Good afternoon,
Fall is on its way and school is upon us once again, so we thought we’d take some time for education. Financial education, that is. Personal finance is not usually taught in school, though the WMR thinks it should be mandatory for at least one semester in high school. Basic budgeting, investing 101, taxes, loans and debt, etc. are something that everyone needs to know, but unfortunately don’t get much attention. So when our newly minted graduates, high school and/or college, start their careers or jobs, they have little experience with managing money so many of them screw it up. That wouldn’t be hard to change if there were only some basic education. We’ve spoken for classes and clubs a few times before at local universities and that’s great, but there is only so much impact we can have in one presentation. And we have a standing offer to speak for students. After all, we were a little league coach for a long time, so we think it’s important to make a positive impact on our youngsters. With that in mind, if you’re a teacher, or student or know one, pass along our offer of a workshop and let’s get it on the calendar. Personal Finance 101. No charge.
One common question we receive, often from parents regarding their kids is along the lines of how to get someone started in investing. So allow us to offer some educational tools. And feel free to forward this week’s message to any rookie investors who need it.
First rule is still, and always, spend less than you earn and invest the difference. Thank you. Mic drop, WMR is out…
If that nugget isn’t enough to satisfy you, or the novice investor to whom you’re forwarding this message, here are some more helpful tips.
One of our favorite books about investing is still, and always, “The Richest Man in Babylon,” by George Clason. Short, sweet and simple philosophy about how to become the richest man.
There are hundreds of other good books about the subject, here are a few more.
“The Intelligent Investor,” by Benjamin Graham.
“The Little Book of Common Sense Investing,” by John Bogle.
“Rich Dad, Poor Dad,” by Robert Kiyosacki.
And try not to complicate it. There are a myriad of books with various strategies and schemes which promise to make you rich. Simple is better.
Here is a good, and short, article for beginning investors. https://www.cnbc.com/2019/09/03/these-five-investing-moves-wont-make-you-rich.html
It mentions things that newer investors should not do. Sometimes not doing something can be as impactful as doing something.
Here’s some good advice from Warren Buffett, https://www.cnbc.com/2019/08/31/billionaire-investor-warren-buffetts-best-advice.html?&qsearchterm=warren%20buffett
6 simple suggestions from the 89 y/o investing legend. Not all of them involve money, but they will help you get rich. Go figure.
Other Buffett wisdom can be found in his annual letters to shareholders on the Berkshire Hathaway website. http://www.berkshirehathaway.com/letters/letters.html Enjoy.
Here’s a simple quiz to see if you’ve learned anything yet, https://www.cnbc.com/2019/09/03/test-your-smart-money-knowledge-and-boost-your-skills-with-this-quiz.html
Not rocket science, but things that you should know.
Of course there are also websites, www.weeklymarketreview.com, for example and podcasts and magazines and various other sources of investment wisdom which can be valuable as well. Unless you have an unusually strong interest in the field, like the WMR does, most of which aren’t necessary. Stick with the basic, simple concepts, get on with your life and you’ll be happy later.
Here’s a fun fact, September is National Life Insurance Awareness month! 3 cheers! Here are 9 things you need to know about life insurance…
Just kidding. We’re sure that no one really wants to know anything about life insurance. If you think you need life insurance, call us. If you don’t know if you need life insurance , call us. If you have old life insurance that needs to be evaluated, call us. We’ll help you figure it out.
A few more words about back to school season. Maybe it’s because our offspring are older now, but back to school doesn’t have the same kind of impact that it used to. There were a few changes to be sure. Our college sophomore is living in a house with 20 fraternity brothers. He’s got a single room, which is good. And his mom made sure that it is properly appointed with furniture and carpet and storage cubes and whatnot. So it’s a nice room, most likely the nicest one in the house. But arriving at the house doesn’t inspire much confidence. Trash strewn about the yard, a partially waving banner with the fraternity letters and a rather unkept look in general, to put it mildly. When we took his sisters there to grab him for lunch one day, they wouldn’t get out of the car. Smart.
Another school change is that our youngest is now a freshman in high school. How is that possible? That the youngest is in high school? She was “scared-cited,” her word, for the year to begin but so far the transition has been fine. And the last change really isn’t. Our middle daughter is a junior in high school. “This is going to be the worst year ever!”
Why do you say that?
“Because the classes are hard, the teachers are hard, I have to take the ACT, and my grades count more than ever!”
That is a lot. But just like every other grade so far, I’m sure you’ll do fine.
LF25 – “You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.” – Dr. Seuss
Have a great week.
Michael J. Acho, MBA, CFP®
Private Wealth Advisor
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Lincoln Financial Advisors/Sagemark Consulting
1000 Town Center, 26th Floor
Southfield, MI 48075
248-948-5100 direct
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Michael.Acho@LFG.com
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