“What should I spend my money on in retirement?” I received this question from a client a few weeks ago and it really made me pause to think. I’ve fielded countless questions like “how much can I spend in retirement?” and “how long until I can retire?” but never what should I spend money on?
First, I believe we should have immense gratitude for living in this country at this point in history. Second, I’m left questioning that with the ease of procuring almost anything we desire, has there been something deeper that’s been left out?
Over the last couple of months, the markets and investors have been concerned about numerous policy decisions that a Trump administration would impose. One of these concerns that continues to be front and center are tariffs. What exactly are tariffs? Simply put, these are taxes imposed by one country on the goods or services imported from another. Tariffs can be used to influence another country, raise money or to protect a competitive advantage.
When reflecting on the year just past, I thought I would go back and check on the market predictions from the end of 2023. Where did the smart people think we would end up at the end of 2024 and what were the boldest predictions that did not come true? One phenomenon I have noticed over the many years I have done this is that most short-term predictions are wrong. And there is usually no consequence for getting the predictions wrong no matter how bold—no jobs are lost and, in fact, the predictions that are wrong are mostly forgotten. However, the upside to making a bold prediction and being right is immense.
Warren Buffett often says that he wants to be remembered as a teacher. “That would be very flattering, I would feel, if that was on my tombstone,” he said in an interview in 2018. He is the world’s greatest investor, but he has the uncanny ability to break things down in such a way that they can be understood in the living rooms of ordinary Americans. Like my colleague Sarah Swan wrote last week, his wisdom is timeless. At age 94, Buffett recently shared his strategy for how to pass wealth on to the next generation while minimizing family conflicts. His advice is applicable, he says, even if you aren’t a billionaire like he is.
I set a goal for myself to read more in 2024. This felt equal parts lofty (where will I find the time?!) and obvious (perhaps less doomsday scrolling, and online shopping would serve me well). I had never been a big reader before, and I wasn’t proud of that. This year, though, something was unlocked for me—admittedly, and embarrassingly, many years overdue. I gave myself permission to drop anything that wasn’t thrilling to me, and I figured out what I love to read. The result? Twenty-nine completed titles in 2024, and eight dropped titles. Life is, in my opinion, too short to suffer through books I don’t like.
We manage money for hundreds of families, and to say that these individuals span the full political spectrum is not an exaggeration. We are proud of this fact, and we’re proud that our own employees offer diversity of thought as well. Our job as financial advisors is to know our clients, meet them where they are, and do our part in helping them to be better off financially tomorrow than they were yesterday, proverbially speaking, in accordance with their unique and personal goals.
I have a habit of jotting down the lessons I’ve learned along the way, and while they might not always be captivating to others, I find them valuable. I think this habit goes back to my time in the Army, where we carried small, hardcover green notebooks in our cargo pockets. These “green notebooks” became repositories for countless notes, lessons learned, mission plans, and guidance. In fact, carrying a green notebook and a pen was an unspoken expectation for every leader—always ready to capture the insights of the moment.
What I shouldn’t do as a financial advisor is wax poetic about the ways a person should spend their money. We give a lot of informed advice as advisors, and much of that advice is centered around data and modeling and educated extrapolating about a person’s specific circumstances, but one thing that’s less straightforward is advice about how people should spend their hard-earned money. Money is so personal.
Explore the economic risks of the recent U.S. dockworkers’ strike and Iranian missile strike on Israel. Learn how these events may impact inflation, interest rates, and the Federal Reserve’s future actions.
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