Jonathan Clements's Blog, page 385

February’s Hits

IT WAS A BUSY February��here at HumbleDollar, with a new article published every day. What proved most popular? Here are last month’s top seven blog posts:

All Stocks
Don’t Overthink
Private Matters
Working Late
Eight Questions
Cancel the Movers
Yielding Clarity

February’s most widely read article wasn’t a blog post, but rather HumbleDollar’s early February newsletter, House Rules. The month’s other newsletter, Out of the Swamp, also received wide readership���and the site continued to see heavy traffic for January’s most popular article, Still Learning.

Follow Jonathan on Twitter�� @ClementsMoney ��and on Facebook .��His most recent article was Mixing It Up . Also check out his inaugural podcast��with Creative Planning’s Peter��Mallouk. Jonathan’s ��latest book:��From Here to��Financial��Happiness.

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Moving Target

LAST MONTH,��The Wall Street Journal��ran an article with a puzzling headline: ���How China Pressured MSCI to Add Its Market to Major Benchmark.��� Like a lot of market news, this arcane-sounding story came and went without much notice. But it���s worth pausing to understand what it was all about���and why it matters to you.

First, let’s decode the terminology in the article’s headline: A ���benchmark��� is another word for an index. It���s simply a list of stocks or other investments. Probably the best known indexes are the Dow Jones Industrial Average and the S&P 500, but there are many others.

Who is MSCI? While less known than its competitors Dow Jones and Standard & Poor���s, MSCI is a major player in the index business. They have created thousands of indexes. Last year, the business generated more than $800 million in revenue.

While MSCI’s name is not well known, it���s an influential company. Thousands of index funds are built on its indexes. As a result, when MSCI adds a stock to one of its indexes, some funds are compelled to buy that new stock and this often drives up the share price.

Ordinarily, index providers receive little attention, instead operating quietly in the background. They move methodically and make changes to the composition of indexes only incrementally. In its most recent update, for example, the S&P 500 replaced just one stock out of 500.

But every once in a while, an index provider does something surprising. In the most recent case, according to the��Journal, MSCI succumbed to pressure from China’s government to make sweeping changes to one of its best known indexes. China apparently requested that MSCI add more Chinese stocks to its Emerging Markets Index���an index to which trillions of dollars of index funds are linked.

This ���request��� was accompanied by threats, via intermediaries, that MSCI would see its business in China curtailed if it didn’t comply. According to the��Journal‘s sources, MSCI had a hard time standing up to this pressure and soon after added��hundreds��of Chinese stocks to its Emerging Markets Index. They have added more stocks since and are considering adding even more.

Result: Over the past several months, emerging markets index funds have been buying billions of dollars of Chinese stocks���just as the government wanted.

As a financial advisor, I find this distasteful. There���s the principle of it. No one should bow to the demands of a repressive regime. Beyond that, radical index changes are unwelcome because they often carry tax consequences for investors. In addition, I believe the change detracts from the Emerging Markets Index, because it diminishes its geographical diversification. China already represented the largest segment of that index. Now it���s that much larger���and may get larger still. That, in my view, makes funds tied to this index riskier and less attractive as an investment.

As an individual investor, what can you do? Here are three recommendations:

1. Be vigilant. In recent years, index funds have exploded in popularity. Overall, I see this as a good thing. But the MSCI story is a reminder to remain vigilant. Just because an investment carries the word ���index��� in its name doesn���t automatically make it a good investment. Far from it. There are now thousands of index funds���some good, some bad, some��terrible���so always know exactly what you’re buying.

2. Stay close to home. Many investment firms recommend investors allocate their dollars in proportion to the size of international markets. I don’t accept that notion. If you followed that prescription, domestic stocks would make up barely half your portfolio, with the rest distributed around the world. In my view, just because a market exists doesn’t mean you should feel any obligation to invest in it. Indeed, episodes like this are a perfect illustration of why I think investors ought to limit their exposure to international markets, especially emerging markets.

3. Look under the hood. These days, there are thousands of different index funds, many of which carry similar names, even within the same fund family. Consider iShares MSCI��Emerging Markets ETF and iShares Core��MSCI Emerging Markets ETF. It would be easy to confuse the two. A closer examination, though, reveals several differences���including a nearly five times difference in annual expenses.

Adam M. Grossman���s previous articles��include No Free Lunch,��Private Matters��and��Don’t Overthink . Adam is the founder of�� Mayport Wealth Management , a fixed-fee financial planning firm in Boston. He���s an advocate of evidence-based investing and is on a mission to lower the cost of investment advice for consumers. Follow Adam on Twitter�� @AdamMGrossman .

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Newsletter No. 44

COUNTLESS BOOKS��and articles are devoted to picking the right investments���and yet putting together a prudent portfolio isn’t all that complicated.��In fact, investing is usually best when it is simplest. How simple can it be? Check out HumbleDollar’s new nine-step portfolio building guide.

I introduce the nine-step guide in our latest newsletter���or, if you prefer, you can head there directly. The��newsletter also includes a rundown of the 13 blog posts published over the past two weeks. Haven’t visited HumbleDollar recently? Trust me: You’ve been missing some great articles.

Follow Jonathan on Twitter��@ClementsMoney��and on Facebook.��His most recent articles include Eight Questions,��Out of the Swamp, Working Late and House Rules. Jonathan’s��latest book:��From Here to��Financial��Happiness.

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Mixing It Up

LOOKING TO BUILD an investment portfolio���or rethink the mix you already own? Check out HumbleDollar’s new portfolio-building guide.

The guide takes the most important advice from the site’s chapters on investing, markets and taxes, and turns it into nine simple steps that should help you build a sensible, low-cost portfolio of index funds. I’ve included step No. 1 below. If you like what you read, I encourage you to peruse the other eight steps.

Step No. 1: Ask Why.��Want to buy the right investments? First, you need to decide why you���re investing. Are you looking to make a house down payment next year, put your toddler through college or fund a retirement that won���t start for 30 years?

That brings into focus the crucial issue of time horizon and hence the maximum amount of risk it���s prudent to take. While those who will spend their savings soon probably shouldn���t own anything riskier than a short-term bond fund, truly long-term investors could potentially stash 100% in stocks.

That doesn���t, however, mean you should take the maximum risk your time horizon allows. Other issues also come into play: You might opt to be more conservative if, say, you���re comfortably��on track��to meet your financial goals, you���re��unnerved��by the stock market���s price swings or there���s a chance you���ll need to dip into your portfolio earlier than expected, because your��job situation��is iffy.

While this portfolio-building guide offers nine steps, you might venture no further than the first four. Much hinges on how much complexity you���re willing to endure and what investment philosophy you favor.

That said, the sections that follow aren’t intended to be some freewheeling investment smorgasbord. In this guide, we aren���t wasting time���and risking lousy returns���by trying to pick��individual stocks��or hotshot mutual��fund managers. Instead, in true HumbleDollar fashion, the goal here is capture as much of the market���s return as possible���by purchasing��index funds��with rock-bottom annual expenses.

Step 2: Pick Your Provider
Step 3: Cover Cash Needs
Step 4: Off the Shelf
Step 5: Build Your Own
Step 6: Fend Off Inflation
Step 7: Tilt Your Portfolio
Step 8: Add Alternatives
Step 9: Keep Your Balance

Latest Articles

Think your little sports star will get a college scholarship? “Only 3% of high schoolers get to play NCAA Division 1 and 2 college sports���and not all will receive scholarships, let alone a full ride,” writes John Yeigh.
Marketers constantly get us to make economic choices that aren’t in our best interest. How do they do it? Jim Wasserman details five key tricks used to influence our behavior.
Just 27% of 401(k) participants know what they’re paying. Are you in the dark? Adam Grossman��offers five pointers.
“Carl���who is human���hasn’t been selecting my investments,” notes Dennis Friedman.��“Instead, it’s been a computer. I call the computer Little Jack, after the late Jack Bogle, because it picks nothing but index funds.”
Living paycheck to paycheck? Ross Menke has three recommendations: Keep housing costs to 25% of income, buy a car you can afford to purchase with cash, and trim cable, cell phone and other recurring expenses.
“Real wealth is not income or net worth,” writes��Richard Quinn.��“It���s family, friends and grandchildren. It���s enjoying good health. It���s being able���when necessary���to help others.”
Don’t want hackers to empty your financial accounts? David Powell’s advice: Use strong, unique passwords for each site, be leery of public wi-fi networks and adopt two-factor authentication.
“Want to make life easier for your heirs?” asks John Yeigh. “Yes, you want to get your financial affairs in order. But do them another favor: Deal with your excess stuff.”
Looking to invest in a private equity, venture capital or hedge fund? It’s a treacherous business���but you can improve your odds by asking 10 questions, says Adam Grossman.
“If you look at total career earnings minus college costs, college students will, on average, catch up with non-college workers by age 30,” writes Dennis Quillen. “But the averages can be deceiving.”
What’s more important than money? Time and people. For proof, ask yourself these eight questions.
“I wish I���d encouraged my parents to get a dog,” Dennis Friedman says.��“It would have helped my mother deal with the loss of my father. My mother says nighttime is the most difficult; having a dog would make it easier.”
Got a business idea? Ross Menke suggests taking your cue from the��$5 challenge tackled by Stanford University students���and think creatively about how to get started.

Looking for something to listen to in the car or at the gym? Check out my inaugural podcast with Creative Planning’s Peter Mallouk.

Follow Jonathan on Twitter��@ClementsMoney��and on Facebook.��His most recent articles include Out of the Swamp, Working Late and House Rules. Jonathan’s��latest book:��From Here to��Financial��Happiness.

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No Free Ride

WE ARE A NATION obsessed with youth sports. Time��magazine says it’s a $15 billion-a-year industry. As many as 60 million kids participate.

Sports are good for kids for all kinds of reasons: promoting exercise and a healthy lifestyle, enhancing team work and relationships, providing structure, instilling confidence to overcome challenges and delivering the joy of playing.

During our children���s sports journeys, we parents are often led to believe that our little sports stars are on the path to the holy grail���a full athletic college scholarship. The sports-industry complex of coaches, trainers, camp and tournament directors, and recruiting advisors often promote this fantasy. And we parents bite hard. After all, who doesn���t want their kid to receive a $200,000 free ride?

But will they? Make no mistake: Youth sports aren���t free. College athletes typically require five to 10 years of dedicated travel sport participation, with the associated fees, equipment, travel and hotel costs, coaching fees, supplemental training, camps, showcase tournaments and tryouts, and perhaps a video or recruiting advisor. The commonly used and derided term ���pay to play��� highlights the financial underpinnings of youth sports.

It’s common for families to spend $2,000 to 5,000 a year for travel team participants, and $20,000 a year or more isn���t unheard of. I am intimately familiar with youth soccer and estimate the typical college soccer player incurred total costs of around $50,000 to get there. Even a barest-of-bones elite youth soccer journey would likely cost $25,000. On a strictly financial basis, 529 savings plans and Coverdell education savings accounts are far more reliable sources of college funding.

In addition to high costs, youth players must grapple with all the other aspects of becoming an elite athlete���maintaining interest and discipline, remaining injury-free, continuous training and constant competition at the highest levels.

Elite athletes then face the final challenge in capturing an athletic scholarship: selection by a college coach. Only 3% of high schoolers get to play NCAA Division 1 and 2 college sports, according to ScholarshipStats.com���and not all will receive scholarships, let alone a full ride. They may also end up at colleges that aren���t the best fit for them. The bottom line: The odds of landing on a D1 or D2 team roster are about the same as landing on a single roulette number.

D3 colleges, which comprise the largest NCAA division, do not provide athletic scholarships. NAIA and junior colleges do offer athletic scholarships and may provide a good alternative, assuming the academic and campus programs fit the athlete.

Selection numbers are particularly daunting in widely played sports like basketball and soccer, where less than 1% of U.S. high school boys are chosen for D1 teams. Some D1 obsessed parents even steer their kids to sports with fewer youth players, and larger college rosters, such as ice hockey, lacrosse or men���s baseball. With these sports, selection chances are roughly triple that of basketball and soccer, but still a miserly 2% to 6%.

Another tactic, utilized mostly to gain acceptance���rather than money���at stretch academic colleges, is to have kids excel in niche sports. Talent at equestrian, crew, fencing, rifle and javelin throwing may increase the odds of being noticed. One father helped his two kids get into Ivy League colleges by undertaking a multi-year program to assist them in becoming among the best high school javelin throwers.

Even for those few players selected to play college sports, most don���t receive a full ride. Only football, men���s and women���s basketball, and a few additional women���s sports���volleyball, tennis, gymnastics���are NCAA D1 full-ride sports.

In men���s soccer, for example, D1 and D2 colleges can grant 9.9 and nine scholarships, respectively, for a roster of around 29 players���in other words, just a one-third scholarship per player. Some colleges, including members of the Ivy League, don���t offer athletic scholarships. Others don���t fully fund all athletic scholarships, such as some Patriot League colleges.

Women���s scholarship opportunities in some sports are higher than men���s. That���s largely the result of Title IX equivalency requirements, which means colleges essentially need to offset the 65 to 85 football scholarships granted to men. Women���s D1 soccer can give 14 scholarships, versus 9.9 for men, plus women���s soccer has 129 more D1 teams than men���s soccer. Still, like high school boys, girls face the same dismal overall 3% selection rate to NCAA D1 and D2 sports.

Children should participate in youth sports for the many positive benefits. Meanwhile, parents should relax and enjoy their kid���s sports journey. Too many families hang onto the false hope that youth sports will lead directly to a college scholarship. But unfortunately, this ride isn���t free���and there���s likely no scholarship at the end of the journey.

John Yeigh is the author of a book outlining the highs, lows and challenges of youth sports, with publication slated for 2020. His two children overcame their Dad���s genetic deficits and became college athletes. John���s previous articles include Other People’s Stuff,��All Stocks��and��Off the Payroll.

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First Words

WHAT’S WORRYING investors. Stock market valuations. International investing. Jack Bogle’s legacy. Plus two tips for the month ahead. Check out the inaugural podcast featuring Peter Mallouk and me, where we discuss all those topics and more.

Peter’s the president of Creative Planning in Overland Park, Kansas, where I sit on the advisory board and investment committee. The first podcast runs just 20 minutes, so it’s a quick listen. We’ll be back with another podcast next month.

While you’re listening to the podcast, check out my latest piece on MarketWatch. This is a repost of the HumbleDollar newsletter I sent out a few weeks ago.

Follow Jonathan on Twitter��@ClementsMoney��and on Facebook.��His most recent articles include Eight Questions,��Working Late and House Rules. Jonathan’s��latest book:��From Here to��Financial��Happiness.

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Playing Defense

THE LETTER was in a mountain of mail delivered the day after my wife and I returned from holiday. ���Dear David Powell, Thank you for your recent application for a Bed Bath & Beyond Mastercard account. Your request��� was carefully considered, and we did not approve your application���.���

I���ve never been happier to receive a rejection.

We use exactly one credit card, pay it off each month and have never applied for another. This fraudulent application, a result of identity theft, was denied because I froze our credit files at all the credit reporting agencies years ago, when our personal information was stolen from a nonprofit we once supported as volunteers. With a credit freeze, this kind of identity theft is easy to prevent���or, failing that, you at least make yourself a harder target.

But there���s another kind of identity theft to consider. Back in 2004, the Federal Deposit Insurance Corp. and the Federal Trade Commission noted a rising��financial risk. This one is as old as the internet. It���s also harder to prevent, because it involves changing our habits and adopting better security solutions. The risk: internet account hijacking.

This happens when malicious hackers gain access to your online account at, say, a bank, brokerage firm, mutual fund company or payments company, with an eye to diverting funds by linking your account to accounts they control. Here���s how many of us make account hijacking all too easy:

We use weak passwords. An analysis of��passwords stolen from cyberattacks found 35% of passwords in use can be easily cracked with a simple “dictionary attack.”
We reuse passwords on multiple sites. This exposes you to hijacking when a nonfinancial site you access is hit with a cyberattack���and you use the same password for your financial accounts.
We skip two-factor authentication (2FA). Now available on most financial sites, 2FA avoids hijacking when passwords are stolen in bulk from organizations you���re connected with, or when your passwords are lost in phishing��attacks or to keyloggers.
We access financial sites over public wi-fi networks.

There are now good solutions to each of these problems���ones which are convenient and either free or inexpensive. A password manager takes much of the hassle out of creating and using hard-to-crack unique, strong passwords. It can also tell you when a password you���re using on a particular site has been compromised, so you can change it. Good password managers are available for use in mobile apps on iOS and Android, and in most popular browsers, whether you���re using a PC or Mac.

Two-factor authentication has become ubiquitous on financial sites because it prevents remote attackers from accessing your account, should they manage to get your password. Each time you log in, you supply your username and password, and then you supply a second key or factor. The most basic form of 2FA involves a unique, time-limited code sent via text message to your mobile phone.

While there are already known ways of exploiting��vulnerabilities in cellular carrier messaging systems, it still beats using no 2FA. Better 2FA systems use an authenticator app to generate a code. Authenticator apps are available from Microsoft, Google, Symantec (VIP Access) and elsewhere. The best 2FA solutions use a hardware key, like the ones sold by Yubico.

Meanwhile, the risks of using public wi-fi networks can be mitigated simply by avoiding them when accessing financial accounts, or by using a reputable virtual private network (VPN) solution.

Why bother spending precious time and money on mitigating these risks? Won���t your bank or brokerage firm cover any losses if your account is hijacked? I���m not an attorney. But in reading the policies of a few companies, the answer may depend on whether the firm believes you���ve taken basic, prudent steps to stay secure.

Vanguard Group���s online fraud policy��promises to reimburse amounts taken in an unauthorized online transaction if you���ve followed steps to protect your device, protect your account credentials and monitor account activity, and if you notify the firm immediately, should you discover any unauthorized activity. Fidelity Investments��� customer��protection guarantee has similar language. To be covered, you must adopt Fidelity���s recommended��security practices.

Computer security, like investing, requires some humility. It���s impossible to be perfectly secure. But it isn’t hard to improve your odds���and make yourself a far tougher target.

David Powell has written software or led engineering teams for 35 years. He enjoys work, vegan fine dining, cycling and travel with his spouse.

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No Money Down

AS SHARK TANK star Lori Greiner once said, ���Entrepreneurs are the only people who will work 80 hours a week to avoid working 40 hours a week.���

Got the entrepreneurial itch? When I hear people say they have a great business idea, but don���t have the money to launch their business or quit their day job, my heart sinks. They���re missing the point: In today���s world, there are countless opportunities to start a business without any initial investment. My favorite book on the topic, Side Hustle��by Chris Guillebeau, shows you step by step how to create your own business with little to no money and while still keeping your day job.

Consider a great example: Students at Stanford University were asked, ���What would you do to earn money if all you had were $5 and two hours?��� The students were allowed to spend as much time as they wanted planning their business idea. But once they opened the envelope containing the $5, they only had two hours to make as much money as they could. At their next class, students were expected to give a three-minute, one-slide presentation describing what they���d done.

Think about how you would approach this situation. Would you take the $5 and buy a lottery ticket? Would you use the money to buy materials to start a lemonade stand? Could you start a real business with so little money and time?

The most successful teams quickly realized that the $5 was simply a distraction from the bigger task at hand. They used their planning time to think of a problem in their community and used their talents to provide a service.

One of the teams set up a stand at their student union offering to measure bike tire pressure for free. If the tires needed to be filled up, they would do so for $1. They provided a solution to a problem at an affordable price and in a convenient location. The team ended up making a few hundred dollars in just two hours.

What about the winning team? They brought home a whopping $650. How did they do it? They took the project one step further, not paying attention to either the $5 available or the two-hour time frame. They realized their most valuable asset was the one-slide presentation they were to give to a class of Stanford students. The team sold the one-page slide, as well as their three minutes of presentation time, as an advertisement to a local business looking to recruit Stanford students.

Have you always dreamed of starting your own business or side hustle? The lesson from the Stanford students: Forget the financial obstacles���and think creatively about how to get started.

Ross Menke is a certified financial planner and the founder of Lyndale Financial, a fee-only financial planning firm in Nashville, Tennessee. He strives to provide clear and concise advice, so his clients can achieve their life goals. Ross���s previous blogs include Cut It Out, Too Familiar��and Hole-in-One. Follow Ross on Twitter @RossVMenke.

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Rescue Dog

I’VE LATELY BEEN talking to Rachel about getting a dog. Not now, but sometime in the future. When Rachel retires, we���d like to do a lot of traveling and taking care of a dog would be difficult.�� But when we slow down, I believe having a dog would improve our lives in our declining years.

How so? A few years ago, my neighbor, who is retired, told me she lost her husband. She said his passing was extremely painful. But when she lost her dog a few years later, it almost killed her. When she first told me her story, I thought she might have missed her dog more than her husband. But what she was really saying was the dog made it easier to deal with the loss of her husband. The dog helped her with the grieving process. The dog provided her with companionship and comfort at a time when she needed it the most. When her dog died, she was alone, with no familiar face to help her get through the day. That’s when it became more painful for her.

I wish I���d encouraged my parents to get a dog in their later years. It would have helped my mother deal with the loss of my father. My mother says nighttime is the most difficult time; having a dog by her side would make it easier. Unfortunately, at this point, she feels it���s too late to get acclimated to a new dog.

A dog would be good for health reasons, too. My mother’s neighbor, who was retired, had a dog. She walked the dog all the time. When the dog died, she stopped walking. Her health started to decline rapidly. My mother talked about how that dog helped keep Fern alive.

Rachel and I are like a couple of goats. We walk all the time. When one of us is gone, the dog would be a good companion and a reason to continue walking. It would help us get through the difficult times that lie ahead.

I still think about the dog my parents had when I was in college. I loved that dog. I used to hit ground balls to her in their backyard, using a baseball bat and tennis balls. Those are among my fondest memories. I still have dreams about that dog.

I believe a dog would fit in our budget. According to the America Kennel Club���s website, the average first-year cost to raise a dog across all sizes is $3,085. This includes all its shots, spaying and neutering, initial medical exams, supplies and food. The average lifetime cost of raising a dog is $23,410. This doesn’t include training classes and private lessons.

Before we get a dog, there���s one major concern that we need to address. What would happen to the dog if it outlives us? We need to make sure the dog will always have a home and be cared for.

The�� Humane Society has drawn up a process for ���pet estate planning.��� It involves setting up a separate fund to cover your pet���s expenses and making it part of your will. It also suggests creating a trust fund for your pet, with a trustee who would oversee the trust and check on the pet���s well-being. I���d recommend consulting an attorney to get the proper documents drawn up.

Dog are always there when you need them the most, providing love and loyalty. That’s why I’m determined that we should eventually get a dog. I’ve thought a lot about what our future dog would be like. The dog would be a female, medium size, and from a shelter and hence in need of a home. Oh, and the most important thing: Her name would be Dottie.

Dennis Friedman retired at age 58 from Boeing Aerospace Company. He enjoys reading and writing about personal finance. His previous articles include Little Jack,��Cancel the Movers, Let’s Take a Ride and I Can’t Do That . Follow Dennis on Twitter��@dmfrie.

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Don’t Call Me That

YOU KNOW HOW certain things people say stick in your mind. Often, it���s a hurtful insult. But for me, the words I can���t forget are, ���You���re wealthy.���

I live in a 90-year-old house on a small lot, my wife���s car is 12 years old, our television is 10 years old and the last time I bought a new suit was a dozen years ago. Okay, it���s true, I don���t wear suits very often these days.

Still, until someone uttered those two words to me, I���d never thought of myself as wealthy. But the data shows I am. Who knew?

I guess it���s easy to lose perspective. Sometimes, I hear my wife say to a friend, ���Why don���t you just buy it?��� or ���Why not come with us on a cruise?��� I cringe, because I know many of her friends aren���t wealthy.

But what counts as wealthy? That depends. Are you measuring income or net worth? Do you live in New York, New York, or Anniston, Alabama? It takes $150,000 to get into the top 5% of individual��income earners and $300,000 to get into the top 1%. The thresholds for household income are roughly 50% higher.

Make no mistake: I���m not in the top 1%, but I���m well above average. I have not only Social Security, but also a pension. In the eyes of many people, that alone makes me wealthy.

Then there���s my net worth. After working, saving and investing for 70 years, I���m above average there, too. To check on your wealth relative to others, try this calculator.

If you looked at me in my jeans, flannel shirt and braces in New Jersey, I doubt you���d tag me as wealthy. On the other hand, if you saw me in Florida in shorts and my Trump National golf shirt���no, I���m not a member���your impression might be different. I once walked into a designer shop in a high-end mall looking to buy my wife a new handbag for Christmas. The clerk came up to me and asked if I thought I could afford the item I was considering. In those days, it was questionable. I guess I could have afforded it. But would I spend that kind of money on a handbag? Not a chance. Perhaps that���s how I came to be ���wealthy.���

I had a discussion once with a young person about money, wealth and having stuff. I don���t recall the specifics. But in essence, he thought I was lucky because I ���had it made.��� His seemed to think I���d rolled out of bed the day after graduating high school and there it all was for me to enjoy. I resented that but said nothing. It was almost as hurtful as being called wealthy.

I started with nothing and my wife started with less than nothing. Over the past 50 years, we accumulated what we have by being prudent, by running a few small part-time ventures, by my working at the same company for nearly 50 years and by never, ever living above our means. I literally saved for 20 years to buy my newest car. Okay, I admit it, it���s a Mercedes.

I started work after high school as a mail boy earning the lowest wage out of 15,000 employees. I retired 49 years later earning the company���s 20th highest salary. A lot happened along the way, including two years in the army and nine years of night school.

There are things I can���t take any credit for. I had a few good mentors who helped me immensely. I���ve been very fortunate to avoid the kinds of tragedies that many people face in their lives. But I will take credit for not doing irresponsible, stupid stuff that would risk our financial security.

Should those of us now deemed wealthy feel guilty? I think not. Should we be thankful for the good fortune, the opportunities and the people who helped us? Certainly. Should we be proud of what we accomplished? Why not?

In the end, though, real wealth is not income or net worth. It���s family, friends and grandchildren. It���s enjoying good health. It���s being able���when necessary���to help others, especially those you love.

Richard Quinn blogs at QuinnsCommentary.com. Before retiring in 2010, Dick was a compensation and benefits executive. His previous articles include Happily Ever After,��The Office,��Still Learning��and��Healthy Change.��Follow Dick on Twitter��@QuinnsComments.

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