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.

Tax Credits / Flickr.com / https://creativecommons.org/licenses/by/2.0/

Not everyone is rich. So, does the profession of financial planning have anything to offer to the average or even poor person? What could just plain old regular folks do to live better?

I have met individuals worth multiple millions who had no time, no love and no peace in their lives. I have also met others who could list all their possessions on the back of a napkin whose family, community and lifestyle were a constant source of joy to them.

So let’s begin with the understanding that wealth never made anyone rich and poverty never made anyone…well, poor.

David Strom / Flickr.com http://tinyurl.com/zovpe56

Resolved: no matter what happens in 2017, I will keep going.

Everything else is just details.

Winston Churchill will forever be remembered as England’s greatest prime minister, not because of his brilliant military strategies or political skill, but because when hopeless circumstances and fearful friends advised England to surrender, Churchill stood firm.

“Never give in; never give in; never, never, never…!” he growled to war-torn citizenry desperately in need of hopeful leadership.

Praveen / Flickr.com http://tinyurl.com/zvxwx64

What are you giving for Christmas this year?

Each year there’s an “it” gift that everyone seems to want, yet it’s often hard to find. Remember Tickle-Me Elmo? That was creepy.

As in economics, so in life… scarcity plus desirability equals value. High value. If you want an “it” gift bad enough, you may be willing to look high and low…and pay someone more than top dollar to acquire it.

Here are some gifts that are both rare and desired by many. See which ones you can be thankful you’ve received and which ones are so rare that only you can give:

Moderation is Overrated

Dec 14, 2016
Chapendra / Flickr.com http://tinyurl.com/zs2sn2m

I have no problem with eating healthy I do it all the time. I can say no to sweets, fried stuff and jumbo portions. As long as Im all in.

This week I've been telling my wife, I am embracing hunger." I almost believe myself.

What trips me up every time is when I decide its time to introduce some moderation back into my diet. I'll just eat one cookie, maybe a couple of chips and what could it hurt if I ate a fry off my childs plate?

Ken Teegardin / Flickr.com http://tinyurl.com/h862a6a

Twenty-five years ago, Bob Castiglione told me, Money is not math, and math is not money. At the time I just scratched my head (till all my hair fell out), but I finally figured out what he meant.

The advent of personal computers thirty years ago enabled those of us in the fledgling financial planning community to crunch numbers to our hearts content. Thus enabled to calculate the numerical nuances of infinite financial possibilities, financial planners began producing elaborate projections of potential financial futures.

BasicGov / Flickr.com http://tinyurl.com/hnhp7ek

Most governmental bodies, institutions and large businesses have some sort of disaster preparedness plan. Do you?

It seems like not a year passes that some fire out west destroys dozens, if not hundreds of houses incinerated in its path. Whether its a western wildfire or just a stovetop grease fire that burns down your house, make sure that whatever you lose to a fire, youve got the coverage you need. As with any insurance decision, I recommend you speak with a licensed professional agent. Here are a few things to consider:

PicturesFromWords / Flickr.com http://tinyurl.com/j98q28j

Everybody wants to go to Heaven, but nobody wants to die to get there.

Here is a self-discovery conversation I often have with people: suppose you are 35 years old and need $1 million to retire at age 65. So you’ve got 30 years. You figure you can save $10,000 a year and let’s just say your financial crystal ball says you could earn 5% per year on the money.

At the end of 30 years, you’ll have almost $700,000.

“But that’s not enough,” you observe. “I need a million to retire.”

OK – so what shall we change in this equation?

Gregory Roberts / Flickr.com http://tinyurl.com/hdaocon

Let me tell you the story of the Pyle brothers.

They did nearly everything alike. They married twin sisters, lived next door to one another and invested exactly in exactly the same things. As a result, they each reached retirement age with a…pile of money.

Big R. Pyle didn’t much think about life’s risks. He shunned insurance, drove without a seatbelt and actually went swimming before his mother’s not-for-30 minutes-after-dinner rule was up.

Few things cost more than unexamined assumptions.

Never is this more true than when parents begin thinking about sending their first child to college.

Where will Junior go to college? And why? And who is driving this decision?

I remember a meeting with two parents who wanted to send their child to their alma mater, which was now a very expensive private school much more expensive than when they went. They would have had to borrow the money, so I simply asked them, Why are you doing this?

Gregory Roberts / Flickr.com http://tinyurl.com/hdaocon

Last week we asked the question concerning financial goal setting and financial planning: “Is bigger really better?”

It didn’t take long to realize that just because you have a big number (i.e., a large amount of money at retirement time), it does not necessarily follow that everything is fine. We saw that bigger doesn’t always mean better.