Very astute comment, Marilyn. And this goes way beyond coffee beans. As you know scientists rely on the randomized, double blind controlled study as the gold standard for comparison, because it eliminates any bias the investigator or the subject may have. We have had fun with friends by conducting single blind, non-randomized experiments. The host serves various brands of Scotch or wine without telling us what the brands are, and we are asked to rate them. We are often surprised that our preference doesn't correlate well with the retail prices. If only some of those brilliant minds in marketing would choose a career in basic or applied scientific research instead, think of what we could accomplish!
My wife and I travelled to Kenya for medical volunteer trips, and I spent a little time at a local free clinic at home. I met many people who work hard, appear to have very little, yet they are happy and grateful. They taught me a lot. You expressed what I feel more eloquently than I could have with your poem. Thanks.
You have helpfully reminded us in other posts that Social Security (SSA) provides much more beyond pension benefits. And, appropriately in my opinion, those benefits paid are skewed in favor of the lower earning people relative to payroll taxes paid. Which means claims that we'd all be "better off" by investing in stocks rather than paying payroll taxes is like comparing apples to oranges. My approach, like millions of others, was to appreciate that the projected future SSA benefits were modest but they did provide a floor, so to speak. To continue our standard of living, we would need to enhance the expected payout amount, so we invested. Emphasis on the word "Need". As in needs and wants. And we added disability and term life insurance for added protection during the critical years. Anyone working today can view their projected future SSA benefits for retirement, as well as benefits for premature death and disability, should they be needed. And with the impending crisis in SSA funding, and uncertainty in future benefits, such an analysis seems especially necessary. Some people are natural savers, and I admire them. I'm not. But I became a saver when I considered our financial future, and the consequences if we failed to act. Need versus wants. The media suggests there are many who are not saving enough for retirement today. I don't think I'm smarter about money than most of them. I wonder if instead many are reluctant to cut their current spending, "retirement seems so far off" and they don't look because they don't really want to know.
When I was young, I had no particular interest in business and never took any related courses in school. In the early years of my career, I began to realize the necessity to invest for the long term if I hoped to eventually retire and be financially secure. So I began to read about financial management and investing from the usual sources familiar to folks on this site. My self-education curriculum was haphazard, but eventually the important concepts came into focus for me. Your excellent primer would be valuable reading for all young people, and I daresay many older folks too. I would add the value of automating to make it easier to stick with a plan no matter what. Well done, William.
I didn't predict anything. What I planned for was the spending level in retirement that our cash flow would support, then adjust our spending to meet that. Simple!
I retired from practicing neurology nearly 8 years ago. I was often asked "Do you miss working?" And my honest reply is "I miss the patients and staff, but not the paperwork". I agree with the Harvard study you referenced. And when I said "people", I do not mean only my favorite coworkers or patients; I mean all of them, or nearly all. The interactions and connections with a variety of people can be challenging but also rewarding. So I could not agree more with the authors that cultivating and preserving relationships and friendships is vital, for all of us, but especially for those who may end up feeling cut off or excluded once retired. Planning is a valuable skill. Learning how to modify or replace a plan when life happens is even better. Thanks for a great post, Edmund.
Comments
Very astute comment, Marilyn. And this goes way beyond coffee beans. As you know scientists rely on the randomized, double blind controlled study as the gold standard for comparison, because it eliminates any bias the investigator or the subject may have. We have had fun with friends by conducting single blind, non-randomized experiments. The host serves various brands of Scotch or wine without telling us what the brands are, and we are asked to rate them. We are often surprised that our preference doesn't correlate well with the retail prices. If only some of those brilliant minds in marketing would choose a career in basic or applied scientific research instead, think of what we could accomplish!
Post: Dickie and his magic beans
Link to comment from May 10, 2026
My wife and I travelled to Kenya for medical volunteer trips, and I spent a little time at a local free clinic at home. I met many people who work hard, appear to have very little, yet they are happy and grateful. They taught me a lot. You expressed what I feel more eloquently than I could have with your poem. Thanks.
Post: One World, One Kind of Work
Link to comment from April 30, 2026
You have helpfully reminded us in other posts that Social Security (SSA) provides much more beyond pension benefits. And, appropriately in my opinion, those benefits paid are skewed in favor of the lower earning people relative to payroll taxes paid. Which means claims that we'd all be "better off" by investing in stocks rather than paying payroll taxes is like comparing apples to oranges. My approach, like millions of others, was to appreciate that the projected future SSA benefits were modest but they did provide a floor, so to speak. To continue our standard of living, we would need to enhance the expected payout amount, so we invested. Emphasis on the word "Need". As in needs and wants. And we added disability and term life insurance for added protection during the critical years. Anyone working today can view their projected future SSA benefits for retirement, as well as benefits for premature death and disability, should they be needed. And with the impending crisis in SSA funding, and uncertainty in future benefits, such an analysis seems especially necessary. Some people are natural savers, and I admire them. I'm not. But I became a saver when I considered our financial future, and the consequences if we failed to act. Need versus wants. The media suggests there are many who are not saving enough for retirement today. I don't think I'm smarter about money than most of them. I wonder if instead many are reluctant to cut their current spending, "retirement seems so far off" and they don't look because they don't really want to know.
Post: Is saving really that hard? Nope, not for the great majority of Americans.
Link to comment from April 28, 2026
Nominal returns are not adjusted for inflation. Real returns are, and as such are much more useful for planning purposes.
Post: Is saving really that hard? Nope, not for the great majority of Americans.
Link to comment from April 28, 2026
When I was young, I had no particular interest in business and never took any related courses in school. In the early years of my career, I began to realize the necessity to invest for the long term if I hoped to eventually retire and be financially secure. So I began to read about financial management and investing from the usual sources familiar to folks on this site. My self-education curriculum was haphazard, but eventually the important concepts came into focus for me. Your excellent primer would be valuable reading for all young people, and I daresay many older folks too. I would add the value of automating to make it easier to stick with a plan no matter what. Well done, William.
Post: Investing Fundamentals: A Simple Guide for Beginners
Link to comment from April 25, 2026
Mine too. Maximizing the benefit, for those who can afford this option, is a form of "Longevity insurance".
Post: Rethinking the “Right” Time for Social Security
Link to comment from April 25, 2026
Thanks for the link! I have never tried roasting my own, but it might be fun to try one of the inexpensive options.
Post: Penny Wise, Pound Foolish
Link to comment from April 20, 2026
Your last sentence says it all. Good to see you are still writing.
Post: Navigating a Turbulent Career
Link to comment from April 18, 2026
I didn't predict anything. What I planned for was the spending level in retirement that our cash flow would support, then adjust our spending to meet that. Simple!
Post: Do retirees really struggle financially? Why and what to do?
Link to comment from April 18, 2026
I retired from practicing neurology nearly 8 years ago. I was often asked "Do you miss working?" And my honest reply is "I miss the patients and staff, but not the paperwork". I agree with the Harvard study you referenced. And when I said "people", I do not mean only my favorite coworkers or patients; I mean all of them, or nearly all. The interactions and connections with a variety of people can be challenging but also rewarding. So I could not agree more with the authors that cultivating and preserving relationships and friendships is vital, for all of us, but especially for those who may end up feeling cut off or excluded once retired. Planning is a valuable skill. Learning how to modify or replace a plan when life happens is even better. Thanks for a great post, Edmund.
Post: A Bit More Humble
Link to comment from April 18, 2026