Retirement Savings vs. College Funds

Parents often feel the urge to prioritize saving for their children’s college education. While I understand the emotional pull, I always remind people that retirement savings must come first. Retirement cannot be funded retroactively—once those years arrive, you can’t go back and add more money to your account. College, on the other hand, can be financed through loans, scholarships, or part-time work. By prioritizing retirement, you ensure financial independence later in life and avoid becoming financially dependent on your children.

How to Invest a Financial Windfall

I recently spoke with a couple in their 60s who downsized their home and freed up $100,000 in cash. Their big question: where should they invest the money? The key here is a goals-based approach. What do you want this money to achieve? How soon will you need it? And how much income do you expect in retirement? A proper plan considers diversification and avoids redundant investments. Whether you aim for a modest 3% return or a more aggressive 8%, your target will dictate your strategy. This is why consulting a financial advisor is critical you want to ensure your windfall works alongside your existing savings, not against it.

Survivor Benefit Program: Protecting Military Families

I also had a conversation with Dudley, an active-duty Air Force member, about the Survivor Benefit Program (SBP). The SBP allows a surviving spouse to receive 55% of a military pension, with a 6.5% reduction to the gross benefit. Some people suggest replacing this with life insurance, but in most cases, the SBP makes more economic sense. Its structure and tax advantages are designed specifically for military families. The real question is whether the surviving spouse could manage financially without that pension. For most families, the SBP is the smarter, safer choice.

Why Space Exploration Matters to Your Wallet

Astronaut Dan Barry put it beautifully: space exploration costs only about 0.5% of the federal budget, but it’s an investment in humanity’s survival. Exploring Mars might prove life exists elsewhere or confirm Earth’s uniqueness. Colonizing other planets would ensure humanity’s survival in case of catastrophe here on Earth. And just as we diversify our investment portfolios to reduce risk, diversifying humanity’s habitat spreads our existential risk. It’s a reminder that diversification isn’t just a financial principle it’s a life principle.

Goals-Based Investing vs. Chasing Returns

Too often, investors chase returns by jumping on trends like technology stocks or emerging markets. The problem? These strategies focus on the market, not your life. A goals-based approach flips the script. Instead of asking “Where can I make the most money?” you ask, “What do I need to accomplish, and when?” This mindset keeps you focused on achieving financial independence while minimizing unnecessary risk.

Brain Health Is Financial Health

Money and health go hand in hand. My wife Jean often reminds me that a sharp mind is as important as a solid portfolio. To keep the brain strong, engage in activities that stretch both logic and creativity puzzles, math, art, music, and even physical exercise. Nutrition, oxygenation, and relaxation also play a role. A healthy brain helps you make better decisions, avoid stress, and enjoy life more fully critical for both wealth and happiness.

Avoiding Estate Planning Mistakes

One of the biggest mistakes retirees make is failing to plan for the financial needs of their surviving spouses. Another is neglecting to update estate documents as life changes. Forward-looking planning is essential: focus on the future, not past financial regrets. The goal is to create security for your loved ones, not leave them with uncertainty.

The Financial Implications of Technology

From robotics to 3D printing, technology is reshaping the global economy. Just like space exploration, these advancements represent diversification on a grand scale. The world is changing fast, and your investment strategy should account for these shifts. The lesson is simple: keep your portfolio diversified and aligned with long-term goals.

A Touch of Humor in Financial Literacy

Sometimes we need humor to remind us why financial literacy matters. I’ve heard jokes about kids misunderstanding money advice and adults spending on absurd things. While funny, these stories underscore the importance of education and making smart, informed choices.

Key Takeaways

If I could leave you with three core principles, they would be these:

1. Remove emotion from investing.
2. Diversify to reduce risk.
3. Focus on your long-term goals.

Financial planning is about clarity, independence, and preparing for the future yours, your family’s, and humanity’s.

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