I am not an overly religious person and firmly believe in free will and the importance of taking responsibility for our own actions, but this article and related comments made me think back on an impactful quote I heard in my 20’s. I was at a Baptist funeral for a work colleague who died unexpectedly of a heart attack a few weeks after her father had died. She was a lovely person who was universally liked and respected by her colleagues. As I sat in the church and witnessed the terrible sadness of the family, the preacher said something like “g-d shows you the mountains to lift you from the valley, but he also shows you the valley so that you will appreciate the mountains”. I apologize if that quite is not 100% accurate (it was over 30 years ago), but I recall this message often and it helps me maintain balance and perspective. Yes, there are friends, family, neighbors, colleagues who appear more fortunate than I am and of course there are many, many others much less fortunate. I believe the message is that we need to appreciate the things we do have and what we have achieved while always being thoughtful of those who have less and are less fortunate.
I committed to “paying myself first” when I started my first job. The power of compounding just made sense to me. We saved as much as we could into 401k’s and our brokerage account, including automatic withdrawals that funded a diversified set of funds. We also paid our credit card bills off each month. This did not leave much leftover, but I told my wife that she would thank me some day…and that time is now. My regret is having the false confidence to choose my own individual stocks and actively managed funds to invest in. We did ok and I enjoyed the research, but as I look back, I realize that I could be further ahead if I just picked a few index funds and rebalanced periodically. I have been working to switch things over, but large capital gains have limited my flexibility.
Wow, I have the same list of brokerage accounts PLUS 401k’s at three different providers! I keep it all on a single spreadsheet updated monthly to ensure I have the full picture and proper diversification, but must admit it is getting difficult to keep track of the different rules across the providers. They absolutely offer different user experiences and products so consolidation will limit your options, but that may or may not matter to you based on your needs.
This weekend I logged into one of the many websites I need to check my balances (which I try to do on a monthly basis to update my consolidated spreadsheeet). Much to my surprise, the JPMorgan Pension site said that per their records, I no longer have a pension balance as of May 31st and if I had any questions that I could call them M-F from 8-7pm. Fortunately it is a relatively small part of my retirement savings and I am not yet dependent on it. I called first thing Monday and was told that it was just a system error due to a recent “upgrade” and that it should be corrected soon. On the same call I asked them to send me the paperwork to move the cash balance into one of my existing IRAs. Maybe it is time to consolidate after all.
I am curious how things are going for you in April? Growing your assets when the markets are up is one thing, but are you diversified sufficiently to protect your assets on the down side?
Your last sentence captured my thinking as I read through the article and the comments. Most (not all) new hires focus on their compensation and opportunity for advancement. Only those who have experience (i.e. older workers) realize how much the benefits package really matter in the long run. And that is where we all agree, the short term, instant gratification mindset is what might doom this generation of workers. They generally do not want to trade short term gratification for an easier life down the road. I am glad that I saved early and often when I started my career and credit a subscription to Kiplinger’s Simply Money for providing an education that many do not get early enough in life.
Sorry, re-reading my comment and I am sure it did not come across as intended…I am not being critical, I am genuinely curious. Sorry if it did not come out right (one of my serious flaws!).
Articles like yours are why I love Humble Dollar…thought provoking and honest. Everything about your choices and preferences made total sense…except the MMA comment you slipped in. I wonder how watching two people brutally harm each other fit into your otherwise simple, peaceful life?
“Very few” is not the same as never. We only retire once (hopefully) and the risk of running short of money in retirement is real if you experience an abnormal period of negative returns. Just ask any of the unfortunate retirees who had to return to work after 2008-09 or anyone (like me) who lost their jobs during that period. Not only did we lose substantial amounts of hard earned savings during that “drawdown” but many were forced to sell assets at depressed levels which made our pain that much worse. Everyone’s situation and risk tolerance is different, but holding sufficient funds outside of the stock market to help you weather the storm seems prudent for everyone, young and old.
I agree. Just a bit too much recency bias in this aggressive approach. The general rule was always 105 minus your age as a safe allocation to equities. Perhaps a bit too conservative and in need of some revision, but I cannot see abandoning long term, proven strategies just because the markets have been in such a historic run. The last 15 years have been abnormal in many ways due to government intervention and low rates that seem to be normalizing a bit. I would hate to see recent retirees get hurt when the markets inevitably return to historical rates of return.
Comments:
I am not an overly religious person and firmly believe in free will and the importance of taking responsibility for our own actions, but this article and related comments made me think back on an impactful quote I heard in my 20’s. I was at a Baptist funeral for a work colleague who died unexpectedly of a heart attack a few weeks after her father had died. She was a lovely person who was universally liked and respected by her colleagues. As I sat in the church and witnessed the terrible sadness of the family, the preacher said something like “g-d shows you the mountains to lift you from the valley, but he also shows you the valley so that you will appreciate the mountains”. I apologize if that quite is not 100% accurate (it was over 30 years ago), but I recall this message often and it helps me maintain balance and perspective. Yes, there are friends, family, neighbors, colleagues who appear more fortunate than I am and of course there are many, many others much less fortunate. I believe the message is that we need to appreciate the things we do have and what we have achieved while always being thoughtful of those who have less and are less fortunate.
Post: Why We Struggle
Link to comment from January 4, 2025
I committed to “paying myself first” when I started my first job. The power of compounding just made sense to me. We saved as much as we could into 401k’s and our brokerage account, including automatic withdrawals that funded a diversified set of funds. We also paid our credit card bills off each month. This did not leave much leftover, but I told my wife that she would thank me some day…and that time is now. My regret is having the false confidence to choose my own individual stocks and actively managed funds to invest in. We did ok and I enjoyed the research, but as I look back, I realize that I could be further ahead if I just picked a few index funds and rebalanced periodically. I have been working to switch things over, but large capital gains have limited my flexibility.
Post: Committing Ourselves by Jonathan Clements
Link to comment from August 25, 2024
Wow, I have the same list of brokerage accounts PLUS 401k’s at three different providers! I keep it all on a single spreadsheet updated monthly to ensure I have the full picture and proper diversification, but must admit it is getting difficult to keep track of the different rules across the providers. They absolutely offer different user experiences and products so consolidation will limit your options, but that may or may not matter to you based on your needs.
Post: All in One Place
Link to comment from July 3, 2024
This weekend I logged into one of the many websites I need to check my balances (which I try to do on a monthly basis to update my consolidated spreadsheeet). Much to my surprise, the JPMorgan Pension site said that per their records, I no longer have a pension balance as of May 31st and if I had any questions that I could call them M-F from 8-7pm. Fortunately it is a relatively small part of my retirement savings and I am not yet dependent on it. I called first thing Monday and was told that it was just a system error due to a recent “upgrade” and that it should be corrected soon. On the same call I asked them to send me the paperwork to move the cash balance into one of my existing IRAs. Maybe it is time to consolidate after all.
Post: All in One Place
Link to comment from July 2, 2024
I am curious how things are going for you in April? Growing your assets when the markets are up is one thing, but are you diversified sufficiently to protect your assets on the down side?
Post: All About the Quest
Link to comment from April 21, 2024
Your last sentence captured my thinking as I read through the article and the comments. Most (not all) new hires focus on their compensation and opportunity for advancement. Only those who have experience (i.e. older workers) realize how much the benefits package really matter in the long run. And that is where we all agree, the short term, instant gratification mindset is what might doom this generation of workers. They generally do not want to trade short term gratification for an easier life down the road. I am glad that I saved early and often when I started my career and credit a subscription to Kiplinger’s Simply Money for providing an education that many do not get early enough in life.
Post: Could Be Better
Link to comment from April 20, 2024
Sorry, re-reading my comment and I am sure it did not come across as intended…I am not being critical, I am genuinely curious. Sorry if it did not come out right (one of my serious flaws!).
Post: A Quiet Life
Link to comment from March 23, 2024
Articles like yours are why I love Humble Dollar…thought provoking and honest. Everything about your choices and preferences made total sense…except the MMA comment you slipped in. I wonder how watching two people brutally harm each other fit into your otherwise simple, peaceful life?
Post: A Quiet Life
Link to comment from March 23, 2024
“Very few” is not the same as never. We only retire once (hopefully) and the risk of running short of money in retirement is real if you experience an abnormal period of negative returns. Just ask any of the unfortunate retirees who had to return to work after 2008-09 or anyone (like me) who lost their jobs during that period. Not only did we lose substantial amounts of hard earned savings during that “drawdown” but many were forced to sell assets at depressed levels which made our pain that much worse. Everyone’s situation and risk tolerance is different, but holding sufficient funds outside of the stock market to help you weather the storm seems prudent for everyone, young and old.
Post: Asking Myself
Link to comment from March 16, 2024
I agree. Just a bit too much recency bias in this aggressive approach. The general rule was always 105 minus your age as a safe allocation to equities. Perhaps a bit too conservative and in need of some revision, but I cannot see abandoning long term, proven strategies just because the markets have been in such a historic run. The last 15 years have been abnormal in many ways due to government intervention and low rates that seem to be normalizing a bit. I would hate to see recent retirees get hurt when the markets inevitably return to historical rates of return.
Post: Asking Myself
Link to comment from March 16, 2024