“I’M 34 YEARS TAKE THIS 10 BEST SENIOR

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8 HOMES” RESUME—NOW! IN AMERICA
P. 10 P. 20 P. 36

THE QUEER EYE GUIDETOA RICHER LIFE

SAVE, EARN, AND INVEST WITH PURPOSE

The Fab Five

(from left):
Karamo Brown,
Antoni Porowski,
Jonathan Van Ness,
Bobby Berk, and
Tan France.

EXCLUSIVE RANKING
The Best Robo-Advisors for Your Money
P. 52
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 % 9 + 9 7 8     : 3 0 9 1 )2 9 1 & ) 6

F E AT U R E S

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E'LSMGIš
XSE6MGLIV0MJI Automated investment
accounts are booming.
Meet the teachers
quitting their jobs
The Fab Five are on a mission to transform Here’s how to find the one because of low pay and
everyday people. Here’s your personal playbook. that is right for you. dwindling benefits.
BY KRISTEN BAHLER BY MEGAN LEONHARDT BY JENNIFER CALFAS

ILLUSTRATION BY AARON FERNANDEZ AUGUST 2018 M O N E Y. C O M


% 9 + 9 7 8     : 3 0 9 1 )2 9 1 & ) 6

'SRXIRXW
 Š-ŞQERH -2:)78
3[R)MKLX,SQIW
,IVIŞW,S[-(MH-Xš  8LI8VYXL
With careful planning and &ILMRH8LMW
a lot of weekend work, %KMRK&YPP1EVOIX
it’s attainable. The rally that began in
March 2009 could become
 7M\8LMRKWXS2IZIV the longest ever. But there’s
&Y]EXE+VSGIV]7XSVI a catch.
A little extra convenience
can really cost you.  %GXYEPP]%TTPI
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c8VMPPMSR'SQTER]
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already pulled it of.
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success involved cocktails  8LMW'SYTPI
and a big leap of faith. ;MPP7EZI8LSYWERHW
MR6IXMVIQIRX
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JSV;SVOMRK1SQW one smart move.
New research shows that their
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daughters end up with better  &IWX7IRMSV
0-:) jobs and higher pay. (MWGSYRXWMRXLI97
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1SYRXEMR2EXMSREP4EVO7II Our savvy readers told us
QSVITEVOTMGOWSRTEKIc  &IWX2EXMSREP  (IPIXI8LMW*VSQ their favorites. Now we’re
4EVOWJSV=SYV1SRI] =SYV6¬WYQ¬ 2S[ passing them along.
We crunched the numbers on One so-called skill could doom
IN THIS ISSUE America’s most beautiful
'30912
your job prospects.
 Letters & Comments vacation spots to find which
 The MONEY 50/50 ones deliver the best value.  8LIWI%VIXLI
THE MONEY TALK WITH …
&IWX&EROWJSV7IVZMGI
Cover photograph by ART STREIBER 1IQFIVWERH:IXIVERW  (EZMH7IHEVMW
Styling: Michael Cioffoletti/Art Department. Grooming: Samantha Fryling/Art Department and Juanita Lyons/ Many financial institutions The acclaimed humorist
E T H A N W E LT Y/G E T T Y I M A G E S /A U R O R A C R E AT I V E

Celestine. On Karamo: John Varvatos navy suit, H&M navy long-sleeve polo, To Boot black sneakers. On Antoni:
Dries Van Noten silk jacket, Hiro Clark white T-shirt, Levi’s washed black jeans, his own Gucci loafers. On Jonathan:
claim to ofer military perks, has always loved money.
John Varvatos purple sweater, his own AllSaints jeans, his own Saint Laurent boots. On Bobby: John Varvatos navy but only a few banks and credit Now he finally has some.
suit jacket, his own COS sweatshirt, his own Zara jeans, his own Allbirds sneakers. On Tan: Wittmore blue
button-down oxford from shopwittmore.com, Thom Browne gray plaid suit, his own Adidas sneakers. unions really stand out. BY M I K E AY E R S

MONEY (ISSN 0149-4953) is published monthly (except combined issues in January/February and June/July) by Time Inc., a wholly owned subsidiary of Meredith Corporation. PRINCIPAL OFFICE: 225 Liberty Street, New York, N.Y. 10281-1008.
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Reproduction in whole or in part without written permission is prohibited. MONEY is a registered trademark of Time Inc. U.S. subscriptions: $15 for one year. BACK ISSUES: Back issues are available for $5.95 for the current year and $6.95 for prior
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 M O N E Y. C O M AUGUST 2018
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Personal Capital Advisors Corporation. SEC Registration does not imply a certain level of skill or training. © 2018 PERSONAL CAPITAL CORPORATION. ALL RIGHTS RESERVED.
% 9 + 9 7 8     : 3 0 9 1 )2 9 1 & ) 6

MONEY EDITORIAL

EDITOR-IN-CHIEF Adam Auriemma

DEPUTY EDITORS Rachel F. Elson, Paul J. Lim MANAGING EDITOR Tari Ayala SENIOR EDITORS Mike Ayers, Ian Salisbury
AUDIENCE ENGAGEMENT EDITOR Matt Bemer SENIOR WRITERS Elizabeth O’Brien, Brad Tuttle WRITER AND SPECIAL PROJECTS EDITOR Kaitlin Mulhere
FEATURES WRITER Kristen Bahler WRITERS Jennifer Calfas, Julia Glum, Alix Langone, Megan Leonhardt, Shaina Mishkin, Kerri Anne Renzulli
DIGITAL PRODUCER Allana Akhtar ASSOCIATE AUDIENCE EDITOR Masiel Torres COPY EDITORS Maria Carmicino, Barbara Collier, Lauren Goldstein
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ART DIRECTOR Josue Evilla SENIOR GRAPHIC DESIGNER Julia Bohan CONTRIBUTING DESIGNER Namita
PHOTO DEPARTMENT Kacy Burdette, Sarina Finkelstein, Armin Harris, Alexandra Scimecca,
Michele Taylor, Hildegarde P. Vilmenay (OFFICE MANAGER)
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CONTRIBUTORS Kara Cutruzzula, Ryan Derousseau, Sarah Max, Paul Schrodt, Martha C. White

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PRESIDENT Jon Werther MEREDITH MAGAZINES PRESIDENT Doug Olson PRESIDENT OF MEREDITH DIGITAL Stan Pavlovsky
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BRAND SALES CONSUMER STRATEGY AND INSIGHT

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(VICE PRESIDENT) ; Arbena Bal (DIRECTOR) ; Paula Esposito, Catherine Keenan
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Sheyna Bruckner (EXECUTIVE DIRECTOR); Giselle Peled (DIRECTOR);
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 0)88)67

'311)287

AN ANTI-TRUMP BIAS?
%R%MVFRF I am noticing a trend.
VIRXEPRIEV
7ERXE1SRMGE MONEY magazine seems to
include anti-Trump innu- COMMENTS
endo in a lot of articles ABOUT
[June/July]. My financial RECENT
fortunes are doing better STORIES ON
now than they have in MONEY.COM
years, and I give partial
credit to President Trump. I Re: “Jay Leno Is
would like to hope you are Worth $350 Million
not bashing Trump inten- and Owns 181 Cars
tionally in your articles. but Says He Still
GREG THIBODEAUX Lives Like Someone
Alamo, Calif. Who’s on Their
Last Dime”
TRUMP’S PROMISE FOR “I love how people
ROADS AND BRIDGES don’t understand what
Thank you, MONEY, for richer people mean by
your article “Five Miscon- living ‘frugally.’ Just
ceptions About the Trump because he has 181
Bump” [June/July]. You’re cars doesn’t mean
right: President Trump has anything. That’s what
not addressed our infra- gives him wealth.”
RE: WHERE AIRBNB WILL SAVE YOU MONEY [JUNE/JULY] structure as much as

4E]1SVI
economists predicted. Re: “Would you
Rising gas prices have set quit your dream job
back my financial plan, for any less than a

7EZI0EXIV
and potholes have im- $10,000 pay
pacted my commute. increase?”
PAUL FEINER
“If there are crappy
Greenburgh, N.Y. benefits and not
enough vacation and
I don’t think it’s fair to compare the sick time, then the
A WORD OF CAUTION
cost of complete apartment rentals I love reading MONEY, but $10,000 is not much.”
on Airbnb with single hotel rooms. I think “The Best Banks Re: “Do you think
for College Students” you will become a
Airbnb rentals typically come with [June/July] should have millionaire one day?”
their own kitchen, so you can save cautioned young adults “Depends on which
money on food by cooking for your- about carrying too much currency. Pesos?
debt before recommending Already there.”
self. Plus, you get more space than checking accounts.
you would in a cramped hotel room. MICHAEL RODRIGUEZ GOODSON
C H U C K D U N N I N G , La Jolla, Calif. St. Paul

Corrections
& Clarifications
[JUNE/JULY] “The Best Banks for
OUR The graphs and charts in your Midyear Investor’s Guide were not only eye-catching
but easy to follow. Kudos to your staf artists who designed them. I’ll give this issue College Students” mistakenly
FAVORITE
COU RT ESY O F A I R B N B

COMMENT to my children and friends who have little interest in finance to help them better identified the number of free
understand investing. ATMs ofered by PNC as 19,000.
E M I L I E H A R R I S , La Quinta, Calif. The actual number is 9,000.

 M O N E Y. C O M AUGUST 2018 Write to MONEY: letters@moneymail.com

0MZI
8LI&IWX
2EXMSREP4EVOW
JSV=SYV1SRI]
V OYA G E U R S : P E R B R E I E H A G E N /G E T T Y I M A G E S ; S A G U A R O : M A R K N E W M A N /G E T T Y I M A G E S ; Z I O N : G A LY N A A N D R U S H K O/A L A M Y

We crunched the numbers on America’s

most beautiful vacation spots to find which
ones deliver the best value.
BY M EG A N L EO N H A R DT

FROM SWAMPY MARSHES to soaring canyons, from

glaciers to deserts, America’s national parks
encompass nearly every possible ecosystem.
The 60 oicial national parks form a vast system
that collectively spans 84 million acres and was
visited more than 331 million times last year alone.
But with so many options, it can be diicult to pick
just one to visit.
To help with that, MONEY teamed up with
Kayak to figure out how much it would cost to visit
each of the parks this summer—a tab that covers
roundtrip airfare, a week’s worth of hotel rooms,
plus a car rental, meals, and park entrance fees.
From there, MONEY also reviewed what each park
had to ofer—from activities to scenery—and
ranked them based on which were primed to deliver
the highest value for your dollar.
Each of the top 10 parks are packed with must-do
experiences and amenities but at prices that,
relatively speaking, make them a steal.
Check out our faves on the next page. You can 7EKYEVS2EXMSREP
also go online at money.com/best-national-parks for 4EVOMR%VM^SRE
detailed information about each park.

 M O N E Y. C O M AUGUST 2018
 AUGUST 2 0 1 8

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Our rankings give the most

weight to overall cost. We
used roundtrip airfare, lodg-
ing, and car rental data from
Kayak and meal prices from
Numbeo. We also factored in
what each park has to offer
visitors, weighing scenery
8LI2EVVS[W ratings from GoOutsideBook
SJ>MSR2EXMSREP .com and the number of
4EVOMR9XEL things to do at each park
from TripAdvisor.

AUGUST 2018 M O N E Y. C O M

0MZI REAL ESTATE
ŝ-ŞQ=IEVW3PHERH3[R
)MKLX,SQIW,IVIŞW,S[-(MH-XŞ
With careful planning—and a lot of working weekends—you can do it too.
WHEN PAULA PANT was 27 years old, she and
her future husband, Will, were paying $400
a month for a single bedroom in a triplex
apartment building in Atlanta, sharing a
kitchen and bathroom with three other
roommates. Finally, they decided to buy a
place of their own, taking about a year to
cobble together the down payment.
But a starter home was not in their future.
Instead, they paid $225,000 for the
apartment building across the street, which
was almost identical to the one where they
were already living. When they moved in,
their roommates came too. The rent the
couple collected was enough to cover their
housing costs, enabling them to live for free.
“A lot of our friends were living in places
with granite countertops,” says Pant. “All
 M O N E Y. C O M AUGUST 2018
BY I A N S A L I S B U RY
we were thinking about was being as frugal
as possible.”
Seven years later the move has paid of.
Pant (now 34) and Will (now 38) no longer
live in that first apartment building. But they
still own the three units—along with five
other properties they have bought along
the way.
Pant, who came to the U.S. from Kath-
mandu, Nepal, as an infant, says the
properties provide her with enough extra
income that she’s been willing to forgo the
security of a nine-to-five job and pursue
passion projects like her blog and podcast.
Without a large extended family in the
U.S., she says, “knowing there’s a safety net
is really important.”
With home prices in many cities near
record highs, the idea of becoming a home-
owner—much less a landlord—can seem
beyond the grasp of many millennials. Indeed,
Š8LIKSEP[EW homeownership for those in their twenties
RIZIVXSFIGSQI and thirties is lower than it’s been in decades.
[IEPXL]-X[EWXS But as Pant’s example shows, with careful
FIGSQIƙRERGMEPP]
WIGYVIšWE]W4ERX decision-making and, of course, some real
sacrifices, owning a home (or a few homes)
can be an attainable goal.
SKIP CABLE—AND EXPENSIVE CITIES
Pant and her husband were lucky to
graduate from college with little debt. They
both went to state schools and worked
C O U R T E S Y O F PA U L A PA N T A N D W I L L S I S K
various jobs to help defray the cost. But they
also had a thrifty lifestyle. When they bought
their first home, she was working as a
freelance writer, while her husband had a
regular nine-to-five job at a transportation
company. Together they earned $63,000. In
addition to paying just $400 in rent, Pant
 0MZI REAL ESTATE

says she drove a 15-year-old car, %PSSOMRWMHIXLI

skipped cable, and rarely spent GSYTPIŞW%XPERXE
XVMTPI\[LMGLXLI]
money on items like clothes. TYVGLEWIHMR
It also helped that they lived in ERHWXMPPS[R
Atlanta, where the median home 4ERXWE]WPMZMRKMR
MRI\TIRWMZIGMXMIW
price is $205,000, almost $50,000 PMOI%XPERXEERH0EW
less than the U.S. median. With :IKEWQEHIEFMK
their roommates covering the HMJJIVIRGI
mortgage on their first home, Pant
says it took a year of saving (and spent their weekends fixing it up. addition to the original triplex, Pant
getting up the nerve) to buy their While Will had acquired some and her husband own four single-
second home, for just $21,000. home-repair skills working family homes and a condo in Las
The property was in foreclo- construction jobs in college, the Vegas, where they now live. While
sure and in an unfamiliar section couple mostly figured it out as the couple pay a property manage-
of the city where foreclosures they went, watching YouTube ment company to oversee a few of
were common at the time. Pant videos to pick up tips. It wasn’t the homes, others they take care
says she spent hours in the always easy. of themselves with the help of a
neighborhood, walking the streets “Every weekend from Friday longtime contractor.
and eating fried pickles at a local afternoon until late Sunday we Last year, she says, the rental
fast-food shop, until she was spent at the property,” Pant says. properties brought in $125,618.
comfortable with the location. “I wanted to have a weekend.” After expenses like mortgages
Once the couple bought it, they Eventually, the work paid of. In and taxes, she and her husband
were left with $43,200 to supple-
ment his salary and her earnings
as a blogger and podcast host.
Despite the occasional indulgence
How Long ItTakes to Save for a First Home (she recently bought a car), Pant
says she and Will save as much of
A 20% down payment has long been a rule of thumb. But a recent National that as they can, hoping to expand
Association of Realtors survey found millennial buyers put down only 7% on their real estate mini-empire.
average. Opt for a Federal Housing Administration loan, and you’ll need even less.
Saving 10% of a middle-class salary, you should reach your goal in a couple of years.
FORGET THE JONESES
FOR A WORKER EARNING THE MEDIAN $61,000 AND PURCHASING A $252,000 HOUSE Pant’s parents came to the U.S.
with little but their suitcases.
While many of her adult friends
After 18 months In three years
you’ve saved $8,250, you’ve saved $17,500,
grew up in leafy suburbs sur-
enough for the enough to match rounded by stores like Starbucks
minimum 3.5% the average
$50,000 down payment on 7% millennial and Panera Bread, Pant lived in a
an FHA loan. buyers put down. less affluent neighborhood with gas
$40,000
stations and mom-and-pop shops.
$30,000
When it came time to buy her
C O U R T E S Y O F PA U L A PA N T A N D W I L L S I S K

In nine years
$20,000 you’ve saved $50,000, own home, Pant says the lack of
enough to
$10,000 put 20% down. pretension became an unlikely
advantage. “I felt at home in the
$0
Year 1 Year 3 Year 6 Year 9
neighborhoods where my friends
who grew up in Starbucks neigh-
NOTES: $61,000 is the median pay for workers ages 25 to 34. The median price for existing U.S. homes in March was
$252,000. SOURCE: Veritas Urbis Economics borhoods might not have felt at
home,” she says.

0MZI SHOPPING
WHAT
TO SKIP

46)'98463(9')
Grocery stores know
you love convenience.
So “they will up that
price as much as possi-
ble,” says Amiyrah
Martin, a blogger at Four
Hats & Frugal. For in-
stance, a 14-ounce box
of precut celery sticks
at the Kroger in Mount
Pleasant costs $2.99,
but a large celery bunch
that could produce well
over a pound, once
chopped, goes for
just $1.59.

46)4%'/%+)(
72%'/7
The same goes for
single-serve snack bags
of nuts or pretzels. Bet-
ter to just bag them
yourself, says Laurie
Heiss at Passionate
7LSYPH 2IZIV&Y]
Penny Pincher. At
Kroger, a package con-
taining 10 small bags of
pretzels, each just un-
EXE+VSGIV]7XSVI
der one ounce, costs
$4.29—while the
16-ounce value bag
costs only $3.23 and
contains roughly 60%
more of the snacks.

*63>)26-')
Frozen vegetables can
be a money saver since
they last forever. The
argument doesn’t hold
up with rice, which lasts
for years anyway, says
Martin. At Kroger, a box
of cooked, frozen white
rice costs $1.89 and
produces 12 ounces of
cooked rice; a 32-ounce
bag of grain rice costs
$1.39—50 cents less—
and yields about 90
to 100 ounces once
cooked.
 M O N E Y. C O M AUGUST 2018
BAS K E T: H E N R I K 5 0 0 0 — G E T T Y I M AG ES ; C U P : P OST E R I O R I — G E T T Y I M AG ES ; P R E T Z E LS A N D D I A P E RS : K E I T H H O M A N —A L A M Y; R I C E : A RT I ST E E R — G E T T Y I M AG ES ; F RU I T: A N N E ST E P H E N SO N — G E T T Y I M AG ES ; C H I C K E N : M I C H A E L N E E LO N —A L A M Y

(-%4)67
New parents go
through as many as
10 diapers in a day, and
Heiss says they’re
almost always cheaper
on Amazon than at
grocery stores, espe-
cially if you order during
the website’s monthly
sales, when diapers are
ofered for just 9¢ or
10¢ each.
Without the sale,
the price diference is
smaller, but Amazon
still comes out ahead:
A pack of 54 size 1
diapers is $11.99 at
Amazon (about 22¢ per
diaper), while the
35-count pack for the
same size diaper sells
for $8.99 at Kroger
(26¢).

'33/)(',-'/)2
At the Kroger in Mount
Pleasant, you can find a
8LMRKW=SY
12-ounce bag of Tyson
Oven Roasted Chicken
Breast for $5.49, or
about 46¢ per ounce.
But a whole pound of
raw Heritage Farm
chicken breast goes
for $1.99, or 12¢ per
ounce—about a 75%
discount. Buy your
poultry raw, and invest
45 minutes in roasting
it yourself, Heiss says.
A little extra convenience can really cost you.

BY A L L A N A A K H TA R ,397);%6)7
Grocery stores ofer
plates and other
ALWAYS IN SEARCH of higher profits, supermarkets have been serving pieces to tempt
wooing customers with products that save time but aren’t you into impulse buys.
necessarily great bargains—like prepared food you could “Just wait,” Martin
advises. “Go to a store
easily have cooked yourself and home goods that usually sell that specializes in
for less at other stores. housewares.” Such
We asked budget-minded bloggers to identify which products are almost
always better of
supermarket oferings are most likely to drain your wallet, bought at an Ikea or a
then ran the numbers ourselves. (To prevent having results HomeGoods, she says,
skewed by the high prices in New York City, where most adding: “Please, please,
please, do not get them
MONEY stafers live, we used prices from a Kroger in from your grocery
Mount Pleasant, Mich.) Here are the items to avoid. store.”
 Active Matters:
Life isn’t a passive
activity. Investing
shouldn’t be either.
Whether it’s navigating your career, raising kids, or planning for retirement, being actively involved
matters in achieving better results.

When it comes to managing our funds, we share the same active philosophy. Our investment
teams seek to navigate down markets, find opportunities, and manage risk so you can stay on track
toward reaching your goals.

100% of T. Rowe Price Retirement Funds beat their 10-year Lipper average as of 3/31/18.*
Put our active investment approach to work for you today.
Call our investment specialists at 877-872-5475 or go to troweprice.com/activematters

Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus
or, if available, a summary prospectus containing this and other information, call us. Read it carefully.
*36 of our 39 Retirement Funds (Investor, Advisor, and R class) had a 10 -year track record as of 3/31/18 (includes
all share classes). 36 of these 36 funds beat their Lipper average for the 10 -year period. 39 of 39, 39 of 39, and 35
of 36 of the Retirement Funds outper formed their Lipper average for the 1-, 3 -, and 5 -year periods ended 3/31/18,
respectively. Calculations are based on cumulative total return. Not all funds outper formed for all periods. (Source
for data: Lipper Inc.)
Past performance cannot guarantee future results. All funds are subject to market risk, including possible loss of principal.

T. Rowe Price Investment Services, Inc., Distributor.

;SVO 7EFMR0SQEG
PIJX ERH.MQ
8WIPMOMWSJ
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0SFWXIVƙWLMRK
SJJXLI4SVXPERH
GSEWX

,S[8[S ANYONE WHO SAYS you can’t turn your

food passion into big money hasn’t met

'SYWMRW8SSOE
Sabin Lomac and Jim Tselikis. Raised in
Maine, the cousins channeled their love of the
state’s local lobster into Cousins Maine

0SZISJ0SFWXIV Lobster, a food truck they started in Los

Angeles that has since blown up across the U.S.

XS1MPPMSR
and beyond—and is now earning them eight-
figure revenues.
It wasn’t quite as simple as it may seem,

MR7M\=IEVW
though. Lomac, 37, and Tselikis, 33, put up
quite a bit of their own money and risked a lot
J O C E LY N G A B R I E L

to make their dreams happen. They also had to

learn a lot along the way, as they detail in their
Hint: with cocktails and a leap of faith. new book, Cousins Maine Lobster: How One Food
BY PAU L S C H R O DT Truck Became a Multimillion-Dollar Business.

 M O N E Y. C O M AUGUST 2018


AN INTOXICATING IDEA
Cousins Maine Lobster started
with modest ambitions. In 2011,
Tselikis visited Lomac in Los
Angeles, and one night during an
alcohol-fueled sushi dinner on
Sunset Boulevard, they bonded
over their shared fondness for the
food they grew up on in Maine.
“The point that resonated was
our loyalty, love, and devotion
to our family. And the one thing
that was always there for the
family times was the lobster,”
Tselikis says. “We were like, ‘Why
don’t we bring this lobster out to
L.A.?’ The best ideas come when
you’re intoxicated.”
They sketched out a business
plan and decided on a food truck,
a type of business increasingly
popular in the area at the time,
with both investing $20,000 of
their own money. They had each
saved substantially from their
regular jobs—Tselikis was in
management while Lomac worked
in real estate—and had faith in
their idea. Over the next year,
they worked with Maine lobster
C O US I N S M A I N E LO B ST E R
purveyors to ship the shellfish out
to California.
The upside became clear as
soon as customers began eating.
“There were 80 people in line
raving about the product,”
Tselikis says. According to figures
provided by Cousins Maine, that
truck earned $890,824 in gross
sales during 2012, its first year.
Five years later, the company
brought in more than $20 million.
“In hindsight, we realized how
beautiful and special [Maine
lobster] was,” Lomac says of the
concept. “You could get it only at
fine-dining restaurants [around
L.A.] for $80 as surf and turf.” In
the early days, Cousins Maine
Lobster sold mostly lobster rolls,
but it now ofers many fast-casual
twists on the crustacean, such as
alongside Tater Tot–style
potatoes with pico de gallo and a
cilantro lime sauce, which is going
“gangbusters,” according to
Lomac. They were also helped by
an infusion of cash thanks to an
appearance on Shark Tank and an
investment from longtime Shark
Barbara Corcoran.
THE FRANCHISE LIFE
In addition to multiple food
trucks in Los Angeles and a
restaurant in West Hollywood,
Lomac and Tselikis have fran-
chised their business, which
includes locations in North
Carolina, Texas, and even Taiwan.
They have more restaurants in
the works too.
AUGUST 2018
*SSHMIWƚSGOXSE
'SYWMRW1EMRI
0SFWXIVXVYGOMR0%ŞW
'IRXYV]'MX]
They started franchising in
2015 and say that was when sales
suddenly ballooned, going from
$2.6 million the year before to
more than $11 million. That huge
jump was owing to the success of
peripheral trucks launched across
the country that year.
But while it was the clearest
route to making more money, that
pivot wasn’t without diiculties. “It
takes so long to really, truly
understand how to manage [a
franchise operation],” Tselikis says.
“How do you protect your brand
and hold up your reputation?”
The cousins carefully vetted
franchisees and trained them in
order to ensure that their product,
which is shipped already cooked
from Maine before being prepared
in dishes at a truck or restaurant,
would meet their standards
wherever it went. “One thing we
learned about growing a business
is that none of this stuf is an
overnight success. It’s not a quick
cash grab,” Tselikis adds.
DON’T BE AFRAID TO “DARE”
The biggest hurdle in launching the
business, according to Lomac, was
a psychological one. “You have to
be fearless. Believe in what you’re
doing, trust your gut, and kinda go
against the grain,” he says.
That’s why, he says, they
kept their ambitions under wraps
initially and needed to be daring
if this idea was ever going to
survive. “The only time our
business has not gone up in
trajectory is when we were
cautious or timid,” he says.
M O N E Y. C O M

;SVO GENDER PAY

%,MHHIR&SRYW
two major international surveys.
The researchers dug through

JSV;SVOMRK1SQW
family and career data on more
than 100,000 men and women and
concluded that children of
working mothers do tend to lead
diferent lives than those with
New research shows that daughters raised by mothers stay-at-home moms. But diferent
with careers earn more and have better jobs. doesn’t mean bad.
BY K R I ST E N BA H L E R Women who grew up with
working mothers are more likely
to have careers themselves than
those with stay-at-home moms
and are also more likely to have
better, higher-paying jobs, the
researchers found. According to a
2015 study from the same team,

B A B Y: J AV I E R S Á N C H E Z— G E T T Y I M A G E S ; C H A I R : P H O N L A M A I P H OT O — G E T T Y I M A G E S ; W O M A N : P I O T R M A R C I N S K I / E Y E E M — G E T T Y I M A G E S
daughters of working mothers in
the U.S. make about 23% more
than daughters of stay-at-home
mothers. And across the 25
developed countries represented
in that survey, 21% of women
whose mothers had worked got
supervisor jobs, compared with
18% of women who had stay-at-
home mothers.
“There’s a lot of talk about
why women work,” says Kathleen
McGinn, the study’s author and
a professor at Harvard Business
School. “A lot of those questions
presume that somehow, it’s
detrimental to their families.
That’s a whole bunch of ‘mother
guilt’ based on almost no
findings.”
EVERY DAY, MORE THAN 25 MILLION moms commute, clock in, and climb This doesn’t mean stay-at-home
career ladders across the country. And that number is growing. moms are damaging their chil-
At the same time, a full third of Americans believe the “ideal situa- dren’s futures. McGinn stresses
tion” for young children is one in which their mother doesn’t work at all, there isn’t one “right” way to raise
according to a 2015 Pew Research Center report. Only 4% say the same a child, and neither option is
of fathers. inherently detrimental. But as
Yet according to a growing body of research, working mothers have an more moms keep working—some
overwhelmingly positive influence on their children, with an emphasis on wrestling with the guilt of leaving
daughters in particular. their child in the care of others—
In a study published in the journal Work, Employment and Society in this new research is a tiny fist
April, a team of workplace experts laid out a trove of data drawn from bump for those in the struggle.

 M O N E Y. C O M AUGUST 2018 PHOTO ILLUSTRATION BY SARINA FINKELSTEIN

No matter your financial fingerprint, we’ll help manage
your investments in the way that’s right for you.
At TD Ameritrade Investment Management, it all starts with getting to know you and your investing style.
From an automated online approach to working with a dedicated Financial Consultant, we’ll give you the
kind of support you want to help you invest for what matters most.

Get started at tdameritrade.com/portfolios

Call 800-870-9668, or visit one of over 360 branches nationwide

Advisory services are provided by TD Ameritrade Investment Management, LLC, a registered investment advisor. All investments involve
risk, including risk of loss. TD Ameritrade, Inc., member FINRA/SIPC. © 2018 TD Ameritrade.
;SVO CAREER ADVICE

Microsoft Oice suite” as a

stand-in for, you know, actual
skills is using “Microsoft Word”
instead.
You wrote your résumé using
word processing software, right?
It stands to reason that you have
a baseline knowledge of the most
popular brand out there.
“Listing Microsoft Word as
a skill should be removed from
every résumé,” says Andrew
Selepak, a communications expert
and professor at the University of
Florida. “You wouldn’t list the
ability to type in a résumé that
you typed. If you shook hands
with someone during a job
interview, you wouldn’t tell them
one of your biggest skills is the
ability to shake hands.”

(IPIXI8LMW*VSQ
But there is an exception to
this rule: if you’re sending a
résumé in response to an ad that

 SYV 6¬WYQ¬ 2S[

=
specifically seeks Microsoft Oice
skills. That’s because applicant
tracking systems, the software
companies use to sort online
This simple modification will do wonders for your applications, are programmed to
chances of landing that next gig. BY K R I ST E N BA H L E R scan résumés for keywords
related to the job posting.
But keep in mind that employ-
ASK A ROOMFUL of hiring managers which résumé ers’ software isn’t smart enough to
cliché is most likely to make their eyes roll, and understand that Microsoft Oice
they’ll probably all give you the same line: includes Excel, Word, and
“Proficient in the Microsoft Office suite.” PowerPoint. “If the job posting
This string of seemingly innocuous words sank its lists the specific programs, your
teeth into the job seeker’s lexicon years ago and résumé should list each program
remains a résumé staple to this day—for no good too, so you can match those
reason. It’s a “skill” shared by everyone with an oice keywords,” says professional
job and could signal to employers that you actually résumé writer Kelly Donovan.
don’t have any skills at all. It might even throw you out In other words, “think, What
of the running. skill will be useful for the position?”
A N D R E Y P O P O V— G E T T Y I M A G E S

“If a client told me she was going to write ‘profi-
cient in MS Oice suite’ on her résumé, I’d ask her,
‘Why stop there? Can you also use a knife and fork?’ ”
says career consultant Carlota Zimmerman.
The only thing worse than using “proficient in
says Ben Guez, founder of digital
marketing agency Laxir. “I don’t
really [care] if you were great [at]
PowerPoint in school. It won’t
bring value to the company.”

 M O N E Y. C O M AUGUST 2018

You can wish for
retirement.

Or you can plan

for retirement.

Let’s get started. Call 1-866-954-4321, or visit mutualofamerica.com

Mutual of America® and Mutual of America Your Retirement Company® are registered service marks of Mutual of America Life Insurance Company,
a registered Broker/Dealer. 320 Park Avenue, New York, NY 10022-6839.
;SVO SPECIAL REPORT
BEST BANKS
BE 3
1-0-8%6=
8LIWI%VIXLI
&IWX&EROW
JSV7IVZMGI
1IQFIVW
ERH:IXIVERW
Many banks and credit unions claim to
ofer perks, but only a few stand out.
BY K A I T L I N M U L H E R E
comes with
A LIFE IN UNIFORM
plenty of challenges. Picking a
bank shouldn’t be one of them.
While it’s not hard to find
accounts designed for service
members and veterans that boast
attractive terms and conditions, in
reality many of these aren’t any
better than the best accounts
available to the general public.
How can you pinpoint the ones
that are? MONEY’s got your six: We
assessed the country’s largest banks
and credit unions to find which
accounts really ofer the best deals
for members of the military.
When naming any top bank,
MONEY prioritizes accounts with
the lowest fees and highest interest
rates. But for active-duty service
members who are frequently
relocating, we put a special focus on
 M O N E Y. C O M AUGUST 2018
free ATM withdrawals as well as
online and mobile banking features.
“I may need to access my account
from home or work or Alaska or the
Middle East,” says the writer behind
the Military Dollar blog. (She
declined to have her name printed
here because she’s on active duty.)
For veterans, we shifted the
emphasis to banks that ofer a
variety of low-fee accounts with
competitive interest rates to help
meet longer-term financial goals.
Banks with a history of serving
military families ofer other perks
too. For one, they understand the
unique aspects of military life, says
Lacey Langford, a veteran and
financial counselor in Summerfield,
N.C., who works with military
families. If, for example, you call a
military-friendly bank to say you’re
prepping for a “PCS” (a permanent
move for a reassignment), its staf
can walk you through your financial
to-do list, from notifying your
landlord to adjusting monthly bills
set on autopay.
As always, you should compare
national options with what’s
available locally. A handful of
MONEY’s 2017 Best Bank in Every
State winners, for example, are open
to military members or have special
accounts for them, including Tinker
Federal Credit Union in Oklahoma,
Synovus Bank in the Southeast, and
WesBanco in Appalachian states.
When national scores were
tallied, our two winners—USAA
Federal Savings Bank and Navy
G E T T Y I M AG ES
Federal Credit Union—were head
and shoulders above the rest. Here’s
what each has to ofer.
 THE WINNERS
app—helped it clinch
this category: Active-
duty soldiers are fre-
&IWXJSV quently relocating and
%GXMZI(YX] need to be able to ac-
1MPMXEV] cess their money from
1IQFIVW anywhere. Plus, while ri-
97%% val Navy Federal ofers a
strong Active Duty
Checking account,
WHY IT WINS:
USAA’s basic checking
A predominantly online
account has a slightly
bank, USAA has been an
more generous ATM pol-
industry leader in bring-
icy, waiving fees for
ing new web and mobile
some out-of-network
banking features to its
withdrawals and refund-
customers. Three years
ing up to $15 a month in
ago, for example, USAA
ATM-owner fees.
was the first major U.S.
bank to allow all cus- CAVEAT:
tomers to sign into its That ATM policy works
app using biometric best for service mem-
identification. (Finger- bers stationed domes-
owner fees. USAA says
it can’t guarantee re-
funds on foreign ATM
fees because of the way
the transaction is
processed.
B RAN CHES : Four
KEY TERMS
CLASSIC CHECKING
Monthly service fee: $0
Interest: 0.01% on
balances over $1,000
Out-of-network ATM
fee: 10 free a month,
then $2. Also refunds
$15 of fees charged by
the ATM owner.
union also stands out
for its strong rates:
Its free savings ac-
count interest rate is
0.25%—nearly double
the average for the
accounts MONEY
reviewed. And the one-
year certificate of
deposit pays 1.76% on
balances as low as
$1,000—on par with
the most competitive
online bank oferings.
Plus, Navy Federal has
nearly 300 branches
for members who’d like
face-to-face service for
longer-term financial
products, such as a
mortgage.
CAVE AT:

prints or facial or vocal
recognition are more
secure than a pass-
word.) USAA’s strong
reputation for online
service—plus outstand-
ing user reviews of its
8;31-0-8%6=&%2/43;)6,397)7,)%(83,)%(
USAA
Interest on checking accounts 0.01%
Nonsufficient funds fee $29
Out-of-network ATM fees 10 free, then $2
ATM surcharge refunds $15
Savings account fee $0
Interest on savings accounts 0.09%–0.20%
One-year CD APY 0.71%
12-month personal loan Starting APR: 8.99%
Average app scores 4.3
NOTES: Interest rates show a range based on all the accounts offered at USAA or Navy Federal. ATM surcharges are
applied by the ATM owner on top of your bank fees. App scores are based on iTunes and Google Play reviews.
tically. When account The credit union has a
very low ATM fee ($1),
holders withdraw mon- &IWXJSV
ey at an international :IXIVERW but it still charges you
ATM, they’re charged a 2EZ] each time you with-
1% transaction fee, *IHIVEP draw at an out-of-
plus the standard out- 'VIHMX9RMSR network ATM.
of-network and ATM- B RAN CHES : 288,
including 78 on
WHY IT WINS: military bases
Navy Federal ofers a
strong mix of accounts KEY TERMS
NAVY FEDERAL WINNER to meet a range of fi-
FLAGSHIP CHECKING
0.05%–0.35% Navy nancial priorities once
you leave the military. Monthly service fee:
$29 Tie
If you need a basic $10, waived with a
$1 USAA checking account, the $1,500 average daily
$0–$20 USAA no-frills Free EveryDay balance
Checking will work
$0 Tie Interest: 0.35% on any
nicely. For service
balance
0.25% Navy members and veterans
1.76% Navy who carry larger bal- Out-of-network ATM
ances, consider the fee: $1. Also refunds up
Starting APR: 7.99% Navy
Flagship Checking ac- to $10 of ATM owners’
4 USAA count, which pays in- charges if you set up a
terest and ofers some regular direct deposit
ATM rebates. The credit into the account.

MONEY reviewed its universe of the country’s 90 largest brick-and-mortar banks and 50 largest credit unions, as identified by bank consultancy firm
Novantas, and considered any banks that offer accounts reserved for military members. We also reviewed a handful of smaller credit unions open to
military members. This gave us a universe of 21 financial institutions, including nine national banks and 12 credit unions that serve military members.
Bankrate.com, MONEY’s partner for its bank ratings, helped collect data on fees, interest rates, and account requirements in July and August 2017.
MONEY independently fact-checked all account information in May 2018. Winners were chosen based primarily on lower monthly and ATM fees,
higher interest rates, and strong mobile app ratings in the iTunes and Google Play stores. —Additional reporting by Megan Leonhardt

AUGUST 2018 M O N E Y. C O M

 CERTAIN.
401(K)

Retirement Income Planning

Retirement planning isn’t just about saving. It’s about making sure those savings can be turned into
the income you’ll need to live the life you’ve always envisioned. At Fidelity, we’ll help you create:

• A guaranteed* income stream protected from changes in the market

• Investment growth potential to help with rising costs
• A balanced plan that’s flexible enough to change when needed

To learn more, go to Fidelity.com/diversifiedplan or call us

at 866.468.5523 to talk about your retirement income needs today.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
*Guarantees are subject to the claims-paying ability of the issuing insurance company.
Fidelity Brokerage Services LLC, Member NYSE, SIPC. © 2016 FMR LLC. All rights reserved.
775226.3.0
 -RZIWX

8LI8VYXL
ON AUG. 22, the bull market that sprang
to life on March 9, 2009—in the

&ILMRHXLI
aftermath of the global financial panic—will
turn 3,453 days old. At that point, this bull
will become the longest rally ever, surpass-

3PHIWX&YPP
ing the stock market’s epic run from Oct. 11,
1990, to March 24, 2000.

1EVOIXMR,MWXSV]
The rally that began in March 2009 is on the
verge of becoming the longest ever. But are
you sure about that? BY PAU L J . L I M
But there’s a huge if built into that
assumption. The bull is sure to reach this
milestone “only if we hit a new all-time high”
between now and then, notes Sam Stovall,
chief investment strategist at CFRA.
You see, on Jan. 26, the S&P 500 rose to a
record level of 2,872.87. Since then, stocks
have fallen more than 5%. If the market
doesn’t make it back to its former peak, then
it’s entirely possible that this bull market
could have died at the beginning of this year.
We just may not realize it yet.

ILLUSTRATION BY DAN PAGE AUGUST 2018 M O N E Y. C O M


-RZIWX THE LONGEST BULL
Call it a foible of Wall Street.
Sometimes you don’t know what
type of market you’re in until you
look at it in retrospect. “You have
to put the celebration on hold until
we find out later if the bull is in
fact still alive,” says James Stack,
president of InvesTech Research.
“If we go down 20% from that
January high, then January was
the end of the bull.”
Something similar occurred
after the bursting of the dotcom
bubble on March 24, 2000. When
stocks began to fall after hitting
what was then a record high,
investors initially thought it was a
momentary lull in the rally. Some
called it a buying opportunity.
Investors didn’t realize that the
bull had actually died until nearly
a year later, on March 12, 2001,
when the S&P 500 lost more than
20% of its value from that March
2000 peak.
Do market watchers think
we’re in the same boat? Most
don’t. “I totally believe that this
bull market is still intact,” says
Henry Smith, co–chief investment
oicer for the Haverford Trust Co.
Of course, history says we may
have to reserve judgment for at
least a few more months.
INSTEAD OF THE OLDEST RALLY,
COULD THIS BE A BABY BULL?
To recap: This bull market is
either about to turn 9½ years old,
or it died several months ago.
Actually, there’s a third option.
There are those who believe
that the bull market may actually
be a lot younger than people give it
credit for. And because of its
relative youth, the bull may have
many more years to roam.
It all comes down to how you
 M O N E Y. C O M
define bull and bear markets. The Feb. 11, 2016, shares of small U.S.
most commonly accepted marker companies fell more than 26%.
of a bull and a bear is a 20% rise or And between May 21, 2015, and
fall in the broad market. And since Feb. 11, 2016, the broad U.S.
the S&P 500 hasn’t fallen by more market lost more than a quarter of
than 20% since this rally began in its value, if you measure it with the
early 2009, conventional wisdom Value Line Geometric Index.
says the bull is alive and well. This helps explain why Ned
But does it have to be the S&P Davis Research, a respected
500? Between June 23, 2015, and market research firm, believes a
bear market actually occurred in
late 2015. And in turn, Ned Davis
believes the current bull was born
The Oldest Bull? in February 2016, making this rally
less than 2½ years old.
The stock market rally that began on
Meanwhile, there are others
March 9, 2009, could become the oldest
on record in August. who believe this bull actually
sprang to life in 2011, after a bear
BULL MARKET’S AGE IN DAYS that spanned from May to October
2011. Purists disagree, since the
2009–present* S&P 500 fell only 19.9% during
3,453 days that stretch, just shy of the oicial
2002–07 20% marker. However, that’s based
1,862 on the S&P 500’s closing values,
not its peaks and troughs through-
1990–2000 out the middle of each trading day.
3,452 If you look at midday prices, the
1987–90 market actually fell around 22%
955 in 2011.
1982–87
Stack isn’t convinced. “To be
truly objective, you have to draw a
1,839
line someplace,” he says. Stack
1974–80 believes that to be consistent, you
2,248 have to measure these markets
1970–73 using day-end prices.
961
YOU WON’T BELIEVE WHAT THE
1966–68
BEST-PERFORMING STOCKS ARE
784
If you read the headlines, you’d
1962–66 assume that the best-performing
1,323 stocks in this record bull have
1957–61 been tech. And not just any tech
1,512 shares—the so-called FAANG
stocks, which stands for Facebook,
1949–56
Amazon, Apple, Netflix, and
2,607
Google-parent Alphabet.
1942–46 Yes, those stocks have been on
1,492 a tear. But only one of the FAANG
* Assumes bull market in S&P 500 survives until Aug. 22, 2018. Based on S&P 500 level on June 18. SOURCE: Standard & Poor’s
stocks is among the top 20–
performing stocks since this bull
started on March 9, 2009, accord-
ing to Morningstar.
At the top of the list: Patrick
Industries (PATK), a small company
that manufactures furniture,
shelving, and paneling used in
homes and recreational vehicles.
It’s certainly not as sexy as
artificial intelligence or streaming
media, but the stock is up a
staggering 39,800% so far in
this bull market.
Many of the other top-
performing stocks in this bull are
just as boring: MGP Ingredients
(MGPI)—a distiller that also supplies
ingredients used by other compa-
nies to make distilled spirits—has
seen its stock rise 17,500%. Sleep
Number Corp. (SNBR) sells specialized,
adjustable beds to consumers;
you’ve probably seen the com-
pany’s infomercials. The stock is
up 14,800% since March 2009,
which is around double the gains
for Netflix.
Then there’s the rental car
company Avis Budget Group (CAR). In
the age of Uber and Lyft, you’d
think Avis would be left behind.
But the rental-car giant is riding
the coattails of autonomous
vehicles by partnering with
Alphabet to support the tech
giant’s fleet of driverless cars. The
stock is up 10,500% in this bull.
HISTORY IS REPEATING ITSELF, SO
DON’T MAKE THE SAME MISTAKES
The phrase “This time, it’s
diferent” was the undoing of
millions of investors who got
suckered into making big bets on
speculative Internet stocks in the
late 1990s, only to see the dotcom
bubble burst in 2000. Yet if you
4988,)')0)&6%8-3232,30(
928-0;)*-2(3980%8)6-*8,)
&900-7-2*%'878-00%0-:)š
—JAMES STACK, PRESIDENT OF INVESTECH RESEARCH
listen to most market watchers
now, they’ll tell you that this bull
market is nothing like the record-
breaking ’90s bull.
Are you sure about that? Like
that bull, this one emerged after a
major financial crisis—the
savings-and-loan crisis in the late
1980s and the global financial
panic in 2007–08. And like that
bull, this one was led by tech. In
the late ’90s, investors were
fixated on just four stocks—the
four horsemen of tech: Microsoft,
Intel, Cisco Systems, and Dell.
Today, Wall Street’s focus is on
just five names—the FAANGs.
Throughout the ’90s bull,
investors overlooked the fact that
stock market valuations were at
record highs because they thought
faster-than-historic economic
growth justified high price/
earnings ratios for stocks. Today,
the P/E for the S&P 500, based on
10 years of averaged profits, is back
to historically high levels—32.1, or
double the historical average.
Don’t make the same mistake.
The bear market of 2000 didn’t
just end the historic ’90s bull; it
marked a turning point in the type
of stocks that the markets favored.
Out were highflying, expensive
“growth” stocks in rapidly expand-
ing industries. In were underap-
preciated or beaten down “value”
stocks, the bargain-priced shares
AUGUST 2018
of boring companies that often get
overlooked. Well, fast-forward to
today: “After the longest run of
outperformance of growth stocks
ever, we think value may be poised
for a comeback,” notes John Lynch,
chief investment strategist for LPL
Financial. On our MONEY 50 list of
recommended ETFs, you can find
such stocks in Vanguard Value ETF (VTV)
or Invesco FTSE RAFI U.S. 1000 ETF (PRF).
HOLD STOCKS FOR THE LONG RUN
Even as stock prices have re-
turned to near record highs, faith
in equities hasn’t. Between 2001
and 2008, 62% of U.S. adults
owned stocks directly or through a
fund or in their retirement
accounts, according to Gallup. But
today, only 54% of adults do so.
After a “lost decade” in which
stock values went pretty much
nowhere from 2000 to 2012, it’s
not surprising that investors are
wary. But with interest rates and
inflation on the rise, it’s risky to be
making big bets on bonds.
Okay, but isn’t a bear market in
stocks a risk? Sure. But recent
history has shown that if you’re
willing to hold stocks for the long
run—we mean decades—you’ll
overcome short-term drops.
Thanks to this bull, for instance,
stocks have gained 9.2% annually
for the past 15 years—erasing the
efects of that lost decade.
M O N E Y. C O M

-RZIWX THE FOUR-COMMA CLUB
-W%TTPI6IEPP]
XLI *MVWX  8VMPPMSR
'SQTER]#
Here are five that did it earlier. BY RYA N D E R O USS E AU
APPLE’S STATUS AS A CULTURAL ICON is about to
reach a new level. Trading at around $190 a
share, Apple is on the verge of becoming a $1 trillion
company, based on the total value of its stock.
But would this be a first, as the headlines make it out
to be? If you look at just U.S. companies now, it may seem
that way. In the S&P 500, Apple sits atop the list with
a $900 billion market value, followed by Amazon and
Google-parent Alphabet, each at around $800 billion.
But when you search globally and historically, you’ll
find plenty of examples of dominant corporations
that actually dwarf Apple’s market size—after you
inflation-adjust their value to today’s dollars. Once you
do that, several dominant companies have already
made it into the four-comma club.
 M O N E Y. C O M AUGUST 2018
HISTORY’S BIGGEST COMPANIES
DUTCH EAST INDIA CO.
Industry: Trade
Value in today’s dollars: $8.2 trillion
The Dutch East India Co. is often
called the world’s first multi-
national. At the end of the 16th cen-
tury, Dutch ships began to sail to
South and East Asia to bring spices
and other luxury items back to
Europe. Demand for—and profits
from—such goods was so strong
that Dutch shippers joined forces
to create the United East India Co.
(or outside the Netherlands, the
Dutch East India Co.).
Much of the company’s wealth
derived from the monopoly it was
granted by the Dutch government
for all trade in Asia. And com-
pounding those profits was the
boom in the trade of tulip bulbs,
whose prices soared in the 1630s.
“Tulip mania” is not only consid-
ered history’s first true financial
bubble, it is also regarded as one of
the biggest bubbles ever—ranking
with the dotcom craze in the 1990s
and real estate in the mid-2000s.
With full control of trade in
Asia and the tulip bubble, which
ended in a disastrous crash, the
company’s value reached 78 mil-
)QTPS]IIWLIPT lion Dutch guilders in the early
GYWXSQIVWEXXLI 1600s, according to an analysis
%TTPI7XSVIMRXLI
;MPPMEQWFYVK published in the Motley Fool.
WIGXMSRSJ&VSSOP]R That’s roughly $8.2 trillion today.
SR1E]
M A R K K AUZ L A R I C H — B LO O M B E RG V I A G E T T Y I M AG ES
SOUTH SEA CO.
Industry: Trade
Value in today’s dollars: $4 trillion
The South Sea Co. positioned
itself as a British version of the
Dutch East India Co. in the 1700s.
But instead of contributing to a
bubble (in the trade of tulip bulbs),
South Sea was itself the bubble.
Dubbed by modern analysts as
A BOND
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YOU’RE NOT Potential Safety of Principal
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FAMILIAR defaults. This is important because many investors, particularly those
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WITH FROM 10-year default rate of just 0.09% between 1970 and 2015.* That means
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A COMPANY Potential Regular Predictable Income

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YOU’VE get your principal back before the maturity date, subsequent municipal
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According to Moody’s 2016 research,* default rates are historically low for
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© 2018 Hennion & Walsh, Inc. Securities offered through Hennion & Walsh Inc. Member of FINRA, SIPC. Investing in bonds
involves risk including possible loss of principal. Income may be subject to state, local or federal alternative minimum tax. When
interest rates rise, bond prices fall, and when interest rates fall, bond prices rise. *Source: Moody’s Investor Service, May 31, 2016
“US Municipal Bond Defaults and Recoveries, 1970–2015. Past performance is not a guarantee of future results.
-RZIWX THE FOUR-COMMA CLUB

What Could Have Been… PetroChina shares have since

lost over $800 billion in market
Apple is on the verge of becoming a $1 trillion company. Had you invested in its stock at value, which is more than the
key moments in the tech giant’s history, this is how much your money would have earned: entire value of Microsoft.

What a $10,000 bet on Apple then is worth now … SAUDI ARAMCO

Industry: Oil production
$114,3OO Value in today’s dollars: $1.5 trillion
$21,3OO $36,9OO Even if you focus just on today’s
$2.5 $3.8
million million most valuable companies, Apple
still can’t claim to be the biggest in
the world. That distinction goes to
Saudi Aramco, the state-owned oil
company of Saudi Arabia.
The company was built on
the oil holdings of one of the
May 16, Aug. 24, June 29, Sept. 16, 1997 Jan. 1, 1984
2016 2011 2007 highest-oil-producing nations in
Steve Jobs returns The first Macintosh
Warren Tim Cook The first to Apple. launches. the world. With a planned initial
Bufett becomes iPhone public ofering by early next year,
buys in. CEO. launches. SOURCES: Yahoo Finance, Nasdaq
Saudi Aramco is valued at
$1.5 trillion right now, making it
about 50% larger than Apple.

the “Enron of England,” the South
Sea Co. marketed itself as a
promising investment because it
enjoyed a trading monopoly with
Mexico and South American
nations. It was granted that
monopoly by the British govern-
ment in exchange for helping to
finance the government’s debt,
amid war with Spain.
Trouble is, Spain controlled
many of those South American
trading posts, and the Treaty of
Utrecht, which ended that war, left
Spain firmly in control of those
territories, rendering the South
Sea Co.’s “monopoly” meaningless.
That didn’t stop its leaders from
making false claims of trade riches,
which sent the stock soaring,
reaching a peak value in today’s
dollars of about $4 trillion. By the
time the fraud was discovered and
the bubble burst, company leaders
had sold their stakes.
PETROCHINA
Industry: Oil production
Value in today’s dollars: $1.7 trillion
In the early 2000s, as global
financial markets were beginning
to recover from the bursting of the
dotcom bubble, two things started
to surge—crude oil prices, which
went from around $20 a barrel in
2002 to more than $140 by 2008,
as well as the Chinese economy
and stock market.
Speculation in both drove
PetroChina, China’s largest oil and
gas company, beyond a $1 trillion
market value, eventually reaching
$1.7 trillion in today’s dollars. And
by the time PetroChina listed on
the Shanghai Stock Exchange in
2007, it surpassed Exxon Mobil as
the world’s most valuable company.
Of course, that was around the
time of the global financial crisis,
after which oil prices collapsed,
and Chinese stocks plunged.
M A C : H U LT O N A R C H I V E /G E T T Y I M A G E S ; J O B S : A P/ R E X / S H U T T E R S T O C K ; C O O K : B R E N D A N M C D E R M I D — R E U T E R S
STANDARD OIL
Industry: Oil production
Value in today’s dollars: $1 trillion
It wasn’t that long ago that Exxon
Mobil, and not Apple, was the
most valuable company in the
United States.
Yet what constitutes Exxon
Mobil today is just a small part of
what was a much larger energy
giant more than a century ago.
Before 1911, when the U.S. govern-
ment ordered its breakup, John D.
Rockefeller’s Standard Oil was the
largest company in the country.
To understand how large
Standard Oil was, imagine Exxon
Mobil, Chevron, parts of BP, and
Marathon Petroleum all in one
company. That’s essentially
Standard Oil before the Sherman
Antitrust Act forced the monopoly
to unwind. Estimates pinpoint a
$1 trillion market cap if Standard
Oil were reassembled today.

 M O N E Y. C O M AUGUST 2018

 Wednesdays at 4:00 PM ET
THE BIGGEST STORIES — EXPLAINED.

STREAMING LIVE ACROSS FOUR ICONIC SITES

24'5'06'&$;

©2018 Time Inc. FORTUNE, MONEY, TIME, and SPORTS ILLUSTRATED

are trademarks of Time Inc., registered in the U.S. and other countries.
6IXMVI
%7MQTPI
1SZI;MPP7EZI
8LMW'SYTPI
8LSYWERHW
Relocating to a lower-tax and lower-cost state
can make a lot of sense for retirees. BY S A R A H M A X
CLARK HURST DISCOVERED Clear Creek Tahoe, a
golf community near Lake Tahoe, a few years
ago when a friend invited him and his wife, Ellen, to
play the course for a day.
The Southern Californian parlayed that visit into
a temporary membership at the new Nevada golf
community. And then early last year, he and his wife
bought a lot where they eventually plan to build a
home, just across the street from the course. “Because
of the elevation and the backdrop, the ball gets a lot of
hang time,” says Hurst, 58. “It’s really dramatic.”
The same could be said for the potential tax
savings the couple can enjoy by relocating to Nevada
after they retire.
For Hurst, the allure of retiring to this golf commu-
nity goes beyond its stunning 18-hole golf course, easy
access to skiing and hiking, or its more than 850 acres
of permanently protected open space. While retire-
ment is still a ways of for the couple, Hurst figures
that moving from a high-tax state (California) to a
no-tax state (Nevada) could save them tens of thou-
sands a year just in taxes.
He should know. He’s a certified public accountant.
THE CASE FOR MOVING TO A LOW-TAX STATE
Sometimes the road to retirement means following
the road less traveled, even if that takes you across
 M O N E Y. C O M AUGUST 2018
state lines. The idea of moving
from California, where the top
state income tax rate is 13.3%, to
Nevada—where there is no state
income tax—was appealing even
before the passage of the Tax Cuts
and Jobs Act late last year.
That legislation is best known
for having slashed personal
income tax rates and boosted the
standard deduction to $24,000 for
married couples filing jointly.
But thanks to the law, taxpay-
ers now can deduct no more than
$10,000 of their combined state
and local income taxes, property
taxes, and sales taxes. That
means there’s even more incentive
for residents of high-tax states to
think about crossing state lines
in retirement.
To understand how the math
works, consider this extreme ex-
ample of a retiree with just under
$1 million in retirement income.
Staying in California would
cost this person more than
$108,000 a year in state income
taxes based on the 12.3% rate (the
additional one percentage point
to get to 13.3% kicks in after
$1 million).
Under the old tax rules, that
same person could deduct the full
amount of state income taxes paid
on his or her federal returns,
reducing the total tax burden by
about $50,000. Under the new
rules, most of that break goes away.
Most taxpayers are only
beginning to grapple with how the
'PEVOERH new tax laws will ultimately
)PPIR,YVWX impact them, both on the positive
SJc&EOIVWƙIPH
'EPMJTPERXS and on the negative side, says Paul
FYMPHXLIMV Jacobs, a certified financial
VIXMVIQIRX LSQI planner and enrolled agent with
MR'PIEV'VIIO
8ELSIRIEV Palisades Hudson Financial Group
'EVWSR'MX]2IZ in Atlanta.
 FINDING HOME

PHOTOGRAPH BY TIFFANY BROWN ANDERSON—REDUX

6IXMVI FINDING HOME
OTHER FACTORS TO CONSIDER
IN ADDITION TO TAXES
While the new tax law might ofer
an additional nudge for retirees or
soon-to-be retirees thinking about
relocating, it’s only part of the
equation.
Another aspect, obviously, is
the overall cost of living in each
location—everything from
housing costs to health care to
entertainment to travel expenses
for visiting friends and family (see
story at right).
“There can be several good
financial reasons for leaving a
high-tax state, but we view it as a
last resort for reducing taxes,”
says Jacobs.
Seven states don’t levy indi-
vidual income taxes: Alaska,
Florida, Nevada, South Dakota,
Texas, Washington, and Wyoming.
In addition, Tennessee taxes only
interest and investment income,
but it’s in the process of phasing
that out. And New Hampshire
limits personal income tax to
interest and dividend income.
Perhaps not by coincidence, six
of these states—Florida, Nevada,
South Dakota, Texas, Washington,
and Tennessee—routinely show
up in lists of the most popular
states for retirees who are
thinking of relocating, according
to recent surveys.
In some cases, the out-of-state
move needn’t be drastic.
For example, a retired couple
living in Portland, Ore., where the
top tax rate is 9.9%, could save
thousands of dollars a year by
relocating to Washington, on the
other side of the Columbia River.
Minnesotans can escape
high-single-digit rates by heading
west to South Dakota. And
 M O N E Y. C O M AUGUST 2018
Georgians can pocket savings
by moving south to Florida. ,S[0SRK
7EZMRKW
SJ  1MPPMSR
PAY CLOSE ATTENTION TO EACH
STATE’S TAX RULES
Retirees should pay attention
;MPP0EWX
MR)ZIV]7XEXI
to how each state taxes various
sources of retirement income.
Roughly a dozen states have
income taxes but ofer a break on BY SARAH MAX
retirement income, including from
pensions, Social Security, and IRA
distributions.
Meanwhile, you’ll want to make
sure you abide by individual state
tax rules related to cutting ties
and establishing new ones. “Some
states are pretty aggressive when
it comes to people claiming they
are no longer a resident but still
spending a lot of time in that
state,” says Jacobs, noting that
every state has its own guidelines
related to domicile.
Besides the usual red flags, such
as whether you change your
driver’s license, states may look at
how much time you spend there
and where you keep your most
valuable or sentimental posses-
sions. If you are spending a lot of
time in your old stomping ground,
says Jacobs, track your time.
Yes, relocating could ofer some
tax savings, but at the end of the THE HURSTS’ RETIREMENT
JOURNEY WILL TAKE THEM
day, the move should make sense
FROM CALIFORNIA …
for you personally. You didn’t
where $1 million lasts
spend your working life saving
only to spend your golden years in
a place that doesn’t appeal to you.
=)%67
That’s not a concern for the
Hursts, who know the Tahoe area
well. The main reason to buy the … TO NEVADA
property “was the golf and the where $1 million lasts
lifestyle,” Clark says.
=)%67
1328,7
But, he says, “if we can save
on taxes down the road, that’s
icing on the cake.”
LOCATION, LOCATION, LOCATION. It’s
the battle hymn for buying real estate
and, it turns out, a huge factor for retir-
ees looking to make their savings last.
How big? All things being equal,
$1 million in savings will last nearly
twice as long in “low-cost” states such
as Arkansas as it will in, say, Hawaii,
according to an analysis of state-by-
state retirement cost-of-living data by
HowMuch.net. This underscores just
how much the decision of where to retire
impacts the life of a nest egg.
HowMuch.net started by looking at
how much money someone 65 and older
actually spends each year, according to
the Bureau of Labor Statistics. The re-
searchers then adjusted that for cost-
of-living data tracked by the Council for
Community and Economic Research,
which factors in average costs for gro-
ceries, housing, utilities, transportation,
health care, and dozens of other items.
Finally, HowMuch.net looked at how
these costs impacted the life of a $1 mil-
lion nest egg. To keep things simple, re-
searchers assumed no changes in cost
of living over time and no investment
returns after retirement.
The state where your nest egg
goes the furthest: Mississippi. With
an average annual cost of living of just
over $39,000, a million-dollar nest
egg in the Magnolia State should last
25½ years. Arkansas came in second
at 25 years, followed by Tennessee,
Kansas, and Oklahoma—all being able
to sustain a $1 million nest egg for
nearly 24½ years.

136)8,%2
=)%67
Indiana Oklahoma
Alabama Kansas
Texas Tennessee
Georgia Arkansas
Michigan Mississippi
Missouri

ś=)%67
Washington Illinois
Nevada Arizona
Colorado Wyoming
Delaware West Virginia
Virginia Utah
Pennsylvania Louisiana
Montana North Carolina
Minnesota New Mexico
South Dakota Kentucky
North Dakota Ohio
South Carolina Iowa
Florida Nebraska
Wisconsin Idaho

0)778,%2
=)%67
Hawaii Maryland
Taxes aren’t the only reason that according to Zillow. Compare that with
D.C. New Jersey
Nevada—where Clark and Ellen Hurst $543,000 in California. Nevada also
plan to retire—is a lower-cost state ranked 36th lowest among all states California Rhode Island
than California, where the Hursts cur- in 2017 in terms of cost of living. While Oregon Vermont
rently live. The median price of homes not the cheapest state, it comes in New York Connecticut
listed in Nevada is around $273,000, well ahead of California, ranked 49th. Massachusetts New Hampshire
Alaska Maine


TIME ESTIMATES, CALCULATED BY HOWMUCH.NET, ARE BASED ON LOCAL COST OF LIVING.
WITHIN EACH GROUPING, THE FIRST STATE LISTED HAS THE SHORTEST LIFESPAN FOR $1 MILLION. AUGUST 2018 M O N E Y. C O M

3*
*
3 available, says Edgar
4EWWIRKIVW
FSEVH%QXVEOŞW
'EVHMREPPMRIEX
XLI4VMRGIWXEXMSR
MR;IWX:MVKMRME
8LI
WORD HAS IT that early-bird
specials are going the way
&IWX7IRMSV
of VHS tapes and flip phones.
But plenty of deals remain for
folks who were alive during the
(MWGSYRXW
Johnson administration.
When MONEY asked
readers of its Retire With
MR%QIVMGE Money newsletter to recom-
mend the best senior discounts
available today, the answers
flooded in. We’ve rounded up 10
Earmark these now, savvy choice ones that anyone over 55
readers say. BY E L I Z A B E T H O’ B R I E N (or, in some cases, 50) should
know about.
Keep in mind, though, that
the senior discount might not
 M O N E Y. C O M AUGUST 2018
6IXMVI
always be the best deal
Dworsky, founder and
editor of Consumer
World. “Treat it as one
possible option,” he says.
For those who want to
get their deals on the go,
the AARP Now mobile
app notifies you when
you’re in the vicinity of
any benefits and
discounts that you
program into the app.
Also check with your
local municipality to see
what kinds of discounts
might be available on
public transportation,
parking, property taxes,
and other expenses,
says Dworsky, who
takes advantage of
several such deals in his
city of Somerville, Mass.
AMTRAK
Travelers 65 and older can
get 10% off most rail fares
on most Amtrak trains.
Kathy Levine, 70, of Long
Beach, N.Y., uses the
discount frequently to visit
her daughter and
granddaughter 200 miles
away. “I prefer not to drive
the four hours it takes,”
says Levine. “The Amtrak
discount allows me to see
them more often.”
BRITISH AIRWAYS
AARP members 55 and over
are eligible to receive $65
off economy travel and
D O U G R I D D E L L— A M T R A K
$200 off business club
travel. Trips must be
booked by Jan. 31, 2019.
 Your full retirement picture.
In one place.

When you plan for retirement with Fidelity, you’ll have instant access to
all your retirement savings details and goals, including:

•  How much you may need in retirement

•  How much you’re on track to have
•  How retirement fits with all your other savings and investing goals
•  Steps you can take to help strengthen your plan 

It’s your retirement. Know where you stand.

800.FIDELITY | Fidelity.com

IMPORTANT: The projections or other information generated by the Planning & Guidance Center’s Retirement Analysis regarding the likelihood of various investment
outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Your results may vary with each use and over time.
Investing involves risk, including the risk of loss.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2017 FMR LLC. All rights reserved. 812684.1.0
6IXMVI LOOKING FORWARD
KOHL’S
Shoppers ages 60 and up
can receive 15% off every
Wednesday.
MARRIOTT
Travelers 62 and older
can save 15% or more on
their room rate at Marriott
brand hotels. While the rate
is subject to availability,
there’s no limit on the
number of nights you can
book. The deal applies to
the Marriott brand
worldwide.
NATIONAL PARKS
U.S. citizens or permanent
residents 62 and older
can access more than
84 million acres of land
protected by the National
Park Service for the rest of
now, says Dworsky of
Consumer World. Only the
primary account holder has
to be 55 or older.
UNO PIZZERIA & GRILL
Customers age 55-plus can
get deep discounts on
deep-dish pizza (and other
menu items) at this
restaurant chain. Eligible
customers can join the

3 *
*
Double Nickel Club on
the company’s website and
get a generous 30% off
their bill every Wednesday.
BLOOMIN’ BRANDS
AARP members receive
10% off meals every day at
Bloomin’ Brands restau-
rants, such as Bonefish
Grill, Outback Steakhouse,
and Carrabba’s Italian Grill.
WALGREENS
Shoppers 55 and older, plus
all AARP members, receive
20% off all eligible
purchases on the first
Tuesday of every month.
This is one of the more
generous retail deals
around, says Lindsay
Sakraida, director of
content marketing at
DealNews. “You can plan
around it,” she says.
ALAMO DRAFTHOUSE
Moviegoers who are
60 and older can view
weekday shows before
2 p.m. for only $6—less
than half the general
admission price of $13.75.
That special low pricing
applies all day on Wed-
their lives for $80. While this 'LMGOIR&V]EREFSZI
EX'EVVEFFEŞW-XEPMER+VMPP&IPS[%PEQS nesdays for the chain’s
isn’t quite the bargain it (VEJXLSYWI0EW'SPMREWERH:IXXIH;IPPFEVMR-VZMRK8I\EW Senior Day.
used to be—prices were
raised from just $10 last
year—it’s still better than

F R O M T O P : C O U R T E S Y O F C A R R A B B A’ S I TA L I A N G R I L L ; K AT H Y T R A N — A L A M O D R A F T H O U S E
the general $80 annual-pass
rate, says Warren Gress, 67, 320=
of Parker, Colo., who has 
visited Glacier National
Park, Yellowstone, Grand
Canyon, Bryce Canyon, and
Zion, among others. Plus,
Gress notes, the pass gets
you discounted site fees if
you’re staying in a federal
campground.

T-MOBILE
Customers 55 and up can
get two lines with unlimited
talk, text, and LTE data for
$35 per line with autopay.
This is the best cell
discount available right

 M O N E Y. C O M AUGUST 2018

8,)59))6 )=) +9-()
8,) *%& *-:) %6) 32 % 1-77-32 83 86%27*361 ):)6=(%= 4)340)

 M O N E Y. C O M AUGUST 2018 G R O O M I N G : S A M A N T H A F R Y L I N G /A R T D E PA R T M E N T A N D J U A N I TA LYO N S /C E L E S T I N E

 The Fab Five (from left):
Jonathan Van Ness, Antoni
Porowski, Karamo Brown,
Tan France, and Bobby Berk.

  83%6-',)60-*)
  ,)6)Ş7=3964)6732%040%=&33/&=/6-78)2&%,0)6

S T Y L I N G : M I C H A E L C I O F F O L E T T I /A R T D E PA R T M E N T PHOTOGRAPHS BY ART STREIBER

-8Ş70-/)%
1)8)36303+-'%0
):)28;,)28,)
'%783* 59))6)=) &SFF]&IVO
)28)67%6331 ()7-+2)<4)68

8,)%81374,)6)
',%2+)7
On each episode of the popular Netflix makeover
show, now in its second season, the “Fab Five”
torpedo into the life of a good-natured but delight- BE FRUGAL AND FUNCTIONAL
fully hapless Average Joe (or Jill) and begin to
unravel self-sabotaging ideas about how to eat, BOBBY BERK’S LOVE AFFAIR with afordable home design
dress, and live. By the end, a life is transformed, and started when he was about 18 years old, sparked by a
life-altering trip to Target.
everybody—everybody—is crying.
The retailer had teamed up with architect Michael
The Five’s uncompromising positivity, along with
Graves, who stocked Target’s housewares section with
the sheer joy they take in one another’s company, is
something extraordinary: conventional kitchen items that
intoxicating. Wherever they go, a frenzy of belly were as beautiful as they were practical.
laughs and bear hugs follows—it’s hard to avoid “It was teakettles, soup ladles, and spatulas that were

O N B O B B Y: R I N G J A C K E T O L I V E S P O R T C O AT, S U N S P E L ST R I P E D T- S H I R T, A P C D A R K R I N S E J E A N S , T O B O O T G R AY S L I P - O N S
getting sucked into the vortex. designed really cool,” Bobby recalls. “And I remember
Their job descriptions are simple enough—each walking into the aisles and for
is an expert in grooming, design, food, culture, or the first time in my life going,
fashion—but the philosophy they espouse is nothing TIP
‘Huh, the things in your life
that are functional can also
short of revolutionary. They don’t swoop into
;,%8Ş7
bring you joy.’ ”
someone’s life, hammer him or her with pep talks
On-screen, the 36-year-old
8,)
about interior design and eating healthy, and expect
is tasked with reviving spaces
it all to stick. Instead, they lay out a series of small
',)%4)78
that in the world of high design
steps, a sustainable chain of progress that contin- are rather unconventional (a
ues long after the cameras have stopped rolling.
The Queer Eye credo isn’t about flagrant spend-
;%=83 double-wide trailer, a college

6)*6)7,
student’s first apartment, a
ing either. Living your best life doesn’t mean tiny home with six tiny kids).
switching from olive to trule oil or using only
salon-grade hair products. It’s about the intan-
%6331# This isn’t unfamiliar territory.
Bobby was raised by working-
gibles: showing up for your family, creating lifelong class parents in Missouri, and
Š;LIRWSQISRI
friendships, feeling confident in your own skin, and [ERXWXSJVIWLIR interior design didn’t exactly
living comfortably within your means. YTXLIMVLSQIE top his own family’s list of
This, more than anything else, is Queer Eye’s FMXERHXLI]HSRŞX priorities.
[ERXXSWTIRHE At the beginning of his
secret sauce. The Fab Five’s guide to life is as
XSRSJQSRI] career, Bobby bounced
attainable to the home viewer as it is to the show’s
SRGSRWXVYGXMSR between retail and restaurant
own subjects—a ragtag group of Georgia locals who,
-EP[E]WXIPP jobs in the Midwest. In 2003 he
over the course of a week, become remarkably moved to New York City with
comfortable with five gay guys fussing with their XLIQXSWXEVX
SJJ[MXLTEMRX about $100 in his pocket, and
hair, rolling up their collars, and holding their freshly
%JVIWLGSEXGER just a few years later, he
manicured hands. It might call for some lifestyle
VIEPP]GLERKI launched Bobby Berk Home,
changes, but it’s feasible. On any budget. XLI[LSPIPSSO an online furniture brand.
Skeptical? We asked each of the guys to prove it. SJELSQIš Today, Bobby lives in Califor-
&SFF]WE]W

 M O N E Y. C O M AUGUST 2018


nia with his husband and runs an interior design firm. But
those penny-pinching days in New York made a lasting
impression.
“Living there for years with small spaces, all [my]
furniture needed to do double time,” he says. “It needed
to be seating, it needed to be storage, it needed to be this,
it needed to be that. So when I think about design, I think
about how things are going to work in a home and how
people are going to interact with it daily.”
On Queer Eye, Bobby is characteristically thrifty. His
home transformations, done in just a few days, create
living spaces that are modern but not stark. Snazzy decor
might look great in a Pottery Barn catalog, but that
doesn’t mean it will work for the average family (or the
THE QUEER EYE GUIDE TO A RICHER LIFE
average family budget). So when he refreshes a home,
Bobby weighs aesthetics and practicality with the same
tape measure.
“I want it to feel very personal, but it also needs to
function,” he says.
Often, he pairs quality, mid-range pieces from CB2 and
West Elm with inexpensive staples. And he loves a good
Ikea hack: On the new season of Queer Eye, he made a row
of Billy bookcases “look like $10,000” with a little crown
molding and some baseboards.
“I’m all about the highs and lows,” he says. “I’m not a
designer that thinks you need to spend a lot of money. You
can get the look you want between thrift stores and stores
like Ikea and Target.”

TEACH YOURSELF TO SAVE
ANTONI POROWSKI, Queer Eye’s 34-year-old food and wine
expert, is the perfect poster child for “starting small.”
He doesn’t teach people how to flambé or harp on the
merits of using maitake mushrooms over portobellos.
Instead, he takes the foods they already eat and steps
them up a bit. For a busy dad, Crock-Pot chili. For a
NASCAR-loving, pickle juice–drinking cop, grapefruit
salad. For an adorable, sort-of-out gay guy who grew up
 M O N E Y. C O M AUGUST 2018
THE QUEER EYE GUIDE TO A RICHER LIFE
%RXSRM4SVS[WOM
*33(%2(;-2))<4)68
making tamales with his stepmom, arepas.
Makes sense, right? Not to the Internet.
After the first season of Queer Eye hit Netflix, an
Antoni Burn Book snaked its way through the social
media peanut gallery, fueling a debate over whether or
not the Canadian import actually knows his way around a
kitchen. (In an attempt to settle the matter, the New York
Times announced in a headline earlier this year that, yeah,
“Antoni Porowski Can Cook.”)
Truth be told, haters gonna hate. Like most of us, the
 texture and crunch, sticky and smooth. With this one
little bite, you can learn about all these diferent rules of
cooking, and you can apply them to a stew, to a soup, to a
salad, to anything at all.”
This—a monologue about finger foods—is quintessen-
tial Antoni. When I asked him what he liked to eat as a
kid, he didn’t say “hot dogs” but rather “golden-crispy,”
“butterfly-cut” hot dogs “with Gruyère cheese or maybe
a bit of Parmesan freshly grated, dipped in ketchup
mixed with a bit of cayenne.” He’s not being a snob—
these are all items you can buy at your local Trader Joe’s.
The dude just loves food.

O N A N TO N I : J A M E S P E R S E N AV Y T E E F R O M B L O O M I N G D A L E ’ S , A P C J E A N S , H I S O W N A D I D A S S N E A K E R S
Antoni never set out to be a food expert, though. Born
in Montreal to Polish parents, he moved to New York
City in his twenties to pursue a career in acting. To pay
the bills, he took a bunch of food-service jobs (busboy,
sommelier, sushi instructor) but found the restaurant
world exhausting.
Cooking was a diferent story. For as long as
Antoni can remember, preparing a meal—and all the
little rituals that go with it—has been a reliable source
of comfort.
“I come from a pretty
TIP dysfunctional family, but
dinnertime was when we all
%2832-Ş7 shut up … the one time we
actually got along,” he says.
8,6)) If you want to step up your
',)%4 home cooking game, Antoni
/-8',)2 says you don’t need a bunch of

94+6%()7
fancy QVC gadgets to get
started. Just find some
cooking videos on YouTube,
1MGVSTPERI or better yet on PBS, and
Š6IEPP]KSSHJSV jump right in.
4EVQIWERERH After all, the point isn’t to
PIQSR^IWXš learn how to chop an onion at
record speed or to school all
*PEXXST[SSHIR your friends on the benefits of
WTSSR sous vide cooking.
people on Queer Eye don’t have the time or wherewithal Š8LIWILIPTWGVETI “It’s about the language,”
to make a restaurant-worthy meal every night. The XLIFSXXSQSJXLI he says. “For some people,
simple dishes Antoni vouches for are replicable, fast, TERIEWMIVXLERE it’s a way of communicating
and—to someone like season one’s Tom, who had never VSYRHIHWTSSRš with someone. For others,
seen the inside of an avocado before Antoni sliced one it’s about cooking for
open—transformative. ;LSPIFPEGOTITTIV themselves and learning
“With everybody, it’s really learning how to do that QMPP that there’s nothing
one simple thing,” Antoni says. “If you have a medjool Š=SYŞPPRIZIVFIEFPI pathetic about that. It’s the
date, and you put in a bit of blue cheese and an almond XSKSFEGOXSXLI greatest form of self-love
and wrap it with bacon, you’re covering salty and sweet, TVIGVYWLIHWXYJJ out there.”
IZIVEKEMRš
AUGUST 2018 M O N E Y. C O M

 M O N E Y. C O M AUGUST 2018
 THE QUEER EYE GUIDE TO A RICHER LIFE

Today, Tan takes Queer Eye’s subjects through the

same thought process. He knows fashion doesn’t come
8ER*VERGI intuitively to everyone. Still, it’s a lot easier (and cheaper)
*%7,-32)<4)68 than most people think. On the show, shopping trips to
Target, and sites like ASOS.com, prove that any budget
and a style icon can yield a fresh look.
“Let’s say [your style icon is] Justin Trudeau,” Tan
says. “He’s a person who dresses great, [has] a great job,
a great life. Every time you go shopping, think, ‘What
would Justin Trudeau wear?’ That’s how you get yourself
GET ORGANIZED of the ground.”

THE FIRST THING YOU NEED to know about Tan France is that
he is, without a doubt, the spiiest reality TV star to walk
God’s green earth. (Sorry, Honey Boo Boo.)
TIP TIP
I don’t know how many Instagram photos he’s added
since I wrote this sentence, but I’m positive there’s
pomade-perfect hair and a crisp, not-quite-tucked-in
13()62 ,3;83
shirt in every single one of them. ;%6(63&) (6)77
The second thing you need to know about Tan France )77)28-%07 *36%.3&
is that it takes him two minutes to get ready every
-28)6:-);
Š-J]SYŞVIWXVYKKPMRK
-2
morning. Two minutes!
O N TA N : A L L S A I N T S L E O PA R D P R I N T S H I R T F R O M B L O O M I N G D A L E ’ S , A C N E B L U E J E A N S , H I S O W N A D I D A S S N E A K E R S

Turns out, the secret to polished style isn’t about [MXL]SYVWX]PI]SY

waking up early to primp and preen, or sinking a ton of [ERXXSOIIT]SYV
money into designer clothes. It’s about organization. [EVHVSFIPMQMXIHš -J ]SYŞVI MRXIVZMI[MRK
“A lot of men and women don’t like to prioritize 8ERWE]W,IVIEVI EX E GSQTER] XLEX
fashion,” he says. “When your clothes aren’t organized, ƙZI TMIGIW XS LSQI HSIWRŞXQEOIMXW
it’s even harder. You don’t know what your options are. MRSR IQTPS]IIW[IEV
Everything is in disarray. Organization makes it so much WYMXW GLSSWMRK
easier to put on an outfit.” ER SYXƙX GER FI
MEN
Queer Eye’s subjects are, by and large, not organized. GSRJYWMRK 8ER
%HEVOWYMX
Tan changes that. With just a few tailored shirts and a WYKKIWXWHSMRK
% GVI[RIGO WLMVX
handsome, well-fitting suit, the 35-year-old stylist leaves WSQI VIWIEVGL
them suddenly—stunningly—confident. And perhaps
% PIEXLIV NEGOIX FIJSVILERH 3ZIV SV
more important, with a neat closet. % ŠKVIEX ƙXXMRKš YRHIVHVIWWMRKXIPPW
Raised in Doncaster, England, Tan’s introduction to TEMVSJWPMQNIERW ELMVMRKQEREKIV
the fashion world sprang from early visits to his grand- %KVIEXTEMVSJ XLEX]SYHSRŞXORS[
father’s clothing factory. “I thought I wanted to be a WLSIW ]SY GER ER]XLMRKEFSYXXLI
machinist,” he says. “I thought that was the most HVIWWYTSVHS[R GSQTER] )ZIR MJ
glamorous job in the world.” PMOIS\JSVHWSVE MXŞW E WYTIV GEWYEP
Instead, Tan launched his own fashion lines. He 'LIPWIEFSSX SJƙGI ]SYŞPP WXMPP
started his first company, Kingdom and State, in the U.K. [ERX XS PSSO ŠGVMWT
and moved to the U.S. in 2015 to tap the American WOMEN ERH GPIERš LI WE]W
market. %WYMXXVSYWIVW Š.YWX FIGEYWI XLI
Times were tough in those early days stateside. Tan SVEWOMVX SJƙGI MW GEWYEP
couldn’t aford to give himself a salary, so he took a side % GVMWT [LMXI WLMVX HSIWRŞXQIER]SY
gig as a receptionist to pay for groceries and rent. But %TEMVSJTYQTW WLSYPHRŞXQEOI
even back then, he made fashion a priority. TVIJIVEFP]RYHI ERIJJSVXš-JEPP
“If I didn’t look appropriate, who was going to take me % TEMV SJ WPMQƙX IPWIJEMPWKSJSV
seriously?” he asks. NIERW HEVO GSPSVW ERH E
%KVIEXFEK RMGI NEGOIX
 /EVEQS&VS[R

O N K A R A M O : J O H N VA R VAT O S D E N I M S H I R T, D R I E S VA N N O T E N B O M B E R J A C K E T, B L U E F R A M E J E A N S , T O B O O T TA N C H E L S E A B O O T S
'90896))<4)68

FIND YOUR PARTY, SAVE YOUR PENNY

OF ALL THE QUEER EYE ROLES, Karamo Brown’s is the

hardest to define. He’s the show’s “culture expert,” which
puts him in the driver’s seat for a lot of tactful, kick-in-
the-ass conversations about commitment, social skills,
and cleanliness. He does a deep dive on how these
personality traits bleed into all areas of a person’s life.
Luckily, Karamo, 37, can connect with just about
anybody. He’s genuine and charming. And even when
he’s dropping truth bombs—
like season one’s heart-to-
heart about police brutality— TIP
it’s without a hint of preten-
sion. Karamo gets you, man. ,3;'%2-
Karamo gets everybody.
The second season opens
1%/)2);
with a testament to this *6-)2(7%7
superpower. Tammye, a sweet %2%(908#
Georgia mom, cancer survi-
vor, and the show’s first-ever Š8LIVIEVIWSQER]
female makeover, needs help HMJJIVIRX GPYFW ERH
finishing a community center. EGXMZMXMIW [LIVI
But the real story, the play ]SY GER QIIX PMOI
within the play, revolves QMRHIHTISTPIš
around her son Myles. /EVEQSWE]WŠ-
Myles is a young gay man WMKRIHQ]QSXLIV his living space; by the time the Fab Five arrive, his
who, over the course of several YT JSV E NI[IPV] bedroom looks apocalyptic.
years, has persuaded his QEOMRK GPEWW ERH Then Karamo steps in. And like all who find them-
deeply religious mother to RS[WLILEWEPP selves on the receiving end of a Karamo wake-up call,
embrace his sexuality. But XLIWIKMVPJVMIRHW Myles promptly gets his act together.
growing up, he was bullied for XLEXWLIKSIWSYX “Sometimes all we want is someone to say, ‘I acknowl-
being diferent, and that’s left [MXLEPPXLIXMQI-XŞW edge what you’re going through, I see you for who you
some residual emotional scars. XLIWEQIXLMRK]SY are, and I’m willing to listen,’ ” Karamo says. “We all want
His mind is cluttered, and so is HMH MR LMKL WGLSSP to connect.”
SRP] QSVI IZSPZIHš

A former cast member of MTV’s The Real World, he’s
uniquely qualified for this job. Karamo brings an out-
sider’s perspective to everything he does, informed by a
lifetime of volunteer and social services work and the
decade he’s spent as a single parent.
As a first-generation American, he says money didn’t
come easily for his immigrant family. Still, his parents
managed to put multiple kids through college.
Karamo mastered the art of frugal living early on, he
THE QUEER EYE GUIDE TO A RICHER LIFE
says. In college, when he couldn’t aford the $50 football
tickets his friends bought every weekend, he took
concession jobs so he could still watch the games. Now
he encourages others to toe the line between “fun” and
“responsibility.” On Queer Eye, he’s a witness to the power
of spending on experiences over things—paintball,
drinks with pals, the perfect proposal.
“Look around,” he says. “There are other ways into
this party. You can have the fun but still save your penny.”
AUGUST 2018 M O N E Y. C O M

THE QUEER EYE GUIDE TO A RICHER LIFE

 M O N E Y. C O M AUGUST 2018

 Hershberger. To make ends meet, he worked seven days a
week for a year and a half, driving the six hours from L.A.
to Scottsdale, and then back again, to meet old clients for
weekend appointments.

.SREXLER
Like the rest of the Fab Five, Jonathan comes from the
same tireless, “pull yourself up
:ER2IWW
O N J O N AT H A N : G R A M I C C I R O S E S W E AT S H I R T F R O M S H O P W I T T M O R E . C O M , M S G M D E N I M J A C K E T W I T H R A C I N G S T R I P E S , H I S O W N A L L S A I N T S J E A N S , H I S O W N S A I N T L A U R E N T B O O T S

by the bootstraps” background

+6331-2+)<4)68 TIP as his subjects. And true to the
Queer Eye ethos, his advice
(3-6)%00= prioritizes building a relation-

2))(83
ship with a stylist—someone
willing to work with your
74)2( budget, style, and hair
83+)8% type—over spending a bunch

TAKE CARE OF YOURSELF ()')28 of money at the salon.

“I want to meet people
7,%1433# where they’re at,” he says. “I
YOU CAN’T TALK ABOUT the Queer Eye outlook on life without love a collaborative moment.”
nodding to “self-care,” a deceptively simple buzzword into 7LEQTSS Almost overnight, he’s
which Jonathan Van Ness, the show’s 31-year-old groom- MRKVIHMIRXWEVI become the entire country’s
ing expert, has breathed new life. PMWXIHMRXLISVHIV gay best friend, and it’s a
For the uninitiated, self-care is a blanket term for SJLMKLIWXXSPS[IWX relationship that doesn’t turn
literally anything that helps you maintain mental, GSRGIRXVEXMSR of with the cameras. Every-
emotional, and physical equilibrium. To some people, that WS MJ XLI ŠGSGSRYX where Jonathan goes, and
means taking the occasional bubble bath. To others, it’s SMPš ZEVMIX] ]SYŞVI every time he logs on to a
making pancakes before church on Sundays. I]IFEPPMRKEXXLI computer, he’s peppered with
Thanks to Instagram (and the hashtags #selfcare and WXSVINEQWEPEYRHV] questions about oily skin,
#selfcaresaturday, which have a collective 6 million posts PMWX SJ GLIQMGEPW male pattern baldness, and
and counting), the phrase has been largely overrun by the FIJSVI XLEX WTIGMƙG everything in between. He
wellness crowd’s definition of it. But Queer Eye is bringing MRKVIHMIRXTYXMX tries his best to answer them,
self-care back to the people, and Jonathan is its leading VMKLX FEGO [LIVI but he’s resolute in his
evangelist. If there’s a scene with a mani-pedi or firefight- ]SYJSYRHMX commitment to self-care. So
ers wearing hydrating face masks, Jonathan is there, and .SREXLERWE]W while Jonathan is a natural
he’s totally psyched about it. -RWXIEHKSJSV people pleaser, and currently
To be fair, Jonathan is psyched about a lot of things: E WYPJEXIJVII one of most sought-out
figure skating, Game of Thrones, RuPaul, the R&B singer ZEVMIX] XLEX TYXW grooming experts there is, his
SZA, gymnastics, yoga, his cats, The Great British MRKVIHMIRXWPMOIEPSI best advice doesn’t have
Baking Show. ZIVE VSWIQEV] ERH anything to do with hair. It’s
He says he’s always been like this—“unabashedly XIE XVII SMP ƙVWX ERH about priorities—and being
excited” about whatever he happens to be into. And for as XLI GLIQMGEPW ]SY comfortable with setting aside
long as he can remember, he’s been really into hair. GERŞX TVSRSYRGI a little time and a little money
Originally from Quincy, Ill., Jonathan studied at the PEWXŠ8LIVI for yourself.
Aveda Institute in Minneapolis and moved to Scottsdale EVIEJJSVHEFPI “At the end of the day,
after graduating, where he spent the first five years of his WLEQTSSWXLEX I need to be in silence a little
career doing “chunky, piano key, Kelly Clarkson high- EVIRŞXVMHHPIH[MXL bit,” he says. “Or watching a
lights.” (If you’re from a landlocked state, you’ll remember FEHMRKVIHMIRXWš little TV show. Or cooking
this as the only acceptable way for women to color their .SREXLERWE]W&YX a gorgeous dinner. Self-care
hair in the early 2000s.) ]SYŞPPRIIHXSHSE is personal … It’s okay to take
In 2009 he moved to Los Angeles and got an $8-an- PMXXPI VIWIEVGL XS care of yourself by saying
hour assistant job at a salon owned by the stylist Sally ƙRH XLI VMKLX SRI no.”
JSV]SY
AUGUST 2018 M O N E Y. C O M

 8,)
63&37
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-WXLIVISRIXLEXŞWVMKLXJSV]SY# &=1)+%20)32,%6(8

 M O N E Y. C O M AUGUST 2018 ILLUSTRATIONS BY AARON FERNANDEZ

AUGUST 2018 M O N E Y. C O M

 8,)&)7863&3%(:-7367
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Last year, total assets managed by robos hit $222 bil-
lion, which was more than double from the prior year. Yet
despite this growth, robos still collectively control less
than one-third of the assets of a single mutual fund—
Vanguard Total Stock Market Index. That could change.
“When you say robo-advisor, people don’t necessarily
understand,” says David Goldstone, a research analyst for
the Robo Report, which tracks robo-advisor performance.
“Often people think of accounts being traded frequently,
algorithms that are driving trading strategies—and that’s
not really the case.” For the most part, he says, robos
ofer managed accounts that consist largely of low-cost
index mutual and exchange-traded funds (ETFs).
The perception of robos is likely to evolve now that a
majority of the startups have faded from the scene, and
traditional financial services providers such as Fidelity and
 M O N E Y. C O M AUGUST 2018
Morgan Stanley are setting up their own robo-advisory
platforms (see the tables at the end of this story for
information on all the robos MONEY reviewed). More are
coming, with JPMorgan Chase and Goldman Sachs
expected to roll out their own robo oferings later this year.
It’s worth noting that some of the robos launched by
established companies are really ofering managed
account solutions the same as or similar to those they’ve
ofered for years, with a smattering of more tech. They
call it a robo even though it’s not a substantively diferent
solution, says Michael Kitces, blogger and director of
wealth management at Pinnacle Advisory Group.
Yet the capabilities of some platforms are truly
evolving. Many services now ofer comprehensive
financial planning—complete with access to human
advisors at times. These hybrid advisors include Van-
guard Personal Advisor Services and Personal Capital.
Portfolio strategies are evolving too. Many ofer
tax-eicient approaches, including tax-loss harvesting,
where securities that are down will be sold to ofset
capital gains elsewhere in your portfolio. A number of
robos, including Betterment and Morgan Stanley, have
introduced socially responsible investing options. Ellevest
has rolled out an entire portfolio focused on stocks that
positively impact women in the workplace.
These bespoke services are still available for a
relatively low cost. Typically, wealthy clients pay human
advisors 1% to 2% of their investable assets annually for
managing their portfolios (last year, the average fee for a
new account with a human advisor was 1.04%, according
to consultants PriceMetrix).
Robo-advisors, by contrast, are betting on scale. So
there’s no need to have $500,000 saved. Investors can
start with as little as a dollar, and the average manage-
ment fee is roughly a third of traditional human advisors,
just 0.36%, according to MONEY’s analysis. Some
platforms like WiseBanyan and Schwab Intelligent
Portfolios don’t even charge a fee at all; they simply pass
along the underlying cost of the funds used.
The low price, proliferation of companies in the space,
and growing capabilities have helped push investors
toward these platforms. But for robos to become more
than a niche solution, they’ll have to appeal to a broader
audience. Right now, the audience is made up primarily of
self-directed investors who want to take the burden upon
themselves to choose the “right” robo (i.e., the right
managed-account provider). Yet finding the right auto-
mated platform can be diicult to determine.
To help narrow the field, MONEY looked at roughly
50 of the best-known robo-advisors that had at least
$50 million of total assets under management—analyzing
each on over 30 diferent variables to determine which
provided the highest level of service for the cost.
MONEY paid particularly close attention to the fees
each robo charged (looking for lower-than-average costs
where possible) and the services ofered (making sure the
oferings were suiciently rich and broad to meet the
needs of target clients, be they savers just starting out or
high-net-worth households with more complicated
finances). And where possible, we wanted to find robos
that have met or exceeded the performance of the broad
market (see “How We Judged Performance” on page 56).
So whether you’re looking to open a small account
to test these platforms out for the first time or you’re a
seasoned investor looking for comprehensive retirement
strategies and advice, read on to see which robo-advisors
made the cut—and which are right for you.

so you can put every penny to CAVEATS: Betterment

work immediately, rather than
The Best Robo for ... having to wait until you can
BEGINNING INVESTORS buy a full share of a security.
This is helpful if you don’t
have a lot saved upfront.
If you’re just starting to build your retirement Yet Betterment ofers
savings, you’ll want a robo-advisor with low enough sophisticated
minimums to open an account. You’ll also want services—such as tools to
access to essential accounts such as traditional save on taxes or run a
and Roth IRAs, and auto-deposit capabilities to portfolio analysis across all
help you put your savings on autopilot. your accounts, even those
held at other companies—so
you can stick with the
WHY IT WINS: Betterment platform as your financial
helps newbies build a solid needs mature.
BETTERMENT
foundation for saving and And to deliver financial
DIGITAL
investing. For example, the strategies and advice to you,
platform allows you to invest Betterment utilizes both tech-
in fractional shares of stocks, nology and a human touch.
levies a management fee on
top of the fees your funds
charge, making it slightly
pricier than some robos.
If you’re looking for the
absolute cheapest basic
option, check out WiseBan-
yan. It may not have all the
bells and whistles of Better-
ment, but it will set you up
with a balanced strategy and
automatically rebalance your
portfolio as the market
fluctuates over time.
Added services will cost
you, though—in some cases
more than what you’d pay at
Betterment. For example, a
beginning investor would pay
0.12% “all in” for WiseBan-
yan’s basic service. But
tax-loss harvesting available
via WiseBanyan’s Tax
Protection Package is an
added 0.24%. And the ability
to create custom portfolios
would add $3 per month.

KEY FACTORS

Minimum to open account:

$0

Average all-in cost: 0.36%

Human-advice availability:
Licensed advisors are
available to answer simple
questions via chat or phone.

AUGUST 2018 M O N E Y. C O M

 8,)&)7863&3%(:-7367

for the underlying funds, the

SCHWAB all-in cost is 0.43%. To ensure
The Best Robo for … INTELLIGENT that fees remain reasonable,
Schwab caps the costs at a
INTERMEDIATE INVESTORS ADVISORY maximum of $900 a quarter.

The more complex your financial needs, the more
you’re likely to need—and want—human help. WHY IT WINS: Schwab
That’s where a “hybrid robo-advisor” can be seriously upped its game in
beneficial. The best hybrid robos will also ofer the robo space when it
both retirement and taxable accounts, complete introduced Intelligent
with tax-eicient strategies and analysis of Advisory—a major step up
outside accounts like 401(k)s so investors can get from its original, fully
a comprehensive picture of their total wealth. automated Intelligent
Portfolios platform.
The new premium service
ofers access to investment
management and comprehen-
sive planning delivered by
certified financial planners
(CFPs) who are available six
days a week (customer
service is available 24/7).
And planner help is
available from the get-go—
an initial planning call or video
chat generally lasts an hour
and guides investors through
the “onboarding” process.
Follow-up meetings can easily
be scheduled through the
online booking system.
Schwab Intelligent Advisory
does require a $25,000
investment to start. But the
management fee is only
0.28% of assets a year. Once
you factor in the average costs
CAVEATS: If you’re looking
to minimize your tax bills,
you’ll need to have at least
$50,000 with Schwab in
order to qualify for tax-loss
harvesting services.
In the past, Schwab’s
robo ofering has also been
criticized for holding more of
its clients’ assets in cash, on
average, than some of its
peers. While that cash cushion
helped Schwab’s portfolios
hold up during the first-
quarter market rockiness,
higher cash stakes can create
a drag on an investor’s
portfolio, Goldstone says.
KEY FACTORS
Minimum to open account:
$25,000
Average all-in cost: 0.43%
Human-advice availability:
Certified financial planners
are available for initial
onboarding, and investors
can schedule an unlimited
number of appointments via
phone or web chat.

,3;;).9(+)( way, you can be confident in how well

4)6*361%2')
To select the best robo-advisors, MONEY
compared the platforms on a number of
factors, including their services, fees,
access to human help, and overall digital
experience. But what about performance?
Well, to properly judge an investment
over the long term, you really need to see at
least five years of performance data. That
a strategy performed not only in good times
but in difficult years as well.
The problem is, most robo-advisors have
not been around for more than five years.
And the Robo Report, which tracks the per-
formance of robo-advisors, has industry-
wide data going back about two years.
So MONEY split the diference. While we
did not use performance data to determine
which robo-advisory platforms were final-
ists in each category—because there wasn’t
a long-enough track record—we did look at
how well each winner performed over the
past two years to confirm our picks.
Specifically, we looked at the two-year
annualized returns for each robo’s balanced
strategy that includes stocks and bonds, as
tracked by the Robo Report. We then com-
pared that with a 60% equity/40% fixed-
income portfolio based on the S&P 500 stock
index and Barclays aggregate bond index. As
you can see at right, each winner did as well
as—if not better than—the broad market.

 M O N E Y. C O M AUGUST 2018

 The Best Robo for …
ADVANCED INVESTORS
Once you’ve built substantial retirement savings,
say $250,000, you’ll need to ensure you’re investing
right and planning for the long term. Several
advanced hybrid robo-advisors ofer access to
human advisors who give holistic recommenda-
tions on all your savings—no matter where the
accounts are. At this point, you should also be
searching for an advisor with a wide array of
investment options, beyond just funds and ETFs.

ofers tax-free muni bond

VANGUARD portfolios to reduce taxes.
PERSONAL Vanguard Personal Advisor
ADVISOR is one of the few robos
SERVICES capable of providing income
drawdown strategies for
investors already in retire- are then incorporated into
WHY IT WINS: Though it ment. And Vanguard ofers a clients’ comprehensive METHODOLOGY
charges average all-in fees of suite of tools for retirement financial plan.
just 0.38%, Vanguard’s hybrid planners such as Social MONEY evaluated roughly
50 of the top robo-
platform emphasizes Security optimization, which CAVEATS: Vanguard’s advisors, focusing on
establishing a relationship shows when to tap your platform is very basic, without those with at least
with a human advisor. benefits and how to defer— a lot of the interactive charts $50 million in assets or
more than 1,000 investors.
It’s also capable of and what the tradeofs are and digital tools that come Robos were judged on
handling complex invest- with each option. with technology-first robos their average “all-in”
ments and retirement You can also get access to like Betterment. For instance, costs—including manage-
strategies for both pre- a dynamic spending tool that tax-loss harvesting is not ment fees and the average
cost of the funds—and the
retirees and retirees. For can analyze market trends to automated by algorithm but breadth and depth of their
instance, Vanguard lets you calculate the best time to rather done on a client-by- services. Front-runners
invest in individual bonds and spend. All of these outcomes client basis through the were also judged on their
onboarding process and
advice of the financial advisor. digital experience.
For beginning investors,
KEY FACTORS robos had to have a low min-
imum ($500 or less), retire-
ment account options, and
Minimum to open account: auto-deposit. For inter-
73*%673+33(
$50,000 mediate investors, robos
Many robo-advisors have been around too briefly to truly judge needed a modest minimum
their performance. But over the past two years, MONEY’s best robo ($25,000 or less), a wide
winners have fared decently compared with the market as a whole. Average all-in cost: 0.38% range of account options,
tax strategies, and access to
TOTAL RETURNS OVER PAST TWO YEARS, ANNUALIZED
Human-advice availability: a financial advisor. For ad-
BETTERMENT 10.2% vanced investors, robos had
A certified financial planner to service accounts with
SCHWAB 11.0% is assigned to you and is $250,000 or less and ofer
VANGUARD 9.6% available for initial onboard- access to a certified advisor
ing and an unlimited number ofering personalized advice
S&P 500 STOCK INDEX/BARCLAYS AGG. BOND INDEX 9.6% on all your holdings, includ-
of ongoing appointments via ing those held elsewhere,
NOTES: Benchmark return is based on a portfolio that’s 60% in the S&P 500 and 40% in the Barclays
aggregate bond index. Returns are through March 31, 2018. SOURCES: The Robo Report, Morningstar phone or web chat. such as in a 401(k).

SEE HOW ALL THE MAJOR ROBO-ADVISORS STACK UP ON THE TABLES THAT FOLLOW.

AUGUST 2018 M O N E Y. C O M

 8,)&)7863&3%(:-7367

8,)63&3692(3;2
To find the right robo-advisor for you, there are a few basic things you need to know. For instance, how much
money do you have to bring to the table? How much human help is available to you if you need more than digital
assistance? What are the tools and services each robo-advisory ofers to address your specific needs? And
finally, how much does it cost, a question that everyone—regardless of what stage they’re at as investors—
needs to ask. MONEY has assembled the answers to those essential questions in the tables here.

ROBO-ADVISORY MINIMUM AVERAGE HUMAN-ADVICE SPECIAL FEATURES

SERVICE INVESTMENT ALL-IN AVAILABILITY AND SERVICES
REQUIRED COST

ALLY INVEST $2,500 0.40% None Formerly TradeKing Advisors, Ally’s rebranded robo-
MANAGED platform ofers integration with the banking features
PORTFOLIOS found at Ally.com. This robo-advisor does not manage
its own proprietary funds, making its investment
recommendations more independent.

BETTERMENT $0 0.36% Team of licensed advisors available No minimum to start investing. Betterment ofers a wide
;-22)6

DIGITAL to answer simple questions via text range of investment and retirement tracking tools. You can
or by phone. also see how much your outside accounts are costing you
in fees and uninvested cash.

BETTERMENT $100,000 0.50% Unlimited text- or phone-based Betterment’s Premium platform allows for unlimited one-
PREMIUM access to a certified financial on-one access to a financial advisor as well as access to its
planner (CFP) to answer questions “flexible portfolios” tool to adjust the percentage of your
and engage in financial goal money invested in any particular ETF.
planning.

ELLEVEST DIGITAL $0 0.42% Financial counselors available via Like all Ellevest platforms, this ofers a unique algorithm
email or text for simple questions. that adjusts portfolios based on women’s income trends
and life cycles. The platforms also invest in companies
driving social and economic change by empowering
women.

ELLEVEST PREMIUM $50,000 0.67% Team of financial advisors available Ellevest Premium clients can access certified financial
to answer questions via phone, text, planners, as well as personalized career coaching to help
or email. with gender-pay-gap issues such as negotiating a raise
and compensation package.

ELLEVEST $1,000,000 1.17% Video-chat or phone-based access For high-net-worth investors, Ellevest ofers a bespoke
PRIVATE WEALTH to a dedicated certified financial service with a dedicated wealth manager and personalized
MANAGEMENT planner to answer questions and investment options that align with clients’ social values.
engage in financial planning goals.

E*TRADE CORE $5,000 0.37% Team of advisors available The individual investments in E*Trade’s portfolio are
PORTFOLIOS to answer simple questions chosen by the investment strategy team at E*Trade
via phone. Capital Management.

FIDELITY GO $10 0.35% None directly attached to Fidelity
Go, but Fidelity Go customers enjoy
the full advice oferings available to
all Fidelity clients through phone or
chat or at investor centers.
Investments are managed by the Fidelity Go team. In April,
the underlying funds were changed to Fidelity Flex Funds,
actively and passively managed portfolios with zero
expense ratios. The Flex Funds are available only to certain
fee-based accounts ofered by Fidelity, like Fidelity Go.

FUTUREADVISOR $10,000 0.65% Team of advisors available to answer Basic robo-advisor, but the accounts are not held by
questions via phone or email. FutureAdvisor. Instead, they are held at Fidelity or TD
Ameritrade.

HEDGEABLE $1 0.70% None Ofers a range of investments, including Bitcoin, REITs,

precious-metal ETFs, and venture capital opportunities.

TABLES CONTINUE

 M O N E Y. C O M AUGUST 2018

 8,)&)7863&3%(:-7367

ROBO-ADVISORY MINIMUM AVERAGE HUMAN-ADVICE SPECIAL FEATURES

SERVICE INVESTMENT ALL-IN AVAILABILITY AND SERVICES
REQUIRED COST

MERRILL EDGE $5,000 0.55% Ask an advisor general questions by The investment plan is directed by strategists (at Merrill’s
GUIDED INVESTING phone, email, or in person. Clients Global Wealth and Investment Management Chief
with at least $20,000 get customized Investment Office) rather than by algorithm.
advice via a separate team of advisors.

MORGAN STANLEY $5,000 0.75% None Ofers clients the ability to devote a portion of their
ACCESS INVESTING portfolio to an investment theme such as sustainability or
gender diversity.

PERSONAL $100,000 0.92% In-person, video-chat or phone- Clients have access to customized portfolios that ofer
CAPITAL based access to a team of licensed exposure to individual stocks and socially responsible
financial advisors to answer strategies. Personal Capital also ofers a “smart
questions and engage in goal weighting” approach that emphasizes economic
planning. diversification and risk-adjusted returns.

REBALANCE IRA $100,000 0.65% Video-chat or phone-based access This robo specializes in retirement accounts, relying on
to a dedicated licensed financial low-cost exchange-traded funds that track major indexes.
advisor and qualified client service
representative to answer questions
and help with planning financial
goals.

SCHWAB $25,000 0.43% Video-chat or phone-based access Schwab’s premium platform ofers clients access to a
INTELLIGENT to a team of licensed financial financial advisor, as well as upgraded features such as the
;-22)6

ADVISORY advisors to answer questions and ability to sync up outside accounts to your financial plan.
help plan financial goals.

SCHWAB INTELLIGENT $5,000 0.15% None Schwab doesn’t charge a management fee, although the
PORTFOLIOS service does have higher allocations of cash.

SIGFIG $2,000 0.35% Video-chat or phone-based access This robo-advisory platform ofers to manage your first
to a team of licensed financial $10,000 for zero investment management fees (you
advisors to answer questions and still must pay the underlying fund fees). Management
help plan financial goals. expenses after that are 0.25% of assets per year.

TD AMERITRADE $5,000 0.37% A team of licensed counselors Funds are recommended by Morningstar. Clients can
ESSENTIAL is available to answer simple access quarterly snapshots and market commentaries,
PORTFOLIOS questions via chat or phone. while Amazon Alexa and Echo can provide on-demand
market information and educational resources.

TD AMERITRADE $25,000 1.10% In-person at any of 364 branches or Each client receives individual personalized performance
SELECTIVE phone access to a licensed financial videos on a quarterly basis. Facebook Messenger and
PORTFOLIOS counselor to answer questions and Twitter chatbots are also available. Tax-loss harvesting
help plan financial goals. available for clients in taxable accounts.

TIAA PERSONAL $5,000 0.67% A team of licensed advisors is TIAA is a pioneer in socially responsible investing and has
PORTFOLIO available to discuss a range of topics ofered SRI funds to customers since 1990.
related to retirement, savings, and
investing.

VANGUARD $50,000 0.38% Video-chat or phone-based access In addition to broad investment management, this robo
;-22)6

PERSONAL ADVISOR to a certified financial planner to can help with retirement drawdown strategies. Vanguard
SERVICES answer questions and help plan also ofers tools to help with spending advice and Social
financial goals. Security optimization.

WEALTHFRONT $500 0.33% None Aimed at investors in their thirties and forties, Wealthfront
focuses on delivering fully automated investment
management, financial planning, and banking-related
services.

WISEBANYAN $0 0.12% None WiseBanyan does not charge any investment

management, trading, or rebalancing fees. But the robo
does charge subscription fees for services like tax-loss
harvesting and premium portfolios.

 M O N E Y. C O M AUGUST 2018

 LIVE FRIDAY SEPT 7 8 | 7C STANDUPTOCANCER.ORG

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 M O N E Y. C O M AUGUST 2018 PHOTOGRAPHS BY MARK PETERMAN
 %JXIVQSVIXLEREHIGEHI
.IJJ8E]PSVSJ*PEKWXEJJ
%VM^PIJXLMWLMKLWGLSSP
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WEPEV]SJE]IEV

AUGUST 2018 M O N E Y. C O M

FOR 12 MINUTES one night in October
2017, Mallory Heath could not speak.
The 31-year-old Arizona English
teacher was sufering from
migraine-induced aphasia. She
couldn’t write or talk as she usually
could; her words came out jumbled
and nonsensical. But amid the
terrifying episode, Heath chose not
to go to the emergency room. She
knew she couldn’t aford it.
“I realized,” Heath says, “how
often do I put my health on the line
because I just don’t have the funds
to be able to take care of myself?”
Almost a year later, Heath has
left the profession she calls her
identity. She used to live and
breathe teaching—spending hours
outside the classroom listening to
education podcasts, reading
pedagogy, attending conferences,
and serving on the board of the
Arizona English Teachers’ 1EPPSV],IEXL “I didn’t really have a choice,” Heath says of her
Association. PIJXLIVNSFEWER departure. “So I’m just finalizing the choice that has
)RKPMWLXIEGLIV
But making $42,000 a year MR%VM^SREŞW been made for me.”
before taxes and pension contribu- 'LERHPIVWGLSSP Heath is one of hundreds of teachers across the
tions, she couldn’t aford basic HMWXVMGX country leaving the profession as a result of low pay.
living expenses like rent—nor MONEY spoke with half a dozen of them. They detailed
could she replace her decade-old years-long salary freezes, second or third jobs taken to
pair of glasses. With a high- make ends meet, and classrooms filled to the brim with
deductible insurance plan, she had students amid teacher shortages and dwindling funding.
to choose carefully how she used As pay fell or grew stagnant, their costs for health
her health savings account for insurance rose. (See charts on following pages.)
medical expenses. Once those Meanwhile, a public employee pension crisis left
funds dried up, she had to pay for teachers concerned about attaining a financially stable
medical costs upfront—and having retirement—even as higher pension costs have dug into
any savings, she says, has been their paychecks.
almost out of the equation. Educators at sufering school districts in a number of

 M O N E Y. C O M AUGUST 2018

states have engaged in strikes, protests, and walkouts to
demand higher pay, better funding, and pension plan
overhauls, with eforts starting in West Virginia this
February and continuing in Oklahoma, Kentucky,
Arizona, Colorado, and North Carolina.
In some cases, teachers won incremental pay
increases and other concessions. In West Virginia, for
example, state lawmakers agreed to a 5% pay increase
and promised to address a number of other issues.
Public school teachers in the U.S. earn an average
salary of $58,353, according to the most recent estimates
from the National Education Association (NEA). But
many of this year’s protests were in states where
teachers make far less. Arizona teachers, for example,
earned $47,218 on average in 2016, according to NEA
data—more than $200 less than they earned on average
in 2015. (Arizona is one of a few states where average
teacher pay fell in 2016.)
Of all K–12 public school teachers who left their jobs in
the 2012–13 school year, 6.8% said it was because of their
pay, according to the most recent figures from the
Department of Education’s National Center for Educa-
tion Statistics.
EFF TAYLOR, A BIOLOGY and chemistry
instructor in Flagstaf, Ariz., has quit his
job too. He had taught in Arizona since
2002, except for four years working for the
Department of Defense in Italy’s Tuscany region (a
more lucrative gig, he notes). But back in Arizona, he
was earning a $44,700 base salary. Adjusted for
inflation, that was only $1,500 a year more than Taylor
made during his first year of teaching, 16 years earlier.
Taylor doesn’t know exactly what’s next for him
professionally, but for now, he and his wife—also a
teacher—plan to sell their home, travel, and homeschool
their 10-year-old daughter.
“Maybe it’s worth putting up with all the stress and
strain of being a teacher if you’re making 50% more. Or
maybe it’s not,” Taylor says. “When you’re in the middle
of all the chaos, it’s hard to think about what’s the right
thing to do.”
Even teachers in higher-wage states are sufering
from pay freezes. Bryan Steinberg quit his job teach-
ing in the Philadelphia School District at the end of the
2016–17 school year after enduring a five-year pay
freeze. He made $660 each week after taxes as a
teacher. Now he earns double that working as a
bartender and waiter. He just got his real estate
license too, in an efort to launch
his next career.
It’s not just the pay, he says:
Teachers and school districts are
underfunded and disrespected. “It’s
a profession that should be treated
almost like doctors,” he says, “but
we’re treated like babysitters.”
Ashley Samek, who until
recently earned $46,000 a year as a
chemistry teacher at Eagle Valley
High School in Gypsum, Colo., says
a lack of respect stifled her work as
an educator. She earned a master’s
degree in education a few years ago
to get a $3,000 annual pay increase,
although she is still paying of the
resulting loans.
She waited tables throughout
her seven years of teaching. Now
she has left her job to waitress
full-time, and she plans to begin
nursing school next spring.
“Nursing is a valued profession,”
Samek says. “And starting out,
nurses make around $60,000-plus
a year. I’m excited to be able to not
have a second job.”
Teacher pay has been falling
since the 1990s—and particularly
over the past five years, says Linda
Darling-Hammond, president and
CEO of the Learning Policy
Institute. As with many other
professions, the recession hit
teachers hard. Districts fought to
avoid layofs, but the pink slips still
came—as did salary freezes and
weaker state funding.
Slowly, as the economy im-
proved, school districts began
hiring more teachers. But fewer
people want to enter the field. Over
the past five years, there has been a
35% decline in enrollment in
teacher education programs,
Darling-Hammond says. Potential
teachers can be lured into other
fields with more promising wages.
AUGUST 2018 M O N E Y. C O M

 The rise of the tech industry
has also made it more diicult for
school districts to acquire and
retain promising science, technol-
ogy, engineering, and mathematics
(STEM) teachers. Sean Dufy, a
former Colorado teacher whose
parents were both educators, left
teaching several years ago when he
found more lucrative opportunities
in Austin’s tech scene. He says he
now earns significantly more than
his annual $43,000 teacher salary,
though he declines to disclose
specifics. Dufy says he misses his
students and his classroom, but he
was glad to leave the other aspects
of teaching and working in a school
district behind.
“I had a bachelor’s and master’s,
and all my peers in other sectors
were making higher salaries with
increases and bonuses,” Dufy says.
Now he works at Capital Factory,
an Austin-based company that
helps entrepreneurs start their
businesses. His in-box, he says, is
filled with teachers seeking advice
on how to escape.
A number of organizations
around the country are trying to
find ways to lure talented teachers
back to the classroom. But low pay
and limited resources make that
work diicult.
“You can’t have teachers be the
engines of equality and social
mobility if they themselves cannot
provide for their—and their
family’s—economic security,” says
Talia Milgrom-Elcott, the cofound-
er and executive director of
100Kin10—a group whose name
and purpose stem from Obama’s
2011 call to get 100,000 STEM
teachers in the classroom by 2021.
Other teachers who spoke to
MONEY detail the extreme
measures they have taken to boost
 M O N E Y. C O M AUGUST 2018
PUBLIC SCHOOL TEACHER ... AND TEACHERS NOW PAY
SALARIES HAVE BEEN A LARGER SHARE OF
DECLINING … HEALTH CARE PREMIUMS
$65,000 38%
AVERAGE TEACHER AVERAGE SHARE OF
PAY, ADJUSTED FOR INSURANCE PREMIUMS
INFLATION PAID BY TEACHERS
64,000
36 36%
63,000
34
62,000
$60,934 32
61,000
60,000 30
2003 2016 2008 2017
NOTES: MEASURED AT BEGINNING OF THE SCHOOL NOTES: DATA IS FOR PRIMARY, SECONDARY, AND
YEAR AND ADJUSTED FOR INFLATION. ESTIMATES SPECIAL EDUCATION SCHOOLTEACHERS, AND
USED FOR 2006 AND 2016. ASSUMES FAMILY COVERAGE.
SOURCE: NATIONAL EDUCATION ASSOCIATION’S
ANNUAL RANKINGS & ESTIMATES REPORTS
SOURCE: BLS, NATIONAL COMPENSATION
SURVEYS, 2008–2009
their income. Working a second or third job is common-
place, they say. To find more lucrative teaching salaries,
some have moved to diferent states with higher
pay—and others to countries halfway around the world.
FEW HAVE DITCHED THE PROFESSION to enter
state politics and gain a seat at the table. As
law- and policymakers, they can use their
experience to push for higher budgets for
public education. Kathy Hofman, a speech therapist in
the Tucson schools, wants to do just that. She is now
running for superintendent of public instruction, which
oversees Arizona’s public school system and depart-
ment of education. The confirmation hearing of Educa-
tion Secretary Betsy DeVos, a charter-school advocate
who has been criticized for her lack of attention to
struggling public schools, inspired Hofman to run.
“I strongly believe we need more teachers running
for oice,” says Hofman, whose platform focuses on
teacher pay and programs for bilingual students, among
other issues, “not just politicians.”
 )\XIEGLIV
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Shawn Sheehan, the 2016 Oklahoma Teacher of the
Year, ran for state senate to help tackle similar issues.
After a failed bid, however, he and his wife, also a teacher,
moved to Texas—to a school district with a higher
average salary. Now the couple earn $38,000 more a year
than they did in Oklahoma. Even with Texas’s higher cost
of living, Sheehan says, they come out ahead.
“We weren’t expecting to be rich,” he explains. “We
were expecting to make ends meet and pay the bills.
We’re highly trained and qualified, and we do expect to
be paid at least a livable wage—and that’s still not the
case for Oklahoma educators.”
Even so, there’s a chance for improvement in these
sufering states—thanks in part to this year’s teacher
uprisings. A nine-day teacher walkout in Oklahoma in
April led to millions more dollars in education funding
in the state. And in Arizona, Gov. Doug Ducey signed a
plan in early May that would raise teacher pay by 20%
over the next three years—with a 10% pay bump this
year. That will add more than $1 billion to the state
budget in education spending—even as Arizona
educators say there’s still a long
way to go.
Heath, the former English
teacher from Arizona, is hopeful.
She recently started a job as a
literacy curriculum specialist at
multinational corporation Pearson
Education—a gig that will keep her
close to the profession she loves.
And if this year’s big protests
and strikes manage to create
long-term, substantial change,
Heath says she may even return to
the classroom. She could get back
to teaching The Great Gatsby (her
favorite book). She could return to
her students—and to the career
she most identifies with.
“I’m trying to hold tight to the
idea that everything happens for a
reason,” she says.

PHOTOGRAPH BY GENE SMIRNOV A U G U S T 2 0 1 8 M O N E Y. C O M


 THE MONEY 50

6)'311)2()(
*92(7

*YRHW TOTAL RETURN

EXPENSES
(AS % OF
PHONE
NUMBER
ONE ONE THREE ASSETS) (800)

7QEPP7XSGOW
MONTH YEAR YEARS 1
FUND (TICKER)
Vanguard Inflation-Protected (VIPSX) 0.0% 0.1% 1.7% 0.20 662-7447
Vanguard Short-Term Infl.-Prot. (VTIPX) 0.1 0.6 0.9 0.15 662-7447
Vanguard Total Intl. Bond Index (VTIBX) 1.6 3.2 0.13 662-7447

7MKREP+VS[XL
–0.3
CUSTOM FUNDS
Large-Cap
Dodge & Cox Stock (DODGX) 1.8 14.1 11.1 0.52 621-3979
Schwab Fundamental U.S. Large (SFLNX) 1.9 13.9 10.3 0.25 435-4000
Sound Shore (SSHFX) 1.7 7.9 7.4 0.91 551-1980
TYPICALLY, WHEN THE ECONOMY begins to accelerate and Vanguard Value Index(VIVAX) 1.1 11.8 10.4 0.17 662-7447
investor confidence climbs, riskier but faster-growing Primecap Odyssey Growth (POGRX) 3.3 30.2 17.7 0.67 729-2307
T. Rowe Price Blue Chip Growth (TRBCX) 3.1 31.5 17.9 0.70 638-5660
small-company stocks tend to outpace the broad Midcap
market. True to form, mutual funds on our recom- Vanguard Mid-Cap Value Index (VMVIX) 1.4 9.7 9.0 0.19 662-7447
mended list that specialize in small-capitalization Vanguard Mid-Cap Growth (VMGIX) 3.2 16.8 9.4 0.19 662-7447
T. Rowe Price Div. Mid Cap Gro. (PRDMX) 3.0 19.4 11.4 0.84 638-5660
stocks were among the best performers in the four Small-Cap
weeks ended June 13. This came just as economists Vanguard Small-Cap Value (VISVX) 3.3 13.1 10.1 0.19 662-7447
were raising their forecasts for U.S. gross domestic Schwab Fundamental U.S. Small (SFSNX) 4.0 16.6 10.8 0.25 435-4000
Vanguard Small-Cap Growth (VISGX) 4.3 23.4 10.9 0.19 662-7447
product growth in the second quarter to more than T. Rowe Price QM U.S. Small-Cap Gro.(PRDSXX) 3.4 20.1 11.6 0.79 638-5660
4%, double the rate of growth at the start of the year. Specialty
Among the mutual funds in the MONEY 50, the T. Rowe Price Dividend Growth (PRDGX) 1.1 11.7 10.9 0.64 638-5660
Vanguard Intl. Div.Appreciation (VIAIX) 0.6 9.9 N.A. 0.35 662-7447
Schwab Small Cap Index fund gained 4.4% in the Cohen & Steers Realty Shares (CSRSX) 0.6 –0.5 6.0 0.97 437-9912
month, compared with the 1.9% gain for the larger Vanguard Global. ex-U.S. Real Estate(VGXRX) –1.0 10.0 6.3 0.34 662-7447
stocks in the Schwab S&P 500 Index fund. Fidelity Select Natural Resources (FNARX) –1.1 17.1 0.7 0.83 544-8544
Foreign
Oakmark International (OAKIX) –3.5 9.3 6.7 0.95 625-6275
Vanguard International Growth (VWIGX) 1.6 23.8 12.6 0.45 662-7447
,3;8397)3966)'311)2()(0-78
T. Rowe Price Emerging Markets (PRMSX) –2.5 16.7 10.5 1.23 638-5660
Bond
Building-block funds: For broad exposure to core asset classes Dodge & Cox Income (DODIX) –0.2 0.1 2.5 0.43 621-3979
Custom funds: Specialized investments that can tilt your strategy Fidelity Total Bond (FTBFX) 0.0 –0.5 2.4 0.45 544-6666
One-decision funds: If you want stocks and bonds in one portfolio Vanguard Short-Term Inv. Grade (VFSTX) 0.0 –0.2 1.5 0.20 662-7447
Fidelity Corporate Bond (FCBFX) –0.3 –0.5 3.0 0.45 544-6666
Loomis Sayles Bond (LSBRX) –0.1 1.0 2.8 0.91 633-3330
Fidelity High Income (SPHIX) 0.8 4.2 5.5 0.72 544-8544
TOTAL RETURN EXPENSES PHONE Vanguard Intm.-Term Tax-Ex. (VWITX) 0.3 0.4 2.4 0.19 662-7447
(AS % OF NUMBER
ONE ONE THREE ASSETS) (800) Vanguard Limited-Term Tax-Ex. (VMLTX) 0.4 0.3 1.2 0.19 662-7447
FUND (TICKER) MONTH YEAR YEARS 1
Templeton Global Bond (TPINX)2 –1.5 –2.0 1.0 0.96 632-2301
BUILDING-BLOCK FUNDS Fidelity New Markets Income (FNMIX) –1.8 –3.0 5.4 0.82 544-6666
Large-Cap
ONE-DECISION FUNDS
Schwab S&P 500 Index (SWPPX) 1.9% 15.9% 12.1% 0.03 435-4000
Balanced
Schwab Total Stock Market Index (SWTSX) 2.3 16.3 11.8 0.03 435-4000
Fidelity Balanced (FBALX) 1.9 11.3 8.1 0.55 544-6666
Midcap/Small-Cap
Fidelity Asset Manager 60% (FSANX) 0.8 9.4 6.8 0.73 544-6666
Vanguard Mid-Cap Index (VIMSX) 2.3 13.1 9.2 0.17 662-7447
Vanguard Wellington (VWELX) 0.3 7.8 7.9 0.25 662-7447
Schwab Small Cap Index (SWSSX) 4.4 19.1 11.4 0.05 435-4000
Target Date
Foreign
T. Rowe Price Retirement series (STOCK/BOND ALLOCATION)
Fidelity International Index (FSIIX) –1.7 9.1 5.1 0.16 544-8544
Ex: 2005 Fund (36%/64%) (TRRFX) 0.1 4.6 4.9 0.58 638-5660
Vanguard Total Intl. Stock Index (VGTSX) –1.6 10.7 5.9 0.17 662-7447
Ex: 2020 Fund (58%/42%) (TRRBX) 0.4 8.0 6.7 0.63 638-5660
Vanguard FTSEA/W ex-U.S. Small (VFSVX) 0.1 14.7 8.2 0.25 662-7447
Vanguard Target Retirement series
Vanguard Emerging Markets (VEIEX) –2.7 12.3 5.1 0.32 662-7447
Ex: 2025 Fund (62%/38%) (VTTVX) 0.5 8.7 6.8 0.14 662-7447
Specialty
Ex: 2035 Fund (77%/23%) (VTTHX) 0.6 10.9 7.9 0.14 662-7447
Vanguard REIT Index (VGSIX) 1.0 –2.5 5.1 0.26 662-7447
Bond
Vanguard Total Bond Market (VBMFX) 0.1 –1.3 1.4 0.15 662-7447 NOTES: As of June 13, 2018. N.A.: Not available. Load funds are included for those who prefer
to use a broker. 1Annualized. 24.25% sales load. SOURCES: Lipper, New York, 877-955-4773;
Vanguard Short-Term Bond (VBISX) 0.2 –0.7 0.7 0.15 662-7447 the fund companies

 M O N E Y. C O M AUGUST 2018

 THE MONEY 50

6)'311)2()(
)8*W

)8*W TOTAL RETURN EXPENSES

(AS % OF
PHONE
NUMBER
FUND (TICKER) ONE ONE THREE ASSETS) (800)

8EVMJJ8MJJ,MXW
MONTH YEAR YEARS 1

0.1% 14.8% 8.3% 0.13 662-7447

Small ETF (VSS)
Vanguard FTSE Emerging –2.7 12.6 5.3 0.14 662-7447

*SVIMKR7XSGOW
Markets ETF (VWO)
Specialty
Vanguard REIT ETF (VNQ) 1.0 –2.3 5.3 0.12 662-7447
Bond
Vanguard Total Bond ETF (BND) 0.1 –1.2 1.5 0.05 662-7447
Vanguard Short-Term Bond ETF (BSV) 0.2 –0.6 0.8 0.07 662-7447
FEAR OF A FULL-BLOWN TRADE WAR, sparked by a new
Schwab U.S.TIPS ETF (SCHP) 0.1 0.5 1.8 0.05 435-4000
round of tarifs imposed by Beijing and Washington, Vanguard Short-Term Infl.-Prot. ETF(VTIP) 0.1 0.7 1.0 0.06 662-7447
led to a sellof in shares of foreign stocks in the four Vanguard Total Intl. Bond ETF (BNDX) –0.2 1.7 3.2 0.11 662-7447
weeks ended June 13. Among the big losers were CUSTOM ETFs
Chinese equities, and that hit the broader emerging Large-Cap
Invesco FTSE RAFI U.S. 1000 ETF (PRF) 1.6 12.3 9.8 0.39 983-0903
markets. On our recommended list of ETFs, Vanguard Vanguard Value ETF (VTV) 1.1 12.0 10.5 0.05 662-7447
FTSE Emerging Markets lost 2.7% in the month. WisdomTree U.S. LargeCap Dividend(DLN) 1.2 10.3 10.3 0.28 909-94732
iShares Edge MSCI Min.Vol. USA ETF(USMV) 1.2 9.9 11.6 0.15 474-2737
Invesco S&P 500 High Qual. (SPHQ) 2.8 12.3 12.1 0.29 983-0903
7
46%8-37 Vanguard Growth ETF (VUG) 3.0 20.8 13.6 0.05 662-7447
Midcap
P/E DIVIDEND YIELD Vanguard Mid-Cap Value ETF (VOE) 1.4 9.8 9.1 0.07 662-7447
WisdomTree U.S. MidCap Dividend (DON) 3.1 11.9 11.5 0.38 909-94732
24.0 2.1% Vanguard Mid-Cap Growth ETF (VOT) 3.2 17.0 9.5 0.07 662-7447
Small-Cap
Vanguard Small-Cap Value ETF (VBR) 3.3 13.2 10.3 0.07 662-7447
WisdomTree U.S. SmallCap Dividend (DES) 4.4 12.0 11.1 0.38 909-94732
23.0 2.0
Invesco FTSE RAFI U.S. 1500 S-M(PRFZ) 4.5 19.4 11.5 0.39 983-0903
Vanguard Small-Cap Growth ETF (VBK) 4.3 23.6 11.0 0.07 662-7447
ONE-
22.0 YEAR 1.90 ONE- Specialty
RANGE
1.9 YEAR SPDR S&P Dividend ETF (SDY) 1.6 8.3 11.5 0.35 787-22572
RANGE
CURRENT CURRENT Vanguard Intl. Div.Appreciation (VIGI) 0.6 10.0 N.A. 0.25 662-7447
iShares Cohen & Steers REIT ETF (ICF) –0.3 –2.9 4.9 0.34 474-2737
21.0 1.8 Vanguard Global ex-U.S. Real Estate (VNQI) –1.0 10.2 6.5 0.14 662-7447
21.0
iShares N.Amer. Nat. Res. ETF (IGE) –0.6 15.3 1.7 0.48 474-2737
Foreign
20.0 1.7 Invesco FTSE RAFI Dev. Mkts. ex-U.S.(PXF) –2.6 9.7 5.3 0.45 983-0903
iShares Edge MSCI Min.Vol. EAFE (EFAV) –0.4 7.5 6.3 0.20 474-2737
SPDR S&P Emerg. Mkts. Small Cap ETF(EWXX) –0.5 11.9 6.1 0.65 787-22572
,3;8397)3966)'311)2()(0-78 Bond
Fidelity Total Bond ETF (FBND) –0.1 –0.7 2.0 0.36 343-3548
Building-block ETFs: For broad exposure to core asset classes Pimco Active Bond ETF (BOND) 0.0 –0.3 2.0 0.61 400-43832
Custom ETFs: Specialized investments that can tilt your strategy Pimco Enhanced Short
One-decision ETFs: If you want stocks and bonds in one portfolio Maturity Active ETF (MINT) 0.2 1.7 1.5 0.35 400-43832
iShares iBoxx $ Inv. Grade Corp. ETF(LQD) –0.3 –1.6 2.9 0.15 474-2737
Vanguard Short-Term Corp. ETF (VCSH) 0.2 –0.1 1.6 0.07 662-7447
iShares iBoxx $ HighYield Corp. ETF(HYG) 0.8 2.2 4.1 0.49 474-2737
TOTAL RETURN EXPENSES PHONE Vanguard Tax-Exempt ETF (VTEB) 0.2 0.8 N.A. 0.09 662-7447
(AS % OF NUMBER
ONE ONE THREE ASSETS) (800) SPDR Nuveen Bloomberg
FUND (TICKER) MONTH YEAR YEARS 1 Barclays S/T Muni (SHM) 0.5 –0.5 0.8 0.20 787-22572
BUILDING-BLOCK ETFs Invesco Intl. Corporate (PICB) –1.7 3.4 1.5 0.50 983-0903
Large-Cap SPDR Bloomberg Barclays
Vanguard 500 ETF (VOO) 2.0% 15.9% 12.1% 0.04 662-7447 Emerging Markets Bond ETF (EBND) –3.6 –1.6 1.8 0.40 787-22572
Schwab U.S. Broad Market ETF (SCHB) 2.3 16.3 11.8 0.03 435-4000 ONE-DECISION ETFs
Midcap/Small-Cap Balanced
iShares Core S&P Mid-Cap ETF (IJH) 2.9 14.3 10.9 0.07 474-2737 iShares Core Conserv.Alloc. ETF (AOK) 0.0 3.3 4.0 0.25 474-2737
iShares Core S&P Small-Cap ETF (IJR) 5.1 21.3 14.1 0.07 474-2737 iShares Core Moderate Alloc. ETF (AOM) 0.1 4.6 4.8 0.25 474-2737
Foreign iShares Core Growth Alloc. ETF (AOR) 0.1 7.5 6.3 0.25 474-2737
iShares Core MSCI EAFE ETF (IEFA) –1.4 10.6 6.1 0.08 474-2737 iShares Core Aggressive Alloc. ETF (AOA) 0.2 10.3 7.7 0.25 474-2737
Vanguard Total Intl. Stock ETF (VXUS) –1.6 10.7 6.0 0.11 662-7447 SPDR SSGA Global Alloc. ETF (GAL) 0.1 10.1 5.8 0.35 787-22572


NOTES: As of June 13, 2018. N.A.: Not available. 1 Annualized. 2Phone numbers are 866.
M O N E Y. C O M AUGUST 2018 SOURCES: Lipper, New York, 877-955-4773; the fund companies
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BY M I K E AY E R S

MONEY: The topic of money

comes up a lot in your
essays. Is money inherently
funny to you?
DAVID SEDARIS: I think a lot
of people have a money dis-
order. I know my father has a
money disorder. I’m not talk-
ing about being poor—I’m
talking about being cheap.
And I have a money disorder
[too]. Because I made my own
money, I can’t shut up about
it. If you were to say to me, “I
like your shirt,” I would imme-
diately tell you how much it
cost. Some people would say,
“I got it for $15.” I would
say, “This shirt, you wouldn’t
believe, cost $525.” And I
wouldn’t tell you that to
make you jealous. I guarantee
you, you don’t want to be
wearing the shirt I’m wearing
right now. I do, but you don’t
want to. [So] I have a money
time, you’re spending a lot.
Is that an act of rebellion?
I guess I just feel like I am …
I’m rich. I’m rich. And I abso-
lutely love being rich. Love it.
I love buying things. And I don’t
just buy things for myself; I
buy things for other people as
well. But it’s just crazy that
I can become rich just by
being myself.
You’ve also recently
written about your North
Carolina beach house,
the Sea Section. Is this
thing is, my boyfriend, Hugh,
he loves it. And I just don’t get
it. He’d be happy to move
there full-time. How could
you live at the beach full-
time? It’s all I can do, really, to
stay there for 10 days. I’m so
ready to leave. I’m glad he
likes it. But if I had known
he would have liked it that
much, I wouldn’t have bought
the house.
show, I can’t tell people how
Do you ever look back and much money [I] get paid for a
think you’ve wasted money? thing like that. I don’t know if
Not so much. I give things they could be happy for me.
S E DA R I S : C O U RT ESY O F I N G R I D C H R I ST I E

disorder, and I talk about it
all the time.
In the final essay of your
latest book, Calypso, you
discuss your father’s fru-
gality and how it’s a source
of tension. At the same
your favorite purchase in
recent memory?
I got it so my family would
have a place at the beach. We
all get together there. I have
brothers and sisters in North
Carolina; they can just go
there on their own. But the
away. I bought a pair of black
sequin culottes. Did I say I’m
61? I bought them somewhere
in Tokyo. But I already found
somebody to give them to who
can’t possibly afford them and
would actually wear them all
the time. When I do a live
They’d just say, “Okay, you just
lost me.” Then you think, What
did those culottes cost me?
Twenty seconds onstage?
When I no longer can go on
tour, then all this will shut
down. As long as I do this,
there’s no stopping me.

 M O N E Y. C O M AUGUST 2018

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