How long do you think you will live? This is the greatest area of uncertainty when creating a financial plan. We know that people are living longer, but we don’t know how much longer that will be in 30 to 40 years. Former President George HW Bush was 94 when he died last week. The…
What I Learned on Internet Break
I wish I could tell you that my four-day internet break over Thanksgiving was a mountaintop moment, but it truth, there was nothing earth shattering. However, I have a few takeaways from four full days and five nights without social media, email, or internet. I turned off my smart phone for most of it, something…
Money Scripts
Several years ago, I attended a conference session with Tim Maurer. He began by asking each of us to think of our first memory of money. Take a moment, do you remember yours? A common answer is the Tooth Fairy. I find this a hilarious first money memory, a magical fairy who pays children for…
Giving Thanks
Thanksgiving is my favorite holiday. What could be better than a holiday that combines family, food, and wine? I love trying over the top recipes from scratch, helping set the table, and even cleaning up after the meal. When I’m in New Orleans for Thanksgiving, as I am this year, we go to the opening…
Everybody Knows About Mississippi
We interrupt this blog for a post about a political mishap gone terribly wrong. Last week, Mississippi Senator and run-off candidate Cindy Hyde-Smith was recorded joking about attending a “public hanging”. I have never heard this Southern colloquialism before, but that is what the candidate claims she used when she said of a donor, “If…
Mine
My mother taught my son a new word this weekend. “Mine.” He’s at an age where he understands more than he can say, so he jumps on any word he can pronounce. Last weekend, the word was “ice” in the cooler that held our beers while tailgating at a college football game. This weekend, it…
What if Your Goal Isn’t the Max?
Many responses to my post on how few families save in 529 plans focused on the inability to max retirement contributions. But what if your goal isn’t to max your 401(k)? I’m sure FIRE movement advocates will disagree, but most people do not need to max their 401(k) to save enough for retirement. Median household…
American Energy
The U.S. is now the largest single country producer of crude oil, surpassing Russia and Saudi Arabia earlier this year. Technological advances in horizontal drilling fueled a boom in the West Texas Permian basin and other tight rock formations. In Pennsylvania, Ohio, and West Virginia, the Marcellus-Utica shale formation houses an estimated 84 trillion cubic…
Why Are So Few Using 529s?
Last week, Morningstar published a report on the use of 529 accounts for college savings. It found that only 16% of families with young children are using 529 plans. While this number is not necessarily shocking, it is unfortunate that families are leaving money on the table. Morningstar’s report, authored by Head of Behavioral Science,…
We Only See a Version of the Truth
A few years ago, I attended a presentation by Terrance Odean, Berkeley Professor and famed researcher on behavioral finance. In the middle of his presentation, Professor Odean played a video and asked audience members to count the number of times the players in white shirts passed a basketball. I vigilantly went about the task, putting…
