Some Don’t Like Wisdom

“What the wise do in the beginning, the fools do in the end.” Warren Buffett

“What the wise do in the beginning, the fools do in the end.” – Warren Buffett

“Not doing more than the average is what keeps the average down.” – William Lyon Phelps

“Some people make things happen, some watch things happen, while others wonder what happened.” – Proverb

Today’s Barron’s Reminder

First of all, I’m not afraid that Social Security will fail or that benefits won’t be paid. However, I remain unconvinced that the government is your best hope for or foundation for income in retirement. Here are two images to consider from Barron’s. The first should be sobering. The second should cause wise investors to sit up and take notice.

The Question to Consider

Brittany Carmona is the Community Manager for the online Fidelity Investor Community. Each month a question is presented, and the question on May 2, 2024 was, “We love hearing from the many diverse perspectives in the community. Today we encourage you to share your thoughts on this question…True or False?  $1,000,000 saved in a retirement account is enough to fund a comfortable retirement?”

The answers were varied and interesting.

Here is what I said: “This is not a question that can be answered without far more information. Having said that, I have many retired friends who have less than that amount and are doing just fine. More money does not equal happiness or comfort.”

Other Wise Responses

One community member (Dem) asked some good questions. Dem started by asking for a definition of “enough” and “comfortable.” Then Dem said, “To answer and/or respond to the question one would need to know other facts” like: 1. How is the $1,000,000 invested? 2. Debts such as mortgages? 3. Single or with partner? 4, Health of retiree(s) 5. Geographic location 6. Anticipated SS

Bottomfisher asked these questions: How many dependents do you financially support and what is your chosen lifestyle? How many nights a week do you dine at restaurants instead of preparing your own meals at home? Are you jealous if the next-door-neighbor has a nicer car than you? Do you mow your own lawn, or pay someone else to do it? Where do you like to shop? Saks Fifth Avenue or Walmart? Would you pay $10,000 a piece for mediocre seats at the Super Bowl (just to say you were there) or be happy watching it at home on TV?

It all comes down to choices. A million buck retirement fund is way too much for some, not nearly enough for others. It’s not really where you live. It’s how you live and what sort of attitude you have.

The Fool Clarifies the Root Problem

“Americans headed toward retirement may not be set up for success. Retirement-age Americans pull in $50,290 per year but are spending $57,818 on average. The mismatch between retirement savings and spending has led some to declare a “retirement crisis.” A shortfall in retirement savings would not only affect retirees’ quality of life but could cost the public if taxes are raised to make up for the gap.” – The Motley Fool

The Fool goes on to say, “The National Council on Aging found that incomes for 45% of Americans 60 and older are insufficient to support basic needs, and 80% of households in that age group are financially struggling or in danger of financial insecurity.” Let that sink in

Which Camp Will You Join?

“Good sense is a fountain of life to him who has it, but the instruction of fools is folly.” Proverbs 16:22

“For the simple are killed by their turning away, and the complacency of fools destroys them;” Proverbs 1:32

Why should a fool have money in his hand to buy wisdom when he has no sense?” Proverbs 17:16

All scripture passages are from the English Standard Version except as otherwise noted.