Wisdom on Wealth

Question: Like most people, I make New Year’s resolutions. Some I have actually kept long-term, but most have been pretty short lived. What do you think is the secret of keeping your resolutions – especially the financial kind?

Answer: I have no idea how many dieting books, fitness club memberships or getting-organized supplies are sold during the weeks just before and just after New Year’s Day…but I suspect it’s a big number.

Something about a new year suggests a clean slate – a fresh opportunity to do it again, only this time get it right!

Question: I am a poor planner and I end up overspending during Christmas. This inevitably leads to a bunch of credit card debt I wasn’t expecting, which totally bums me out. I can already feel myself going into a downward spiral. How do I break this cycle? 

Answer: Your answer may not be in your wallet.

When I was a child, the lowest part of the year came about 4 pm on Christmas Day. The presents had all been unwrapped, all the grandparents and cousins who were going to come over had arrived and there was just nothing else to look forward to. The emotional elation of anticipation had evaporated. Nothing had gone wrong. It was all just…over.

Question: I'm 35 now and way behind in life financially, and I’m trying to figure out where I need to be and how to get there. I'm low in debt (0% interest), but also low in assets, no retirement planning, no home ownership. I've got to get out of this loop. Right now my instinct is to throw all my energy into purchasing a home to at least get that started, but I don't know how to determine if that's the right move, and what order I should tackle what financial goals in. 

Answer: You don’t have time to waste, but it’s not time to panic either.

Rookies panic when they fear time is running out. But this kind of fear motivation usually results in as many problems as it does progress. So realize you’ve got plenty of time if you’ll do the right things in the right order.

Question: How much money is enough? And can you ever have too much? I know people who have more money than they’ll ever spend and yet they are still not happy. So what is the right amount?

Answer: How much money is enough money?

For John D. Rockefeller the answer was “just a little bit more.” At the peak of his wealth, Rockefeller had a net worth of about 1% of the entire US economy. He owned 90% of all the oil & gas industry of his time. Compared to today’s rich guys, Rockefeller makes Bill Gates and Warren Buffett look like paupers.

Question: My mom just passed. Her final years were so hard. Even though she was getting sicker and sicker, she fought us every step along the way as we had to make difficult decisions about her care. I don’t want to make things that hard for my kids. What can I do now to prevent that?

Answer: It sounds like you’re off to a good start by simply acknowledging the difficulty of the situation and seeking to deal with it before it reaches crisis time.

Question: Someone told me that when I look for a financial planner always look for a fee-based financial planner because they are unbiased. Is that true?

Answer: When it comes to money, no one is unbiased.

But the person who gave you that advice is on to something.

Question: I have recently come into some money that I want to invest. With the market at an all time high, should I wait to invest this money?

Answer: It sounds as if you know where the stock market is.

But do you know where you are?