Want to prepare yourself for midlife misery? Save early and often—so you later have the financial breathing room to change careers.
INVEST AUTOMATICALLY. Looking to save more in 2017? Take two steps. First, increase the sum you contribute every paycheck to your employer’s 401(k) or similar retirement savings plan. Second, sign up to invest automatically every month in your favorite mutual funds. Some funds will even waive their regular minimum if you commit to a monthly savings plan.
ADULT MONEY HABITS are set by age seven, according to a 2013 Cambridge University study. Want to get your kids on the right track? Three things should scare the hell out of you.
First, parents teach kids about money all the time, often without knowing it. “Turn off the lights.” “Let’s go shopping.” “We will save if we have something left over.” It’s unavoidable. The subject of money is as omnipresent as the air we breathe.
EVERYTHING I KNOW ABOUT INVESTING I learned in court. As part of my litigation practice, I represent investors harmed by the misconduct of stockbrokers, investment advisors and financial planners. Some cases can be brought in court. Most have to be arbitrated before the Financial Industry Regulatory Authority. Many of these cases have common themes that teach important lessons about investing.
Lesson No. 1: Wall Street Doesn’t Have a Crystal Ball. We all know predicting the future is impossible.
IS IT POSSIBLE to have too much money? This falls firmly into the “nice problems to have” category. Still, imagine you’re the lucky recipient of a winning Powerball ticket or a rich aunt’s bequest. You might find yourself grappling with three threats to your happiness.
First, you could quickly get used to the finest things in life, with no prospect of ever enjoying anything better. If you’re occasionally upgraded to first class, it’s a treat,
Jonathan Clements is the founder and editor of HumbleDollar. He spent almost two decades at The Wall Street Journal, where he was the personal finance columnist. His latest book: How to Think About Money.