My wife and I generally agree about money. We both want to give generously to our church and other charities, we both want to save at least 15% of our income toward retirement, and we both want to have our mortgage paid off in less than 9 years (which will have been less than 15 years from when we bought our home together).
One of our primary goals at The Wealth Group is to help our clients achieve financial independence at a younger age than most Americans. Financial independence doesn’t necessarily mean you retire and quit working; it just means you no longer need to keep working or saving money for the rest of your life.
But for our clients in their 50s and early 60s that begin to contemplate retirement, one of their biggest concerns is healthcare costs. Before going on Medicare, buying private health insurance is certainly expensive.
I recently helped my mother purchase a 2015 SUV from a dealership. It was not a pleasant experience. Those of you that have purchased from a dealership know how long the process takes. Within 20 minutes of walking into the dealership, we were ready to pay all cash for the vehicle. We had done our research in advance, the test drive went well, and we were buying a reliable make and model.
Is your child or grandchild familiar with the concept of a “Financial Safety School”? High school students know well the concept of a “safety school”: a college that is almost certainly going to accept them. There are also “reach” colleges where acceptance is far from guaranteed, and “target” colleges where acceptance is likely but not a sure thing.
A financial safety school is one where the costs are reasonable for the family.
Most of us have said or thought something like: “If only I had invested in __________, I would have so much money today.” Whether it’s the stock of Amazon, Google, Netflix, or Apple, the growth of these stocks over a long period of time is incredible. But when we examine the historical price movement of these stocks, we see that early investors have endured a bumpy ride.
Meir Statman is a Professor of Finance at Santa Clara University. He has gained increasing acclaim in the financial world for his work in the field of Behavioral Finance. What is behavioral finance? It studies the intersection of our behaviors (which are driven by our thoughts and feelings) and our money.