Wisdom on Wealth

Wednesday at 7:45 a.m.

Everyone has money questions, whether it's what to do about retirement, or how to invest for the first time. Each week, Byron Moore offers practical, down-to-earth advice on handling money; and shows that even though money is important, paying attention to it can keep it from ruling your life.

Paul Townsend / Flickr.com https://tinyurl.com/y958pyo7

Many of the really smart people I knew in high school or college are now doctors. I can’t think of any single profession filled with more exceptionally bright individuals.

And yet, what if I told you doctors do no better with their money that the average Joe?

You be the judge.

LC_24 / Flickr.com https://tinyurl.com/y7c97822

For most of us, making decisions feels very difficult.

Making a decision means you are saying yes to one thing and no to a myriad of alternatives (sort of like getting married). Keeping the door open to the perception of unlimited choice usually ends up being unsatisfying … but it keeps the stress of making an actual decision at bay.

Making financial progress (or progress in any realm of life) is only going to happen if you grow in the skill of decision making. Here’s a process you can use to make a hard decision:

Julie Kertesz / Flickr.com https://tinyurl.com/y725bw7f

How many mutual funds do I need to own to be properly diversified?

A lot more than you think.

Sometimes we think about diversification in a very one dimensional sense. Maybe we need to diversify our thinking … about diversification.

First of all diversification is fancy language for not putting all your eggs in one basket. It is the art and science of embracing variety over specificity for the purpose of reducing the risk of significant loss.

Hamza Butt / Flickr.com https://tinyurl.com/y8zjkqpr

Last week we identified four bases you need to cover in your planning for retirement income: you need contentment for emotional health, a baseline budget for financial health, and a budget for both expected big stuff and unexpected bad stuff to make sure neither causes your financial house to collapse on your head.

Hamza Butt / Flickr.com https://tinyurl.com/y8zjkqpr

Have you ever read or heard that on average you’re going to need 70% of your working income in retirement.

Be careful when mixing averages and real life. If I put one foot in a bucket of ice and the other foot on a hot stove, on average, I’m comfortable. But in real life…

There are four things you need for a financially and emotionally (yes the two are linked) healthy retirement:

houston, i am the problem / Flickr.com https://tinyurl.com/ybmqehvm

If you find that you and your spouse argue a lot about money, the good news is that you aren’t unique. Approximately half of all divorces can be traced to money problems.

I am crazy in love with the woman I married thirty-two years ago. But, hooo-weee have we had some knock-down, drag-out fights. (OK, for the record, she has never knocked me down or dragged me out. That was just a figure of speech.)

DennisM2 / Flickr.com https://tinyurl.com/y84at5k3

I ran across an article some time back with the headline, “When a million isn’t enough: why bankers struggle.” The million wasn’t their savings – it was their annual income. And (fighting back sniffles here), it apparently isn’t enough.

“It’s really not that unusual to find Wall Street bankers who are close to declaring themselves bankrupt,” said Gary Goldstein, co-founder of U.S. search firm Whitney Partners. “Some people are really struggling.” And on and on the story went.

I know, I know…my heart is breaking too…

Financial Organization

Sep 7, 2017
Jen Kim / Flickr.com https://tinyurl.com/yc778sa7

Ever wonder where to start when that nagging feeling hits you that say, “I’ve GOT to get financially organized!”

Let’s not do this: straighten up all the unopened bank statements and investment account reports on your desk and call that financial organization.

That’s just making your mess look neater.

For something to be organized, it has be ordered, structured toward some purpose and well thought out. To do that, you’ve got to know what you have, where it is, why you have it and contact information for each separate service provider.

Time to Invest?

Aug 30, 2017
Sam Valadi / Flickr.com https://tinyurl.com/y87j2d4q

As I am recording this, the Dow Jones Industrial Average stands at about 21,500. Higher than it’s ever been.

Is this good news or bad? The answer, of course, is yes…good news for the person who has been invested in the markets for the past five years. Five years ago the market was about 15,000. Not so good news for the person now wishing they’d gotten in “early.”

Unfortunately, that train has left the station.

Kurt Bauschardt / Flickr.com http://tinyurl.com/mqzomkr

We love it when things are convenient.

There’s a new car wash place that has opened up in my town. They say I can just drive through, never get out of my car and have a clean ride in just four minutes. I think I’ll give it a try. I mean, four minutes and never get out of the car – that’s convenient. And if it’s still dirty after I give it a try, I guess I’ll go someplace else and get it done. No big deal.

But convenience has its limits.

Pages