SHORT TERM THINKING: “HOW MANY HOURS/HOW MANY SHIFTS WILL IT TAKE FOR ME TO BUY THAT?” LONG-TERM THINKING: “IF I BUY THIS NOW, WHAT WILL THIS REALLY HAVE COST ME IF I HAD INVESTED THE SAME AMOUNT OF MONEY (into improving myself, improving my business, understanding real estate, investing in the stock market, etc) FOR THE NEXT 5, 10, OR 15 YEARS?”

Charles Tadros, M.D. April 20, 2022 Saint Louis, Missouri

BECAUSE WE FORGET SO QUICKLY…35 YEARS AGO A FINANCIAL PLANNER ASKED ME HOW MUCH I WOULD EVENTUALLY LIKE TO PULL OUT, ANNUALLY, FROM MY INVESTMENTS, IN ORDER TO FUND MY LIVING EXPENSES DURING RETIREMENT. I HAD READ THAT A 6% ANNUAL WITHDRAWAL WOULD BE HISTORICALLY SUSTAINABLE, SO I SUGGESTED 6%. HE THOUGHT THAT WAS PERFECTLY REASONABLE. SOMEWHERE BETWEEN THEN AND NOW, WE HAVE DOWNGRADED OUR EXPECTATIONS AND WE HAVE NOW NAMED IT THE, “4% RULE” (https://www.investopedia.com/terms/f/four-percent-rule.asp).

OHH, WAIT…4%…how about 3.3%…OR MAYBE 3.0%! (https://www.marketwatch.com/story/the-4-rule-is-being-debated-again-but-heres-what-you-should-do-11636999447). (https://www.barrons.com/articles/retirement-4-percent-rule-downturn-strategy-51642806039). Charles Tadros, M.D. December 21, 2021 Saint Louis, Missouri

DO NOT CONFUSE SAVING MONEY WITH INVESTING MONEY.

Often we assume that saving money is the same as investing money. It is not. Saving money can mean looking for discounts, bargains, or buying in bulk (ie, saving money when compared to typical retail prices). Saving money can also mean to reduce, reuse, recycle and upcycle. Saving money can also mean the setting asideContinue reading “DO NOT CONFUSE SAVING MONEY WITH INVESTING MONEY.”

SMALL VS. LARGE CHANGE

SOMETIMES IT IS IMPORTANT TO MAKE SMALL, INCREMENTAL CHANGES (saving, investing) IN ORDER TO NUDGE YOURSELF TOWARD LARGER GOALS (retirement). OTHER TIMES, IT IS BETTER TO MAKE MORE DRAMATIC CHANGES (stop abusing substances and stop surrounding yourself with others who continue to use) IN ORDER TO ACHIEVE LARGER GOALS (improved relationships, mental health and physicalContinue reading “SMALL VS. LARGE CHANGE”