Monday, January 4, 2010


It struck me the other day that neither J or I know anything about money.  We did not learn how to deal with money from our parents, nor while in college.  Our majors were of a scientific nature.  There is nothing having to do with economics or business or money on the course outline for a degree in Geology.

My father was not good with money at all, my mother is much much better with money than he.  I fall somewhere in the middle.  I do not recall any lessons taught about money other than "you must save your money for a rainy day."  Not much of a lesson really.

So today, at 41 years old, it is time for a C H A N G E.  J and I are in full agreement that we need tools on how to manage our money so our family can flourish.  We are also in full agreement that we are solely responsible to teach our three children how to be financially responsible and financially successful.

30+ years ago the method of funding ones retirement was the employers responsibility by way of a pension.  There were no decisions to be made, you worked for a company for decades and then retired.  Your retirement was either paid in a lump sum or monthly payments. 

Today, you are solely responsible for the decisions and the investment mode of your retirement account.  There are no core classes in high school to provide students with a solid foundation of how to invest their money in mutual funds or a 401(k) or 403(b).  J is a high school teacher so I am pretty confident in my previous sentence.  I haven't been in college for sometime, but I don't think that there has been a new core class implemented to go along side English Comp or Western Heritage.  Which from where I sit, would be much more useful than being able to recall historical facts to win Trivial Pursuit.   Yes, employers today have Plan Sponsors that are responsible for the administration of the plan, i.e. Fidelity.  By merely having a 401(k) account you have the right to ask for investment advice, but how many of us do?  J is a teacher and as such he is part of the Massachusetts Defined Contribution plan, he is required to contribute 11%. 

Tonight we have decided to enroll in Dave Ramsey's Financial Peace University.  It is a 13 week course which happens to fall on our pre-determined Board Meeting night. 

Peace in C H A N G E.