Wealth with Intention

Financial news makes markets sound arbitrary. Over any given week, that is close to true. Over a lifetime of investing, a small number of principles do most of the work, and they are far less exciting than the commentary suggests.

There are three we come back to constantly: consistency, courage, and balance. Each has its own post below. This page is about how they fit together, because in practice they are not three separate ideas. They are one idea approached from three directions, and the order in which you apply them matters more than most people expect.

The short answer

Consistency is staying invested. Courage is what staying invested requires when markets fall. Balance is what makes both of those possible without relying on willpower.

• Consistency addresses the largest measurable cost in investing, which is the gap between what markets return and what investors actually earn.
• Courage addresses the moment that gap opens, which is almost always during a decline.
• Balance addresse
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What should you do with a divorce settlement?

Park the money somewhere safe, wait 60 to 90 days before making any permanent decisions, and then invest it according to when you will actually need it. A settlement is not one pot of money. It is several different kinds of money with different tax rules, and treating it as a single number is the most expensive mistake women make in the first year after a divorce.

This article is about what happens after the decree is signed. If you are still negotiating, still waiting on a QDRO, or still deciding which assets to ask for, that is a different set of questions. Intentional Divorce Solutions covers that ground in detail, starting with how to divide assets in a divorce.

The first 90 days: do less than you think you should

There is enormous pressure to act quickly. Your attorney is done. The accounts have transferred. Everyone around you has an opinion about what you should do with the money.

Do less.

The only urgent items in the first 90 ...

In the first 30 days after inheriting money, the most important thing you can do is slow down. Gather a complete inventory of what you inherited, park any liquid cash somewhere safe like a high-yield savings account, get a basic understanding of the tax picture, and start assembling a team of professionals. Most financial decisions can wait 30 to 90 days. Almost none of them require immediate action.

Why the First 30 Days Matter More Than You Think

Inheriting money is rarely just a financial event.

It usually arrives in the middle of grief, family dynamics, and decisions you were not expecting to make. And somewhere in all of that, someone is telling you that you need to act fast.

You don't. Not on most of it.

What you do in the first 30 days is not about making moves. It is about getting grounded, getting clear, and protecting yourself from the mistakes that are easiest to make when emotions are running high.

Here is what actually matters right now.

Step 1. Give Yourself Permis...

Inheriting wealth is rarely simple. Along with the financial windfall often comes grief, confusion, and the weight of responsibility. Maybe you've recently lost a parent or loved one, and now you're faced with managing money you never expected to have. It's a lot to process, and it's okay to feel overwhelmed.

While I can't take away the emotional complexity of this moment, I can help you avoid some of the most common financial mistakes I see clients make during this transition. Here are six pitfalls to watch out for—and how to navigate them with intention.

1. Making Big Decisions Too Quickly

When money suddenly appears in your account, it's tempting to act fast. Maybe you've been dreaming of a new car, or you want to help family members, or you think you should invest it immediately before you "waste" it.

I get it. But here's what I've seen happen: clients who rush into major purchases or investments often regret those decisions within a year or two.

What to do instead: Give yours...

Ever since President Franklin D. Roosevelt signed off on the 1935 Social Security Act, most Americans have ended up pondering this critical question as they approach retirement:

“When should I (or we) start taking my (or our) Social Security?”

And yet, the “right” answer to this common question remains as elusive as ever. It depends on a wide array of personal variables. It depends on how Congress acts. It depends on how the unknowable future plays out.

No wonder many families find themselves in a quandary when it comes to taking their Social Security benefits. Let’s take a closer look at how to find the right balance for you.

Social Security Planning: A Balancing Act

For Social Security planning purposes, you reach full retirement age (FRA) between ages 66–67, depending on the year you were born. However, you can generally begin drawing Social Security benefits as early as age 62 (with the lowest available monthly starting payments) or as late as age 70 (for the highest available mont...

So far in our investment basics blog post series, we’ve explored the history of investing; how important it is to save (so you have money to invest); how to invest efficiently in broad markets; and why to avoid chasing or fleeing rising or falling prices. 

By applying these logistics, you’re much better positioned to let capital markets work their wonders on your investments. But there are two more essentials that can make or break even the most sensible portfolio, and neither of them are about market dynamics. They’re about you.

Once you’ve structured your investments to capture available, risk-adjusted market returns, you’ll need to stay on track as planned.

This calls for channeling your ability to be patient, and for ensuring your personal goals—rather than shifting market conditions—are driving your ongoing decisions. 

1.     You can’t invest if you haven’t saved. 
2.     Markets are inspired by ingenuity, tempered by diversification.
3.     The price you pay matters. 
4.     Patience is a ...

In our last blog post, we described our marvelous markets and how to account for their being both robust and random at the same time. Today, we’ll look at how stock pricing works, and why Nobel laureate William F. Sharpe was correct when he reminded us: “Asset prices are not determined by someone from Mars” (even if it may sometimes feel that arbitrary).

1.     You can’t invest if you haven’t saved. 
2.     Markets are inspired by ingenuity, tempered by diversification. 
3.     The price you pay matters.
4.     Patience is a virtue.
5.     Investing is personal.

Random Numbers, Efficiently Arranged

Why is Berkshire Hathaway Inc.’s Class A stock (BRK-A) priced at more than $400,000 per share as of mid-September 2022? Why do other stocks trade for pennies on the dollar? Why has Meta’s (META) share price dropped by more than half year to date, while Consol Energy Inc.’s (CEIX) has more than doubled?

As we touched on in our last post, we caution against trying to predict a stock’s next price based ...

In our last blog post, we introduced the importance of saving, which is the first of five basics that have served investors well over time. Today, we’ll look at where stock market returns really come from, and why that matters to your investing.

1.   You can’t invest if you haven’t saved.
2.   Markets are inspired by ingenuity, tempered by diversification. 
3.   The price you pay matters. 
4.   Patience is a virtue. 
5.   Investing is personal.

Markets Are Robust and Random

Before we describe where stock market returns come from, consider these two quotes: 

“Whether the currency a century from now is based on gold, seashells, shark teeth, or a piece of paper (as today), people will be willing to exchange a couple of minutes of their daily labor for a Coca-Cola or some See’s peanut brittle.” 

— Berkshire Hathaway Chairman Warren Buffett

“Whenever you think you’ve found the key to the market, some[one] changes the lock.” 

— E.F. Hutton & Co. Founder G.M. Loeb

So, which is it? Are market returns drive...

In our last blog post, we discussed how recency bias can damage your investments by causing current crises to loom large, while rewriting your memories of past challenges. Recency tricks us into overpaying during heady times, and bailing at bargain rates, when our confidence fades.

One of the best ways to combat recency bias is by focusing instead on the basics that have served investors well for centuries. 

In our blog post series, we’ll cover five of our favorites:

1.     You can’t invest if you haven’t saved.
2.     Markets are inspired by ingenuity, tempered by diversification.
3.     The price you pay matters.
4.     Patience is a virtue.
5.     Investing is personal.

Today, let’s talk about saving.

Saving Is a Super Power

Before you can invest, it’s important to save. However, knowing this is true doesn’t make it easy to do. Bottom line, saving means giving up something today so you’ll have something in the future.

Saving also isn’t as exciting as investing. When you invest, the stakes can...

There’s been a lot going on this year - politically, financially and economically - from rising interest rates, to elevated inflation, to ongoing market turmoil.

So how will all this activity translate into annual performance in our investment portfolios? Markets often deliver their best returns just when we’re most discouraged. While we wait to find out the results, here are six financial action items that you can tackle before the year ends. 

1. Revisit Your Cash Reserves

Where is your cash stashed these days? After years of offering essentially zero interest in money markets, savings accounts, and similar platforms, some banks are now offering higher interest rates to savers. Others are not. Plus, some money market funds may have quietly resumed charging underlying management fees they had waived during low-rate times. 

It might be a good time to shop around. If you have significant cash reserves, now may be a good time to compare rates and fees among local institutions, virtual ban...