Born in Lexington, Kentucky in 1980, Moneywatch was one of the very first independent, fee-only financial advising firms in the country. Now, at age 40, we manage about $180 Million in assets owned by our 343 clients. Here is our story:
Our family started vacationing on Squam Lake in New Hampshire periodically when I was in middle school and my wife, kids and I have maintained the habit. In fact, we just returned from a week at our collective happy place where, this year, we had to dig deep to cope with a challenge unfamiliar to civilized society. Here is our terrifying story.
Although we’re all living through the same global pandemic, it has affected some of us more than others. By sitting on the boards of God’s Pantry Food Bank and the YMCA of Central Kentucky, I’ve seen how many in our communities are suffering economically. For instance, the need for food assistance in Lexington alone has increased almost 90% - many seeking help for the first time - since the pandemic hit. Similarly, as the Y never turns anyone away because they can’t pay – and there are more now than ever - donors’ contributions serve needs like helping kids attend summer camp and play in sports leagues.
Below are a few random thoughts from my own experience interspersed with some from friends. What about you?
Last year I wrote what I called a “practice” graduation letter to my daughter. Now that she has officially graduated, sans in-person commencement, I reviewed what I wrote and decided the advice is still pertinent. Here goes:
Friends of ours are in the process of downsizing and would like to move to a different, hipper, part of town. (Not in Lexington) As they grapple with the details of freeing up cash for necessary work on their current home, look for a new house to purchase, attempt to decipher mortgage details and, maybe most of all, try to assemble all the moving parts in a sequence that avoids living in an apartment between houses, it can be quite stressful. Amid all of this I asked if they had ever considered renting rather than buying a new place.
What have you learned about yourself during the pandemic?
Recently, a friend of mine told me she used to dream of being at home all day during retirement…until the pandemic forced her to work from home. Although busy, she is nonetheless bored. She now believes that dream was premature and maybe she needs a more thorough plan for when retirement arrives. Her story reminds me of the importance of planning for your post-career purpose, not just for your financial future.
I realize that I don’t dream anymore. I don’t mean the “being chased by a creepy guy and my legs won’t work” kind of dream. I have more of those than ever. But, ever since the pandemic lockdown started, I don’t daydream about the future anymore. No more dreams about traveling to London, Paris and Tuscany; no plans to show Iceland to my wife and wondering whether we should visit the Faroe Islands while we’re in the neighborhood; and no thoughts of a 275-yard bomb off the tee box on the 18th. Quite frankly, I’m not sure what to dream about now and I really miss it. And that’s a shame because dreaming is the fun, first step toward doing.
I remember my freshman year of college when some buddies and I faced the first exam of our post-secondary experience. Despite being a mid-semester test in a rather inconsequential class, we decided it would be prudent – and fun – to “pull an all-nighter” studying. Well, we were partially right, it was fun - although our friends who simply studied a couple of hours and then got a regular night’s sleep did much better than we did. Ironically, until recently, it actually DID pay off to prepare your credit history by cramming right before you needed your score. Not anymore.
Have you ever lay in bed dreaming what you would do with a sudden financial windfall? Would you buy a new house or travel around the world or buy a ridiculously expensive car? Would you quit your job? Or would you create a plan to segment your newfound wealth into buckets in a reasoned, thoughtful way? Maybe 1/3 to your future, 1/3 to charity and 1/3 to the blow it out, crazy, can’t remember where that came from fun bucket?
Recently I came across separate articles of two different athletes who earned a lot of money in a short time but approached their new financial standing in completely different ways. Here are their stories:
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