Wisdom on Wealth

WEDNESDAY MORNINGs AT 7:45

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.

Pictures of Money / Flickr.com https://tinyurl.com/ydcara3c

Life insurance. We need it. We hate it. We don’t really understand it. But we know we don’t want to be sold it.

If I had a message for life insurance companies, it would be this:

When you forget who you are, it’s easy to lose your focus.

The two decades spanning the 1980s and 1990s represent one of the most lucrative periods in history for investors. It was a time of declining interest rates, expanded borrowing, baby boomer buying and a growth in productivity made possible by the dawn of the personal computer.

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

Welcome to age 70. Believe me, you don’t look a day over 69.

If you’re not quite to age 70, don’t worry…its coming sooner than you think!

What happens at age 70…or 70 ½ to be precise?

That’s the age Uncle Sam says you must begin taking a required minimum distribution (RMD) each year out of your IRA. And if you don’t do it, you’ll owe a 50% penalty on every dime you fail to withdraw on time, plus the taxes due. I’m not kidding – they are serious about this stuff!

Your Example is More Important Than Your Words

Feb 21, 2018
Michael Lehet / Flickr.com https://tinyurl.com/y93e89ok

Adult children. Sometimes it seems they just don’t get it, right?

So what can you do to help your adult children not repeat the same financial mistakes you made at their age?

…not a thing.

There is no way to guarantee your kids won’t repeat your mistakes. In fact, most of the time, that’s exactly what happens.

Here’s the problem - your words don’t carry much weight when your way of life contradicts those words.

Jake Kitchener / Flickr.com https://tinyurl.com/y7yt6shv

How much money do you need to save?

The answer: enough.

What other answer makes sense?

OK. But “enough” to do what?

Enough to make you financially free during your working years and enough to make going to work optional as soon as possible.

GotCredit / Flickr.com https://tinyurl.com/yabzglhq

Are you too…fraud friendly?

Unfortunately, too many Americans are susceptible to financial fraud.

Financial fraud solicitations are everywhere. It’s hard to tell how widespread the problem is because people tend to under-report. Who wants to get ripped off, then admit to the world what an idiot they’ve been? It’s a double whammy most folks are unwilling to stomach.

Steven Depolo / Flickr.com

I once had someone come to see me about their mother. They described her as “totally obsessed with not spending money.”

Apparently she never went anywhere or spent anything, nor did she throw anything away. Her house smelled pretty bad due to all the old newspapers and magazines she kept.

She was widowed, but her late husband had left her with more than enough money. Her children would swear she never spent a penny of it.

It sounded like a plot from a reality TV show.

Junk Dynasty, maybe?

Grant Tarrant / Flickr.com https://tinyurl.com/y8z8exnx

When counseling someone with a debt problem, I usually have to explain to them that the easy way is often the worst way.

Consider the individual with several maxed out credits cards. Of course they want to get rid of them. So they look at their 401K account and notice there’s enough money in there to pay off all their credit cards.

They tell themselves they can then save all that money they were paying to the credit card company and pay back the 401K.

If they ask my opinion, my answer is usually – “No.”

Paul Inkles / Flickr.com https://tinyurl.com/yb2g6myd

If you own a small business that involves family members, I’ve got a question for you:

Do you have a family-oriented business or a business-oriented family?

It doesn’t really matter what your answer is…

What if I just showed up one night for dinner at your house? Is it likely you would be there for dinner? And if I asked your kids the “family-oriented business or business-oriented family” question, what kind of answer do you think I’d get?

Mike Houge / Flickr.com https://tinyurl.com/ybz97dve

The Law of Diminishing Intent.

Even if you’ve never heard of it, you’ve probably experienced it.

I first ran across this idea when reading a piece by consultant Duncan MacPherson.

As he explains it, “In simple terms, the Law of Diminishing Intent states that, when it comes to finishing a task that seems absolutely crucial one moment, our motivation wanes at about the same rate as the task’s significance. This is largely due to the fact that the emotion associated with the action dwindles, causing the motivation required to finish the project to fade.”

Why Save Money?

Nov 8, 2017
Images Money / Flickr.com https://tinyurl.com/y8rjh2s2

Why save money anyway?

I meet folks all the time who say “I’m never going to retire. My philosophy is to live for today and not save a bunch of money for a day I may never reach.”

When someone tells me that, I’m always tempted to respond - why stop there?

If you can simply will your way to work as long as you live, why not just will yourself to not get sick or die?

Not so simple, is it?

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