuumed the space underneath the refrigerator, while vacuuming all the blown out dust.

Reassembled and plugged back the refrigerator. The indicator started at 16F and slowly declined to 8F. I stopped watching and checked back after an hour. Success, the freezer was at 0F and we avoided a charge for a service call.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial, maintenance, nor repair advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Managing Our Kids Tax Returns

2026-07-13T08:00:00.000-04:00

When I first started working summers, my dad did my tax returns. That was a great help and relief to me. Now I'm doing the same for my kids. One difference now is that tax returns are more complicated, but tax relief for dependents is more frequent, if one fills out the return properly. My dependent kids are exempt for federal and state taxes if they earn less than $16,100 in wages, or less than wages + 450 unearned income up to $16,100. If they only have unearned income, they need to have less than $1350 income to be tax free.

For my daughter, who will earn less than $16,100, I ensure she has less than $450 of unearned income. For my son, I ensure he has less than $1350 of unearned income. If I meet this income criteria, they are tax exempt and do not need to file a tax return.

For federal tax withholding, my daughter can fill out a W-4 exemption from withhold and have zero dollars withheld. Thus, no federal tax return is needed. Unfortunately, there is no exception for withholding in our state. Thus, my daughter needs to file a state tax return each year to get 100% of state withheld taxes refunded. I am authorized to file on her behalf and do so since I can get it done in less than an hour.

I plan on doing tax return gratis for my kids to help them get through their first few years of full time employment.

For more on Strategies and Plans, check back every Monday for a new segment.

I Quit Buying the Dip

2026-07-12T08:00:00.000-04:00

I've stopped buying the dips. I admit that is has been exciting, an adrenaline rush, that I have enjoyed; but it's not a long term situation that is sustainable. It requires more attention and work than I want in the future. The index funds are less exciting, but less volatile, and require much less attention. Overall, I have done better with the index funds than the individual stocks at this point. Thus, I'm moving back to thinning out my individual stock holdings and investing in broad market equity funds and fixed income.

Basically, it's no longer fun and is becoming stressful. If I had sold all my buy the dip stocks when initially profitable, I would have made money on all but one. Instead, I held, hoping for bigger gains and instead half of them dropped to 52 week lows. Psychologically, I'm now a long term investor (cynically known as bag holder), waiting for them to profitable again, if ever. Definitely, not fun and is stressful.

However, I plan to still hodl the buy the dip software stocks I purchased in February 2026. I won't add to them if they decline further, and I won't sell if get slightly above breakeven. Also, I still reserve the option to occasionally purchase an individual stock, but I plan to add no new positions and, longer term, reduce to only 10-20 individual stock positions maximum.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial, stock picking, nor stock investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Spider on Shower Caddy

2026-07-11T08:00:00.000-04:00

I take my showers in the basement bath to avoid bothering my spouse since I shower both early and late when she might be sleeping. Since it is the basement, we occasionally get some bugs on the floor. Not being one to kill bugs, I usually pick them up and move them outside.

This time I decided to leave this spider in place since it is small and would be hard to catch without harming it. I wondered how it would get food, since the bathroom was devoid of flying insects. I wondered how long it would stay, since it's been there since June 30, 2026. Since the spider is not causing any issues for me, I'm inclined to leave it alone.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Tax Gain Harvesting Article

2026-07-10T08:00:00.000-04:00

Earlier this year, I posted about Tax Gain Harvesting as a strategy to eliminate taxes on long term capital gains. These seemed like an excellent strategy to me. A tax rate of 0% seems outstanding. However, I had not seen the strategy on financial websites nor being proposed by financial advisors. Maybe it's because the catch is one has to be in the 12% tax bracket.

I just read the strategy in a MSN article: Here are the 3 top tax mistakes that cost US retirees thousands — and almost every older American makes them. How many are hurting you? One of the "mistakes is not using tax gain harvesting. See the excerpt below.

"Long-term capital gains and qualified dividends are taxed more favorably than ordinary income. As of 2025, the 0% capital gains rate applies to individuals with taxable income up to $48,350, and married couples filing jointly up to $96,700.

These generous brackets allow you to realize gains — such as by selling appreciated assets in a taxable brokerage account — without increasing your tax bill.

Overlooking this opportunity could prove costly, especially if much of your wealth is in traditional IRAs that will be subject to Required Minimum Distributions (RMDs) starting at age 73."

For more on Reaping the Rewards, check back every Friday for a new segment.

New Signs of Spring

2026-07-09T08:00:00.000-04:00

When I was younger, the signs of Spring were trees leafing out, birds returning, rainier weather, warmer temperatures and longer days. These still occur. However, I've notice additional signs for Spring.

Young college aged Gen Z salesmen going door to door selling:

Insect pest control.
Window washing

Opening line is, "Your neighbor Matt and your neighbor Sara are using the service. Since we will be in the neighborhood already, we can give you a discount for the service." OK, the pressure is now on since neighbors are users of the service and a big discount for committing immediately,

On principle, I don't hire services pitched by door to door salesmen. I briefly listen to their offer and decline politely, explaining we don't use pesticides or need window washing. If they continue to sell usually by saying their pesticides are "safe" or window washing is "superior", I tell them a firm "no" and thank them.

Still the salesmen (although a new group) come back every year, indicating that Spring has come.

Upgrading to a Costco Executive Membership is FREE

2026-07-08T08:00:00.000-04:00

Costco's Gold Star membership is $65 per year. Costco's Executive membership is an additional $65 or $130 per year. However, I did the math and upgrading to Executive is "free" and costs nothing at the completion of the year.

Huh? How can paying $65 more be free? By reading the fine print.

The main benefits for Executive membership are:

2% cash back reward on all Costco purchases, including vacation packages and gasoline.
Early entry to stores by 30 minutes on Saturday, and by 1 hour on other days.

OK, so where's the free part? It happens a the renewal of the membership as described below

Free part 1: The 2% cash back reward returns $65 if one spends $3250 during the membership period. That's breakeven for the upgrade to Executive membership. Spend $6500 and 2% cash back reward returns $130, which is the entire cost of an Executive membership.

Free part 2: What if I don't spend $3250? Costco guarantees that the cash back reward is a minimum of $65, which is the cost of the Executive membership upgrade. The cash back reward is issued once a year, just before renewal. If the amount is less that $65, Costco will give the member the difference, either in cash or as payment to the renewal of the Executive membership.

Either way, the $65 upgrade is offset.

Of course, picky financial people might claim there is lost interest for 1 year on the $65. I guess, but that's only $1.95 if the interest rates are 3% which is about the interest rate for a 1 year CD.

Disclosure: I have been a Costco Executive member over 20 years. I have only had submit for the offset twice. Every other time, I have earned more than $65 cash back. Finally, I was not compensated by Costco for this post.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial nor club membership advice advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC