A Fool and His Money are Soon Parted

@DianneN (78316)
United States
January 3, 2017 8:37am CST
A friend on myLot recently complimented me on being financially secure and asked some detailed questions. She wanted to know how she, too, can live worry free in retirement. My husband and I both had rather high paying careers, mostly due to our higher education degrees. I was one of the highest paid teachers in my school system having earned my Master's degree, 30 credits beyond, and a Sixth Year degree. My husband earned a Doctorate degree and was a university professor and chairman of two departments. He also created programs, ran courses in other universities and institutions, directed programs, and consulted. Early in our marriage we began investing. Once I returned to teaching after being a stay at home mom, we took out 403b plans at our workplaces and over the years acquired three financial advisors. Our main one is our most important one at a well known company. We also receive pensions as retirees. I am clueless regarding investing, and leave that with my husband, standing in the photo, and advisors. So for those of you who are young enough, please try to be smart about your money and plan for your retirement now. Both our sons have done so, too. It will allow you to live worry free in your retirement, with money left over to reinvest, spend freely, or stash into your savings accounts.
52 people like this
46 responses
@fishtiger58 (30338)
• Momence, Illinois
3 Jan 17
I couldn't agree more. I have often told my sons you can do without when you are young and strong, you CAN NOT when you are old. A year ago my husband and I opened an IRA Retirement account for both our sons for Christmas. We started them with $3000.00 each and now it's up to them to keep investing in it. Our oldest son is putting 50 dollars each month into it, it's all he can really afford for now. He also has a 401k where he works. My youngest is still in school, but will be done in a month or so and then he will get a job with is Masters Degree. He is looking at Data Analysis for a car company like General Motors or a big hospital, the starting pay is pretty darn good. He has a tiny bit of student debt which he says he can pay off in 6 months time if he gets the pay he is looking for then he will start to invest. I couldn't be happier, my mom and dad told me when I was young to do something about my retirement, and I did. My hubby and I are not rich but we are comfortable and don't worry about our bills which we can easily meet. I wish all young people would not live for the moment as much as they do and think about their retirement. I can't help them but am so very pleased my husband and I were able to put our sons on the right path.
15 people like this
@DianneN (78316)
• United States
3 Jan 17
I'm so happy to hear that you were wise in planning for your retirement and don't have to worry about bills. Your son's are on the right path, too. So many people get paid and blow their money without a thought to their future, or come to their senses when it's too late.
4 people like this
@fishtiger58 (30338)
• Momence, Illinois
3 Jan 17
@DianneN Yes coming to your senses when it's too late is so not good.
4 people like this
@DianneN (78316)
• United States
3 Jan 17
@fishtiger58 There are many in our condo like that.
4 people like this
@jaboUK (53936)
• United Kingdom
3 Jan 17
We were never high earners like you, but I was prudent. The main thing I would say to people is to never get into debt. If you have a credit card, pay it off by direct debit every month - if you can't do that, cut up the card.
12 people like this
@DianneN (78316)
• United States
3 Jan 17
You are right. Never get into debt with anything.
4 people like this
• Laguna Woods, California
4 Jan 17
@jaboUK - You are absolutely right that staying out of debt is important. An unbelievable number of people try to retire with large debts, and it never works out well for them.
2 people like this
@yukimori (9047)
• United States
4 Jan 17
@DeborahDiane Of course not. They spent years and years living beyond their means and paying interest on the excess they were spending. That's a heck of a habit to break.
1 person likes this
@marguicha (94797)
• Chile
3 Jan 17
We need to save some of our money. The money we saved with my husband allows me to live in a good house in a nice neighborhood (all paid for) and I had no problems in paying for my chemotherapy when I needed it.
5 people like this
@DianneN (78316)
• United States
3 Jan 17
Don't you have insurance to cover the cost of your chemo? Yes, our home is all paid for and is in a good neighborhood in an upscale town. We lucked out with that, but it's another story. Our vacation home is all paid for, too. This is the time for you to enjoy life!
3 people like this
@marguicha (94797)
• Chile
4 Jan 17
@DianneN I have insuurance for part of it, but there is a deductible. And the government provides for part of the treatment at $0 cost. But still it is very expensive for someone who is not rich. I had to cross the city in a taxi as I could not use public transportation. Ans some of the meds were not covered by the insurance. My house is all paid for and I have a 2 week timeshare for vacations. Still, a mayor illness has many extras you wouldn´t need if you were healthy.
2 people like this
• Laguna Woods, California
4 Jan 17
@marguicha - That is wonderful that you have paid off your house. That will help you and husband a lot when you are retired.
2 people like this
@Happy2BeMe (74743)
• Canada
3 Jan 17
Nice post. Well done both of you. I went through a messy divorce late in life which almost broke me. Things would have been better financially had that not been the case. Oh well I am broke and happy but life is good.
5 people like this
@DianneN (78316)
• United States
3 Jan 17
I'm so sorry to hear about your messy divorce. That must have been awful for you! But here you are, with a zillion blessings and more good coming your way. Giant hugs to you!
1 person likes this
@Happy2BeMe (74743)
• Canada
3 Jan 17
@DianneN Thank you Dianne. Everything always has a way of working out and I am much happier today then I was back then.
1 person likes this
@DianneN (78316)
• United States
3 Jan 17
1 person likes this
@much2say (39242)
• United States
3 Jan 17
We found the coolest financial adviser last year - he is helping us with our goals and "putting it all together" step by step. I personally hate financial jargon as it's all confusing to me . . . but this man makes it a goal to educate people (and boy he is hilarious) so they can go in the right direction and actually make it to their financial goals. He says too many people leave themselves in the dark about money - and that's why so many get into trouble. You and your husband did very well for yourselves. You worked hard to get where you're at but you also made your money work for you with investments and such. I'm sure this also influenced your sons - and they will be successful in the long run as well! Our parents were not as savvy, so we actually didn't learn much about money from them. Their generation could work and live and be just fine no matter what - that's how it was for my parents and although they are not the wealthiest, they live comfortably. My inlaws did ok but made some bad financial choices throughout the years and got into some major debt - mother in law is walking on eggshells with her financial situation. We wished we had learned things earlier for ourselves . . . but we are "here" now, and we are at an age where things are still doable - and I'd have to say we've been doing well this past decade. So now we're teaching our kids early so they can be ahead of the game!
4 people like this
@DianneN (78316)
• United States
3 Jan 17
My father invested with the wrong people quite often. He believed in hiding his money under the mattress. Duh! Afterall, he grew up during the depression. I learned more from my husband and the advisors. You are definitely on the right track and at the age where you can make a real difference in the quality of your retirement. I know you're a smart and wise girl.
1 person likes this
• Laguna Woods, California
4 Jan 17
@much2say - So glad to hear that you are teaching your kids about money. They will have much better lives because of it.
2 people like this
@yukimori (9047)
• United States
4 Jan 17
There's no substitute for raising financially literate kids. I think we're going to set both of ours up with Roth IRAs and fund them with the maximum for the year when they turn 18. They already split their allowances up into spend, save, donate, and invest categories in their piggy banks.
2 people like this
@responsiveme (16247)
• India
3 Jan 17
Investing early is a good idea. My hubby however likes to spend not save. So I have to plan the finances. Is this your Florida home?
4 people like this
@DianneN (78316)
• United States
3 Jan 17
That is wise that you take charge. Hopefully you will have money to enjoy your retirement comfortably.
3 people like this
• India
3 Jan 17
@DianneN I hope so too
3 people like this
@DianneN (78316)
• United States
4 Jan 17
Yes, it's our Florida home. Sorry I missed your question. I haven't been feeling well for a few days.
1 person likes this
@Platespinner (16494)
• Winston Salem, North Carolina
3 Jan 17
Good sound advice that I wish I had followed sooner in life. We should be able to retire comfortably when the time comes, but we'd be in a much better position if we had managed to avoid falling into the credit-card trap.
4 people like this
@DianneN (78316)
• United States
3 Jan 17
I understand that, because I did it, too. My mother told me I should have my own credit, so I obtained a card, spent like crazy, only paid the minimum, and it grew to the max. Once my husband discovered what I had done, he blew his lid, paid it off, and told me to always pay in full at the end of the month. I've been doing that since I was 24 years old. I learned my lesson!
2 people like this
• Laguna Woods, California
4 Jan 17
@Platespinner - I'm glad to hear you will be able to retire comfortably. Everyone wishes they could have done more to prepare for retirement. If you get your credit card paid off before retirement, it will be a big help.
2 people like this
• Winston Salem, North Carolina
11 Jan 17
@DeborahDiane Credit card debt is long gone. Right now our only debt is the mortgage on our house (and we're working hard at extra payments each year).
2 people like this
@LadyDuck (157635)
• Switzerland
3 Jan 17
You are so right Dianne. The important is to start to invest money early, so it can grow little by little and you do not spend it.
4 people like this
@DianneN (78316)
• United States
3 Jan 17
Thanks for confirming that, Anna.
1 person likes this
• Laguna Woods, California
4 Jan 17
@LadyDuck - The more we save, the better off we all are in retirement!
2 people like this
@LadyDuck (157635)
• Switzerland
4 Jan 17
@DeborahDiane This is so true and it is important when we age.
1 person likes this
@Corbin5 (106444)
• United States
3 Jan 17
Very sage advice for those who are young. We have always lived below our means, and that has made for a very nice retirement. Our son has an MBA in finance/marketing, so he is definitely savvy when it comes to investing and saving, thank goodness, but dang, that guy is cheap. He chastises us for buy new cars. He needs to loosen up a bit.
3 people like this
@DianneN (78316)
• United States
3 Jan 17
I hope your son reaches a happy medium. My mother called my father the cheapest man on earth, which was true. Our sons are very pleased for us when we buy new cars or go on vacations. They know how we sacrificed for them to send them through school, send them to Europe before we ever went there, bought them new cars, etc. They want us to enjoy life to the fullest, knowing we are getting old. Lol
2 people like this
• Laguna Woods, California
4 Jan 17
@Corbin5 - I'm sure your son just wants the best for you, but I hope he can find a happy medium with your finances!
1 person likes this
• Laguna Woods, California
4 Jan 17
@DianneN - Our kids are always happy when we do things, too. They also appreciate the things we still are able to do for them. Isn't that a nice feeling?
2 people like this
@Bluedoll (17069)
• Canada
3 Jan 17
I had a kitchen like that at one time but the cupboards were up above the counter top which produced a wall along the ceiling line. It looked more like a wall divider with an opening than a counter island. I like this design much better.
3 people like this
@DianneN (78316)
• United States
3 Jan 17
When we bought this condo, it was as you described. We had to remodel the entire kitchen and opened it up more. Thank you.
1 person likes this
@Bluedoll (17069)
• Canada
4 Jan 17
@DianneN oh I see, well that was a good choice. I like your table too, lovely. I had a round table not too big and once while standing up explaining something I waved my hand around in a circle trying to be physically expressive and one of those crystals went flying off when I touched it with my hand. It was funny but I was so embarrassed too. Strange the things we will remember. Hope you have many more memories to come in your home.
2 people like this
@DianneN (78316)
• United States
4 Jan 17
@Bluedoll Lol! I have done some hum doozies in my life, too! You are not alone. Lol!!! Thanks so much.
@amadeo (65946)
• United States
3 Jan 17
Young people need advice from finically advisor Mike and I have done very well in our money matter. We got CD with the interest was very,very high.We done really well on this. Then we have advisor and they helped us a lot. We are in good shape and bill free. We may not show it.But this is how we chose to live.
3 people like this
@DianneN (78316)
• United States
3 Jan 17
You and Mike did the right thing and are worry free in your retirement. I know how much you like to travel. Those high interest rates on CDs are long gone now.
1 person likes this
@Drosophila (16711)
• Ireland
3 Jan 17
Definitely investment is the way to go, keep things ticking over nicely
2 people like this
@DianneN (78316)
• United States
3 Jan 17
I'm quite sure you know all about it!
1 person likes this
@Drosophila (16711)
• Ireland
3 Jan 17
@DianneN oooh and an unrelated question, what's that plate of yum? You have in front of you? Lobster?
1 person likes this
@Drosophila (16711)
• Ireland
3 Jan 17
@DianneN ah-ha! Reminds me of this dish I had in Maryland, it was extra jumbo shrimps cooked in a pot of melted cheese and garlic butter, then dipped in this lobster dip! lol now I miss US
1 person likes this
@moffittjc (43007)
• Gainesville, Florida
4 Jan 17
Since I work for the government, I have a 457 account, which is the public version of the 401k or 403 accounts. I began investing early in my career into my 457, along with a Roth IRA and Traditional IRA. Add into that mix my lifelong pension I will receive, I should do pretty well in my retirement. I won't be rich by any means, but I should retire comfortably.
2 people like this
@DianneN (78316)
• United States
4 Jan 17
You are a smart person, and I wouldn't expect anything less from you!
1 person likes this
@moffittjc (43007)
• Gainesville, Florida
5 Jan 17
@DianneN I only wish I would have started investing in my retirement sooner! I'm trying to teach my kids that if they start investing $1 per day now in a mutual fund that earns 8% interest per year, that they could both retire millionaires when they turn 60!
1 person likes this
@DianneN (78316)
• United States
5 Jan 17
@moffittjc Will you teach me that, too? It's amazing what small investments will turn into! Before I got married at 22, I was young and stupid and spent every single penny I made. But boy, was it fun!
1 person likes this
@atoz1to10 (6829)
• Australia
4 Jan 17
Thanks for your advice... This is why I don't want to go back to be young again. :)
2 people like this
@DianneN (78316)
• United States
4 Jan 17
I don't understand.
@atoz1to10 (6829)
• Australia
4 Jan 17
@DianneN i used to ask myself that between going back to be a young and beautiful person who had nothing at all in life and being 'old' whose life is stable with job and family, which one would I choose. I think I will choose to stay where I am now. I can't stand going back to start fresh again.
2 people like this
@DianneN (78316)
• United States
5 Jan 17
@atoz1to10 Thanks for explaining. I get it now. There is no way I could or would ever want to start fresh again either.
@rebelann (41355)
• El Paso, Texas
3 Jan 17
I didn't have that kind of opportunity but I did go to business school. It did help but I was never that clever about money, I guess I was the fool. Butt still, I'm happy even if I don't have a lot of money.
2 people like this
@DianneN (78316)
• United States
3 Jan 17
Glad you are happy and can pay the bills. That's what counts.
1 person likes this
@rebelann (41355)
• El Paso, Texas
3 Jan 17
So true @DianneN but I do see your point of view.
1 person likes this
• Laguna Woods, California
4 Jan 17
@rebelann - Being happy is the most important factor in retirement ... even more important than how much money you have.
2 people like this
@just4him (117099)
• Green Bay, Wisconsin
3 Jan 17
That's wonderful you were able to do that. I admire your education ability - able to get the degrees you did in order to have the type of careers that paid out a good salary. I didn't have the brains or the opportunity for that kind of education to command a good salary and a nice career. My life has been difficult and my finances have been in the sewer because of it. I'm not looking for pity. Right now things are going well for me, and it has been suggested that I invest what I have so I won't run into the problems I had before.
2 people like this
@DianneN (78316)
• United States
3 Jan 17
You had a rough time of it, but have pulled yourself up by your bootstraps. Be wise if you invest. Seek professional help.
1 person likes this
@just4him (117099)
• Green Bay, Wisconsin
3 Jan 17
@DianneN Thank you. I do have more inheritance coming this year, so it would be a good idea to invest it.
1 person likes this
• Laguna Woods, California
4 Jan 17
@just4him - I agree with @DianneN that you should get financial help in investing your money. I live in a retirement community and I have met a number of divorced and widowed men and women who put money in the wrong investments and lost a lot of it. Get a recommendation and find a certified financial planner; then, put your money in something like a low-risk dividend mutual fund run by Fidelity or Vanguard and make sure it is invested in Blue Chip stocks. Then, you can just sit back, collect your dividends and relax.
2 people like this
4 Jan 17
I am very young, and have questions about investing, so if your husband would like to make a post about investments, that would be great! I was wondering, since you're a teacher, about how to perfect study habits so I can get into my dream college. I have work ethic and ability, I just don't have the skills to effectively work in the short amount of time I have. Any advice regarding the subject would be great, since I have a long school career ahead of me. I plan to get a Masters in Business Administration :)
2 people like this
@DianneN (78316)
• United States
4 Jan 17
My husband doesn't use social media, but suggested that you find a financial advisor or ask for one at a bank. I suggest getting off myLot and studying. Lol! Highlighting and outlining always helped me. Do the easiest tasks first to get them out of the way. If you already have the ability and work ethics, you are ahead of many and should easily get into your dream college. Best of luck to you.
1 person likes this
4 Jan 17
@DianneN thanks very much! I actually study about 2-3 hours a day, and myLot is more of a break :) it's nice to have somewhere to go to relax. Tell your husband thank you for the advice!
2 people like this
@DianneN (78316)
• United States
4 Jan 17
@queenofcats myLot is a wonderful place to relax. You are more than welcome and my hubby says the same. We wish you the best!
• Eugene, Oregon
4 Jan 17
This is great advice for the young!
2 people like this
@DianneN (78316)
• United States
4 Jan 17
Thank you! I'm so relieved that our son's took us seriously and followed our advice. They can be stubborn.
1 person likes this
• Laguna Woods, California
4 Jan 17
@JamesHxstatic - I'm so glad that Dianne brought up this subject. So many young people need to take retirement seriously.
2 people like this
@DianneN (78316)
• United States
4 Jan 17
@DeborahDiane Thank you.
@DWDavis (10771)
• Pikeville, North Carolina
3 Jan 17
I am lucky to have a spouse who understood the necessity of saving for retirement long before it dawned on me. We are just shy of a decade from retirement now and are in pretty good shape. Once our youngest graduates college in 2018, we can start stashing even more away during our last 7 to 8 working years. We've emphasized to both our sons how important it is to start putting something away as soon as the enter the workplace. Son1, being an officer in the military and planning to make it a career, has already started saving to supplement his military retirement. Son2, when he can, even as a student, has begun putting away a little.
2 people like this
@DianneN (78316)
• United States
4 Jan 17
You are a wise family. I'm sure you will also receive a very nice pension from your school system. Just think of all the camping adventures you will be able to do!
1 person likes this
@DWDavis (10771)
• Pikeville, North Carolina
4 Jan 17
@DianneN My wife and I are exploring the idea of becoming nomads for a few years after we retire. We'll buy a nice class C and a good tow vehicle and take off to see the country.
2 people like this
@DianneN (78316)
• United States
5 Jan 17
@DWDavis That would be so exciting!!!!
1 person likes this
@epiffanie (10466)
• Australia
5 Jan 17
I love hearing or reading about how people live comfortably.. I am very happy for you and your husband to have a comfortable retirement.. Very sound advice you have there especially for young people .. I wish I had a higher education like you had .. I could have done more for my self with higher education .. But I found that the harder you work, the easier life becomes .. It would be nice everyone in this world can retire comfortably ..
2 people like this
@DianneN (78316)
• United States
5 Jan 17
Thank you. I know what you've had to overcome. Through your hard work, you will definitely have a nice retirement. The kids of today expect everything to be handed to them on a platter. I hope they learn that's not the case without giving their future some thought.
1 person likes this
@epiffanie (10466)
• Australia
5 Jan 17
@DianneN Yes indeed .. I am worried about the young generation .. but I guess every generation has it's own issues ..
1 person likes this