Let me offer some facts, an example, an update, and some advice.

Some facts:

• Average annual (in-state) tuition (no room and board) at public four-year colleges now stands at a whopping $10,700. At private colleges, the figure is about $40,000.
• Current total student loan debt now stands at $1.75 trillion (this includes both federal and private loans)
• Depending on what source you believe, the average federal borrower owes anywhere from $29,000-$37,000.

What does all that borrowing cost? Current interest rates on federal loans range from 4.99%-7.54%. Private loan rates range from just under 4% to almost 15%.

An example:

Let’s say you borrowed $35,000 at 6.54% from Sallie Mae for grad school and agreed to pay it back over 10 years. Every month for a decade you’d be writing a check for $398. You’d ultimately pay back around $48,000! 

Only time will tell if your degree was worth the expense. 

But you can see why the website www.collegescholarships.org has referred to student loans as the “gateway drug to debt slavery.”

“Okay, but isn’t the government forgiving student loans?”

An update (as of August 2023):

The Biden administration’s proposal to wipe out $430 billion in student loan debt was struck down by the Supreme Court in June. 

The President immediately vowed to find another way to offer government debt relief to those with student loans.

Meanwhile, other politicians keep touting the idea of “free college.” 

Should anyone make educational plans on the basis of such statements? 

Given the current political climate, I’d say, “Better plan on paying for whatever higher education you ‘purchase.’”

Some advice:

Let me close with 7 ways you can minimize (or eliminate) your need for any kind of student loan:

• Utilize other funding options. Look into grants, scholarships, and college savings plans first.

• Consider no-loan schools. Research colleges with policies that cover students’ full financial needs.

• Evaluate future earning potential. Ask “Do salaries in my chosen field justify me borrowing a hefty sum of money for schooling now?”

• Don’t overlook community college. Take basic courses at a good, but less-expensive community college, then transfer to a four-year college.

• Hustle. Take on a part-time job, create a small business, or get tuition assistance programs from an employer.

• Cut living expenses. Be frugal. Avoid unnecessary expenses to keep overall costs low.

• Understand repayment terms. Familiarize yourself with the repayment plans and calculate monthly payments. (And if you already have student loans, understand your options and create a plan for repayment. Two resources are the Federal Student Aid website and the National Consumer Law Center.)

Higher education might be a blessing, but student loans can be a curse. 

Just ask the 63% of college students who regret going into debt for their degrees.

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

What I thought was, “It depends. How lucky do you feel?”

What I said was, “I recommend you plan like a pessimist so you can live like an optimist.” 

Here’s why I answered that way: When we expect life to always go according to our plans, we invariably end up frustrated and wishing we’d planned differently.

However, when we’re a bit “pessimistic in our planning, we’re less surprised and better prepared for bumps in the road. By planning for potential negative scenarios, we increase our chances for a better outcome. 

So, back to our question: Should older folks considered long-term care insurance?

That prompts another question, “If you had to go into a nursing home, how would you pay the bill?” 

If your only financial resources are a monthly check from Social Security, the tab would likely be paid by Medicaid. (Medicare only pays after you’ve spent a certain amount of time in the hospital.) 

But what if you’re in that group of folks who have worked and accumulated a nest egg? Unless you want to see those assets quickly depleted, you should think hard about long-term care insurance.

According to the current Cost of Care Survey by Genworth Financial, the cost of a semi-private nursing home room in north Louisiana is $64,605. For a private room, the cost is $75,190. (NOTE: By 2031, those figures are expected to rise to $86,824 and $101,049, respectively.)

At that rate, how long would it take to exhaust your savings? Perhaps not long.

“But,” you say, “Isn’t long-term care insurance prohibitively expensive?” 

Recently I saw a long-term care policy for a 65-year-old quoted at around $6,000 a year. 

That’s a lot of money. Is it even doable for most people?

Well, suppose you had a $500,000 nest egg. Simple math tells you that, at current prices, seven years in a nursing home would burn through every penny of that. 

But think again about the long-term care insurance option. At $12,000 a year (a policy for two), that’s only 2.5% of your nest egg.

And since interest rates have risen above that, it’s possible you could pay your long-term care premiums out of your nest egg and never touch the principle. 

That’s not the only interesting option for funding long-term care insurance. 

If, for example, you’re willing to let an insurance company hold some of your money in a single premium whole life policy, you might not have to pay any premiums at all. (They use the float on your money to finance the long-term care insurance and even give you a little return on your money.) 

And if you never had to spend that money on long-term care, your heirs could receive it tax-free as a life insurance death benefit. For those who have the means, this is an intriguing option.

Obviously, when it comes to paying for long-term care insurance, no single answer is best for everyone. So, you’ll definitely want to discuss all your options with a knowledgeable, licensed agent. 

In the meantime, just remember…a little pessimism during your retirement planning can lead to a much more optimistic outcome in your retirement living.

And—last thing–if all this talk of nest eggs, long-term care insurance, and having enough income in retirement has you tossing and turning, email me at bmoore@argentadvisors.com. 

I’ll send you a link to take the RISA^® Profile. (RISA^® stands for Retirement Income Style Awareness^®.) This quick and ingenious quiz is FREE, and it can help you create a retirement income plan that makes fiscal sense for you.

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

Get rid of banks and you’d definitely eliminate banking problems. (About like you could avoid stumping your toes by cutting off your feet!)

It’s understandable that we get upset when we hear about wasted tax dollars—or crooked cops, predatory preachers, and corrupt politicians. But we have to avoid over-reacting.

A society without rule of law, spiritual leadership, a financial system or representative democracy is…well, unthinkable. 

But back to financial institutions…why do we have them, anyway? Is it just so a few rich, fat cats can get even richer?

No. Financial institutions exist to bring borrowers and lenders together efficiently.

Producing anything people want (e.g., a next-generation smartphone, deluxe accommodations in an island paradise, designer clothes, a blockbuster movie, etc.), takes capital. Where do companies and creatives and entrepreneurs get that money? From you. And from me. 

We think of ourselves as “savers” when we deposit our money in the bank. What we actually are is “lenders.” We’re lending our money, through that bank, to various borrowers: the chef who wants to open a restaurant and the plumber who wants to buy a new service vehicle.

That’s the simplest way I know to explain what financial institutions do. They bring together a large number of lenders (savers) and a large number of borrowers. That way the costs are reduced for both parties. 

In short, financial institutions (like banks) are aggregators. They do in large numbers what we cannot or will not do on our own.

It’s the same with a mutual fund. An investment company brings together large numbers of investors to achieve greater diversification than we could typically obtain on our own. And from our purchase of the stocks in that fund, assorted companies get the capital they need to grow.

This system is a microcosm of society at large. Civilizations are built when people figure out ways to work together so that they create a kind of “symbiotic synergy.” More is possible together than when we try to function as solitary individuals.

This is why I believe financial institutions, by and large, make us better. 

But notice I said “by and large.” Just like individuals, financial institutions have the capacity to become self-serving. Fact is, these entities are usually run by good guys, but not always. Because of this, they need monitoring and accountability. We shouldn’t trust them blindly. 

Which brings us to your relationship with financial institutions. How can you ensure that the ones you’ve chosen are good for you? One way is by having a clear financial plan. 

You are not a saver only, or an investor only, or anything else only. You are a complex human being with diverse financial needs. 

That’s why you need a carefully crafted financial plan that spells out what you want to accomplish. When you know that, it’s easier to determine which financial institutions can best help you reach your goals, including your retirement goals.

If that’s a topic you haven’t thought much about, email me at bmoore@argentadvisors.com. I’ll send you a link to take the RISA^® Profile. (RISA^® stands for Retirement Income Style Awareness^®.) This quick and ingenious quiz is FREE, and it can help you take steps to create a retirement income plan that makes fiscal sense for you.

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

• “We WANT to save, but once we pay our bills, there’s nothing left!”
• “Gee whiz…with inflation like it is, how are we supposed to find money to put aside?”
• “We’ve slashed our spending, but still can’t sack any money away! What should we do now?”

All of these comments reflect a faulty mindset.

They are looking at the “savings problem” from the wrong end of things. 

You see, it’s all but impossible to cut back when you see everything you buy as “essential.” You can waste a lot of time crunching numbers with one hand and clutching all that stuff “I-can’t-live-without!” in the other.

This explains why, as Forbes recently reported, “personal savings only accounts for 4.1% of disposable personal income as of April 2023.” And how in 2022, “Americans were able to save roughly $2,010 per person.” 

Those meager figures are hardly the path to financial wellness.

So, how can you buck the trend and make saving a priority? What can you do?

Begin at the end. 

You need to save 15% of your gross income. But let’s take baby steps and start with just 10%. Ten percent of your gross income. 

Let’s say you earn $72,000 per year. That means you need to save $7,200 annually, or $600 monthly. 

Before you do anything else, you pay your savings account that amount.

But, instead of figuring out how to FIND $600 monthly AFTER spending $6,000 (that math won’t work!), you set aside that $600 first and figure out how to get by on $5,400. 

(By the way, consider that not long ago you were actually earning 10% less than you are making today…and somehow you survived!)

“But,” I can hear you say, “Groceries! Gas! School supplies! Utility bills! Car payments!…”

I know. I know. But in a sincere effort to help you, I’m going to ignore all of those common economic moans and groans and ask you to look more closely in the mirror.

You cannot keep buying $5 coffee drinks, eating out five (or more) times a week, splurging on the latest technology, and trading in your vehicle every 3-4 years. 

Doing all that and thinking you’ll somehow “find some money to save” by choosing store brand plastic baggies isn’t going to work.

That kind of backwards thinking is what torpedoes most savings plans. It leads to a lack of willpower that results in living beyond your means, buying on impulse, trying to keep up with the neighbors, and not having adequate resources set aside for emergencies.

When people tell me they “can’t find the money” I never think they’re lying. No, indeed! I know they are speaking the truth—they cannot find the money.

That’s because they’re not serious about saving.

When you’re serious about saving, you don’t try to “find” the money. You TAKE that 10%—by force and off the top. You treat savings like a non-negotiable bill. That payment gets priority treatment. You pay your savings account first. 

Look, I know you are going to spend 100% of your income. And I know it is all going to be for good and justifiable things. 

So, what I want you to do is change the way you see that 100%. I want you to save 10% first, and then spend 100% of what is left over on all the other stuff. 

You’ll never know how effective this is until you try it. Let me warn you: You will not be able to make the math work out ahead of time. 

But once you start, you’ll be amazed at how creative you become. And you’ll see how certain “essentials” aren’t so necessary after all.

Get serious about saving.

Down the road you’ll be seriously glad you did.

And know this: If you choose NOT to save, you will one day face serious regret.

One final question around this serious matter of saving more…

As you’re setting aside money for the future, what’s your plan for turning those assets into retirement income?

If you don’t have one—or don’t have one you feel good about—email me at bmoore@argentadvisors.com. I’ll send you a link to take the RISA^® Profile for FREE. (RISA® stands for Retirement Income Style Awareness^®.) This quick and ingenious quiz can help you create a retirement income plan that makes fiscal sense and is a good fit emotionally. (You don’t want to spend your retirement fretting 24/7, right?)

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

• $81 the next month
• $121 by January, 2021 
• $147 (approximately) by November, 2021
• $119 by September, 2022
• $146 (July, 2023)

Which raises the question: Is this kind of volatility normal?

Maybe we need to define “normal.” One wag has suggested that the only normal people are the ones you don’t know very well yet. The same might be said of the stock market. 

Yes, the market’s present behavior is quite normal. It just isn’t the normal we want.

Perhaps the real question behind the question is “What keeps the market going up?”

Short answer: The same three things it has always taken to make the market go up: an alignment of earnings, events, and emotions.

• Earnings. Nothing happens in capitalism until somebody makes a profit. The good news is this happens most of the time. According to Standard and Poor’s, since World War II, the profits of corporate America have grown at a fairly steady clip of about 6% annually.

If that were the only determinate, we would have a stock market that would grow at 6% per year, and that would be that. 

But as anyone knows, that’s hardly what happens! The next two elements of stock market growth explain why earnings are never enough.

• Events. Life happens. Wars break out. Terrorists attack. Nations default on their debt. Consumers borrow too much money. Hurricanes hit population centers. Political regimes are overturned. An oversized generation retires. 

For the most part, events are short term in nature and in effect. Markets move dramatically when, say, a novel virus shuts down whole economies, but the markets quickly regain their equilibrium. 

The reason most events do not have a long-lasting impact is because they do not significantly affect the corporate world’s ability to make a profit. No impact to earnings, no long-term effect.

Other events, however, are not so short term in their impact. Events like the financial crisis of 2007, the U.S. governments’ growing unfunded liability from Social Security and Medicare—these can all affect the long-term viability of corporate earnings, directly or indirectly. The markets know this and don’t overlook such events quite so sanguinely. 

• Emotions. Human beings evaluate both earnings and events through a filter called “emotions.” Those fickle emotions process the facts of earnings and events and attach to them a magnification factor that is somewhere up or down the “optimism / pessimism” scale. 

In the late 1990s, investors in the American stock market had experienced a nearly 20-year run of growing profits and upward market movement. Such factors can become self-fulfilling prophecies. 

In 1980, investors felt pessimistic about the future and would only pay about ten times the earnings of the average stock. So, if a company earned $5 a share, investors were willing, due to their emotional evaluation of the future, to pay $50 per share for the company’s stock.

Nineteen years later, in 1999, the same average company could earn $5 per share, and command $150 per share of stock, or 30 times earnings. It got so frothy that stocks of technology companies were selling for hundreds of dollars per share, while earning zero—and, yet, we were optimistic about the future!

Such “earnings multiple expansion” is always a function of growing or shrinking optimism about the future. In other words, emotions. 

As of today, the market is trending up. How long will this last?  Will we have a downturn soon?

As soon as I get the word, I’ll pass it on to you!

One final question around the idea of emotions…Have you settled on a plan for turning your retirement assets into retirement income—a plan you feel good about?

If not, email me at bmoore@argentadvisors.com. I’ll send you a free link to take the RISA^® Profile. This simple, ingenious quiz takes mere minutes, and it can help you create an income plan that makes fiscal sense and is a good fit emotionally. (So that you don’t spend life’s next chapter fretting 24/7!)

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

 “A friend introduced me to a very nice Christian man who is recommending I put my money into some kind of annuity or bonds or something like that. I’m not a stock market person. I don’t understand finances, but I really like this young man. He seems so honest. Does this sound like a good deal?”

My stock answer is, “No.”

Not because I know this is a questionable deal, but because I haven’t heard enough.

When evaluating offers (financial or otherwise), there are always two pertinent factors to study: the proposal and the person.

I hope this young man is exactly what he seems. However, I also know what victims often say right after being fleeced: “Oh, but he seemed like such a nice, Christian man!”

Classic logicians call this an “inverse ad hominem argument.” You rely too much on your evaluation of the person, and not enough on your evaluation of the person’s proposal.

Again, I am not saying this young man is a con artist. I’m urging you to look deeper.

The failure to investigate is how bad deals get consummated every day. A bad idea is easy to hide inside a Trojan horse of charm and smooth talk. 

So how does all of this apply to you?

When you are evaluating any idea or proposal, financial or otherwise, I suggest balancing two parts of the value equation: character and content. 

First, evaluate the other person’s character. You like him. Great. Now, go ask others who have dealt with him over a long period of time what their experiences have been.

Check references. Don’t simply settle for murky promises from a winsome personality.

Second, consider the content of the offer. What exactly is this person proposing you do? 

In the example above, both bonds and annuities were mentioned. Those are very different instruments. Did the person really recommend both? Or is there a chance you misunderstood? 

You need to make sure you understand the content of the proposal. Here’s a good test: Can you explain the offer to a friend or family member in such a way that they understand the broad outlines of the proposal?

Until it’s clear to you, it should be a “no go.”

By focusing on the person (but not the proposal), you leave yourself open to a scam. And by focusing solely on the proposal, you may end up with a great plan/idea that is being overseen by someone who’s incompetent (or dishonest).

Character and content—both are important. Don’t leave out either in your decision process.

One last thing…is the question of retirement income keeping you up at night? Are you wrestling with the question: “How can I turn my retirement assets into money I can live on for the rest of my life?!”

If so, email me at bmoore@argentadvisors.com. I’ll send you a free link to take the RISA^® Profile. This simple, ingenious quiz takes mere minutes, and it can save you a LOT of stress in retirement.

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

“I’m constantly stressed about money!”

Maybe you can relate? (Especially in the current economic climate.)

If so, let me give you two reminders and five suggestions.

First, two reminders:

• Money doesn’t “contain stress.” It’s not inherently stressful. The stress comes from how we view and use money.

• Simply getting and having more isn’t the answer. Some of the most stressed individuals on earth are billionaires and Powerball winners.

Next, the five suggestions (see if these don’t reduce your financial stress!):

• Discover where your money is going. 

When money is flowing in and out of your bank account, but you don’t know where it’s all going—that’s stressful! 

Income is fairly easy to determine—we see the figures on our paycheck every week or month. But what about outgo? Do you know how much you’re spending monthly…and on what?

By tracking your spending, you can begin to get a handle on your financial stress.

• Decide where your money will go. 

Once you know where your money is going, you can begin to take control. 

The key is deciding your expenditures in advance—rather than on the fly. 

We’ve all made bad spending decisions—and had regrets later. Imagine how many impulsive and unwise spending decisions you could avoid by being intentional. 

What if you stopped deciding how much to spend on clothes while you’re trying them on in the dressing room? (That’s reactive spending, made in the emotion of the moment.) 

What if you were proactive instead? What if you reviewed your finances first and gave yourself a limit BEFORE you shopped? 

Such an approach means fewer purchases that you’ll later evaluate as “foolish.” And that means less stress.

• Develop a financial gratitude list. 

Hate to break it to you, but even with planning, your wants will still exceed your means. And if you focus on what you don’t have, you’ll always feel stressed. 

Let me suggest a practice that has application far beyond the financial realm (though it certainly applies here):

Each day list ten things for which you are grateful. 

Gratitude reminds you of what you already possess. It’s a great stress-reliever, because of the power it has to alter our perspective.

• Discontinue comparison.

Comparison, as the old saying goes, is the thief of joy. 

It either makes you prideful or pitiful, both of which produce stress. 

When you feel tempted to compare your financial situation to someone else’s, go back to #3.

• Develop connections. 

An old proverb says shared joys are multiplied and shared sorrows are halved. 

That’s one of the main benefits people get from classes, cohorts, and small groups.

Those personal connections can help us stay motivated for the long haul. They provide a sounding board when things get hard. A personal connection for you may be a book club (that discusses financial books), a financial class, a trusted friend who’s good with money, or even a financial professional with whom you have a good relationship. 

These 5 suggestions have proven to reduce the stress that arises around money. 

Now it’s your turn. 

Give them a try, and let me know which ones work best for you.

One last thing…is the question of retirement income one of the things that’s got you stressed? The question: “How do I turn my retirement nest egg into money I can live on for the rest of my life?!”

Email me at bmoore@argentadvisors.com. I’ll send you a free link to take the RISA^® Profile. This simple, ingenious quiz takes mere minutes, and it can save you a LOT of stress in retirement.

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

They have multiple dining options, but they can’t agree on where to eat.

Margie Miller is feeling adventurous—she’d really like a cauliflower taco and a fish taco from a food truck with stellar Google Reviews. 

Her best friend Amanda thinks the truck looks sketchy. “I want something healthy,” she says, “Where could I get a fruit smoothie around here?” 

Bob, meanwhile is eyeballing a local BBQ dive across the way. And Jim is pointing out, “We could just go through the drive-thru of that burger joint. It’s fast. Cheap. Nothing special. Just a chain. But least you know what you’re getting.”

This little travel snapshot is a great reminder.

We have diverse personalities along with unique concerns and desires. These differences are what makes life frustra—er, “interesting.” 

In my last couple of columns, I’ve mentioned the Retirement Income Style Awareness Profile® (i.e., the RISA®).

This ingenious test measures two factors that affect someone’s preferences when it comes to retirement income. 

The first has to do with RISK. Are you “probability-based”? In other words, do you want your assets in the market where they’re exposed to potential loss—but also to the historical probability that they will likely grow over time)? 

Or are you “safety first”? That is, do you want your assets secured in products that don’t fluctuate with or depend on the market?

The second scale measured by the RISA® is more about FLEXIBILITY. Do you want to commit to a long-term income solution (like an annuity). That kind of solution will tie up some or all of your assets, but it will also give you a steady, predictable amount of income.

Or do you prefer to keep your options open so you can respond to potential personal changes or economic opportunities?

The beauty of the RISA® is that it can measure your unique preferences and map them onto a matrix to show which of four distinct retirement income personas you are most like: 

• Someone in the “Total Return” quadrant is someone who is probability based (“If history is any indicator, the market will probably grow over time”) with an optionality orientation. (“I like keeping my options open. I don’t want my money locked into some long-term investment vehicle.”) 
• A “Risk Wrap” quadrant individual is one who is probability based, but with a commitment orientation (“I’m willing to commit some portion of my assets to more secure and steady income source.”)
• “Income Protection” describes the more conservative man or woman who is safety-first with a commitment orientation (“I don’t want market exposure—it’s nerve-wracking to see my assets fluctuate. A guaranteed monthly check for life is what I want.”)
• And the “Time Segmentation” quadrant is where you find folks who are safety-first with an optionality orientation. (“I’ll put my money in ‘buckets’—so that it’s as secure as can be, but also available to me at different times.”)

Why do these designations matter so much? 

Because if you’re an adventurous food truck person, you’ll never be happy eating at a chain burger joint. And if you like healthy fare, a hole-in-the-wall BBQ joint is going to leave you scowling.

Trust me. An “Income Protection” type person with a “Total Return” type retirement plan…that’s the recipe for a sleepless retirement.

Do you know your Retirement Income style? If not, email me at bmoore@argentadvisors.com. I’ll send you a free link to take the RISA® Profile. It only takes a few minutes, and it can save you a LOT of angst and frustration down the road.

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

• The DiSC Profile
• The Myers-Briggs Type Indicator
• The Enneagram
• Strengthsfinder
• The Eysenck Personality Inventory 

It could be that you’re a “high D” or an INTJ or an Enneagram 3. Whatever the case, these assorted assessments (and all the others like them) are a fascinating reminder of just how differently we’re wired.

And it’s not just a difference in basic temperament. Consider all the ways we’re unique: DNA, disposition, family backgrounds, and life experiences. 

Our abilities, dreams, beliefs, and preferences are all over the map. Each of us is motivated by different things, driven by different concerns.

That’s why we can put 100 people in the same situation, and no two will act—or react or interact—in quite the same way.

You are one-of-a-kind. I am too. And that’s a good thing. 

Given all this, it should come as no surprise that we’re also different in how we view and handle money.

Have you noticed that some people have a scarcity mindset? (“There’s only so much. I better guard what I have with my life!”) Meanwhile, others have an abundance mindset. (“No worries! There’s plenty more where that came from!”)

Some are savers. Most are spenders. A few are always giving. A mom at our church once observed about her children, “If I gave them each a $100 bill, the oldest would rush to deposit hers in the bank. Our middle kid would immediately buy something for himself. Our youngest would call her three best friends and take them to lunch.”

The differences persist when it comes to investing.
Connie swings for the financial fences, figuring “the greater the risk, the greater the (potential) reward.” She’d be frustrated out of her mind in a conservative bond fun earning a steady 4-5%. She wants to be much more aggressive. And if a market correction has her portfolio drop 25%? Connie shrugs it off, telling herself, “That’s the price of admission. It’ll come back stronger than before.”

Connie’s brother Carl is at the opposite end of the spectrum. He’s got his retirement nest egg parked in multiple, less volatile “investment baskets.” Yet even with all this precaution, he nervously checks his portfolio daily.

Which brings us to the issue of your financial personality and “how you plan to pay for retirement.”

Here’s the thing: For many people, a monthly Social Security payment or a government pension isn’t enough to pay the bills—plus do all the other things they want to do in retirement. If that’s you, when the paychecks quick coming, how will you fund your lifestyle? 

Some retirees opt to slowly withdraw money from their IRA(s) or 401(k)s. This approach can work; however, when the markets are volatile, it can be nerve-wracking. What if some event causes your portfolio to drop in value by 20-25%? 

Other retirees choose to take a portion of their assets and purchase an annuity that will guarantee them a fixed amount of monthly income for life. This approach gives them peace of mind in times when the market is unpredictable.

Still others do a combination of these things.

Again, this is where personality differences matter so much. The best retirement plan for you is one that aligns with your financial temperament, retirement goals, and personal preferences. 

This begs the question: Do you have a clear understanding of your “financial personality”? 

If not, I’ve got a free gift for you. Email me at bmoore@argentadvisors.com and I’ll send you a link to take the RISA® (Retirement Income Style Awareness®) Profile. There’s no charge. This ingenious self-test will help you see what kind of retirement income plan best suits you. It only takes a few minutes, and it can save you a LOT of frustration. 

Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.

There’s a lot to like about the mindset that says, “Don’t sweat the small stuff.”

When we obsess over little matters, we often miss the big, important things in life.

On the other hand, don’t you want the doctor who does your heart surgery to be off the charts when it comes to little details? Personally, just before my anesthesia kicks in, I want to look up and see my surgeon’s furrowed brow so I can be sure he or she is “sweating the small stuff.” 

This same tension exists in your financial life. 

Wisdom urges us to focus on big issues like:

• Insurance…so that if something happens to you, you family is taken care of
• Investing…to make sure that you accumulate and grow enough wealth so that when you quit working, you can worry less and live more
• Impact…taking care to ensure you’ve got a plan in place to pass on all the assets you’ve accumulated to the people and causes nearest and dearest to your heart

Once these big financial matters are handled, we then have to sweat the small stuff. Because financial matters involve countless little details

Take Joe, for example. He was diagnosed with cancer in his late fifties. The good news is that Joe entered treatment early. He’s in remission today. 

The bad news is that even though Joe had medical insurance, he wasn’t aware of certain details in his coverage.

Like the fact that the policy he switched to—because it cost less than his old one—had a cap on the amount of chemotherapy it would pay for. 

You guessed it. Joe’s chemo bill skyrocketed. Today he has a six-figure medical indebtedness that threatens to take him under financially. 

Another pesky detail Joe discovered? A little rule about taxes on disability insurance payments. This rule stipulates that if you treat your disability insurance premium as a business expense and deduct those payments, you’ll have to pay taxes on any benefits paid to you. Only those who forgo a tax deduction can receive disability payments tax-free.

Now that Joe is receiving monthly disability benefits, do you think he wishes those payments were tax free? Sadly, he didn’t pay attention to that “small detail.”

And then there’s the guy I met 20+ years ago. He had heard that the XYZ mutual fund was a hot investment. (Yes, in the 90s, the words “mutual fund” and “hot” were often used in the same sentence.) He couldn’t send the company a check fast enough. 

For months he watched the fund rack up huge gains. Yet each time he got his statement, he noted that his account was barely growing.

When he finally came to see me, I looked at his statement and saw the problem: He hadn’t put his money into the XYZ Mutual Fund, but a money market fund owned by XYZ investment group. 

He had failed to pay attention to the details.

Here’s my advice: Focus on the big things…AND start sweating the small stuff.

Because the small stuff is often a big deal indeed.

One last note…I meet people all the time (especially those in their late 50s, early 60s), who have done the big thing of accumulating assets for retirement; however, they haven’t addressed the small but important detail of “How are we going to turn our ‘nest egg’ into regular monthly living expenses?”

If you’re one of those people, you’d benefit greatly from taking the RISA® (i.e., the Retirement Income Style Awareness®) Profile. Email me at bmoore@argentadvisors.com, and I’ll send you a free link where you can take this eye-opening self-test and find out what kind of retirement income plan best aligns with your personality.

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