FINANCIaL
FIELd NOTES
10 Facts That Prove the World Is Getting Better
When I open a newspaper or turn on the news, it’s hard to be optimistic about the world. Despite this, I tend to be optimistic, which can come across as a bit naive in the investing world.
As Morgan Housel puts it, “Optimism often sounds like a sales pitch, pessimism sounds like someone trying to help you.” But the opposite has proven true…
Wealth and Happiness are Loosely Connected
Recently I heard a doctor talking about the crisis in Sudan, where intense clashes between military forces have threatened the lives of thousands. He had recently spoken to another doctor in Sudan who was the sole MD in charge of patient care for nearly a million people. Every day, he saw all sorts of medical problems that we would never imagine suffering from here in the US. However, he went on to say that the US and other developed countries suffer from one illness that the Sudanese largely do not: depression.
In recent years, researchers and economists have recognized the limitations of GDP as a measure of progress and have sought other metrics to assess the well-being of citizens. One such metric is the World Happiness Report, which measures the overall happiness of citizens in a country…
How to Encourage Young Workers to Start Saving
Getting young savers to make the initial commitment to start saving can be difficult. Consider a recent college graduate making $50,000 per year. If they save the recommended 10-15% of their income, that may leave very little for fun spending. The likelihood of them continuing to save decreases if they can't enjoy much of their income, especially during the years with lower income.
If they do give up on savings early, it can be a tough habit to regain, even as their income increases over their career. Because of this, I think it's great to encourage young investors to get started, no matter how small the amount. The power of making a commitment and being able to stick to it is significant…
What is the Best Way To Save for Your Grandchildren?
I recently had a client tell me that they had been thinking about saving some money for each of their grandchildren but were unsure about the best way to do that. I’ve seen families over the years put off saving because they weren’t sure exactly how to go about that.
Start by asking yourself what you want the money to accomplish. Is it something specific like college or a first home, or is it more general like setting them up for success early in life?
Here are a few different ideas to consider…
Why I Finally Decided to Freeze My Credit
I was recently talking with an advisor who had his identity stolen. An attempt had been made to take out a $100,000 loan in his name from his very own bank! Because the bank had sent him numerous emails offering loans that he had sent to junk, the email notifications for this loan had been lost in a spam folder.
This experience pushed him to do a lot of research and he came to this conclusion that he shared with me. You should assume that your personal information is out there…
How To Be Happier - Stop Adapting So Much
When my wife and I first got married, we lived in a one-bedroom apartment that was the cheapest option in our zip code. We literally went to apartments.com, sorted from least expensive, and then signed on the dotted line. Our room was sandwiched between habitual smokers. Our assigned parking spot was a 5-minute walk to the front door. They didn’t plow the parking lot when it snowed.
And we were so happy…