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.

Well… another busy week is behind us. So with that in mind, let’s get this party started!

With bombs and fires, you only get one mistake.

– Red Adair

Credits and Debits

Credit: Did you see this? Multi-millionaire investor Kevin O’Leary shared the advice he gives his children to keep them on track toward a healthy retirement nest egg. The rule: Take 15% of every dollar you receive, whether it’s from your paychecks, side hustles, or birthday money from grandma, and put it directly into the market. He says, “If you make the average salary of $68,000 a year, and you do this your entire life, you’ll end up a millionaire in retirement at 65.” He’s right, you know. For example, an annual contribution of 15% ($10,200) that generates an average return of 7%, would leave $2.2 million in your portfolio by the time you retire. It all sounds so easy, doesn’t it? Especially if your household has two earners… or not.

Credit: As Yahoo!Finance points out, the 15% rule may not work for everyone – especially for people earning $68,000 or less per year. Applying the 15% rule on annual income of $68,000 requires investing roughly $850 per month. The fact is, for many people, expecting them to have $850 available after paying their living expenses, debt payments, a little mad money, and any other financial obligations is an unrealistic expectation. That being said, if you think they have problems, well…

Scott Adams – Dilbert

Debit: In other news, after Nike’s stock traded this summer around levels investors had not seen in more than a decade, the company is now about to suffer another symbolic blow: Nike is going to be removed from the S&P 100 due to years of chronic underperformance. In fact, the company has lost $200 billion in market value since 2015. As for the cause of Nike’s woes, well… there are more than a few, including numerous marketing blunders; the first of which happened just prior to Nike’s current 11-year business decline. We’ll leave the specifics of that one, along with Nike’s many other self-inflicted advertising bungles over the years, as an exercise for the student.

Debit: Last month there was another milestone that hadn’t been breached in more than a decade; this one, relating to the housing market. It turns out that, the supply of existing homes for sale in the US is at its highest point in 10 years. Despite this fact, the median sales price rose 1.6% from a year ago to $429,100, extending a streak of annual price increases that began more than three years ago. The big question is: What does the market seem to know that others don’t? Remember… markets aren’t infallible. But that’s okay; because these guys aren’t either…

Debit: Speaking of rising prices, my grocery bill has more than doubled since 2020. The good news is that, according to federal government bureaucrats, inflation is running at 3.4% year-over-year. So there’s that. As for shopping situation over in Europe, well… it seems to have better perks.

Debit: Then there’s this: For the first time in history, the US national average diesel price has surpassed $6.00 per gallon – and in some parts of California it has reached $9.99. You know what that means: It’s almost time to change the pump prices to quarter-gallons. And here’s something else that needs changing…

Credit: Since the US dollar’s (USD) anchor to gold was broken in 1971, Fed policy has slowly driven homebuyers from housing market by escalating real estate speculation with loose monetary policy. The proof is in the pudding, such that the median home price to median personal income ratio is currently 9.5 – compared to 5.1 in 1970. As macro analyst David Jensen notes, since 1971, incomes have failed to “keep up with escalating cost of living prices – especially given the continually redefined lower CPI (Consumer Price Index) measures issued by” the government. Ya think?

h/t: rd.com

Debit: The incessant expansion of the US currency supply has resulted in a staggering 95% loss of the dollar’s purchasing power since 1913, with nearly half of its purchasing power wiped out in the last 25 years. And if you think that is alarming, even more mind-boggling is the fact that the USD has lost 22% of its purchasing power in just the last six years alone. No, really. If this were 1926, he said, we would be having this conversation about the pound sterling as the world’s reserve currency, the obvious place of safety. Britain was bankrupt fifty years later. In other words: We’re dealing with a ticking time bomb. Let’s hope somebody out there knows how to defuse it …

Debit: The fact is, whether its the Spanish silver dollar (piece of eight), the Dutch guilder, the French franc, or the British pound sterling, history shows that global reserve currency status has never been permanent, and that any unwinding is painful for everybody – not just the country with that exorbitant privilege – because when any reserve currency runs into trouble, everyone around the world who is holding it inherits the problem.

(h/t: @thebubblebubble)

Gary Larson – The Far Side

Credit: Thankfully, there is still some good news for those of us whose retirement savings are denominated in USD: Our wealth can be insured from the collapsing purchasing power of the USD by holding physical precious metals. Got gold?

By the Numbers

With nine million Americans having at least one credit account that is either delinquent or in forbearance, the personal-finance company WalletHub today released its latest report on the states with the most – and least – people in financial distress.

50 Kansas (least distressed)

49 Louisiana

48 Florida

47 Texas

46 South Carolina

5 Michigan

4 Vermont

3 Hawaii

2 Rhode Island

1 Maine

Source: Wallet Hub

Last Week’s Poll Results

Which of these celebrations do you enjoy the most?

• Christmas    61%
• Thanksgiving    35 %
• Halloween      4%

More than 2700 Len Penzo dot Com readers responded to last week’s question and it turns out that 1 in 25 of you prefer Halloween to both Thanksgiving and Christmas. I actually thought that figure would be a bit higher, but what do I know? As for me, there’s something about Thanksgiving that makes it the top holiday for me. Maybe it’s because of the cherry pie.

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: Good Collateral

An old Native American man had a need to borrow $500, so he went to his local bank and asked to speak with the loan officer.

The banker welcomed the old man and then told him that a loan application form would need to be completed first. The banker then took a form from his desk drawer and began questioning the old man.

“You said you need $500. What exactly are you going to do with the money?”

“Buy silver, make jewelry, then sell it,” the Native American responded.

“Okay. And what have you got for collateral?” asked the banker.

“Don’t know collateral,” replied the old man.

“Well… collateral is something of value that you provide us with to cover the cost of the loan if you fail to repay,” said the banker. “For instance, have you got any vehicles?”

“Yes; a ’79 Chevy pickup,” replied the old man.

The banker shook his head, “I’m very sorry but, unfortunately, that simply won’t do. How about livestock?”

“I have a horse back on the reservation,” replied the old man.

“How old is it?” the banker enquired.

“Don’t know; has no teeth,” replied the old man.

The conversation went on like this for a while, but eventually the banker decided to grant the $500 loan to the old man.

Several weeks later the old man returned to the bank.

He pulled out a very large roll of $100 bills from his pocket. “Here to pay,” he said.

He then handed the banker five $100 bills to repay his loan.

“Business has been good I can see!” said the banker. “So … what are you going to do with the rest of that money?”

“Keep it close to me,” the old man responded.

“But that’s a lot of cash. Why don’t you just deposit it in my bank?” the banker enquired.

“Don’t know deposit,” replied the old man.

“Well,” the banker responded, “you just put the money in our bank and we will take good care of it for you. Whenever you want to use some of it, you can withdraw it.”

The old man then leaned across the desk, looked the banker in the eye, and asked, “What you got for collateral?”

(h/t: Cowpoke)

Squirrel Cam

That’s definitely not a squirrel… .

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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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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 Jill dropped me a nice note that started off with this comment:

Hi, Len! I want you to know that I found your wonderful blog by mistake.

Welcome to Misfit Island. That’s how most of us got here — including me!

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

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When a loved one passes away, families are often faced with major decisions and financial responsibilities while they are still processing their grief. Understanding what to expect ahead of time, from burial preferences and memorial costs to available financial assistance, can make an overwhelming experience a little easier to manage.

Shifting Preferences: Cremation Now Leads

Funeral traditions in America have changed significantly over the past few decades. In fact, recent data confirms just how much those preferences have shifted. According to the National Funeral Directors Association, the 2024 cremation rate is 62%, while the burial rate is 33%. Cremation now outpaces traditional burial by nearly two to one.

This shift is influenced by several factors, including cost, environmental considerations, and changing religious and cultural attitudes. It also includes increased mobility that can make traditional family burial plots less practical. For families considering their options, knowing that cremation has become a common choice may make the decision feel more familiar.

At the same time, burial remains a meaningful and common choice for roughly a third of families. For many, the decision is connected to religious traditions, personal preferences, or the desire for a permanent physical resting place. Neither option is inherently “right.” The best choice depends on the values, beliefs, and budget of each family.

The Cost of Remembrance: Headstones and Markers

For many families, a headstone or cremation marker can be a significant expense. According to Empathy, the average family pays between $1000 and $3000 for a headstone, including installation costs.

The final price can vary depending on the material, size, design, and cemetery requirements. Granite is often chosen for its durability and affordability, while bronze and more customized designs may cost more.

Because headstones are often purchased weeks or months after a funeral, families may not think about this expense when first planning for funeral and memorial costs. Considering the cost ahead of time can help families avoid an unexpected financial burden later.

Financial Support for Families With Children

Along with funeral and memorial expenses, families may also face changes to their household finances after losing a loved one. This can be especially challenging for parents who suddenly find themselves raising children on one income.

According to the Social Security Administration, certain surviving spouses may qualify for survivor benefits if they are caring for the deceased person’s child who is under age 16 or has a disability.

For families with young children, this type of support can provide important financial stability during a difficult transition. A surviving parent may suddenly have to manage household expenses, childcare, and other responsibilities while also helping their children cope with the loss.

Many families may not realize that these benefits are available. After a loss, parents and other caregivers are often focused on supporting their children and handling immediate arrangements. Taking time to learn about available resources can help families understand what financial assistance they may qualify for.

Helping Families Prepare

Choosing between burial and cremation, planning for memorial expenses, and understanding financial assistance are all important parts of preparing for the loss of a loved one. These decisions can feel overwhelming, but families do not have to figure everything out at once.

Having conversations about end-of-life wishes before they become urgent can give family members a better understanding of what their loved one wants. It can also allow parents and other caregivers to organize important financial and personal information.

Whether you’re planning ahead or helping children and other family members through a recent loss, understanding these practical details can make a difficult experience a little more manageable. Grief is already challenging for families. And being prepared can help reduce some of the additional stress that comes with unexpected decisions and expenses.

A little planning and open communication can give families greater peace of mind and allow them to focus on supporting one another when they need it most.

Photo Credit: stock photo

The post End-of-Life Planning: What to Know About Costs, Choices & Support appeared first on Len Penzo dot Com.

To find true happiness, we must look within instead of coveting that of others. Here’s how:

Work hard

I constantly hear excuses from people for why they can’t get ahead, but in many cases the real reason is because they’re not working hard or smart enough — or spending beyond their means.

Today, there’s more opportunity than ever to earn income without a “real” job by freelancing your skills, or even property you already own. For instance, I’m a freelance writer, but I also rent out my homes to vacationers, drive people around as an on-demand taxi driver, and watch people’s pet when they go out of town.

Of course, I understand that financial stability doesn’t come overnight, but your personal plight is nobody’s problem but your own; so if you want to change then you’ll have to face it head-on. It’s an uphill battle, but you’ll get there with positive attitude and a lot of patience.

Accept what you can’t control

You can’t control everything — especially others’ lifestyle. The sooner you recognize this, the better.

“Make a list of what you can and can’t control in any situation causing you envy,” says Kimberly Hershenson, a licensed clinical social worker. “For example, if your co-worker got a raise, you have no control over that fact. Instead, focus on what you can control to make change: working harder, getting feedback from your supervisor, and asking for a raise yourself.”

Analyze others’ success

While envying someone’s success is detrimental to your own, analyzing it can actually be helpful when you use it as an outline for your own life.

“The correct approach to observing and wanting others’ success and material wealth is to analyze how they achieved their success,” says entrepreneur Beverly Solomon, who owns her eponymous design firm. “While a small percentage of people luck into wealth by inheriting it, the vast majority achieve success through hard work, education, tenacity and patience.”

Counseling professor Dr. Tiffany Stewart agrees. “Peeping into someone else’s yard takes the focus off of you and keeps you from improving yourself,” she adds. “Live your life and make it what you want by working on you first.”

Appreciate what you have

Too many people worry about the things they don’t have without taking time to appreciate what they do have. According to mind and body wellbeing coach Wendy Cheah, one way to fix this bad habit is to practice gratitude. “Practice by thinking or writing a list of things that make you feel good, no matter how big or small it is,” she says. “For example, ‘I have my own apartment, I have a fridge full of food, my boss approved my project.’ By practicing gratitude we fill up our mind and soul from inside out, and it also makes us realize how lucky we are and focus on how much we have in our life.”

Stop waiting for something good to happen

The odds of a life-changing event happening to you are equivalent to winning the lottery: one in millions. If you want something good to happen to you, make strides toward that end.

Turn off “reality” TV

Reality television plays a huge role in our fascination with the lifestyles of the rich and famous. The consequence of buying into the “reality” narrative is that it’s capable of making you feel like you’re being left behind in life while increasing feelings of insignificance. “Too many people get caught up thinking that reality TV is reality,” says Dr. Stewart. “That’s simply not true. These are scripted shows, and there are retakes if it doesn’t look right the first time. In reality, there are few, if any, retakes in life.”

Stop blaming your setbacks on others

One of the most annoying words in the national lexicon right now is “privilege.” I constantly hear how some people are privileged because of their race, their perceived beauty, their weight, their sexual orientation and many other things, but when people use that word in condemnation of others’ success, it usually means “I deserve the things you have more than you do.” And that’s unfair.

While there are exceptions, the vast majority of successful people have earned their good fortune. If you want your opportunity, chase it. Seize it. Claim it as your own. You’re 100% capable.

Spend time with the less-fortunate

For perspective, spend a night on the streets with the homeless, visit a hospital, or travel to a third-world country. Putting yourself in the shoes of those less fortunate provides much-needed clarity. None of us are promised anything, and none of us should expect to be given anything. We only deserve what we earn.

Photo Credit: thechallahblog

The post Keeping Up with the Joneses: 8 Ways to Stop It and Love Your Life appeared first on Len Penzo dot Com.

It’s true, folks; 80% of Americans knew there were two all-beef patties in a Big Mac — but just six in ten could identify “Thou shalt not kill” as one of the Ten Commandments. No, really.

Unfortunately, my anecdotal research verifies the Kelton study.

I know a Big Mac has two all-beef patties, special sauce, lettuce, cheese, pickles and onions — all on a sesame seed bun, no less — but I can only name eight of the Ten Commandments. (Don’t tell my third grade catechism teacher, Sister Nora.)

I wonder if Sister Nora would feel better if I told her I can name my Ten Personal Finance Commandments.

That’s right; in order to keep my life running as smoothly as possible, I faithfully follow these ten little nuggets of financial wisdom every day:

1. Spend less than you earn.

It’s the first personal finance commandment for a reason: Those that follow it are destined for financial freedom. It helps to be a frugality disciple. Remember, the word disciple is derived from its root word “discipline.” There is a lesson there for those who are willing to take it.

2. Behold the power of compounding growth.

The greatest lesson you can ever bestow upon your children is the power of compound growth. True, the power is somewhat diminished in today’s upside-down financial environment of near-zero interest rates and lower investment returns, but working teenagers with the financial discipline to let their accrued savings grow over time still have a golden opportunity to set themselves up for life by making relatively smaller up-front contributions.

3. Always pay thyself first.

Your creditors are not more important than you. The truth is, it’s a lot harder trying to save money from what’s left over after you’ve paid all the bills — which is why you should contribute to your retirement nest egg and emergency savings fund before you sit down to pay your first creditor every month.

4. Faithfully track thy household income and expenses.

Trying to take control of your personal finances without knowing how much money you’re earning — and where it’s all going — is tantamount to trying to drive with a blindfold around your eyes. Eventually, both practices end in disaster.

5. Knoweth the difference between wants and needs.

Being able to distinguish between wants and needs is directly tied to your ability to accept personal responsibility. At the most basic level, all of us have but a handful of primary needs: food, water, clothing, shelter, healthcare, and — for most of us — transportation. Everything else, folks, is a want.

6. Keep thy budget holy.

Budgets aren’t for everybody — but they are essential for those who lack financial discipline. A budget is an important tool that helps control spending. It’s easy to make a budget — but they only work for those who agree to follow them.

7. Thou shalt avoid paying interest.

If you can’t afford to fully pay for something you want, then you must save for it — that includes a car. My only exceptions to this rule apply if you need a loan to buy a new home, start a new business or, in some cases, pay for higher education.

8. Keepeth thy spouse involved in the financial decision process.

It’s absolutely critical that married couples keep their communication lines open — especially when it comes to the household finances. Regularly assess and update your goals and progress, and be willing to compromise. Better yet, split up the financial duties; the Honeybee and I do. In fact, we work as a team and run our household like a business.

9. Blessed are those who knoweth a high income doesn’t beget financial freedom.

Financial freedom is a state of mind, as much as it is a state of being; so it can be achieved regardless of household income. Those who understand that have a much easier time keeping their personal finances under control than those who don’t.

10. Undertake thy chosen vocation for love, not money.

We achieve satisfaction at our vocation, whatever it may be, through a job well done; but for most people to be able to do this on a consistent basis, they have to love what they do. So do what you love and, if you’re patient, the money will eventually follow.

Photo Credit: @jbtaylor

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These days, it’s nowhere near as straightforward. Pension funds are in crisis, savings accounts offer negligible returns, and even the property market is no longer the surefire haven for your hard earned money that it once was. As for shares — the perilous state of the economy makes it easier than ever to get your fingers burnt.

Of course, there are also a growing number of alternative investments to consider. These include everything from vintage wine and classic cars to fine art and gold.

Being proactive

One of the obvious consequences of the changes in the investment sphere is that sitting back and watching is no longer an option. To make your money work as hard as possible, it’s essential to become involved, and be proactive in managing your investment portfolio.

Which of the varying types of investments out there are right for you depend on both your personal circumstances and the market conditions. Each of these can change over time, which is why it is essential to know when to get in, and when to get out.

The dynamic nature of today’s investment sphere provides great opportunities for those who understand the markets, and there is a growing list of success stories surrounding angel investors who have made a successful career out of spotting the right opportunity at the right time.

Then again, if it were easy, everybody would be making great investments and driving Ferraris — we might all be familiar with the cautionary advice that the value of investments can go down as well as up, but the full implications of making a bad investment decision only come home to roost after the worst has happened.

Getting the best advice

For this reason, it makes sense to sit down with a financial adviser and go through your options. That involves far more than just looking at a list of possible investments and picking your favorite. A financial adviser will assess your overall financial position and help you prepare a set of forecasts. The idea is to draw up a coherent plan for the years to come, and the investments that will be most effective in getting you there.

Your plan will be unique to you and your circumstances. Your age, income, cash in the bank, family needs and aspirations will all be factors in making the right choice. For example, if you’re in your 30s, are looking for a long-term investment and do not mind tying your capital up, then property might be a perfect choice.

If you’re closer to retirement age and have money tied up in a poorly performing pension fund, then the advice might be quite different.

Keeping track

With the range of options available, it’s quite possible that you’ll end up with a broad investment portfolio, and keeping track of what you have and how it is performing can be as challenging as making the right choices in the first place.

Some choose to maintain a simple spreadsheet, using either Microsoft Excel or one of the many free alternatives that are growing increasingly popular. Spreadsheets can adequately track costs, tax liabilities, aggregate yields and, to a certain extent, trends.

But if you are serious about your investment activities, you should consider one of the online investment tracking solutions that have become available over recent years.

If you work alongside a financial adviser, you might find that they offer a client portal; these are handy mechanisms by which to keep track, using the same tools that the professionals use.

Making your money work harder

The media is full of disturbing stories about the difficult economic times in which we live, with debt rising to record levels and seniors working later into life due to poorly performing pension funds. But it’s not all bad news. Today’s investors have more choice and flexibility than ever before, and by combining a proactive approach with the right tools, there are great yields to be realized.

It has never been more important to constantly keep on top of your investments to make your money work as hard as possible for a prosperous future.

Photo Credit: Dazzy D

The post Investment Management: The Big Secret to Managing Yours appeared first on Len Penzo dot Com.

We all know that fall heralds a time of change and regal beauty as tree leaves turn yellow and red. There are hay rides, apple picking, hiking and crafting activities to enjoy. So put your warm clothes on, and get ready to have some fall fun without breaking the bank. Here are five ideas:

Attend a Fall Festival

Many cities and small towns host an annual fall festival to celebrate the coming season of change. There may be a parade, pumpkin carving, face painting, music, corn mazes and hay rides.

Many small farmers and other crafters show up as vendors to share local produce and handmade items. Support your community, enjoy free entertainment and take home locally grown food.

Apple Picking

In the fall, apples are in season and ripe for the picking. You’ll find many different varieties depending on whether you go in early- or late-fall. Call ahead to double check hours of operation for apple picking, and ask for advice on how many pounds you should pick and which varieties you should choose. Pick your apples by grabbing them from the bottom and twisting the stem. Then, store them in a cool and dry place until you’re ready to enjoy them.

Families also go to apple orchards to picnic or just walk the grounds. Other activities and entertainment may also be available, such as a live band or puppet show, depending on the orchard and time you choose to go. Farms that offer these activities should have a calendar of events online.

Enjoy Nature Parks

The pool and water parks are closed for the summer, but it’s prime time to visit the nature parks in your area. For instance, at your local park, you and your family could:

• Watch the leaves change and have a picnic. Enjoy that homemade apple pie for dessert.
• Ride your bikes along the greenway.
• Go kayaking. Don’t forget life jackets!
• Hike natural trails and have a guide teach your family more about the local flora and fauna.

See the beautiful sights from the top of a mountain.

Park playgrounds are also still enjoyable in the fall on less windy days. No matter what park activity you choose, remember to bring snacks, stay hydrated and use sunscreen as your kids take in the sun’s vitamin D. Sunburns and sun exhaustion can occur even in the fall.

Decorate for the Fall

Decorating isn’t only for the winter holidays. For example, fall wreaths and dried flower arrangements are perfect examples of home crafts that make fall decorating fun for the whole family.

• Fall wreaths: A fall wreath may be $25 to $50 at the store, but you can make your own for much less. Go to your local dollar store to find the base wreath, needle nose pliers, wire and other supplies. Then, go on a walk with the family to collect pine cones, leaves and other natural materials to decorate the wreath.
• Dried flower arrangements: Save those summer stems and let them dry to expose interesting-looking seeds and curled leaves. Take a walk to collect wild daisies and Queen Anne’s lace. Hang flowers upside down to dry and then carefully arrange them in a vase or Mason jar.

Build a Scarecrow

Why not make a small scarecrow for your garden to add that harvest touch to your yard? It’s easy to make a scarecrow with items you have around the house. You can blow up a balloon to use for the scarecrow’s head. Hot glue, rope and rubber bands can secure the scarecrow, while old clothes may be used to dress it. You can then explain to your kids how farmers use scarecrows to keep their crops safe, since animals think they’re humans standing guard.

Remember, the arrival of fall doesn’t mean that the fun is over. With fall festivals, apple picking, outdoor activities and more to enjoy, the whole family can spend many fun autumn days together as they watch the leaves turn beautiful colors.

Photo Credit: Rusty Clark

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Replacing a roof is one of the largest maintenance expenses many homeowners will face. The final price depends on more than the visible size of the house, and two roofs with similar square footage may carry very different costs. Materials, labor, structural conditions, disposal needs, accessibility, and local requirements can all affect the total.

Understanding the major cost categories makes it easier to prepare a realistic budget and compare estimates. Homeowners should look beyond the initial number and consider what the proposal includes, how long the selected materials may last, and whether additional repairs are likely once the existing roof is removed.

Understand the Typical Price Range

Roof replacement prices vary considerably from one property to another. According to HomeGuide, a full replacement generally costs between $5700 and $16,000, with pricing commonly ranging from $300 to $600 per roofing square, which equals 100 square feet. Roof dimensions, slope, and material selection are among the primary factors that influence where a project falls within that range.

Square footage is important because a larger roof requires more underlayment, flashing, fasteners, shingles, and labor. However, the square footage of the house is not necessarily the same as the roof area. Overhangs, attached garages, multiple levels, and complex rooflines may increase the surface that must be covered.

The pitch of the roof also affects labor expenses. Steeper surfaces can require additional safety equipment, more careful movement, and longer installation times. A roof with several valleys, dormers, chimneys, skylights, or intersecting sections may be more expensive than a simple roof with the same overall area.

Consider the Material You Select

Material choice has a major effect on both the upfront cost and the expected service life. Asphalt shingles are widely used because they are available in several grades and generally carry a lower initial price than many premium alternatives. Metal, slate, tile, and other materials may cost more because of product prices, installation requirements, or the need for structural evaluation.

According to This Old House, the typical roof lasts approximately 25 to 50 years, although its lifespan depends on the roofing type, product durability, and installation quality. Paying more for a longer-lasting material may reduce how often the roof must be replaced, but homeowners should still consider whether the product suits the home, climate, structure, and budget.

Material costs also include components that are less visible than the finished surface. Underlayment, flashing, drip edges, vents, ice barriers, and fasteners contribute to the complete roofing system. An estimate that appears unusually low may exclude some of these elements or may not account for replacing damaged components.

Prepare for Labor and Removal Expenses

Labor often represents a substantial portion of a roof replacement budget. Contractors must protect the property, remove old materials, inspect the exposed deck, install the new system, and clean the site. The amount of time required depends on the roof’s shape, height, pitch, accessibility, and existing condition.

Removing old roofing also creates disposal expenses. Dumpsters, hauling, landfill fees, and cleanup may be included in the estimate or listed separately. Homes with multiple roofing layers can cost more because crews must remove and dispose of a greater volume of material before installation begins.

Unexpected deck damage may increase the final bill. Leaks, trapped moisture, and long-term deterioration can weaken the wood beneath the roofing. Because these conditions may not be fully visible until removal begins, homeowners should ask how damaged decking will be priced and whether the estimate includes an allowance for repairs.

Recognize Why Roofing Projects Are Common

Roofing work is a frequent concern for property owners, particularly as homes age and severe weather affects exterior materials. According to This Old House, nearly 31% of American homeowners completed roofing-related projects during the three-year period immediately preceding 2025. This figure suggests that roof maintenance, repair, and replacement represent common parts of homeownership rather than unusual expenses.

A roof may require attention because of age, storm damage, missing materials, leaks, sagging areas, or repeated repair needs. An inspection can help determine whether limited repairs remain practical or whether replacement offers better long-term value. Replacing a roof prematurely may waste usable service life, while delaying necessary work may allow moisture to damage insulation, ceilings, walls, or framing.

Review What Each Estimate Includes

Homeowners should request detailed written estimates rather than comparing only the bottom-line price. A useful proposal should identify the roofing material, product grade, removal work, disposal, underlayment, ventilation, flashing, labor, permits, warranties, and possible additional charges.

It is also important to compare equivalent scopes of work. One contractor may include new flashing and ventilation improvements, while another may plan to reuse existing components. Reviewing these differences helps explain price gaps and reduces the likelihood of unexpected charges after work begins.

Build a More Realistic Roof Budget

A roof replacement budget should account for the full system, not just shingles or visible materials. Size, pitch, complexity, labor, disposal, decking repairs, and product selection all contribute to the final cost.

Homeowners can prepare by obtaining detailed estimates, asking how unforeseen damage will be handled, and setting aside funds for reasonable contingencies. Careful planning makes it easier to evaluate the long-term value of each proposal and choose a roofing solution that supports the home for years to come.

Photo Credit: stock photo

The post Get to Know the Costs of Roof Replacements appeared first on Len Penzo dot Com.

Hi again, everyone!

Let me just take the time to start off by saying that my dad has been really busy and he needed to take a day or two off for Thanksgiving, so I offered to fill in for him again. As you can tell, Dad said yes!

Now, there are some things in this world that I see people do while they’re shopping that I just dont understand. I know I’m only 13 and still have a lot to learn, but sometimes I shake my head because some people end up spending a lot more money than they really need to, and that makes it harder to save. It drives me crazy!

So, I came up with this list of the top five costly shopping habits that just don’t make sense. At least not to me!

Paying extra for designer-label products

What I dont get: People who spend their money on expensive shirts at a trendy store like American Eagle when they can get similar clothes for a lot less at a discount store.

Why not do this instead? Forget the name-brand products! Go spend some time at Target or Walmart where you can find clothes at much better prices.

Buying things in the smallest size containers

What I dont get: People who always buy the smallest packs of, lets say, the best paper towels. They might think they’re saving money, but they’re really not!

Why not do this instead? Buy in bulk! For example, I just checked the Internet and found that Walmart is selling a 2-pack of paper towels for $2.78. That’s $1.39 per roll. Walmart is also selling an 8-pack of the same brand for $7.97. Thats a little less than $1 per roll. So its cheaper to buy the pack of eight. That says it all.

Paying more money to own the newest technology

What I dont get: People who always have to have the latest technology. It’s always very expensive. Lets be honest. Do people really need to spend lots of money for the iPhone 5 right now?

Why not do this instead? Be patient and wait until the price goes down! For example, last year I worked really hard and saved enough money to buy a brand new iPod 4G at Best Buy for a little over $300. (I wrote all about that here.) But today you can buy one for just $200. Hey, if I had waited a bit I could have saved about $100!

Buying things you just dont need

What I dont get: People who buy the strangest things. Do people really need to waste money on stupid stuff like glow-in-the-dark toothbrushes or Star Trek snuggies? I mean, come on!

Why not do this instead? Only buy things you really need and don’t buy things just because you want them! Your wallet will get bigger from all the money you save, I guarantee it.

Making lots of random shopping trips

What I dont get: People who go to the store for, say, just one shirt, or to buy only one jug of milk. That’s a waste of time. It’s a waste of gas as well!

Why not do this instead? Try making one shopping trip instead of 20! Maximize your time by getting everything that you need all at once. You’ll definitely save gas! And saving gas means saving money. And saving money means a happier you. Its as simple as that.

Photo Credit: Walter Lim

The post 5 Costly Shopping Habits That Drive My 13-Year-Old Daughter Crazy 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.

Well… another busy week is behind us. So with that in mind, let’s get this party started!

The last century shows a steady increase in the amount of public indebtedness. Nobody believes that governments will drag their growing interest payment burden forever. It’s obvious that, sooner or later, their debts will be liquidated – although not by payment of interest and principal according to the terms of the contract.

– Ludwig von Mises

Credits and Debits

Credit: Did you see this? According to Swiss bank UBS, there were almost 24 million US millionaires at the end of 2024. That’s a 1.5% increase over the previous year. Looking at it another way, there were 379,000 more American millionaires in 2024 than in 2023 – that means in 2024 there were roughly 1000 new millionaires being created every single day. Too bad a million bucks doesn’t guarantee a lief of luxury for anybody anymore. On the other hand, being a millionaire is nothing to sneeze at. The only question is how you choose to get there. Or not…

Debit: Meanwhile, a new poll is out and it shows that 50% of Americans are currently living paycheck to paycheck. Of those, 18% say the reason things are so tight is because they overspend on nonessentials (think: Door Dash, etc.). That being said, 59% of Americans have knowingly made a purchase they couldn’t afford. What’s more, despite half the US population admitting they live paycheck to paycheck, 88% of Americans also confess to impulse buying, with nearly 1 in 4 consumers (22%) saying they’ve spent $1000 or more on a single impulse purchase. Frankly, it’s all rather confusing – although not as confusing as this:

Debit: On a related note, credit card delinquencies are at a 15 year high, student loan delinquencies are at a six-year high, and auto loan delinquencies are at an all-time high. Yikes! And if you think the financial news on Main Street is more than a little bit alarming, the asset managers over on Wall Street are saying, “Hold my beer.”

Debit: Of course, the public isn’t the only entity with credit issues; the governments have them too, with Japanese bonds and US Treasury bonds (UST) at multi-decade highs. Compounding the problem is that the cost to service US federal debt is on track to exceed $1 trillion this year. In fact, the federal debt is now so large that every quarter point increase adds approximately $95 billion in annual interest costs on the $40 trillion National Debt. Then again, nobody seems to be too worried about this in Congress since the Fed can always print those payments out of thin air. And they will. So there’s that.

Credit: Believe it or not, despite the US National Debt passing the $40 trillion milestone last month, the current administration has cut the federal workforce by 12% – despite a never-ending desperate cavalcade of exasperating legal roadblocks posted along the way. Ironically, federal spending is currently 3% higher than it was just three years ago. How can that be, you ask? Well… one of the biggest reasons is that 60% of all federal spending is mandatory. And much of that mandatory spending – think: Social Security, Medicare, Medicaid and other programs – is indexed to inflation. At the same time, other means of reducing deficits – think: tariffs – are also being fought tooth and nail by the same suspects. But in the end, it’s all theater…

Debit: By the way, another financial problem plaguing not only the US government, but the citizenry too, is the fiat monetary system, which was officially born in 1971 when the US dollar’s (USD) anchor to gold was broken, allows politicians to spend with impunity. A fact that is so obvious, everybody can see it. Well… okay. Almost everybody:

Debit: We know what some of you are thinking: But, Len, the US owes the money to itself! First off, a significant portion of the National Debt is held by foreigners. Secondly, simply writing off that debt isn’t an option either because you can’t just let one side of the government’s balance sheet disappear without affecting the other side. So if the debt is written down to zero, so too will all assets financed by this debt – which would almost certainly result in at least a 90% collapse (in real terms) of the current stock, bond and property market bubbles. This is the Achilles’ heel of our debt-based monetary system, where our paper “wealth” is literally somebody else’s “debt.” In other words: It’s a big con game – and, we’re the marks.

Credit: Unfortunately, nothing is going to change until a monetary system implosion forces things to change. As macro analyst Brandon Smith points out: “The reason fiscal reform is impossible is because our modern (US) government is designed to perpetuate itself; it is designed to grow forever. This is accomplished through the bureaucracy, which is the real power base within American politics. Most people do not understand that political leaders come and go, but the bureaucracy is forever.” Well… it is until the current debt-based fiat monetary system finally implodes, which may be sooner than most people think…

Credit: Not coincidentally, after 50 years, gold is now re-entering the US monetary system architecture. Think about it: Ever since Nixon closed the gold window in 1971, the US has treated gold as a barbarous relic, keeping it on the books at a measly $42.22 an ounce – despite the free market valuing it much higher. Throughout this period the USD ran the world on faith and US Treasury bonds (UST) alone. And while gold was a hedge you owned as a hedge against currency debasement – it wasn’t part of the plumbing. But that framing is now visibly cracking, with the US Treasury Secretary fielding questions about physical gold audits and reserve valuation on prime-time television – something that would have been unthinkable just 10 years ago.

Gary Larson – The Far Side

Credit: We’ll end this week with some wisdom from sagacious macro analyst Franklin Sanders: “Remember that every Fed hack has only one goal: Get to the end of the day without the monetary system exploding.” That’s really all they care about, because in a system where bank credit is money, the system is always ready to explode. But there haven’t been any adults at the Fed since at least Nixon’s time – and there ain’t any adults there today – just bureaucrats hoping the system won’t ignite before the day ends. That’s another reason to buy a little gold and silver.” Indeed it is. At least for those who want to insure the purchasing power of their retirement savings that they’ve worked so hard for over many years.

By the Numbers

What is the pre-tax income a household with two working adults and two kids needs to live comfortably in every US state? Well… a recent study came up with their answer based on the familiar 50/30/20 budget: 50% for necessities, 30% for discretionary spending, and 20% for savings or other goals. With that in mind, here are the five states where it costs the most – and least – for a married couple to raise a family with two kids. Frankly, we’re taking these numbers with a heaping serving of salt, as they seem to be ridiculously inflated. (At least right now.):

50 Mississippi (minimum pre-tax income required: $187,533)

49 Kentucky ($194,854)

48 Arkansas ($195,437)

47 Tennessee ($197,267)

46 Louisiana  ($197,933)

5 New Jersey ($295,110)

4 Connecticut ($298,189)

3 California  ($302,682)

2 Hawaii  ($313,165)

1 Massachusetts  ($329,555)

Source: Visual Capitalist

Last Week’s Poll Results

How often do you pay extra for home delivery services like Door Dash?

• Never    89%
• Rarely      9 %
• Often      2%

More than 2800 Len Penzo dot Com readers responded to last week’s question and it turns out that a whopping 98% of you have either never used Door Dash – or only on rare occasion. We don’t find that surprising at all considering that it is one of the most expensive modern luxury conveniences out there. I’ve used it once. And after paying more than $70 (including tip) for a bucket of lukewarm chicken and a few sides, I swore I would never do it again.

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: Eye Exam

A Polish immigrant who recently earned his American citizenship papers went to the DMV to apply for a driver’s license.

Of course, once he got there, the first thing he had to do was take the obligatory eye test.

After a long wait in line, the newly-minted Polish-American walked up to the counter. Wasting no time, the gruff clerk pointed to a card that was on the wall behind her with the typical mess of jumbled letters:

P V L T Z Y . . . C Z W I K S N O S T A C Z

“Can you read that?” the clerk asked.

“Read it?” the Polish immigrant replied, “I know the guy!”

(h/t: Bemused-Confused)

Squirrel Cam

Good things come to those who wait ….

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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!

2. Make sure you follow me on follow me on X. And last, but not least…

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

(The Best of) 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

After reading about RD Blakeslee’s experience working on Ford’s 8N farm tractor assembly line way back in 1949, Barbara R. shared this:

We have a 1949 8N. Her name is Daisybelle!

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: Seeing Is Believing appeared first on Len Penzo dot Com.

If matters were to take a sudden turn for the worst, your loved ones would have a financial backup to fall back on, and term insurance plans are one of the most affordable solutions for that purpose. Let’s look at their main advantages:

They’re customizable

The good thing about term insurance plans is that they’re highly customizable. This allows you to negotiate the terms in accordance with your personal needs. You have the option of designing you own personal customized package.

Affordability

Did you know that term insurance plans are more affordable than complete life insurance packages? They are valid for a predetermined amount of time, hence their name. The prices are pretty transparent as well, and you can use a term insurance premium calculator to see what’s on the table pretty quickly. Basically, the insurance company is placing its bets on you outliving the duration of the deal, hoping to never have to pay you a dime.

They’re easy to understand

Since you’re not dealing with multiple variables, comparison shopping becomes a somewhat easier task. Basically, as long as you have a provider in mind, the only blanks to fill in are the length of term and the coverage amount. Simple, straight-to-the-point, and affordable; as long as you pay the insurance premium, you’re covered for the duration of the deal.

They’re great for younger families

Since they’re less expensive than whole life insurance, they provide better value for younger families. Considering the fact that younger families need to be very careful how they spend their hard earned money, this is a very useful thing to know. After all, there’s so much young families need to pay for (think: raising little kids, mortgage, loans, and saving for the kids’ college).

Flexibility

Term insurance plans offer flexibility quite unlike any other. Did you know you can set the term for as little as a single year? They also offer you the option of locking in the rates for as little as 5 years; this should be plenty to cover short-term expenses, in case you ever require this option. Usually, you’re free to choose from a number of predetermined terms such as 10, 15, 20, and even 25 years or more.

The Bottom Line

Term life insurance plans are a great way to ensure the well-being of your loved ones even if you don’t have a lot of financial means at your disposal. The only downside is that they won’t last for the entire duration of your life; however, you have all the freedom in the world to custom-tailor them to your own needs, so the drawback is not severe by any means.

In the end, getting a term insurance plan will let you sleep at night comfortably, knowing that your loved ones will be receiving some form of financial support — even if higher powers claim their toll and you’re not around to look after them anymore.

Photo Credit: Steve Snodgrass

The post Term Life Insurance: Its 5 Main Advantages appeared first on Len Penzo dot Com.