Only those of ‘a certain age’ will be able to fill in the blanks in today’s title. For those who are younger, here’s a link to some information about it. This TV show was part of my youth, offering weekly feel-good stories about a band of Merry Men who robbed from the rich and gave to the poor.
Why do we make dumb money mistakes? The easy answer is that we can’t help ourselves. We are evolutionarily programed to take shortcuts. Our brain is wired to be expedient. Expediency is not always rational.
This irrational behavior is the underpinning of behavioral finance, the study of the influence of psychology on the behavior of investors.
"Up, Up and Away" is a 1967 song written by Jimmy Webb and recorded by the 5th Dimension. Although it did well on the charts, it’s been a while so let me remind you of the next few words: ‘in my beautiful balloon’.
I thought of the song as I was talking to a younger friend who graduated from college in 2009.
My eldest son is house hunting. This is a major purchase for him, and he wants to make a sound investment.
One frequent mistake of first-time homebuyers is to “over buy,” thinking their future salary will make the payments easier. Buy a house you can afford and will enjoy living in rather than one that will appreciate. Start with your personal financial considerations.
I met a young couple recently on their third “financial adviser.” This one sold them a flexible premium variable life insurance plan. Insurance agents are held to a “suitability” standard, but this case pushes the limits of my definition of suitability.
Insurance is designed to transfer risk from the individual to the insurance company.
On a Hawaiian vacation some years ago, Janet and I joined a group that was hiking to a World War II fort on the top of a mountain. Once there, we stopped to rest and enjoy the expansive view of the Pacific. One of our group, significantly younger and fitter than the usual tourist, had worn a large backpack for the whole climb.
I always struggle with my professional title.
Some of the standard monikers include financial consultant, investment adviser, financial adviser, wealth manager, financial planner, investment manager, financial coach and personal CFO. In my opinion, most titles are for marketing purposes and are generally meaningless.
I’ll confess. I am not good with budgeting. I have a rough idea of what I should spend, but often get distracted and don’t pay close attention.
My husband and I are to the point in our careers where day-to-day money management does not affect our overall financial situation.
With apologies to author Judith Viorst, the title of her ‘Alexander’ book from 1972 seemed perfect for my 2020 year-end article.