Wisdom for Money

Regular readers of WFTW know that we've emphasized inflation and its effects. Today, we'll look again using a postage stamp for perspective and simplicity.

The Postage Stamp — A 30 year look back

THE BASIC FACTS

July 1996 — Stamps cost 23¢

July 2026 — Stamps cost 82¢

A price increase of 2.6 times. This represents a good estimate of the cost of living over a 30-year retirement. Our position has always been that a diversified portfolio of the great companies of the world is the best hedge against the purchasing power destruction caused by inflation.

Let's take a look at the last 30 years of the S&P 500:

• In 1996 the dividend for the S&P 500 was $14.89 per share.

• The forecast for 2026 is $83 — Representing an increase of 5.6 times vs. the stamp that increased 2.6 times.

But there's more...

• The value of the S&P 500 index increased 11.8 times over the 30 years. This is despite the fact that it experienced 8 declines of at least 20% during the 30 years.

• $10,000 invested in 1996 and left to compound was worth about $195,000 this August.

What about gold? $10,000 invested in gold grew to a little over $40,000 as of July 2026.

Conclusion: Diversified equity investing is the best Inflation hedge we can recommend.

NMI, Vol. 24, Issue 8: August 2026

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​Wisdom for Money + Life

I'm Sure You Would've Told Me... Right?

Over the past 12-18 months we've had a recurring conversation that goes something like this...

“My (friend, relative, accountant, favorite podcaster) told me I should Be converting my IRA to a Roth. I'm wondering if I should be looking into that? But, I figured if I should you would've told me. But I just thought I'd ask.”

Our response: “Yes, we would've told you. If we haven't told you, you don't need to worry about it.”

This gives us a chance to briefly comment on the way financial marketing works.

It's real simple. They go after the largest pots of money in the way that bank robbers go after banks- because it’s where the money is.

Financial marketers know that there are trillions of dollars invested in IRA’s. So, marketing that gives the impression the IRA holder is missing something, like a Roth conversion, is bound to get clicks.

Just as in medicine and supplements, there is no “one size fits all” financial recommendation. Ours are customized... to you.

This is a good opportunity to remind you of our value proposition.

Our clients are financial delegators so that we can focus on your money so that you can focus on what you CANNOT delegate. Things like...

• Your health

• Your most important relationships

• Your spirituality

• Your skill at whatever it is you're working toward in life.

Be careful of internet financial marketing as it has the ability to chip away at your peace of mind. We hope to build peace and contentment.

One of my favorite scriptures is John 14:27 —Jesus said, I leave you peace, my peace I give you.

Although we are imperfect, we aim to be instruments of peace in your life. ​
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Thanks for reading,

Tim O'Connor