If you retire earlier than age 70, you may need the money to get by in your golden years. But is taking your Social Security early the best bet?

These pros and cons will help you decide what the right decision is for you:

Cons of Taking Social Security Early

You won’t receive the maximum amount to which your entitled.

The major problem with taking your social security before full retirement age is that you’ll receive a smaller benefit based on the number of months you took it before reaching that milestone — and that can result in a significant cash reduction.

You’ll miss out on future opportunities to increase your benefits.

Taking Social Security early locks you into that decision. As a result, all future increases will be based on the initial lower amount.

You may ‘cheat’ your spouse out of benefits.

Not taking advantage of the higher payout gives up a decent sum of money for your spouse if you pass away first. “The surviving spouse receives the higher of their own benefit or their spouse’s benefit,” says Gary M. Shor, vice president of financial life planning at AEPG Wealth Strategies. “This would be especially painful if the surviving spouse with the lower benefit lives a long life.”

You may be taxed if you take it early.

Social Security becomes taxable when your income reaches a certain threshold. Enrolled agent Jeffrey Schneider offers a quick way to determine if a taxpayer must pay taxes on those benefits. “Add one-half of the Social Security income to all other income, including tax-exempt interest,” he says. “Then compare that amount to the base amount for their filing status. If the total is more than the base amount, then some benefits may be taxable.”

The three base amounts are:

• $25,000 — if taxpayers are single, head of household, qualifying widow or widower with a dependent child, or married filing separately and lived apart from their spouse in the previous year.
• $32,000 — if taxpayers are married filing jointly.
• $0 — if they’re married filing separately and lived with their spouse at any time during the year.

Schneider adds, “Remember that no more than 85% of benefits are ever taxable.”

Pros of Taking Social Security Early

You may avoid going into debt.

The most obvious reason for taking Social Security early is that you need the money if you find yourself retired or otherwise out of work before you’ve reach your retirement savings goal or the maximum-benefit age of 70. It may not be the best-case scenario, but if these payments can help you stay out of debt, it’s a no-brainer. Of course, you can also lessen your debt burden by downsizing to cut as much fat as possible from your budget.

Married couples may live more comfortably.

If you’re married and one of you retires earlier than the other, you can supplement that lost income by taking that partner’s Social Security early — while holding out for the fuller benefits of the other’s. “It may be beneficial for the lower-income spouse to collect early, while growing the other spouse’s,” says Erin Ansalyish, director of financial services at he Prosperity Consulting Group in Baltimore. “Then once the other spouse collects theirs, the lower-income spouse can take the spousal benefit, assuming it’s higher than what they’re currently taking.”

You can use the additional income at your leisure.

This scenario supposes that you have saved aggressively for retirement so that you don’t have to rely on Social Security once you call it quits at work. In that case, there’s no real downside to taking Social Security early. However, it will provide you with additional cash for discretionary expenditures such as vacations, charity donations, and gifting money to family or friends.

It may pay to take what you can get now.

If you have no surviving spouse or children who qualify for Social Security survivors’ benefits when you die, your money reverts back to the Social Security trust fund. “One thing to keep in mind about Social Security is that it’s not an asset you can pass on to your beneficiaries,” explains financial planner Andy Yadro, of Googins Advisors. “If you’d like to leave a legacy and don’t have longevity on your side, it might make sense to take Social Security earlier, and hold off on tapping into your retirement savings until later on.”

Photo Credit: DonkeyHotey

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Of course, I have my favorites.

For example, I’ve always been quite fond of platypus; I smile every time I hear myself say it.

For some reason, there happens to be a soft spot in my heart for the word kerfuffle too.

And I probably shouldn’t admit this, but I also find myself occasionally thinking of ways to insert words like hemidemisemiquaver, snickersnee, slangwhanger and fatuous into some of my blog posts. Unfortunately, I usually strike out.

Then again, I was pretty successful today.

I’m sorry; I’ll stop bloviating. (Never mind that bloviate is another word I’m inexplicably attracted to.)

If you asked my kids, they’d tell you my favorite word of all time is “no.” They may have a point; it’s a word I use freely with them.

“Hey, Dad! Brandon’s at the door. Can I do my homework assignment tomorrow?”

“No. Tell Brandon you’re busy.”

“Hey, Dad! Can we adopt a rabbit?”

“No.”

“But, Dad! Jenny said she’ll give us the cage and two pounds of carrots for free.”

“No.”

“Hey, Dad! Can I have cake for dinner tonight?”

“Hmm. I don’t see why not.”

“Really, Dad?”

“No.”

When my daughter, Nina, was 10-years-old she started pestering me for her own Facebook account. And while I admired her tenacity, until her 13th birthday I gave her the same answer all 1576 times she asked. (Yes, that would be “no.”)

My kids are, sadly, on the verge of leaving the nest now — but at times they still think I’m taking the easy way out when I tell them “no.” Of course, I’m really not.

The truth is, it’s not easy saying “no” as often as I do; it takes real discipline. Sometimes it requires a heavy dose of intestinal fortitude.

Even so, when I have to make a tough decision and say “no,” I say it. After all, that’s part of being a responsible adult.

Saying “no” often requires us to disappoint others, or appear rude. Even worse, if you’re dealing with immature people, it increases the risk of personal conflict and lost friendships.

The thing is, if you stand tall and stick to your guns, knowing how and when to say “no” can pay big dividends. For that reason alone, saying “no” is certainly a skill that’s well worth mastering — especially when it comes to managing your personal finances. In fact, it’s a key trait of effective household CEOs.

Look, it’s tough enough spending less than you earn when you’ve got a limited income — but it’s virtually impossible when you can’t muster the courage to say “no” to lavish vacations, expensive luxury cars, designer clothes, and impulsive purchases.

And while saying “no” may seem like an almost Sisyphean task sometimes, the good news is that it’s really not that difficult as long as you create a household budget to help you. That’s because a budget is a terrific tool for instilling financial discipline and guiding your spending decisions.

Believe me; I realize saying “no” is rarely easy. But it’s one of the smartest strategies available for keeping your financial house in order.

And if you’re really lucky, it’ll help keep your kids in line too.

Photo Credit: o5com

The post The Best Household CEOs Understand the Importance of Saying ‘No’ appeared first on Len Penzo dot Com.

Welcome to another rousing edition of Black Coffee, your off-beat weekly round-up of what’s been going on in the world of money and personal finance.

I’ve got another busy weekend ahead of me, so let’s get right to this week’s commentary…

From the Great Depression, to the stagflation ’70s, to the Great Financial Crisis of 2008, to the current housing bubble, every economic downturn over the past century can be traced to the Fed flooding the economy with easy money, leading to a misallocation of resources and an artificial ‘boom’ followed by a recession or depression when the bubble bursts.

– Ron Paul

Credits and Debits

Credit: Did you see this? Apparently, a growing number of people who are struggling to keep their head above water are now managing their budgets with an old money-management trick called “cash stuffing” where, each month, they convert their take-home income into cash and then divide the money into labeled envelopes for specific spending categories like groceries, bills, and savings. The goal is to spend no more than that cash you’ve set aside for each category. At the same time, cash stuffing also prevents credit card debt and stops impulse buying. That being said, we wonder how many “cash stuffers” decided to include an envelope for their retirement savings…

Debit: So… with a growing number of household managers trying new budgeting gimmicks to limit their financial red ink, perhaps it shouldn’t be a surprise that a new survey of 2000 people found that a majority of Americans say the cost of living is the worst they can remember. In fact, 5 in 9 said the cost of living is the worst they have ever experienced, while slightly more than 1 in 4 said it’s bad, but they can also remember worse times. On the other hand, just 8% described the cost of living as “not bad.” In the meantime, some of you may want to consider this…

Debit: On a related note, Congress is looking at imposing a cost of living adjustment (COLA) cap that would limit the annual US dollar (USD) increase of high-benefit recipients. The proposal that was first considered 40 years ago, but never implemented. The proposed flat-rate COLA would cut the SS shortfall in half by setting the COLA received by a beneficiary at the 20th percentile of the benefit range; it’s a move that effectively creates a COLA cap with a COLA floor at the same level. The good news is: Doing so would boost SS benefits for the lowest-quintile beneficiaries by 13%. The bad news is it also slowly reduces the purchasing power of all top-quartile beneficiaries by roughly 19% over a 30-year period. Oh, and speaking of top-quartile beneficiaries…

Credit: In other news, after decades of decline, the National Association of Manufacturers (NAM) reports that American manufacturing has turned toward modest growth and factories returning from overseas thanks to new investments spurred by a reduction in federal government red tape. The removal of bureaucratic road blocks has also been bolstered with corporate tax incentives that have led to new manufacturing investments that are currently underway in all 50 states. The trouble is, it takes time to build new factories – or take them out of mothballs – and get them up to speed. In many cases, the process can take several years. Just don’t tell that to the Fed bureaucrats who publish their “GDP Now” forecasts every week…

Gary Larson – The Far Side

Debit: Indeed, while the US industrial base on-shoring trend is positive, domestic manufacturing growth remains distinctly modest. In fact, NAM also notes that while American manufacturers added 3000 jobs in June, manufacturing employment has been in decline over the past few years and is slightly below pre-pandemic levels. So there’s that. As usual, it’s hard to discern from the official data what is actually happening anymore.

Scott Adams – Dilbert

Debit: On the other hand, there are far bigger problems out there than the status of the US manufacturing base. Perhaps the most concerning at the moment is the latest jobs report from the Bureau of Labor Statistics, which confirms that the US is now officially suffering from stagflation – which we haven’t seen since the 1970s – thanks to contracting employment coupled with surging inflation. (Yes, even after the BLS gamed the numbers with their fraudulent “birth-death model” numbers.) Oh… and if you look under the hood, you’ll see that full-time positions have been declining for 6 of the past 7 months. Yeah… nothing to see here, folks. Besides, the stock market continues hitting new all-time highs. Magic!

Debit: Then again, that stagflation is primarily being driven by government debt – which only continues to get worse. And while we routinely remind you of the National Debt problem we are dealing with here in the US, that fast-approaching $40 trillion financial millstone around America’s neck pales in comparison to the global debt time bomb, which is fast approaching $355 trillion. No, really. The good news is, this can be managed. (Until it can’t…)

Debit: Meanwhile, in Japan, which currently has a debt-to-GDP ratio that is nearly twice the US’s alarming ratio, more than one-quarter of its government spending is now being consumed to pay for past borrowing. And the debt service is now spiraling out of control as the Bank of Japan (BoJ) is being forced to raise interest rates – and therefore, the cost of debt service – in a desperate attempt to save its currency (the yen). This is how all sovereign debt crises eventually start. The trouble is, eventually, central banks will have to choose between crashing their economies or destroying the remaining purchasing power of their currencies – even if they refuse to admit it.

Credit: Back in the US, the Fed continues to hint that it may – may – raise interest rates in September to bolster the USD and tame rising prices here in America. But the US has its own budding debt service issues; as such, we think they’re bluffing. But even so, as the sagacious macro analyst Franklin Sanders points out, “Y’all realize that long-term it doesn’t make a hill of beans difference what the Fed does with rates because they’re inflating the USD and will keep right on destroying it. There’s no way out but an eventual bust.” Truer words have never been spoken. Unfortunately, the mainstream media doesn’t understand this. As a result, neither does the general public.

h/t: @Durango773

Credit: Of course, as macro analyst Martin Armstrong notes, when it comes to currency crises, “Japan will be the first domino to fall because it pushed modern monetary experimentation further than any other major economy. It normalized zero and negative interest rates, allowed its central bank to dominate the government bond market, and assumed domestic savings would finance public deficits forever. Europe and the US followed the same path later, believing they could avoid Japan’s fate.” The key word there is “could.” Still, most people prefer dancin’ around reality…

Debit: As for how sovereign debt crises end, well… as the BoJ is finally beginning to find out, it’s not pretty. Unfortunately, most Japanese citizens won’t figure things out until it is far too late. Suffice to say that those who fail to protect their hard-earned long-term savings accumulated over a lifetime of working will see the purchasing power of their nest eggs greatly diminished, if not completely evaporated. And history has proven since time immemorial that physical precious metal held in your possession is the most reliable way to insure wealth. Got gold?

By the Numbers

With individual health insurance premiums rising significantly in recent years, a new study analyzed average premiums in each of the 50 states, then compared it to the median household income in order to shed light on where Americans are struggling the most to stay covered. With that in mind, here are five US states where Americans are shelling out the most – and least – for health insurance.

50 Maryland (4.7% of income)

49 New Hampshire (4.8%)

48 Massachusetts (5.5%)

47 Virginia (5.8%)

46 Minnesota (5.9%)

5 Mississippi (14%)

4 Arkansas (15%)

3 Wyoming (17%)

2 Vermont (19%)

1 West Virginia (21%)

Source: WalletHub

Last Week’s Poll Results

How much cash do you have in your wallet or purse right now?

• $11 to $50     30%
• More than $100    29%
• $51 to $100     26%
• $10 or less     16%

More than 2700 Len Penzo dot Com readers responded to last week’s question and it turns out that 5 in 9 of you were carrying more than $50 in your purse or wallet at the time. Way to go, big spenders! 😉

If you have a question you’d like me to ask the readers here, send it to me at Len@LenPenzo.com and be sure to put “Question of the Week” in the subject line.

The Question of the Week

Useless News: Dead Duck

A woman brought her very limp pet duck, Cuddles, into a veterinary surgeon.

As she laid her beloved duck on the table, the vet put his stethoscope to the bird’s chest and listened carefully.

A moment later the vet shook his head and said sadly, “I’m really sorry, ma’am — but Cuddles has passed away.”

The woman became quite distressed and began to cry.

“Are you sure?” she said with tears flooding from her eyes.

“Yes ma’am,” the vet responded, “Your duck is definitely dead.”

“But how can you be so sure?” the woman protested. “I mean, you haven’t done any testing on him or anything have you? Perhaps he’s just stunned or in a coma or something.”

The vet rolled his eyes, then turned around and left the room.

A few minutes later he returned with a black Labrador retriever.

As the duck’s owner looked on in amazement, the Labrador stood on his hind legs, put his front paws on the examination table and sniffed around the duck from top to bottom. He then looked up at the vet with sad eyes and shook his head.

The vet patted the dog on the head and took it out of the room.

A few minutes later the vet returned with a cat. The cat jumped on the table and delicately sniffed the bird from its head to its webbed feet. After a moment the cat looked up, shook its head, and meowed softly. The vet nodded solemnly to the feline, which then jumped off the table and sauntered out of the exam room.

The vet then looked at the woman and said, “Look, ma’am; I’m really sorry, but as I said before, this is most definitely a duck that is no longer of this world. Cuddles is dead.”

The vet then turned to his computer terminal, hit a few keys and produced a bill, which he handed to the woman.

Still in shock, she looked at the bill and saw it was $150. Incredulous, she shouted, “What??? You want $150 just for telling me that my duck is dead?”

The vet shrugged his shoulders and said, “I’m really sorry, ma’am. If you had taken my word for it, the bill would’ve only been $20 — but the lab report and cat scan isn’t cheap.”

(h/t: Cowpoke)

Squirrel Cam (After Dark)

The other night we got a visit from Poppy the possum….

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Buy Me a Coffee? Thank You!

For the best reading experience, I present all of my fresh Black Coffee posts without ads. If you enjoyed this week’s column, buy me a coffee! (Dunkin’ Donuts; not Starbucks.) Thank you so much!

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More Useless News

Hey, while you’re here, please don’t forget to:

1. Subscribe to my weekly Len Penzo dot Com Newsletter!

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3. Please support this website by purchasing my book! Thank you!!!!

Letters, I Get Letters

Every week I feature the most interesting question or comment — assuming I get one, that is. And folks who are lucky enough to have the only question in the mailbag get their letter highlighted here whether it’s interesting or not! You can reach out to me at: Len@LenPenzo.com

This week Claire dropped the following question into the Len Penzo dot Com mailbox:

I have $18,000 in credit card debt and $110,000 in school loans. I’m earning $52,000 a year. Any advice on the best way to erase these loans quickly?

Yes! Ask your boss for a really REALLY big raise.

If you enjoyed this edition of Black Coffee and found it to be informative, please forward it to your friends and family. Thank you!

I’m Len Penzo and I approved this message.

Photo Credit: public domain

The post Black Coffee: That ’70s Show appeared first on Len Penzo dot Com.

And considering that 60% of small businesses go out of business within six months of a cyber attack, it’s more important than ever to crack down on your small business’s security standards. If you’re looking to beef up security, both physical and digital, here are just a few tips for optimizing your small business’s security.

Communicate Clearly

The first step to making your small business as digitally secure as possible comes with communicating rules and procedures clearly and consistently.

“Before you hire the first employee, you should establish a Code of Conduct. This document should outline what is acceptable or proper behavior within office premises and what repercussions there will be if an employee violates the terms,” says Businesssecurity.net. “Though this document does not need to detail all necessary actions, it is best to outline necessary areas such as protecting company property and keeping sensitive information safe and within company premises.”

Consistently Shred Old and Outdated Documents

Remember, sensitive information is often stored physically as well as virtually. Make it a company ritual to gather for weekly or monthly shredding sessions. Everybody can bring the documents they no longer need and protect company and customer information, which most likely includes sensitive personal and financial data.

Schedule A Security Audit

In 2010, there were 28 million small businesses in the United States, and many of their owners choose to amp up their security by having a professional conduct a security audit. These audits should reveal any vulnerable areas that could use increased security measures. Once these potential breaches are revealed, act immediately by implementing solutions to correct and strengthen any underlying infrastructure issues.

Audits aren’t there to look for faults in your employees. They are in place to evaluate the security measures that you have set up on computers and around your office area. You should emphasize this when you notify your employees of the audits. This way no one will misunderstand your purpose in conducting the audit.

Keep Software Updated

One extra measure you can take to protect digital information is to keep all software updated to the latest version. There may be bugs in your current software that could lead to a data breach, so emphasize the importance of keeping your systems’ software as current as possible. You should also make sure to use a secure connection at all times — a public WiFi network sounds nice, but it simply isn’t feasible in a world where cyber attacks run rampant. Password protect all company WiFi networks and change them frequently. Sure, it’s an extra step that may seem unnecessary, but if it protects your business, then it’s entirely worth it. If it stops a data breach, it could keep your company in business.

Ultimately, staying vigilant about your small business’s security protocol is the best way to avoid a breach.

Photo Credit: stock photo

The post How to Increase the Security of Your Business appeared first on Len Penzo dot Com.

Exterior improvements can make a property more attractive, more comfortable, and easier to maintain over time. The right upgrades can also help protect the structure from weather, wear, and everyday use. However, not every project has the same value, timeline, or maintenance demand. Before investing, homeowners should think about which improvements solve practical problems while also strengthening curb appeal.

Upgrade the Roof

The roof is one of the most important exterior systems because it helps protect the entire home from moisture, wind, heat, and storm damage. When a roof is aging, damaged, or nearing the end of its service life, other parts of the property may become more vulnerable. According to Forbes, roofing materials can last anywhere from about 15 to 50 years, depending on what the roof is made from. That wide range makes it important to understand the condition and material of the existing roof before planning other exterior updates.

A roof upgrade can also improve the appearance of the home. Shingles, metal panels, tile, and other materials all create different visual effects, so the roofing choice should fit the home’s architecture. Homeowners should also consider ventilation, flashing, gutters, and drainage when planning roof-related work. A strong roofing system supports the rest of the exterior and can help prevent expensive repairs later.

Add Window Awnings

Window awnings are a practical improvement because they add shade while also changing the look of the home. They can help protect windows from direct sunlight, reduce glare indoors, and make exterior elevations look more finished. According to Grand View Research, window awnings may reduce solar heat gain by 65% to 77%. For homes with windows that receive strong sun exposure, that can make awnings a useful comfort-focused upgrade.

Awnings come in many styles, materials, and colors, so they can be chosen to match the property rather than look like an afterthought. Fixed awnings may work well for consistent shade, while retractable options can offer more flexibility. Homeowners should consider wind exposure, window placement, and maintenance needs before selecting a design. A well-chosen awning can support both function and curb appeal.

Improve Asphalt Surfaces

Driveways and paved walkways affect the way people approach and use a property. Cracked, uneven, or deteriorating asphalt can make the exterior look neglected and may create drainage or access concerns. According to This Old House, asphalt paving can last about 15 to 20 years when it is sealed regularly. This makes paving a long-term investment, especially when the surface is properly installed and maintained.

Improving asphalt surfaces can involve resurfacing, sealing, repairing cracks, or replacing areas that have failed. A refreshed driveway can make the front of the property look cleaner and more organized. It can also support safer vehicle and pedestrian movement when the surface is smooth and properly graded. Because paved areas are used daily, keeping them in good condition has both practical and visual benefits.

Refresh Exterior Lighting

Exterior lighting is often overlooked, but it can change how a property looks and functions after dark. Entry lights, pathway fixtures, garage lighting, patio lighting, and landscape lighting can all make outdoor areas easier to navigate. Good lighting can also highlight architectural details and make the home feel more welcoming. This type of improvement is especially useful when older fixtures are dim, outdated, or poorly placed.

Lighting plans should focus on balance rather than brightness alone. Too much light can feel harsh, while too little can leave important areas hard to see. Homeowners may want to consider fixture style, placement, energy use, and how the lights look from the street. When done thoughtfully, exterior lighting improves both everyday convenience and overall curb appeal.

The best exterior improvements combine appearance, protection, comfort, and long-term practicality. A roof upgrade can support the structure, awnings can reduce sun exposure, asphalt work can improve access, and exterior lighting can make the property more usable. By choosing projects that serve a clear purpose, homeowners can invest in updates that make the outside of the home stronger, more attractive, and easier to enjoy.

Photo Credit: public domain

The post The 4 Best Exterior Home Improvements to Invest In appeared first on Len Penzo dot Com.

So I fired the second agent too.

Then I sold the house myself.

I told the full story in an earlier article explaining why I didn’t think the agents were worth what I was being asked to pay. The short recap is that my first agent did almost nothing to market my modest starter home beyond entering it in the Multiple Listing Service and printing a few fliers.

The second agent’s fliers looked nicer.

That was the most noticeable improvement.

Eventually, I found the buyer myself. I hired an attorney who charged me a flat $300 fee to handle the negotiations, while the title company took care of most of the technical paperwork.

And that was that.

No agent. No percentage commission. No commemorative fruit basket either, but somehow I survived.

Of course, that happened almost three decades ago. So it’s fair to ask whether I would still try to sell a home without a traditional agent today.

The answer is yes.

Well… probably.

First, a Reminder About What I Actually Did

Although I sold my house without an agent, I didn’t literally do everything myself.

I found the buyer. I dealt directly with the people interested in the property. I made the decisions. But I also paid qualified professionals to handle the work that I wasn’t comfortable doing on my own.

That distinction is important.

“For sale by owner” (FSBO) sometimes creates an image of a homeowner standing in the front yard with a cardboard sign, a ballpoint pen and a contract downloaded from a website operated by somebody named Honest Eddie.

That wasn’t my strategy.

I eliminated the traditional agent, but I didn’t eliminate professional assistance. I simply purchased the services I needed separately instead of paying for all of them through a commission based on the sale price.

In other words, my 1997 sale was less about refusing help and more about refusing to pay for help that I didn’t believe was providing sufficient value.

That remains the heart of the issue today.

Selling a Home Is Easier Today

In some ways, homeowners have far more tools now than I had in 1997.

Back then, the Internet was still clearing its throat. Most people weren’t carrying miniature computers in their pockets, and online real estate searches were nowhere near as important as they are today.

Social media didn’t exist. Digital signatures weren’t part of everyday life. A “virtual tour” probably involved looking at vacation slides in somebody’s living room.

Today, homeowners can research recent sales, study competing listings, advertise online, communicate instantly with prospective buyers and hire photographers, stagers, appraisers, lawyers and other specialists without relying on one person to arrange everything.

That should make selling your own home easier.

And in many respects, it does.

But technology has also raised buyer expectations.

In 1997, taking decent property photos meant keeping your thumb away from the camera lens. Today, buyers may expect professional photography, measured floor plans, polished listing descriptions, video tours and enough high-resolution images to document every closet shelf in the house.

Technology has made it easier to reach buyers. It has also made poorly presented homes look even worse beside professionally marketed competition.

So yes, the modern seller has more power.

The modern seller also has more ways to make a mess.

The Percentage Problem Hasn’t Disappeared

My biggest objection to the traditional commission model has always been the relationship between the work performed and the value of the property.

Suppose two similar homes require roughly the same amount of marketing, communication, paperwork and negotiation. One sells for $500,000 and the other sells for $1 million.

Under a percentage-based model, the compensation tied to the second property can be significantly higher even though it may not require twice the work.

Why?

Because percentages are funny that way.

A percentage sign is tiny. The check it produces is not.

This is why I have always believed real estate compensation should be evaluated like every other major household expense: What am I getting, what is it worth, and is there a less expensive way to obtain the same result?

Longtime readers already know that I once included high-end real estate agents among the jobs I considered particularly overpaid.

Subtle, I know.

That doesn’t mean every agent is overpaid. A skilled professional who develops an effective pricing strategy, creates excellent marketing, finds qualified buyers, manages difficult negotiations and keeps a complicated transaction from imploding can provide substantial value.

But the seller should be able to identify that value.

Simply entering a property into a listing system and waiting for another agent to bring the buyer may not justify a large fee, especially when the homeowner is doing much of the preparation, cleaning, decision-making and schedule disruption.

Then again, compensation models aren’t identical everywhere, and neither are the responsibilities associated with them.

My 1997 California Sale Isn’t a Canadian Instruction Manual

My sale took place in Southern California under the practices and legal framework that applied there in 1997.

That FSBO experience should not be treated as a step-by-step guide for somebody selling a home in Canada today.

Canada is not simply the United States with friendlier cash and better manners.

Real estate is regulated provincially. Forms, disclosure practices, terminology, listing access and the roles played by lawyers or other professionals can differ depending on where the property is located. Commission arrangements also vary by province, brokerage, service package and individual agreement.

Canadian homeowners may encounter true private sales, flat-fee listing arrangements, limited-service packages, fixed-fee representation and traditional full-service models. Those services are not interchangeable, even when their advertisements make them sound as if they are.

For example, paying a brokerage to place a home on MLS® and REALTOR.ca does not necessarily mean the seller is receiving pricing advice, negotiation support or full representation. It may provide valuable exposure while leaving most of the actual work and responsibility with the homeowner.

Anyone north of the border considering this route should start with a practical breakdown of the available options and responsibilities before assuming that an American FSBO story from 1997 applies directly to a current Canadian transaction.

Trying to follow my old California playbook word for word would be like using a Los Angeles road map to find a coffee shop in Quebec.

You may eventually get somewhere.

But not before annoying everyone else in the car.

FSBO Is No Longer an All-or-Nothing Decision

One of the biggest misconceptions about selling without a traditional agent is that the homeowner has only two choices:

1. Pay for full traditional representation.
2. Do absolutely everything alone.

That was never entirely true, including in my case.

I hired an attorney because I wanted someone qualified to negotiate and protect my interests. I relied on the title company for technical work. I found the buyer and managed the sale, but I paid for expertise where I believed it mattered.

Homeowners can take the same approach today.

An FSBO seller may decide to hire:

• A professional photographer
• An appraiser or pricing consultant
• A home inspector
• A real estate lawyer
• A staging consultant
• A flat-fee listing service
• A professional to review offers
• An agent for negotiation or transaction support
• A full-service representative charging a fixed or reduced fee

There is no trophy for doing every task personally.

Nobody receives a merit badge for taking listing photos in bad lighting or drafting legal clauses after watching a six-minute video.

The objective is not to prove that you can sell a house with no assistance whatsoever. The objective for FSBO sellers is to control costs while obtaining enough qualified help to complete the transaction properly.

What Hasn’t Changed Since 1997

Even with better technology and more service options, the FSBO seller still has to solve the same basic problems.

Pricing the home

This is where emotion can become expensive.

Homeowners know every improvement they have made, every repair they have paid for and every Saturday they sacrificed to keep the lawn alive.

Buyers don’t care.

They compare the property with other available homes and recent sales. The seller who prices according to personal memories rather than market evidence may spend months wondering why nobody recognizes the imported kitchen faucet’s emotional significance.

Preparing the property

A private seller competes against homes represented by people who may have experience with staging, photography, listing descriptions and buyer psychology.

An FSBO sign in the yard and a prayer are not a marketing plan.

The home has to be clean, accessible and presented in a way that helps buyers imagine living there.

Managing inquiries and showings

Some inquiries will be serious.

Others will come from curious neighbors, recreational house browsers and people who begin every negotiation by offering approximately the value of your garden shed.

The seller has to answer questions, screen interest, arrange access and follow up without becoming irritated.

At least not visibly.

Negotiating objectively

Negotiating your own home is different from haggling over a television or used car. The numbers are larger, the conditions matter, and emotional attachment can interfere with sound judgment.

Even so, almost everything is negotiable, including the price and structure of the professional services used during a sale.

That applies to the buyer’s offer too.

The highest price is not always the best offer if it comes with weak financing, difficult conditions or a closing date that creates another expensive problem.

Managing the paperwork and closing

Finding a willing buyer is only part of the job.

The agreement, disclosures, deposit, conditions, inspections, financing and closing all have to be handled correctly. The exact process depends on the jurisdiction.

That is why I used an attorney in 1997, and it is why I would involve the appropriate legal professional again.

Saving money is good.

Saving money by signing documents you don’t understand is less good.

Who Should Consider Selling Without Traditional Full Service?

I would seriously consider going the FSBO route again if:

• I had enough time to manage the process.
• I understood the local market.
• I could obtain reliable pricing information.
• I was comfortable speaking directly with buyers.
• I could remain objective during negotiations.
• I had access to qualified legal help.
• I was willing to pay separately for photography, listing exposure or other services when needed.
• The property and ownership situation were reasonably straightforward.
• The potential savings justified the effort and risk.

Having a likely buyer would make the decision even easier.

When I sold my home in 1997, finding the buyer was my main responsibility. If a seller already knows who is interested, paying a large percentage of the sale price for full marketing services may be difficult to justify.

The key word is “may.”

Who Should Pay for More Help?

I would be much more inclined to hire experienced representation if:

• I had little time to manage inquiries and showings.
• The property was difficult to price.
• The sale involved tenants, estates, multiple owners or unusual legal issues.
• I was buying another home at the same time.
• The market was moving quickly.
• I expected multiple offers with materially different conditions.
• I was uncomfortable negotiating.
• A failed transaction would create serious financial consequences.
• The professional could clearly explain the service being provided and why it was worth the fee.

There are excellent real estate professionals. There are also poor ones.

The license does not tell you which one is standing in front of you.

That means sellers still have homework to do, even when they decide not to handle the sale themselves.

They should interview multiple professionals, compare services, ask who will perform each task, understand the contract and negotiate the compensation.

The worst arrangement is not necessarily paying an agent.

The worst arrangement is paying a large fee without knowing what you are buying.

So, Would I Sell My Own Home Again?

Yes, I would seriously consider it.

I would not automatically hire a traditional full-service agent merely because that is what homeowners are expected to do. I would begin by determining which parts of the sale I could manage competently, which parts required professional expertise and how much each service was worth.

Then I would compare the total cost and risk of the available options.

Maybe I would choose a private sale and go the FSBO route.

Maybe I would purchase listing exposure and hire a lawyer.

Maybe I would select limited-service or flat-fee representation.

And yes, I might even hire a traditional agent if that person demonstrated enough skill, effort and market knowledge to justify the compensation.

Hey… I’m skeptical, not unreasonable.

My opinion from 1997 about FSBO has not changed as much as it has matured.

Homeowners who have the time, temperament and ability to manage a sale should not assume that paying a traditional percentage commission is their only responsible option.

At the same time, doing it yourself does not mean doing it blindly, cheaply or completely alone.

Whether you are in California, Canada or anywhere else, the real question remains the same:

What work needs to be done, who is best qualified to do it, and what is that work actually worth?

After all, it’s your house.

More importantly, it’s your money.

The post FSBO: I Sold My Home On My Own in 1997. Would I Do It Again? appeared first on Len Penzo dot Com.

Most home improvements are one-and-done changes that don’t provide additional future returns. For example, you may call a company to change out your worn out door locks, but don’t expect those new locks to save you money down the road.

On the other hand, certain investments can indeed have a significant impact on your wallet in the future. In fact, here are four money-saving home improvements that are well worth the effort:

Installing Ductless Air Conditioning

Ductless air conditioning may be an affordable and meaningful solution to help keep your home cool. It frequently involves much less installation work than a traditional air conditioner which requires a technician to come in and install ducts throughout the house. This can be a drain on your budget as well as frustrating to have people inside your home. However, it is typically easy to install ductless AC.

Improving Home Insulation

Insulating your home and sealing doors and windows is a common advice to prepare your home for winter, but no matter when you take on these tasks they will always pay off in terms of your electric bill. Adding insulation in crucial areas of your home such as your attic, and getting a good seal on your doors and windows — or replacing them with more insulated versions — can help keep your house cool during the other seasons, thereby allowing you to maximize the benefits of ductless AC.

Replacing Inefficient Appliances

You’ll get the most bang for your home improvement buck if you upgrade any outdated and inefficient appliances in your home. The top energy suckers in your home are air conditioning, dehumidifiers, heating systems, refrigerators and hot water heaters. Other ways to maximize your long-term savings include installing a programmable thermostat and running your appliances at night.

Correcting Structural and Gutter-Based Problems

The most expensive home repairs are typically tied to water problems — so whether you live in a rainy area or are concerned about snow, it’s critical to stop the leaks and control water in and around your home. While just a little bit of clutter in the gutter doesn’t sound that risky, gutters are your first line of defense against cracked foundations, water problems in the basement, leaking roofs and wood destroying insects. Professional gutter cleaning typically costs a few hundred dollars, while repairing downspouts and gutters costs slightly more. On the other hand, if you need your foundation repaired, then expect to pay more than $6000. As such, it’s well worth making these investments now.

Do your research ahead of time to discover what’s going to make the most sense as an upfront investment that could pay off later. A few small changes can make your life easier while also reducing a significant hit to your wallet in the future.

Photo Credit: m01229

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As my most recent sandwich survey shows, the average sandwich price has reached another all-time high.

If you’re like most people, it’s been hard not to notice the increase in your monthly grocery bill since the pandemic. After a huge run-up in prices for everything from gasoline to food – and despite the latest consumer price index showing that inflation in 2026 is currently running at an annual clip of “just” 3% – more grocery shoppers than ever can be seen visibly wincing when the final total flashes at the checkout counter.

Meanwhile, the estimated cost of a school lunch this year is $3.50. For a family with two kids, that amounts to $1260 during the course of a 180-day school year.

Oh, sure; $3.50 for lunch may sound like a great deal, but the truth is, despite food inflation and those ever-rising grocery bills, people who choose to brown-bag a sandwich, piece of fruit, and carrot sticks or a serving of chips, are always going to spend less than the folks who buy their lunch at a restaurant, school cafeteria or fast-food joint.

On the other hand, not all sandwiches are created equally, as celebrity chef Martin Blunos demonstrated a few years ago with his decadent $184 cheese sarnie. The good news is, while food prices are climbing faster than ever, the results of my latest annual brown bag sandwich price survey show that most folks will spend far less than that this year.

How I Conduct the Sandwich Survey

As usual, I visited my local grocery store and recorded the per-serving costs of various ingredients for ten of the most common brown bag sandwiches: peanut butter & jelly (PB&J); bologna; tuna; ham & Swiss; roast beef & cheddar; egg salad; salami; American cheese; turkey; and bacon, lettuce & tomato (BLT).

For consistency, I only selected items with the cheapest per unit costs, regardless of brand. And to keep it simple, I also assume that all sandwiches are with wheat bread.

Sandwich Survey Ingredients Data

Here are the results of this year’s sandwich price survey. The survey was conducted on August 1st, 2026. The first graphic shows the sandwich serving sizes and per-serving costs for each ingredient. It also includes the percentage increase or decrease in the per-serving price of each item from last year’s survey:

With that data in hand, and using my handy spreadsheet, it’s no effort at all to determine the most economical sandwiches.

Sandwich Survey Rankings for 2026

Here are the official Len Penzo dot Com rankings of the ten most common brown bag sandwiches this yea. Rankings are based upon total ingredient unit costs, from least to most expensive.

As you can see, at just 52 cents, the unheralded-but-mighty PB&J sandwich remains the undisputed Most Economical Sandwich. Notably, this is only the fifth time in 18 years that bologna has failed to hold at least a share of the Most Economical Sandwich crown.

As for the rest of this year’s rankings, although there was little movement at the top and bottom ends of the table, there was a big shake up in the middle positions. PB&J and bologna held their positions at the top of the list, as did the perennial basement dwellers: Roast Beef & Cheddar, Tuna Salad, and BLT. In the midsection, Salami was the biggest mover, dropping two positions from #3 to #5.

Sandwich Survey Historical Price Data

The next chart is an annual comparison of each sandwich since my inaugural survey in 2009. This year, Egg Salad was the only sandwich that was cheaper than last year. Needless to say, the overall effects of food inflation on the surveyed sandwiches – especially since the pandemic – continue to be striking.

In 2010, the average price of all ten sandwiches was 84 cents – that was the all-time low. This year, the average cost of the survey’s ten sandwiches is $1.71; that’s 17% higher than last year! The only year with a steeper increase in the average sandwich inflation rate was 2022, when it skyrocketed 27% over the previous year.

Even more alarming, this year’s average sandwich price is 52% higher than the 2021 average – and 80% more than it was in 2018. Ouch.

The only sandwich that saw a price decline this year was Egg Salad; at 89 cents per sandwich, it’s 18% cheaper than last year. Only PB&J, bologna and American cheese are less expensive.

Tips and Observations

• Five sandwiches in this year’s survey cost less than a buck. Ironically, despite the steep rise in overall sandwich costs, that’s one more than last year.
• After climbing 15% two years ago, this year the price of wheat bread rose another 50% (!) to $2.69. If you think that is alarming, since 2018, the price of bread is up 167%.
• Ten of the 18 sandwich ingredients saw price increases this year. From highest to lowest: ham, bread, tuna, tomato, salami, turkey, roast beef, bologna, Cheddar and Swiss.
• Among all of the ingredients, ham saw the largest price increase this year (80%).
• Are you hooked on tuna? After a massive 97% increase in 2022, albacore tuna prices retreated 90 cents over the following two years. Unfortunately, the surveyed price of albacore tuna is rising again; it climbed 44%. And that’s after rising 30% in 2025.
• The price of a BLT rose a relatively modest 8% over the past year. The good news is, even at $4.55 this year, a home-cooked BLT is still $2 less than the average price of a Big Mac.
• Cooking your own ham and turkey and slicing it yourself is a great way to reduce your grocery bill. It’s also cheaper to buy block cheese and slice it at home.
• If you’re like me and love to put tomatoes on a sandwich, grow your own— you’ll save a bundle. Best of all, they taste much better than anything you can buy from your grocer.
• You can save upwards of 40% by purchasing store-brand products. As my popular blind taste tests have proven, their quality is often just as good — if not better.

Photo Credit: neil russo

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Before the Dollar

For the early colonists, currency was a bit of a free-for-all.

Officially, cash was denominated in pounds, shillings, and pence, but in reality things were a different story. Cash was often scarce, and colonists needed to be innovative to fulfill transactions. At various points in time, they used tobacco, beaver skins, and wampum in the place of money. Some colonies even tried to issue their own fiat currencies — many of which went bust.

As it turned out, the Spanish dollar was often the most abundant form of cash and this is what led to US currency eventually being denominated in dollars.

The Revolution

During the American Revolution in 1775, the Continental Congress issued a money known as the Continental Currency to try and fund the war. The government printed too many, and the value of a Continental diminished rapidly.

Just five years later, after runaway inflation, the Continental was worth 2.5% of its face value. Benjamin Franklin rightly noted that the depreciation of the Continental had, in fact, acted as a tax to pay for the war. Holders of the currency — everyday people — were punished by losing massive amounts of buying power. Interestingly, this is where we get the phrase “Not worth a Continental.”

Birth of the Dollar

The failure of the Continental Currency must have been top of mind during the writing of the Constitution. A clause was even added, under Article 1, Section 10, to make sure such a failure would never happen again. It was written that states were not permitted to “coin Money; emit Bills of Credit; [or] make any Thing but gold and silver Coin a Tender in Payment of Debts.”

And so, the Coinage Act of 1792 created the US dollar as a standard unit of currency. The US Mint was authorized to oversee coinage. The Act also established a penalty of death for debasing coinage issued by the Mint.

The Almighty Buck

In the 19th Century, a new slang term emerged for the dollar.

Especially in the Great Lakes area, different amounts of money were equated with animal skins. One particular reference showed that in Ohio in 1851, the skin of a muskrat was worth 25 cents, and that of a doe was worth 50 cents. Meanwhile, the skin of a buck was equal to the “almighty dollar” — and hence, the word “buck” became synonymous with the US dollar.

The Civil War

Leading up to the Civil War, private banks around the country issued their own paper currencies.

With 10,000 or so of these currencies in circulation as the war broke out, governments soon found it very cumbersome to try and pay debts with many different types of notes. As a result, the $10 Demand Note was the first official paper currency issued in 1861 by the government to help finance the war.

The North began paying debts with a fiat currency called the “greenback,” while Confederate states issued their own paper currency as well. The latter was worthless by the time the Confederacy lost the war.

The Counterfeiting Problem

Around this time, counterfeiting was a widespread problem with greenbacks and all the private notes that were circulating. More than one-third of all bills were fake at this time.

Sophisticated counterfeit operations were happening in British Canada, and some bank engravers would even moonlight as counterfeiters, using the same plates and dyes they had from their day job.

To deal with the problem, the Secret Service was formed in 1865.

The Modern Dollar

Counterfeiting measures have come a long way since the late 19th century. Today, it’s estimated that less than 0.01% of notes are fake.

Photo Credit: Frankie Leon; Infographic: The Money Project

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Cigarettes Aren’t Cheap

Buying cigarettes is a very pricey habit. Cigarettes prices vary around the country, from almost $12 in New York to just over $6 in Missouri. Plus, of course, the number of cigarettes one smokes varies. But let’s say you’re a pack-a-day smoker who spends $6 per pack. That adds up to almost $2200 per year.

If you spend in the mid-range of New York and Missouri prices — currently about $9 per pack — you would spend much more than that: $3285. Over the course of 10 years, you’d have saved anywhere from $22,000 to $32,850 by not smoking. That can help with a down payment on a house, or part of your child’s college tuition.

It gets even steeper if you add up a lifetime’s worth of expenditures. Let’s say you began smoking at 20 and ended at 60 probably from a cigarette-related death, because smoking also reduces your life expectancy. That’s 40 years of smoking. At $9 per pack, that’s more than $131,000.

Smokers Have Higher Healthcare Expenses

But the direct cost of cigarettes is only part of the fiscal drain of cigarettes. Your doctors and hospitals may be treating you for cancer, heart disease, emphysema and more from a fairly young age.

When you’re sick and undergoing treatment, you can’t work as much, or you may not be able to work at all. So there are costs associated with lost productivity.

Together, smoking-related US healthcare costs add up to $225 billion every year.

Smoking can result in higher healthcare costs in several different ways. For example:

• Higher insurance premiums, compared to non-smokers.
• Higher deductibles and copays for medical treatment related to smoking.
• Higher illness rates than nonsmokers.
• Increased risk of life-long care as a result of chronic smoking-related illnesses, such as emphysema.
• Longer surgery-recovery times, resulting in longer hospital stays.

Smoking Increases Your Dental Bills

When people discuss the fiscal and health impacts of smoking, they seldom mention dental health. However, 16% of smokers have poor dental health, ranging from increased cavities and root canals to yellow teeth. Cavities, root canals and tooth whitening all cost a pretty penny. Never mind that smokers also suffer from increased risk of oral cancer, and its resultant costs.

Cigarette Smoke Can Reduce Your Home’s Value

Linking smoking to your home’s financial worth may have you scratching your head. But think about it: If you or someone in your household uses cigarettes, the house and furniture likely smell of smoke. Smokers may not notice the smell — but non-smokers do.

A house smelling strongly of smoke can turn prospective buyers off, which can delay the sale of your house. And houses that sit on the market too long only see their value go in one direction: downhill.

Your house may also be damaged by smoking, evidenced by discolored windows and mirrors, burned carpet, and stained countertops. And if your furniture holds odors, it may be impossible to sell secondhand.

Smokers May Have Higher Clothing Expenses

Smoke odors get into clothes too, resulting in more frequent trips to the dry cleaner, or doing the laundry more often. Embers and ash from cigarettes can also damage clothes, thereby increasing clothing expenses.

In Conclusion …

When it comes to how smoking affects your finances, the lesson is simple: The cost of smoking goes far beyond the price of a cigarette pack. It also leads to higher healthcare costs, reduces income via increased sick days and decreased productivity, and can even erode the value of your home.

In other words, choosing to smoke cigarettes is one of the worst financial decisions you can ever make.

Photo Credit: Alex

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