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.

• 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.

I’ve got some money I’d like to leave to my grandkids. I want it to grow, but I’m not comfortable putting it at risk in the market. Meanwhile, safer investments like CDs seem like they’re barely keeping up with inflation. Do you have any suggestions?

It’s a classic case of competing demands. We want the growth that comes with risk, AND we want the safety that comes with conservative investing. Just the other day I had a guy tell me (smirking), “I just want steady ten percent returns, with no risk of loss.” 

(Right. And I want delicious ice cream that makes me lose weight.)

Investing doesn’t work that way. We can’t have massive gains and guaranteed safety too. But there may be a middle ground that’s attractive.

If you’re a CD person, you’ve probably been bombarded with sales pitches for tax-deferred annuities. These are accounts set up by insurance companies. You can set aside money for retirement, and one day it can be turned into a stream of lifetime income. 

The problem with most annuities? Most have large surrender fees. If you change your mind, or suddenly need your cash…or if interest rates jump and you want to move your money back into a CD with a better yield, you can’t do it the first few years without paying substantial penalties. It is common for annuity surrender penalties to last seven or more years. Some may be shorter, many are longer.

While most folks have heard of tax-deferred annuities, not many know about the lowly modified endowment contract (MEC). A MEC is also an insurance company instrument. It’s essentially a whole life policy stuffed with cash.

Because insurance companies don’t have the short-term liquidity requirements of a bank, they can often make longer-term investments, which in turn pay a slightly higher yield. This can translate into a higher return than one would get with a CD. (Obviously, the details on a MEC can vary, or change quickly, so you need to talk with an expert and get all the facts before doing anything.)

Like an annuity, MEC funds are tax deferred while left in the contract. And there is a federal government tax penalty for early withdrawal if you take money out before age 59 and a half. For that reason, a MEC is typically most appropriate for folks over that age.

Unlike an annuity, with a MEC the ability to get to all of your money comes much quicker, as in the second year. 

There is also a death benefit attached, so that proceeds pass income tax free to your heirs. Because of the death benefit, you have to go through a physical underwriting process to qualify for a MEC. My experience, however, is that most reasonably healthy older adults qualify. Again, talk to a trusted, licensed agent to learn all details.

Here’s an example of how a MEC can work. Suppose a reasonably healthy 65-year-old man puts $100,000 into a MEC. If the man died the day after the contract was in force, his beneficiaries would receive $175,000. 

Or, if he changed his mind, he could cancel the contract and get back his $100,000 plus some interest by the end of the second year. If he let the money grow and reinvested the dividends, his $100,000 would grow to about $150,000 ten years later, assuming current dividend rates. That’s about a 4% annual rate of return, with no taxation and no market risk. And the death benefit, according to current dividend yields, would have grown to $220,000 in the tenth year. Dividends, of course, are not guaranteed.

The same $100,000 placed in a 5-year CD might get close to 0%…or as high as 4.5%, depending on which bank you use. That is a huge spread, but that’s the rising interest rate environment we’re in right now. Penalties for early withdrawal vary from bank to bank.

MECs are more trouble to set up than CDs. They aren’t right for everyone. But for a long-term saver, looking to maximize returns for you and your loved ones, a MEC is certainly worth investigating.

If you’re like most people, when it comes to things like MECs, you’re not even sure what questions to ask! No worries. I’ve already done that for you. Email me at bmoore@argentadvisors.com and I’ll send you my free list of “30-Something Retirement Questions for People Who are 60-Something.”

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 man lies nervously in pre-op awaiting a heart-lung transplant. He recalls his first cigarette and wishes he’d never started smoking. 

A couple wrangles in divorce court, arguing bitterly over custody and property. Thirty years ago, they had stars in their eyes. Today it’s daggers.

Each of these situations exemplifies a truth in life—whenever possible, it’s better to prevent a mess than to have to clean one up.

Or we could say, preparing beats repairing.  

The car owner above knows about oil changes. But it was too easy to reason, “It doesn’t have to be done today.” It can always wait…until it’s too late.

The lifelong smoker doesn’t think smoking is “smart.” But when he was young, he decided it was “cool.” Soon he was addicted, and quitting proved hard. So, he decided to quit “next year.” About thirty times. 

The couple with the shattered marriage didn’t have “divorce” as their thirty-year marriage goal. But both got busy with work. Except for their kids, they had nothing in common and so they slowly drifted apart. When the last child moved out, years of tension and unmet expectations erupted.

What’s the most significant difference between preparers and repairers? It’s how they view time. 

Preparers see time as life’s most precious nonrenewable resource. They determine to make the most of it. 

Repairers seldom think about time. It feels abundant and endless to them…until something big shakes their world. Then, a sense of panic and dread sets in. Often those deep fears tempt repairers into seeking shortcuts in life. 

I see this in the financial realm all the time. When someone comes to see me, I can tell quickly if I’m talking to a person who is financially prepared, or someone with a financial situation in need of repair. 

In their twenties, the difference between a preparer and a repairer is usually small. Neither has had enough time to make much financial progress or do much damage. So, at that age, I don’t look for results. I look for habits.

Do they save regularly and systematically? Do they take insurance protection seriously? Do they use debt wisely, not wantonly? These are the telltale habits of the person that is preparing. They’re going to be fine. 

Unfortunately, too many young people don’t prepare for anything beyond this weekend. They follow their peers and take their financial cues from all the “money experts” they see on their Instagram feed. In place of saving, they speculate on crypto or penny stocks. Instead of using debt wisely, they pile up credit card debt. 

At the other end of the age spectrum, the balance sheet tells the story. Once I see the pay statement and 401(k) balance of a 60-year-old, I have a pretty good idea if I’m sitting across from a preparer or a repairer. 

It’s fun helping prepared people. All I do is make a good situation better. “You don’t have enough money to be stupid,” I often say, “but you’ve got enough money.”

Conversely, I do some of my most important work sitting across from unprepared folks. A lifetime of poor fiscal habits has brought them to the end of a working life. Now they’re looking at a significant lifestyle reduction, due to their lack of preparation for the inevitable.

I say “most important work” because these people often feel desperate. They have difficult trade-offs to consider. My job is to quantify the implications of each trade-off, then help them maximize the resources they have to last as long as possible. 

How about you? Are you a preparer or a repairer? If you think you might be a repairer, would you like to change?

If so, I’ve written a book for you. It’s called How to Put Your Money Worries in the Rear View Mirror – The Financial Freedom Roadmap. It’s free if you’d like a copy. Email me at bmoore@argentadvisors.com, and I’ll send it to you right away.

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.

Ever say that? It’s really an admission that budgeting isn’t easy or fun. (If it were, everyone would be doing it, right?) 

So, if you’re one of those who doesn’t have a budget, why bother trying to create and live by one?

Because having a firm spending plan—which is all a budget is—is wise. It can be simple enough to write on the back of an envelope. Or so complicated that it fills up a spreadsheet. 

But whatever level of complexity, you want your budget to be marked by at least four characteristics:

• Premeditation. A budget is a proactive plan for allocating your income. It lets you anticipate both problems and opportunities in advance, so you can maximize your financial resources and thereby accomplish your goals. 

• Communication. Budgets gives couples, families, and executive teams a chance to discuss and decide what is most important to them. By talking in detail, agreed-upon priorities can be reflected in all future spending (and big frustrations can be avoided).

• Moderation. Budgets help promote wisdom in spending. Consider:

• If you spend more than you make, that’s a problem. You’ll end up in debt. 
• If you spend every dollar you make, you’ll never get ahead. But…
• If you spend less than you make—i.e., you live moderately—you’ll have money to save and invest, which is how you make financial progress!

• Preparation. Once you’ve got your spending plan crafted so that you’re avoiding short-term consumer debt, and saving sufficiently, you can prepare for the future—both short and long-term. Saving money allows you to prepare for “big-ticket” expenditures in the near term, and also for the granddaddy of all expenses—retirement. 

Okay, we’ve defined what a budget is…and the ingredients of a good one. What’s the best tool to use to track how you’re doing?
In short, you need something that matches your personality style and technology preference. 

Here are four “tool” options:

Pencil and paper 

No points for style here, but it’s simple, basic, and gets the job done. Write down your income, expenses, and savings. Make sure the math works so that you’re (a) spending less than you bring in and (b) putting some money back (start with 10%) for savings. 

Once you’ve got a plan where the math works, check yourself daily during the month to make sure you are staying on plan. 

Envelopes 

If you have a hard time with impulse spending, the old, tried-and-true “envelope system” might be for you. You can’t use it for big items like mortgages or car notes, but you can use it with ongoing expenses like groceries, dining, gasoline, entertainment, etc. 

Each spending category in your budget gets a physical envelope. You simply put the agreed-upon amount of cash (bi-weekly or monthly) in each envelope. When that envelope is empty, you stop spending. It’s hard core, but it’s simple. And it works. 

Spreadsheets

If you use spreadsheets at work, you know how handy they can be. They do all the math for you. This may be a great option for you.

Apps

Are you the person who’s always asking, “I wonder if they have an app for that?” Good news! When it comes to budgeting and personal finance, the answer is a resounding “YES!”  

You can find dozens of apps with cute names like Mint, YNAB (You Need a Budget), Good Budget, Mvelopes…you get the idea. Just type “financial apps” into your browser search bar. But before you pick one, ask around. Make sure it’s one you will use.

A budget is a lot like a financial diet. Some people count every calorie. Others just get a general idea of what they can eat and still lose weight. With budgets, it’s how much can you spend and still save money. 

Budgeting isn’t, as one person said, “rocket surgery.” You simply need to spend less than you make, avoid bad debt, save adequately, and communicate adequately about all these priorities with your spouse. Those are the goals of a budget.

How you get there is not so important.

That you get there is hugely important. 

To help you think through such issues, I’ve created a comprehensive checklist of pre-retirement questions for people who are 60-something. It’s free if you’d like a copy. Email me at bmoore@argentadvisors.com, and I’ll send it to you right away.

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.

My lime green nylon shirt sported a lion’s head on the back. My ensemble was made complete with platform shoes and a puka shell necklace. Oh, and I should mention my hair—blown dry and sprayed into place, so that it resembled a helmet. 

On prom night, I was a living, breathing fad as I danced to “Stayin’ Alive.”

(At least my photo from that evening has provided my children endless hours of laughter.)

What was I thinking? Who would dress like that—on purpose? 

That’s what fads are like. “Everyone is doing it!” and “it” is that trendy, buzz-generating cultural craze. 

Remember Cabbage Patch Kids, aerobics classes, Rubik’s Cubes, lava lamps, and pet rocks? They were everywhere. Then—poof!—they were gone. Because they were…fads.

Guess what. The world of finance has had its share of fads too.

• In the early 1980s the stock market was supposedly “dead” and universal life insurance was going to make policy holders rich. 

• By 2000, tech stocks were “destined” to keep going up. Until they didn’t.

• In 2005, lenders were practically throwing mortgages at people with no income and terrible credit histories on the belief that home prices “always” go up and “never” fall. That is, until reality came crashing down.

• In 2008, Wall Street learned how to bundle together junk-mortgages, call them “collateral debt obligations” and hang a AAA rating on what was really financial garbage. Until that sketchy practice brought on the Great Recession.

• In recent years, we’ve seen the rise and fall of crypto, Bitcoin, Robin Hood, and a host of so-called meme stocks.

Financial fads (like all fads) are long on enthusiasm and energy, and short on verification or wisdom. Social media can make them go viral quickly. Especially when they promise outsized outcomes that are easy, fast, and practically certain.  

History, however, puts the lie to most financial fads.

The stock market wasn’t dead in the early 80s. In fact, it has grown from under 1,000 to over 30,000 (as measured by the Dow Jones Industrial Average). Through all the ups and downs, that’s about an 8.5% average annual return. 

The pessimism of the early 80s was replaced by the “irrational exuberance” of the late 1990s. By the time the Internet bubble burst, the NASDAQ had reached 5,000. It would fall over 60% and take 15 years to regain that loss.

To be sure, not every faddish thing is evil or illegal. As with many lies, most financial fads contain a kernel of truth. 

The real problem with these fads is that they distract you from doing what works. They tempt you instead to try something that sounds easier, faster, or more fun. Hey, next to a flashy fad, whatever is tried-and-true often feels boring! 

But the truth remains: The formula for long-term financial health hasn’t changed much in the last 100 years: 

• Create a financial plan. 
• Fund the plan by saving and investing enough money. 
• Protect the plan by obtaining enough insurance. 
• Maintain the plan by regularly revisiting and updating it.  

For many, DIY (“do-it-yourself”) financial planning is a new fad. 

Yet few people have the time to gain expertise in multiple fields. I might think I’m saving money by doing my own plumbing, wiring, legal work, or dentistry. But typically such thinking leads to frustration and greater expense. 

Getting swept up in cultural fads like leisure suits and disco dancing might hurt your pride a little. But falling for the latest financial fad can negatively impact you for years. 

If you have questions about your own financial plan, I’d love to send you my comprehensive checklist of pre-retirement questions for people who are 60-something. It’s free. Email me at bmoore@argentadvisors.com, and I’ll send it to you right away.

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.

Whether I’m complaining of cold or flu symptoms, or getting an annual physical, he first listens to my heartbeat, assesses my breathing (with an extra cold stethoscope), and looks down my throat, up my nose, through my ears, and into my eyes. 

He takes my temperature, weighs me, and gets a sample of whatever bodily fluids he can coax out of me. 

Why does he do all that? He wants to get an overall sense of my health (or unhealth) so he can make a correct diagnosis. He’s trying to head off any serious problems before they have a chance to develop.

Only after that initial, comprehensive inspection, does he zero in on my specific complaint.

Guess what? You and I need that kind of regular check-up in our financial lives. I call it a fiscal physical. And I believe it needs to consist of these components:

• Personal development plan. What is your plan to continue increasing your value to the marketplace? This is one of the most overlooked pieces of a financial plan, yet it is of primary importance. You never want to stop growing.

• Income-to-spending ratio. Most of us need an income-to-spending ratio of 100/80/20. The 100% figure represents your income. Of that, you want to spend no more than 80% and save the other 20%. 

• Monthly savings rate. This is an echo of the above point—most of us need to be saving 20% of our annual income. If everyone did this from the first day of their first job, we’d be a nation marked by unparalleled financial health!

• Months of income in savings. In order to avoid bad debt (the kind where you end up paying someone 18% interest), we need emergency savings we can tap. A good plan is to accumulate six months of income in an accessible savings account. Anytime you spend money out of that account, replenish it ASAP.

• Debt strategy. Debt is neither good nor bad. It simply magnifies your financial decisions, for better or for worse. Debt can allow you to live the lifestyle you want to live sooner (e.g., buying a house). It can also cost you later, keeping you from the lifestyle you might have had if only you had saved more money over the years. An intelligent debt strategy can save you much regret.

• Protection strategy. Protection decisions should be made with the mindset, “Could this risk (e.g., the risk of death or disability) ruin me, or could I afford it?” If the risk might be devastating, you need to ask, “If I were able buy insurance the day after the disaster occurred, how much would I want to buy?” 

A good rule: Only insure for risks you wouldn’t be able to pay for.

• Retirement strategy. One day, by design, desire or destiny, you’re going to retire. Do you want to spend that “next chapter” mostly fretting about money? Or would you like to enjoy your retirement years? 

Satisfying retirements need a strategy—not only smart investing, but also efficient income generation. Why settle for a big “nest egg” that produces only modest income? Instead, why not position yourself to increase the amount of income you can get from your retirement assets?

Couldn’t I just take my medical questions to the Internet? Of course. But if I want a thorough and personal checkup, I go see my real doctor.

To get an accurate read on your financial health, you need to make an appointment with a trusted financial professional. Get a “fiscal physical” and you’ll have a clear, workable plan for better financial health.

Want an easy first step? Do what lots of others have done. Email me at bmoore@argentadvisors.com, and I’ll send you my FREE comprehensive checklist of pre-retirement questions for people who are 60-something. There’s no obligation.

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.

He was responding to my encouragement that he establish a regular saving plan.

How unfortunate. Because except for those rare souls who win the lottery or receive an unexpected windfall, I’ve never seen anyone achieve financial success without a commitment to saving money. 

Sadly, this young man isn’t a rarity. I see people all the time wrestling with NOMO, FOMO, and ROMO.

NOMO. Some people are unable to save due to NOMO, or “no money.” They simply do not earn enough to pay their monthly living expenses and save money too. These dear folks are not the focus of this column. 

FOMO. I think my friend who couldn’t (technically “wouldn’t”) commit to a regular savings habit is a victim of FOMO, or the “fear of missing out.” 

He’s not alone. As incomes have risen across our society over the last few generations, so have consumer opportunities—and consumer desires for immediate gratification.

Stashing money into some kind of savings plan doesn’t feel very fun, especially when our minds are wondering:

“What if I never get to…take that luxurious Hawaiian vacation…buy that new truck with all the bells and whistles…build my dream home…enjoy a new bass boat and a fishing camp?”

Be honest with yourself. Has the fear of missing out on something now caused you to avoid thinking and acting responsibly regarding your future?

FOMO is real, and it’s powerful. 

But you want to know what is even more real? ROMO.

ROMO is the “reality of missing out,” and that’s something that should make us tremble. 

When we don’t save now, we miss out on so many great opportunities later. That failure to save is like having a gold coin placed in our pockets each morning, only to have it evaporate at midnight due to non-use. 

Except, that gold coin isn’t money…it’s time. 

Here’s the sober truth: Money loses value over time. This isn’t just due to inflation, but also to inaction. Every dollar has an unseen “lost opportunity cost” attached to it. 

For example, my failure to save $100 a month over the last 20 years didn’t just cost me $24,000 (i.e., $100 x 240 months). It actually cost me over $80,000! That’s what I would have today if I’d invested that $100 in a large cap stock index like the S&P 500. 

The difference between $24k and $80k is a vivid picture of “lost opportunity cost.”

Listen, a saving plan is not a prison sentence. In fact, it’s just the opposite. When you save systematically, you have more money available for fun “once-in-a-lifetime” trips and the like.

FOMO has a way of blinding us to ROMO. It urges us to spend it all now rather than save some for later. It makes us forget all about planning for the future. 

But the future isn’t an illusion. It’s real, and it’s coming at us all like a freight train. 

Are you ready for it? Do you have a saving plan in place that will allow you live with long-term peace instead of eventual regret?

Actually, when you think about it, a good saving plan is a GOMO, a “giver of more options.”

If you’re worried about your financial future, I’ve got a comprehensive checklist of pre-retirement questions for people who are 60-something. It’s free if you’d like a copy. Email me at bmoore@argentadvisors.com, and I’ll send it to you right away.

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.

“How did I get so old so soon?” he asked himself.

Bill’s not old; he’s only 45. But he is at “halftime” in his professional life. Twenty years down, roughly twenty to go.

In our twenties and thirties, it’s easy to put off important matters. “I’ll get to that later.”

But then we sleep a few times and suddenly we’re in our forties (or fifties). Suddenly, our procrastination feels like the worst plan ever.

If you’re at the “halftime” stage of life, I’ve got good news and bad news. 

Let’s get the bad news out of the way first.

Bad news #1: You’re probably behind. 

You already suspect this, don’t you? You’ve been dabbling with 2% and 3% contributions to your 401(k), all the while piling up more debt. The kids haven’t gotten any less expensive, and it seems every week there’s a new “must do” activity with a $150 or $250 price tag attached. 

Bad news #2: “I don’t want to look” is a bad strategy. 

Busy and tired, you plead, “Can’t we talk about this next month?” Then, when you do (reluctantly) talk, you end up in a bad mood or a squabble—or both.

Here’s the ugly truth: Not looking at your financial situation hasn’t helped you thus far, and it’s not going help you going forward. 

Bad news #3: If you keep doing what you’re doing, you’ll keep getting what you’re getting. One of the realities of reaching “halftime” is that time is not your friend. With every passing year, the price tag for reaching a place of financial freedom goes up. 

Fortunately, there is good news!

Good news #1: You can get help. 

When my youngest son graduated from college, he decided to buy a school bus and transform it into a tiny home. For months he worked on “Ethyl” in a barn. Each night he’d watch a YouTube video explaining how to tackle the next stage of his big renovation. After many months of work, he and his wife were able to take Ethyl on an unforgettable driving tour of the western United States.

Sometimes help comes in the form of a YouTube video. Sometimes it comes in the form of a flesh-and-blood advisor who can answer all your hard questions face-to-face. 

If you’re at halftime, you need a person not a video.

Good news #2: You can make progress. 

A good advisor is an encouraging coach and a wise guide. He or she should provide direction, information, and motivation. I find most “half-timers” need more than a vague challenge to “put more in your 401(k).” They need a detailed plan to coordinate all their financial strategies – savings, debt reduction and retirement income planning.

Good news #3: You might be closer than you think. 

Here’s the crazy truth: You might be in better shape than you think. 

Many “half-timers” that visit with me look grim when they arrive. I help them look honestly at their situation. Then, together, we agree upon a set of strategies and actions so that they leave with clear direction and renewed hope.

Are you a “half-timer” who feels behind, stuck, and perhaps even afraid to look at your financial situation?

Here’s a simple action you can take to get moving in the right direction. 

Email me at bmoore@argentadvisors.com and ask for my free, simple to understand e-book called “How to Put Money Worries in Your Rear View Mirror – the Financial Freedom Roadmap.” I’ll send it to you right away.

But more importantly, when you email me, put “I could use some help” in the subject line and we’ll reach out with a special offer. It’s free too.

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.