How to Set and Reach Financial Goals with Betterment

For many years, I have been resistant to the idea of setting financial goals; instead, I have opted to accumulate wealth so that I have the means to make purchases when needed. This wealth-building approach can be effective, and is certainly better than not saving, investing, and growing assets.

Still, there are at least a couple of shortcomings to general wealth building: 1) I’m not sure when my goal has been achieved; and 2) I’m reluctant to spend down the assets that I’ve worked so hard to accumulate, largely because I’m not clear about the purpose of my investments and the timing of withdrawals.

Goal setting can inspire me to save and invest, and make me feel happier and more secure about spending.

Why 401(k) Default Options May Not Be Enough

I’ve been reading Misbehaving: The Making of Behavioral Economics by Richard H. Thaler. A point of interest is the discussion of automatic enrollment in 401k plans. Automatic enrollment may get employees started saving for retirement. But 401k default options associated with this type of sign-up (such as an investment choice of a money market fund and a savings rate of 3%) may be unlikely to help employees achieve the outcomes needed for a comfortable retirement.

According to Thaler, “Both of these default choices — the money market investment option and the 3% savings rate — were not intended by the employer to be either suggestions or advice. Instead, these options were picked to minimize the chance that the company would be sued.”

So, what’s the story about these default options?

Choosing and Navigating Public Schools (So You Can Save Money)

Educating children can be challenging no matter where they go to school or how they learn. School quality can vary. And my experiences may be much different than yours — both as a parent and as a student back in the ’60s and ’70s during the somewhat chaotic years of desegregation . Whatever your circumstances, hopefully these thoughts can give you insights into choosing and navigating your children’s school situation:

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