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Ever use one of those aging apps where you take a photo and the app ages you 20 or 30 years into the future? I won’t look like that! That’s crazy! Delete! Well, not so fast my future wrinkled friend. Maybe an app like that can inspire us to invest more for our retirement or exercise more or cut out sweets…well, let’s not get carried away.

In a study by Hal Hershfield, an economist from UCLA, people who viewed aged images of themselves were more inclined to increase their savings for retirement. Hershfield used software to age half of the subjects in his study with jowls and wrinkly skin – all those things that won’t actually happen to me or you, thank goodness. They then gave all the study subjects a fictional $1,000 and gave them four choices for how to use that money: investing in a retirement fund, give a gift to a friend now, planning a fun event or putting money into a checking account. People shown their aged images put twice as much money into their retirement fund as those who weren’t. If shown aged images of someone else, though, their choices weren’t affected.

Should I invest in that man below?

The four of us recently had “the talk.” No, that talk. We sat down to discuss our family’s finances – salaries, investments, etc. I’d read where two-thirds of Americans who have at least $3 Million of investable assets have not spoken to their children about their wealth, and never will. The article described the many excuses people give for not discussing the subject, including parents’ desire to maintain their kids’ motivation to succeed on their own and not expect a large inheritance. While I understand that sentiment, it seemed pretty ridiculous for a guy who blogs about personal finance and investing to avoid the same subjects with my own kids. So, we did it…and it was terrific!

The majority of people not receiving financial advice have “inappropriate risk levels” in their workplace retirement plans, according to a study by Financial Engines and AON Hewitt. Their study analyzed fourteen 401(k)/403(b) plans representing over 723,000 individual participants with over $55 Billion in collective retirement assets over a seven- year period.

When I was 14 I started my first job: paperboy. I delivered the afternoon paper to my customers in one 7-story apartment complex so, once I rode my bike there in all kinds of weather, the actual delivery process was easy. Load a shopping cart up with papers, replace the ones in the rack, then go floor to floor kicking papers underneath doors. I actually made good money but would have made more if I hadn’t had such a collection problem. Back then, you subscribed to the paper and then your friendly delivery person would provide you with a bill. Would you believe some of these deadbeats would try and stiff a 14-year old boy and not pay?

A bank used to run a TV ad during the SEC Game of the Week where a man, talking about retirement, says he plans to do “absolutely nothing.” His wife then leans in and says, “He means it.” That’s not a plan for retirement, that’s a plan for a vacation. Be careful not to confuse the two. Planning for retirement isn’t just about the financial, it’s also about your post-career purpose.

The best-selling personal finance author, Suze Orman, recently said, “I wouldn’t buy a cup of coffee anywhere, ever, because I would not insult myself by wasting money that way. You need to think about it as: You are peeing $1 million down the drain.” She goes on to say that coffee is a want, not a need. The barely noticed personal finance blogger and Certified Financial Planner™, Steve Byars, responded, “Horse Feathers!”

I have a friend who has been asking me for almost 3 years if we think the stock market is ready to take a dive. My answer is always the same: “What portion of your portfolio is actually invested in the stock market?” Why do I ask such a question? Because the return of the stock market only impacts her stock mutual fund investments. Her overall portfolio return depends on how all her investment types – cash, long-term income funds, stock funds, real estate funds, etc. – are mixed and how they perform together. This is called asset allocation and is an important investment portfolio technique that balances risk among various types of investments. So, here is: 1) A review of 2019 so far; 2) The stock and bond market returns in context and; 3) Our recommendation to focus on asset allocation, not the short-term direction of the stock market:

When first learning to reading, my son would often read aloud restaurant signs through the car window that proclaimed, “World’s Best Fried Chicken!” or “Best Chocolate Ice Cream in Vermont!” When he was old enough for some level of critical thinking and those claims sunk in as audacious, he would ask, “Says who?” I was reminded of that recently when the Securities and Exchange Commission (the other SEC) issued new regulations that attempt to raise the level of conduct of Stock Brokers. The new rule allows brokers to claim they are acting in clients’ “best interests” – a level up from the current “advice that is suitable” standard. But, “Says who?” As it turns out, if the brokers say so.

Now, I’m guessing eyes started glazing when I mentioned the word regulation but, hang with me, here’s why you should care:

1. If you already work with a Registered Investment Adviser, like Moneywatch, then the SEC already requires us to act in your best interest. And that should matter to you.
2. If you work with another type of provider, however, or are shopping for financial advice, you should know not every firm or adviser adheres to that same standard.

It’s still a year off but seeing all these graduation ceremonies and commencement speeches on Twitter started me thinking of what I’ll tell our daughter when she graduates college next spring. Plus, I know she just can’t wait to get more advice from me, so why not start early?

While in Kansas City to visit family recently one of my cousins posed a question to the Byars boys at lunch, “I don’t want to retire – so what do I call that?” So, for context, here’s the backstory: My cousin is extremely bright with an MBA from Northwestern and is the CFO for a company headquartered in Omaha not called Berkshire-Hathaway. He already knows that accumulating enough money to support him and his family throughout their lives isn’t really his pertinent question but, what am I going to do with my life to challenge myself and make my mark, is. Essentially, he explained that he likes to work, doesn’t have hobbies that consume him and wanted to know what should he plan for if not retirement? My answer? Glance back at the title of this post for a hint – Financial Independence!