Biggest Threats to Financial Well-Being

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
mary1969
Posts: 13
Joined: Sun Jul 01, 2018 3:34 pm
Location: IL

Re: Biggest Threats to Financial Well-Being

Post by mary1969 » Thu Aug 09, 2018 6:16 pm

living beyond your means
country club
taking too much risk
leverage
not being prepared for a major mkt sell off. it happens. trust me

2015
Posts: 1697
Joined: Mon Feb 10, 2014 2:32 pm

Re: Biggest Threats to Financial Well-Being

Post by 2015 » Thu Aug 09, 2018 6:55 pm

Lack of investment in personal development is the source of most of life's woes.

Even the worst external events can be at the least minimized somewhat through rational thinking, and the keys to rational thinking are almost never found in a chart, graph, or blog post on economics, personal finance, or investing.

cashmoney
Posts: 131
Joined: Thu Jun 29, 2017 11:15 pm

Re: Biggest Threats to Financial Well-Being

Post by cashmoney » Thu Aug 09, 2018 7:24 pm

youngin87 wrote:
Thu Aug 09, 2018 5:30 am
As I start building my wealth at the age of 30, I wonder what are the biggest threats to my finances. I have the following listed but if anyone has experienced or seen additional factors, please add.

1. Death - obvious
2. Extended length of unemployment - I can shake off a few weeks or even months of unemployment, but anything longer than 6 months would significantly dent my savings account
3. Major medical illness
4. Divorce



A rigged witch hunt by the IRS

acegolfer
Posts: 971
Joined: Tue Aug 25, 2009 9:40 am

Re: Biggest Threats to Financial Well-Being

Post by acegolfer » Thu Aug 09, 2018 7:44 pm

bad economic policies

seligsoj
Posts: 32
Joined: Mon Apr 25, 2016 11:44 am

Re: Biggest Threats to Financial Well-Being

Post by seligsoj » Thu Aug 09, 2018 8:35 pm

Having a special needs child with significant needs such as expensive private therapies, medical bills, frequent doctor visits forcing one spouse to quit working to become their full time care-taker, having to create a special needs trust because they will need to be taken care of forever, long after you're gone.

Silver Bullet
Posts: 64
Joined: Tue Sep 26, 2017 1:18 am
Location: Virginia

Re: Biggest Threats to Financial Well-Being

Post by Silver Bullet » Thu Aug 09, 2018 10:07 pm

Grt2bOutdoors wrote:
Thu Aug 09, 2018 4:37 pm
simple man wrote:
Thu Aug 09, 2018 4:22 pm
Your daughter wants a horse....trust me, even worse than a boat...
I’ll bet between the vet, boarding and food, it costs a pretty penny to keep Blackie satisfied.
I divorced the horses 20 years ago and have never been happier!
Ex (or should I say WE) had 3 high dollar thoroughbreds, plus a low six figure pony for our 10 year old daughter. Each cost us about a mortgage payment per month. :shock: If the marriage had lasted and we didn’t have the horses, I’d have been retired 10 years ago.

Fast forward to today: beautiful, frugal 2nd wife. Definite “completes” me, along with another wonderful child. We’ve both been focused on health, happiness and financial security. Notwithstanding unforeseen health issues, the future is bright.

Nissanzx1
Posts: 84
Joined: Wed Jul 18, 2018 11:13 pm

Re: Biggest Threats to Financial Well-Being

Post by Nissanzx1 » Thu Aug 09, 2018 10:58 pm

I personally think debt is the biggest long term threat for most people. Paying 4-6-8-10-12-14-22% rates your whole life will really add up and rob you of wealth.

I'd say a stable housing situation where you own your housing outright in a reasonable property tax area is a huge plus over the long haul.

Death you can insure against and most people should.

Divorce is tough, no doubt about that. Choose carefully.

Long term disability can be insured against.

123
Posts: 3489
Joined: Fri Oct 12, 2012 3:55 pm

Re: Biggest Threats to Financial Well-Being

Post by 123 » Thu Aug 09, 2018 11:04 pm

Inflation

Inflation causes an erosion of true worth and value because as your "income" goes up the progressive income tax takes more of it. Inflation provides government a means to confiscate your assets, generally slowly over time.
The closest helping hand is at the end of your own arm.

ScubaHogg
Posts: 27
Joined: Sun Nov 06, 2011 3:02 pm

Re: Biggest Threats to Financial Well-Being

Post by ScubaHogg » Thu Aug 09, 2018 11:57 pm

Drugs.

User avatar
HomerJ
Posts: 11429
Joined: Fri Jun 06, 2008 12:50 pm

Re: Biggest Threats to Financial Well-Being

Post by HomerJ » Thu Aug 09, 2018 11:59 pm

deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
The J stands for Jay

CarpeDiem22
Posts: 69
Joined: Tue May 22, 2018 11:20 pm

Re: Biggest Threats to Financial Well-Being

Post by CarpeDiem22 » Fri Aug 10, 2018 12:06 am

Your own self. If you maintain a diary (note down your thoughts), you know how much your thoughts can change in a couple of years.

spammagnet
Posts: 900
Joined: Wed Apr 27, 2016 9:42 pm

Re: Biggest Threats to Financial Well-Being

Post by spammagnet » Fri Aug 10, 2018 12:23 am

warner25 wrote:
Thu Aug 09, 2018 6:16 am
I wouldn't list death on there. Maybe for your family, but with sufficient life insurance death is probably a financial windfall for them. Actually the risk to you, personally, is longevity.
Agree that longevity is the greater financial risk. Disagree that life insurance should be viewed as a windfall by anybody.

Ignoring the emotional implications, an appropriate level of insurance should result in no change of standard of living. It's a financial substitute for your financial and non-financial contributions to the family.

basspond
Posts: 1054
Joined: Wed Nov 27, 2013 4:01 am

Re: Biggest Threats to Financial Well-Being

Post by basspond » Fri Aug 10, 2018 7:05 am

Instead of saving more as your income increases, you only spend more.

You don’t have faith in something bigger then you.

Grt2bOutdoors
Posts: 18835
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Biggest Threats to Financial Well-Being

Post by Grt2bOutdoors » Fri Aug 10, 2018 8:30 am

If you want to know the biggest threats to your financial well-being, read The Millionaire Next Door. Although published in 1997, the facts are still relevant today as it was when the surveys were taken back then. If you don't save, you can not invest. If you spend above your means, you will never get ahead. If you fail to invest in yourself, you will not be able to generate enough earnings to support your goals. Reading that book will open your eyes and mind.

Don't be "Big Hat, No Cattle".
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

SQRT
Posts: 807
Joined: Sat Feb 05, 2011 9:44 am

Re: Biggest Threats to Financial Well-Being

Post by SQRT » Fri Aug 10, 2018 8:35 am

Speaking from personal experience, divorce. Cost me millions and the cost continues. Luckily I was able to overcome it.

Texanbybirth
Posts: 831
Joined: Tue Apr 14, 2015 12:07 pm

Re: Biggest Threats to Financial Well-Being

Post by Texanbybirth » Fri Aug 10, 2018 8:38 am

HomerJ wrote:
Thu Aug 09, 2018 11:59 pm
deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
Nice.

stoptothink
Posts: 4292
Joined: Fri Dec 31, 2010 9:53 am

Re: Biggest Threats to Financial Well-Being

Post by stoptothink » Fri Aug 10, 2018 8:55 am

Texanbybirth wrote:
Fri Aug 10, 2018 8:38 am
HomerJ wrote:
Thu Aug 09, 2018 11:59 pm
deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
Nice.
+2, but that isn't a popular viewpoint on this board...at least when it involves your kids.

delamer
Posts: 5470
Joined: Tue Feb 08, 2011 6:13 pm

Re: Biggest Threats to Financial Well-Being

Post by delamer » Fri Aug 10, 2018 11:02 am

Grt2bOutdoors wrote:
Fri Aug 10, 2018 8:30 am
If you want to know the biggest threats to your financial well-being, read The Millionaire Next Door. Although published in 1997, the facts are still relevant today as it was when the surveys were taken back then. If you don't save, you can not invest. If you spend above your means, you will never get ahead. If you fail to invest in yourself, you will not be able to generate enough earnings to support your goals. Reading that book will open your eyes and mind.

Don't be "Big Hat, No Cattle".

I can’t remember where I read this (might have been on another thread in this forum), but the gist was —

“When people say they want a million dollars, they don’t mean that they want it to keep in the bank. They want it to spend.”

Which, of course, is the exact opposite of how you become a millionaire...

Beehave
Posts: 288
Joined: Mon Jun 19, 2017 12:46 pm

Re: Biggest Threats to Financial Well-Being

Post by Beehave » Fri Aug 10, 2018 11:45 am

stoptothink wrote:
Fri Aug 10, 2018 8:55 am
Texanbybirth wrote:
Fri Aug 10, 2018 8:38 am
HomerJ wrote:
Thu Aug 09, 2018 11:59 pm
deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
Nice.
+2, but that isn't a popular viewpoint on this board...at least when it involves your kids.
You can spend too much, and you can also spend too little.

stoptothink
Posts: 4292
Joined: Fri Dec 31, 2010 9:53 am

Re: Biggest Threats to Financial Well-Being

Post by stoptothink » Fri Aug 10, 2018 12:03 pm

Beehave wrote:
Fri Aug 10, 2018 11:45 am
stoptothink wrote:
Fri Aug 10, 2018 8:55 am
Texanbybirth wrote:
Fri Aug 10, 2018 8:38 am
HomerJ wrote:
Thu Aug 09, 2018 11:59 pm
deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
Nice.
+2, but that isn't a popular viewpoint on this board...at least when it involves your kids.
You can spend too much, and you can also spend too little.
Living within bicycling distance of both the cheapest private and public university in the country, it is pretty simple to disagree. I currently have 3 former employees who are attending Stanford, Baylor, and UT Southwestern Medical schools; all on pretty significant scholarships and all who did their undergrad at the aforementioned public university (and cash-flowed it themselves, with zero parental assistance). I guess you can pay "too little," if you decide to go to a not-for-profit or a school that doesn't have the program you really want just because of money, but IMO, there is zero association between the cost of education and its quality, and the cost variance can be shocking. But hey, we all have our opinions.

User avatar
GerryL
Posts: 1733
Joined: Fri Sep 20, 2013 11:40 pm

Re: Biggest Threats to Financial Well-Being

Post by GerryL » Fri Aug 10, 2018 12:44 pm

LiveSimple wrote:
Thu Aug 09, 2018 5:55 am
Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound and six, result misery.

Not living below your means and not investing or greed.
+1
Not having at least some sort of budget so you 1) know where your money is going and 2) can purposefully set aside an appropriate amount to enjoy in the here and now while you also invest for the future.

thangngo
Posts: 1129
Joined: Sun Feb 26, 2017 2:08 pm

Re: Biggest Threats to Financial Well-Being

Post by thangngo » Fri Aug 10, 2018 12:50 pm

HomerJ wrote:
Thu Aug 09, 2018 11:59 pm
deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
That was an awesome movie!!

GAAP
Posts: 549
Joined: Fri Apr 08, 2016 12:41 pm

Re: Biggest Threats to Financial Well-Being

Post by GAAP » Fri Aug 10, 2018 12:54 pm

Look in the mirror and make sure that person knows their unconscious biases, needs, and desires -- because that person is your greatest threat.

User avatar
backofbeyond
Posts: 234
Joined: Tue Apr 01, 2008 1:07 pm

Re: Biggest Threats to Financial Well-Being

Post by backofbeyond » Fri Aug 10, 2018 12:57 pm

Black Swan event

Don't know what or when or if it will happen. Nassim Nicholas Taleb taught me this.

Robustness is about all you can do. So stay healthy, have money in the bank, have good social networks, carry little or no debt..even then, may not be enough.
The question isn't at what age I want to retire, it is at what income. - George Foreman

User avatar
bertilak
Posts: 5995
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Biggest Threats to Financial Well-Being

Post by bertilak » Fri Aug 10, 2018 6:35 pm

Sandtrap wrote:
Thu Aug 09, 2018 6:00 pm
Ignorance. Pride. Ego. Gullibility. and other behavioral/lifestyle defects.
I'm toast!

(Partially kidding -- those ARE things to be wary of.)
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

Amanda999
Posts: 11
Joined: Sat Apr 22, 2017 12:48 pm
Location: Boston suburbs

Re: Biggest Threats to Financial Well-Being

Post by Amanda999 » Fri Aug 10, 2018 7:08 pm

Having children.

HobbesMB
Posts: 13
Joined: Mon Sep 18, 2017 1:36 pm

Re: Biggest Threats to Financial Well-Being

Post by HobbesMB » Fri Aug 10, 2018 7:25 pm

Taking loans/money out of your retirement accounts. Money needs to go in and stay in to enjoy the benefits of compounding. Too many people use loans against that money to finance all sorts of expenses they don't need.

Grt2bOutdoors
Posts: 18835
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Biggest Threats to Financial Well-Being

Post by Grt2bOutdoors » Fri Aug 10, 2018 7:27 pm

Amanda999 wrote:
Fri Aug 10, 2018 7:08 pm
Having children.
I’ve seen this several times on the thread. Not to derail the thread, but how about some more elaboration? I think the pros outweighs the cons, who else is going to fund your Social Security, protect you from enemies-both foreign and domestic, tend to you when frail, move society forward? Or does one believe that humans should become extinct due to cost?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Grt2bOutdoors
Posts: 18835
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Biggest Threats to Financial Well-Being

Post by Grt2bOutdoors » Fri Aug 10, 2018 7:28 pm

HobbesMB wrote:
Fri Aug 10, 2018 7:25 pm
Taking loans/money out of your retirement accounts. Money needs to go in and stay in to enjoy the benefits of compounding. Too many people use loans against that money to finance all sorts of expenses they don't need.
Ah yes, the infamous “leakage”.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

sambb
Posts: 2073
Joined: Sun Mar 10, 2013 3:31 pm

Re: Biggest Threats to Financial Well-Being

Post by sambb » Fri Aug 10, 2018 7:29 pm

saving money in lieu of investing in yourself (skills, degrees, etc.) to increase income

Horsefly
Posts: 238
Joined: Sat Oct 24, 2015 8:13 am
Location: Colorado, mostly

Re: Biggest Threats to Financial Well-Being

Post by Horsefly » Fri Aug 10, 2018 7:32 pm

This is an incredibly awesome thread! There's some really great responses already.

I know retirement comfort isn't the specific thing the OP is talking about, but I would say the number one item in my experience is:

Not investing early and often, as a habit.

My wife and I are having a very comfortable retirement, and it would take some real calamities for it not to be certain well beyond our expected lifetimes. For some unknown reason I felt compelled to invest in mutual funds starting when I was 22, and continued right up until we retired. I made good money through my career, but this unexplained urge in me to invest when I was young was more important. This was originally mostly in taxable accounts, but continued with maxing out tax advantaged stuff until I retired at 55.

My investing through my 20's and 30's were the key thing that gave me a pretty sizeable taxable account that allowed me to retire at 55 without really caring about having to "bridge" until I started social security and medicare, and I almost certainly won't touch my tax advantaged stuff until late 60's or RMDs when I'm 70.

I'm sensitive to this because our two 20-something daughters have a hard time accepting this idea, no matter how I try and encourage. I guess that just means it isn't genetic. :D

User avatar
camillus
Posts: 328
Joined: Thu Feb 28, 2013 9:55 pm

Re: Biggest Threats to Financial Well-Being

Post by camillus » Fri Aug 10, 2018 7:38 pm

Getting sick, including mental illness

User avatar
Socrates28
Posts: 57
Joined: Sun May 13, 2018 10:27 pm

really vacations? Live life! you have one

Post by Socrates28 » Fri Aug 10, 2018 7:53 pm

I vacation every year and and actively save towards retirement. I dont want to be that guy who retires and dies 2 years later....by the way, that just happened for a coworker

User avatar
Socrates28
Posts: 57
Joined: Sun May 13, 2018 10:27 pm

California: Divorce

Post by Socrates28 » Fri Aug 10, 2018 7:54 pm

is a tough one - especially if you make a lot

....almost automatically will take half your retirement savings and entitled to income you received while married.

User avatar
Sandtrap
Posts: 5097
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Biggest Threats to Financial Well-Being

Post by Sandtrap » Fri Aug 10, 2018 10:59 pm

bertilak wrote:
Fri Aug 10, 2018 6:35 pm
Sandtrap wrote:
Thu Aug 09, 2018 6:00 pm
Ignorance. Pride. Ego. Gullibility. and other behavioral/lifestyle defects.
I'm toast!

(Partially kidding -- those ARE things to be wary of.)
+1
Also "toast" !!!!
If I had a dime for every dollar I've wasted. . . . . . . . :shock:

User avatar
Jazztonight
Posts: 881
Joined: Wed Feb 28, 2007 12:21 am
Location: Lake Merritt

Re: Biggest Threats to Financial Well-Being

Post by Jazztonight » Sat Aug 11, 2018 7:41 am

Being overly generous with gifts to relatives and “charities.”

I know a couple who have tapped into their retirement accounts to help relatives through “rough times,” only to find themselves in dire straits during downturns and times of unemployment, etc. This couple is overly kind, but can no longer afford to own a car or make repairs on their home.

I fear for their wellbeing when they can no longer work. A small inheritance the husband received is sitting in a money market account because of his analysis paralysis. I’ve never seen these kind and generous people make what I’d consider a good decision.
"What does not destroy me, makes me stronger." Nietzsche

indexonlyplease
Posts: 1141
Joined: Thu Apr 30, 2015 12:30 pm
Location: Pembroke Pines, FL

Re: Biggest Threats to Financial Well-Being

Post by indexonlyplease » Sat Aug 11, 2018 7:44 am

celia wrote:
Thu Aug 09, 2018 5:53 am
lack of an education or employable skills
disability (can be worse than death since some of your income may be needed for the disability, in addition to regular living expenses)
lack of proper insurance(s)--medical, auto, homeowners, liability, etc
So true. Many don't think about disability, life insurance. Everyone should have this insurance.

User avatar
Tycoon
Posts: 1231
Joined: Wed Mar 28, 2012 7:06 pm

Re: Biggest Threats to Financial Well-Being

Post by Tycoon » Sat Aug 11, 2018 7:50 am

Time.
...I might be just beginning | I might be near the end. Enya | | C'est la vie

BrooklynInvest
Posts: 111
Joined: Sun Jul 28, 2013 9:23 am

Re: Biggest Threats to Financial Well-Being

Post by BrooklynInvest » Sat Aug 11, 2018 8:07 am

In the US -

Prolonged illness
Reckless spending
Divorce
Lengthy unemployment

youngin87
Posts: 26
Joined: Sun Feb 19, 2017 12:25 am

Re: Biggest Threats to Financial Well-Being

Post by youngin87 » Sat Aug 11, 2018 8:10 am

I didn't expect my post to receive so many great replies. The big ones I've seen in this thread that I haven't considered are lack of appropriate insurance (disability, health, etc) and addiction.

I want to add choosing bad friends as something that can derail you personally and financially.

JW-Retired
Posts: 6816
Joined: Sun Dec 16, 2007 12:25 pm

Re: Biggest Threats to Financial Well-Being

Post by JW-Retired » Sat Aug 11, 2018 9:28 am

jehovasfitness wrote:
Thu Aug 09, 2018 5:01 pm
kids..
It may get paid back later. We are finding our children are now reducing our retirement income needs. A trip to visit them & grand-kids is very economical compared to your typical tours and cruises for retirees.

I think we are at like 4:1 cheap children visit trips to expensive retiree stuff. We could afford them, but don't have the time or energy to do more of the higher cost trips. :P
JW
Retired at Last

financeguy88
Posts: 55
Joined: Thu Feb 23, 2017 3:58 pm

Re: Biggest Threats to Financial Well-Being

Post by financeguy88 » Sat Aug 11, 2018 10:05 am

For me leaving a really great career situation to go into business with someone who just wasn’t a good person. Was a financial disaster and probably took years off my life in stress. If there is a lesson it’s never work at a small company with someone who has serious personality red flags and also be careful of the grass is greener mentality.

Fortunately am now some years removed from the situation and doing very well

tim1999
Posts: 3435
Joined: Tue Dec 16, 2008 7:16 am

Re: Biggest Threats to Financial Well-Being

Post by tim1999 » Sat Aug 11, 2018 10:09 am

Drug, alcohol, gambling, shopping addiction. The person afflicted often doesn't realize what's going on or can't stop until everything is gone.

Beehave
Posts: 288
Joined: Mon Jun 19, 2017 12:46 pm

Re: Biggest Threats to Financial Well-Being

Post by Beehave » Sat Aug 11, 2018 12:23 pm

stoptothink wrote:
Fri Aug 10, 2018 12:03 pm
Beehave wrote:
Fri Aug 10, 2018 11:45 am
stoptothink wrote:
Fri Aug 10, 2018 8:55 am
Texanbybirth wrote:
Fri Aug 10, 2018 8:38 am
HomerJ wrote:
Thu Aug 09, 2018 11:59 pm


“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
Nice.
+2, but that isn't a popular viewpoint on this board...at least when it involves your kids.
You can spend too much, and you can also spend too little.
Living within bicycling distance of both the cheapest private and public university in the country, it is pretty simple to disagree. I currently have 3 former employees who are attending Stanford, Baylor, and UT Southwestern Medical schools; all on pretty significant scholarships and all who did their undergrad at the aforementioned public university (and cash-flowed it themselves, with zero parental assistance). I guess you can pay "too little," if you decide to go to a not-for-profit or a school that doesn't have the program you really want just because of money, but IMO, there is zero association between the cost of education and its quality, and the cost variance can be shocking. But hey, we all have our opinions.
"I guess you can pay "too little," if you decide to go to a not-for-profit or a school that doesn't have the program you really want just because of money."

That's pretty much what I had in mind. There are growing programs in which high schools pair with a community college so that students get their HS diploma and AA degree at the same time (the students take a 1/2 college load in each of the 4 years of high school, thus qualifying for their 2 year AA degree). They do not get to choose electives, they attend assigned classes in groups of (approx) the same 30 students for all four years (no mixing with th "regular" community college students). After graduation they are then dumped into State U as juniors, never having taken an elective course they have chosen, and are expected at age 18 to compete with 20 year-olds who have been at State U for 2 years, and they are further expected to select a major. These dual enrollment programs are increasing because they are money savers. They do save money (2 years of college for free for the parents/students and low community college cost for the state). But I have trouble believing these programs benefit the students.

rotLobster
Posts: 11
Joined: Mon Oct 02, 2017 9:27 pm

Re: Biggest Threats to Financial Well-Being

Post by rotLobster » Sat Aug 11, 2018 8:35 pm

backofbeyond wrote:
Fri Aug 10, 2018 12:57 pm
Black Swan event

Don't know what or when or if it will happen. Nassim Nicholas Taleb taught me this.

Robustness is about all you can do. So stay healthy, have money in the bank, have good social networks, carry little or no debt..even then, may not be enough.
black swan event... yellowstone blows, major quake takes out the west coast, new madrid fault goes, ebola morphs to a disease as easily spread as the common cold, someone assassinates the next duke ferdinand, or even a zombie apocalypse.. or you happen to be the wrong minority race or culture when a nation goes mad.. the period since the end of wwii has been hectic but devoid of such events which history seems to require every so often.

Luckywon
Posts: 173
Joined: Tue Mar 28, 2017 10:33 am

Re: Biggest Threats to Financial Well-Being

Post by Luckywon » Sat Aug 11, 2018 9:05 pm

My life has not been perfect, but this threat reminds me to feel grateful both for what I have and what I haven't had!

SQRT
Posts: 807
Joined: Sat Feb 05, 2011 9:44 am

Re: Biggest Threats to Financial Well-Being

Post by SQRT » Sun Aug 12, 2018 7:45 am

BrooklynInvest wrote:
Sat Aug 11, 2018 8:07 am
In the US -

Prolonged illness
Reckless spending
Divorce
Lengthy unemployment
Agree. These would seem to be the major threats that have a reasonable probability of occurrence along with pretty universal applicability.

shell921
Posts: 55
Joined: Fri Jul 06, 2018 5:13 pm

Re: Biggest Threats to Financial Well-Being

Post by shell921 » Sun Aug 12, 2018 8:10 am

2015 wrote:
Thu Aug 09, 2018 6:55 pm
Lack of investment in personal development is the source of most of life's woes.

Even the worst external events can be at the least minimized somewhat through rational thinking, and the keys to rational thinking are almost never found in a chart, graph, or blog post on economics, personal finance, or investing.
I think this is excellent. Keep learning and growing and developing yourself. Remain curious.

Also someone posted about having a special needs child.

LOTS of great responses here.

alfaspider
Posts: 1438
Joined: Wed Sep 09, 2015 4:44 pm

Re: Biggest Threats to Financial Well-Being

Post by alfaspider » Sun Aug 12, 2018 9:42 am

HomerJ wrote:
Thu Aug 09, 2018 11:59 pm
deltaneutral83 wrote:
Thu Aug 09, 2018 10:40 am
College choice- Spending $150k on a degree that can be had for $40k will teach you compounding interest in reverse real quick.
“You wasted $150,000 on an education you coulda got for $1.50 in late fees at the public library.”

-Good Will Hunting.

:)
The education is free. It’s the certification by an institution that you completed a set course of education that costs money. Unfortunately, employers tend not to accept public library records in lieu of that certification.

User avatar
whodidntante
Posts: 3713
Joined: Thu Jan 21, 2016 11:11 pm

Re: Biggest Threats to Financial Well-Being

Post by whodidntante » Sun Aug 12, 2018 10:30 am

Jazztonight wrote:
Sat Aug 11, 2018 7:41 am
Being overly generous with gifts to relatives and “charities.”

I know a couple who have tapped into their retirement accounts to help relatives through “rough times,” only to find themselves in dire straits during downturns and times of unemployment, etc. This couple is overly kind, but can no longer afford to own a car or make repairs on their home.

I fear for their wellbeing when they can no longer work. A small inheritance the husband received is sitting in a money market account because of his analysis paralysis. I’ve never seen these kind and generous people make what I’d consider a good decision.
At times I have helped people out. Never so much as to make their financial burden my own. Maybe the overly generous expect some sort of karma to result in a lifeline when they need it. But in my experience, people do not get what they deserve; they get what they get.

Post Reply