Making money is hard. Keeping it is harder, and keeping it in the family across future generations is harder still. Indeed, the statistics are sobering. Among wealthy families, 70% of wealth is lost by the second generation, and 90% is lost by the third generation, all of which lends credence to the old adage of “shirtsleeves to shirtsleeves in three generations...”
Where are satisfaction and fulfillment found? Answering that question is beyond the scope of this blog, but my goal in today’s post is to offer a simple framework for thinking about and measuring one's level of satisfaction, financial and otherwise...
Most investors are familiar with the term “asset allocation,” which describes the overall composition of one’s investment portfolio: how their funds are spread among various asset classes and categories. Often expressed in percentage terms and baked in a pie chart (see below), asset allocation is one of the key metrics by which investors and their advisors judge the efficacy of their portfolios. It is a critical piece of prudent investment management...
In every realm of thought – economics, philosophy, theology, etc. – opposed ideas inevitably arise that cannot be easily resolved. Every thinking person must therefore learn to allow these opposed, unresolved ideas to coexist in their minds without allowing that opposition to drive them crazy...
December is often referred to as the season of giving: not only because families and friends gather during the holidays to give presents, but also because of the tremendous surge of philanthropic support that tends to occur during the final month of the year. According to one study, roughly 1/3 of all charitable giving takes place in December...
Last week, I came across an article in the Wall Street Journal by James Mackintosh entitled "Speak No Evil of the S&P 500’s Neverending Records." The subtitle reads: “Investors buying stocks no matter what shouldn’t fool themselves that the future will deliver the chunky returns of the past decade.” Before I present a few counterpoints, let me begin by acknowledging that he’s right: no one should expect the S&P 500 to average 12.8% (adjusted for inflation) per year over the next decade...
I was twelve years old when I first picked up a violin. No magical beams of light spilled forth from the case when I opened it. I heard no choir of angels as I raised the instrument to my chin, and if there were any angels hanging around when I started playing, they probably plugged their ears and hightailed it out of there...
The Biden administration recently released the terms of the American Families Plan, the latest in a trio of major legislative proposals that began with the American Rescue Plan and American Jobs Plan. Broadly, these plans involve a lot of government spending, so it’s not particularly surprising that they also include a series of tax hikes, mostly aimed at wealthy taxpayers...
In early 2020, I interviewed my friend and subject matter expert Daniel Mason about blockchain and its various applications. Since then, blockchain and cryptocurrencies have continued to grow in popularity and legitimacy, as evidenced by the successful IPO of Coinbase – a major cryptocurrency exchange platform – last week. In light of the continued growth and interest in this arena, I asked him if I could share his reflections here on my blog, and he was kind enough to oblige...
Whether consciously or subconsciously, methodically or haphazardly, we are all in a constant state of expectation-setting. We set expectations for ourselves, our spouses, our friends, and our co-workers. We set professional expectations, social expectations, financial expectations, fitness expectations. If you’re like me, you wake up and expect your morning to follow a certain routine, and then your workday, and then your evening. You expect your spouse to treat you with love (and often forbearance), your co-workers to be responsible and respectful, and your 4-year-old to listen to at least 25% of the things you ask him to do. You expect to work for a period of years, support your family, save, and eventually retire. Et cetera, et cetera, et cetera...
