Country Friends


There’s still a little magic in every motorcycle ride to the country. When I was young, our family took automobile rides on many Sunday afternoons, and I always loved to watch the farms and forests roll by, imagining what it would be like to live where we passed. Sometimes my father stopped and talked with people we saw near the road.

On a recent motorcycle ride I stopped to watch a small herd of Holsteins in a roadside pasture. They were grazing slowly toward me, but once I dismounted and walked toward the fence, they turned and headed away. Their owner came out from the farmhouse across the street to say hello and ask about my interest in cows. He looked about my age, but he was smaller, more wiry.

“Pretty, aren’t they,” he offered.

Continue reading

Offering Responsible Help

The last post related how emergencies can put a retiree’s living standards at risk. Now the discussion turns to thinking and working through emergencies in ways that manage the risk appropriately.

If retirees pay regular living expenses from their investment portfolios, and then spend some of those investments to resolve emergencies, they put future withdrawals at risk. It’s different in middle life when living expenses are paid from salaries or wages, and savings are commonly used for emergencies.

Some Financial Approaches

One solution is to set aside a portion of a retirement portfolio for emergencies. A retiree with a $500,000 portfolio could set aside $100,000 for emergencies, using only $400,000 for ordinary living.  If the withdrawal rate is 4 percent, the retiree would withdraw $16,000 annually for ordinary expenses. The $100,000 emergency fund would be left alone.

In addition, retirees have other options:

Continue reading

Risk Retirement for a Loved One?

An idealized retirement story might sound like this: Saving for years, retiring from work, then taking planned withdrawals on through retirement. It sounds orderly and easy, yet many retirees know it is anything but.

Emergencies arise, not only in a retiree’s life, but also in the lives of loved ones. Ordinary life includes a leaky roof, a needy middle-aged son or daughter, or a troubled grandchild. If retirees have savings, even if they rely on them for monthly living, there is the ever-present urge to liquidate savings and put some money on the problem.

An Ugly Trick

There is an ugly trick with the urge to be generous, and it’s subtle.

Continue reading