I was no different. I’m wiser now, having learned from a few costly mistakes made in the past. The key thing for me anyway was not to make no mistakes, but rather to learn from them.
For me, the key to successful investing was not knowledge or skills. It was the discipline to keep plugging away no matter what the latest headlines screamed. Automating your investing is a brilliant strategy as it allows you to ignore the noise. As Munger said: “The first rule of compounding is do not interrupt it”. Good article.
People should be honest with themselves about their capacitance for risk, need to take risk and their tolerance for risk, in that order. I understand the appeal of an immediate fixed annuity. Jonathan was even a fan of partially annuitizing, so I cannot disagree with anyone choosing this path. I base my planning on probabilities, not assumptions. For me, my personal situation combined with the risks of future inflation, the possibility of dying early and insurer failure risk led me to not annuitize, and instead create my own income stream. Read Bernstein for details.
I was always skeptical of the idea that downsizing in retirement will free up more cash, but the tradeoffs from moving can improve your quality of life. We moved last year from a two story to a one level home with a main floor laundry only a few miles away from our home of 37 years. I realized the main problem with stairs is not so much joint pain but fall risk. There is no HOA, but we have assembled a reliable team which handles all outdoor maintenance. And if or when needed, we can do likewise with any indoor chores.
I began the private practice of medicine, and had never taken a course in business. From reading the masters including Jonathan, I learned the value of investing in businesses, via stocks. Many attributed Buffett's success to the fact that he was a businessman who excelled at evaluating businesses and discerning their true long term value. I suspect there are many who like myself, had neither interest, experience or education in business who suddenly found themselves in the curious position of needing to assume responsibility for planning their long term financial future. Ironically, now I had a desire to learn a bit about business! Of course people like myself, who lack Buffett's expertise are fortunate to have low cost index funds and widely available information on how to invest successfully. Like that found on Humble Dollar. Many may prefer for various reasons to hire an advisor, but they will still profit from learning about the topic to better understand and appreciate what the advisor is doing, and what it is exactly that they are paying for. I am a DIYer myself, but if my wife survives me, she will hire an advisor. Which is fine. I can't answer the question you posed, but my guess is the reasons are varied. Maybe for some, perhaps a combination of denial, confirmation bias, and wishful thinking?
"Yet I sleep better if...". Its beyond my scope of competence to say what you "should" have done, from a financial point of view. In my opinion, you were wise to listen to your inner voice, because as the old saying goes: "the best plan is the one that you can live with". And one can always modify or tweak that plan over time if warranted. Good article, Catherine.
I think any young person with good financial habits will soon get "hooked", once they see their assets start to grow over time. Then they will no longer require incentives or nudging from their parents. She sounds like a smart daughter with very wise parents.
Comments
Thank you for sharing this with all of us. He would have been a fine novelist. Did he write any fiction?
Post: Every Writer Has a Beginning: Organ Transplant Fails
Link to comment from July 8, 2026
I find reading old advice rephrased is worthwhile.
Post: Jonathan’s Parting Thoughts: No. 9
Link to comment from July 4, 2026
I was no different. I’m wiser now, having learned from a few costly mistakes made in the past. The key thing for me anyway was not to make no mistakes, but rather to learn from them.
Post: Luck, Stupidity, Automation and Inertia
Link to comment from July 3, 2026
For me, the key to successful investing was not knowledge or skills. It was the discipline to keep plugging away no matter what the latest headlines screamed. Automating your investing is a brilliant strategy as it allows you to ignore the noise. As Munger said: “The first rule of compounding is do not interrupt it”. Good article.
Post: Luck, Stupidity, Automation and Inertia
Link to comment from June 27, 2026
People should be honest with themselves about their capacitance for risk, need to take risk and their tolerance for risk, in that order. I understand the appeal of an immediate fixed annuity. Jonathan was even a fan of partially annuitizing, so I cannot disagree with anyone choosing this path. I base my planning on probabilities, not assumptions. For me, my personal situation combined with the risks of future inflation, the possibility of dying early and insurer failure risk led me to not annuitize, and instead create my own income stream. Read Bernstein for details.
Post: Automatic Income stream? How important to you?
Link to comment from June 26, 2026
I was always skeptical of the idea that downsizing in retirement will free up more cash, but the tradeoffs from moving can improve your quality of life. We moved last year from a two story to a one level home with a main floor laundry only a few miles away from our home of 37 years. I realized the main problem with stairs is not so much joint pain but fall risk. There is no HOA, but we have assembled a reliable team which handles all outdoor maintenance. And if or when needed, we can do likewise with any indoor chores.
Post: Thinking about downsizing? Think seriously
Link to comment from June 22, 2026
I began the private practice of medicine, and had never taken a course in business. From reading the masters including Jonathan, I learned the value of investing in businesses, via stocks. Many attributed Buffett's success to the fact that he was a businessman who excelled at evaluating businesses and discerning their true long term value. I suspect there are many who like myself, had neither interest, experience or education in business who suddenly found themselves in the curious position of needing to assume responsibility for planning their long term financial future. Ironically, now I had a desire to learn a bit about business! Of course people like myself, who lack Buffett's expertise are fortunate to have low cost index funds and widely available information on how to invest successfully. Like that found on Humble Dollar. Many may prefer for various reasons to hire an advisor, but they will still profit from learning about the topic to better understand and appreciate what the advisor is doing, and what it is exactly that they are paying for. I am a DIYer myself, but if my wife survives me, she will hire an advisor. Which is fine. I can't answer the question you posed, but my guess is the reasons are varied. Maybe for some, perhaps a combination of denial, confirmation bias, and wishful thinking?
Post: How financially illiterate are Americans?
Link to comment from June 20, 2026
Excellent one liner!
Post: How financially illiterate are Americans?
Link to comment from June 20, 2026
"Yet I sleep better if...". Its beyond my scope of competence to say what you "should" have done, from a financial point of view. In my opinion, you were wise to listen to your inner voice, because as the old saying goes: "the best plan is the one that you can live with". And one can always modify or tweak that plan over time if warranted. Good article, Catherine.
Post: Leverage
Link to comment from June 20, 2026
I think any young person with good financial habits will soon get "hooked", once they see their assets start to grow over time. Then they will no longer require incentives or nudging from their parents. She sounds like a smart daughter with very wise parents.
Post: Celebrating the Win
Link to comment from June 13, 2026