Driving Our Savings

As an investment manager, people often ask me basic money questions. What they really need to do is talk to a driving instructor.

Money questions are often really life questions. Yes, there are technical issues with annuities and corporate finance; faithful followers of these comments probably know more about municipal budgets than the average MBA. But life is a complex picture. Money is just a part of that picture.

There are certain truths in our lives that money illustrates. The fact that it is mostly held by outside parties who provide a regular accounting means that it’s hard to lie to yourself about it. If you’re not setting money aside for larger goals, it will be hard to reach those goals. If you are saving, you should be able to see regular progress.

But the critical factor is to get started. That’s where the driving instructor’s advice comes in: “If you leave late you’re going to get there late.” You can’t make up for a late departure by speeding and running red lights. And you can’t make up for a lack of savings by investing overly aggressively. Higher returns require higher risk. Always. If you started saving late, chances are you’ll just have to save a little longer. Don’t risk destroying your nest egg in an effort to make up for lost time.

We can’t change the laws of physics, and we can’t change the laws of finance. Don’t ask your car to make up time, and don’t ask your investments to mend your finances. It’s just asking for trouble.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
reception: 603-224-1350

www.chartertrust.com • www.moneybasicsradio.com • www.globalmarketupdate.net
By | 2017-07-17T12:35:16+00:00 March 15th, 2011|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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