It’s That Time Again! A Quarterly Summary of Webinar Takeaways

 

We are three-quarters of the way through 2025 and it’s time for another summary of takeaways from webinars that I have recently attended. Below are seven nuggets that stood out to me as I reviewed notes taken in my personal learning journal:

 

“Financial Winter” Analogy- What do you do when winter is coming? You prepare by getting a coat! When a “financial winter” occurs (e.g., unemployment or unexpected events that cost money), and it eventually will, your “coat” includes emergency savings and adequate insurance.

 

Index Fund Advantage- Over 20 years, only about 7% of investment professionals “beat the market” (i.e., outperform market indices) and the remaining 93% underperformed. Since most investment pros can’t get this right, there is clearly an advantage to “buying the market” with index funds that are well diversified and generally have low expense ratios.

 

Fraud Statistics- Losses to fraud in 2024 totaled about $12.5 billion and 2.6 million consumers complained to the Federal Trade Commission (FTC). The most common type of fraud was imposter scams and the second most common was online shopping scams. E-mail was the most common way that consumers reported being contacted by scammers. People age 20-29 reported losing money more often than those age 70+ but older adults lost the most money.

 

Financial Literacy Education- As of July 2025, a total of 29 states passed laws guaranteeing a standalone personal finance course for high school students. In 2011, there were only 11 states. A standalone class is like a “five course meal” of financial education and personal finance embedded in another class (like social studies, economics, or business) is like an appetizer.

 

Long-Term Care (LTC)- There are different types and levels of LTC. The greatest assistance is provided in nursing homes and the least for LTC at home. Most LTC takes place as in-home care. Ways to cover the cost of LTC include LTC insurance and self-insurance. The speaker from New York City noted that, if a nursing home costs $12,000 per month, someone would need $144,000 a year to cover the cost ($720,000 for five years). Obviously, doing this requires some planning.

 

Social Security- Nearly all (94%) of older adults claim Social Security benefits. FICA tax is 7.65% of employees’ pay or 15.3% of net business income for self-employed individuals who pay double for the employee and employer portions. Workers’ highest 35 years of earnings are used to calculate two numbers called AIME and PIA from which benefits are calculated.

 

Economic Uncertainty- The first half of 2025 was chaotic and very fast paced for the U.S. economy. The longer that uncertainty remains in place, the more likely a recession will occur. If inflation numbers go higher as a result of tariffs or other factors, it will be uncomfortable for the Federal Reserve to lower interest rates.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

My Final Quarterly Webinar Summary of 2024

 As 2024 winds down next week, it’s time for my final quarterly summary of take-aways from recent personal finance classes, conferences, and webinars that I attended. Below are some “nuggets” that you might find useful in your personal financial planning:

Offense and Defense- Financial offense involves earning money from one or more sources (e.g., paycheck, interest). Financial defense is spending what you earn with a plan. Just like football teams, offense and defense are both very important to achieve financial well-being. 

Couple Finances- One study found that 43% of couples merge all their money, 34% have a joint account for shared expenses only, and 23% keep all their money separate. There is no one “right” way for couples to set up financial accounts but many experts do advise paying bills in proportion to each spouse’s income in proportion to total household income.

Working Past Age 70- Benefits of continued work include: increased Social Security (if earnings replace low-earning years from young adulthood), increased retirement plan savings, the “still working exception” for required minimum distributions (RMDs), continued access to employer benefits, and fewer years to support yourself without a paycheck in later life. Pitfalls are possibly triggering a Medicare sign-up penalty and premium surcharges called IRMAA.

Retirement Challenges- Five issues in later life are longevity (outliving savings), stock and bond market volatility, inflation (reduced purchasing power), cognitive decline, and sequence of return risk. The latter is when an investment downturn occurs early in retirement, people need to sell shares for living expenses, and funds are no longer available for a rebound. Also, with tax-deferred retirement plans subject to RMDs, savers are “in a partnership with the IRS.”

Diagnostic Tools- Useful documents to understand an individual or couple’s finances for planning purposes are net worth and cash flow calculations, saving and investment account statements, and income tax returns. Investors should also review their portfolio (e.g., asset allocation weights and investment performance) “for 2-3 hours every 2-3 years.”

Emerging Adulthood- Many adult children are still on “the family payroll” with only 45% of young adults age 18-34 completely financially independent from their parents. Sometimes, subsidies total thousands of dollars that parents could have saved for retirement. For example, a transfer of $8,000 to adult children over the course of a year for rent, auto insurance, cell phone, etc. could have funded the maximum 2024 IRA contribution for a worker age 50+.

Prenup Analogy- A prenuptial agreement, a legally binding contact between soon-to-be married individuals, is similar to an auto insurance policy. You are planning for the possibility of an accident (i.e., divorce), but want to do everything possible to avoid it. Every married couple has a prenup: one they prepare themselves or decisions made according to state law.

Highlights of Recent Webinars

 

It’s that time again! Every so often, I like to review and summarize my notes from recent webinars and classes. Below are some interesting tidbits that caught my attention from recent programs:

Financial Education- Financial educators don’t teach content- we teach human beings- and our authentic self is an advantage. Share stories of your struggles as well as your successes to accrue trust over time. As Dr. Shaun Murphy noted in the final episode of The Good Doctor, “When you touch one life, you don’t just touch one life, you touch every life that that life touches.”

 

Cash Assets- The right amount of cash to hold in an investment portfolio is a personal decision. Ideally, this money is for emergencies and short-term goals. Some people hold much more than that in cash but the trade-off is losing an opportunity for growth. Ultimately, investors need to determine an asset allocation that makes sense for them, track it, and rebalance as needed.

 

Consumer Spending- When people feel comfortable with their finances, they spend more. Consumer spending has been robust because many older adults have paid off mortgages and many other homeowners have low-interest mortgages and are unaffected by current high interest rates.

 

Election Year Finances- The most important influence of Presidential elections on financial markets is policies that result from them (e.g., tax laws and retirement account rules) rather than elections themselves. In addition, financial markets are typically more affected by what Congress and the Federal Reserve do compared to the President.

 

Tax Planning- Run projections of next year’s tax liability and make fourth quarter adjustments, if necessary. SALY (same as last year) is rarely a good strategy. Good times to accelerate income to reduce taxes are early retirement years before required minimum distributions (RMDs) begin, sabbaticals with lower income, years with large losses, and the last year of filing a joint tax return.

 

IRMAA- About 8% of Medicare recipients pay a higher premium called the income-related monthly adjustment amount (IRMAA). There is a two-year income lookback so start paying attention to this at age 63. IRMAA is not a tax, per se, but it is a drag on older adults’ bottom line.

 

Financial “Rules”- Many financial “rules” (guidelines) are too deflating for people (e.g., saving three months’ expenses in an emergency fund). They feel like a failure, throw up their hands, and give up. It is far better for people to have a series of “small step” goals that they can succeed at.

 

Retirement Savings- The more money that people can save for retirement, the more likely they can replicate- or even exceed- their pre-retirement lifestyle. People are often amazed how much they can save when they put some structure in place and save automatically. Just remember that tax-deferred defined contribution plans and traditional IRAs are “a lifelong partnership with the IRS.”

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Highlights of Recent Webinars: Second Quarter Summary

 

It’s that time again! Every quarter, I like to review and summarize my notes from recent webinars and classes. Below are some interesting tidbits that caught my attention from recent programs:

IRMAA Medicare Premium Surcharges- About 8% of older adults pay income-related monthly adjustment amount (IRMAA), a higher premium paid by Medicare recipients with higher incomes. There are five tiers of IRMAA on a sliding scale and the income ranges for each tier are based on income two years prior. While technically not a tax, IRMAA is a drag on payees’ bottom line.

 

Brain Fog- People can experience “brain fog” (i.e., forgetfulness and difficulty focusing on tasks and paying attention) when they experience major life transitions such as death of a spouse and financial stress. To not become overwhelmed, experts recommend making three lists of things to do: 1. Now, 2. Soon, and 3. Later.

 

JOMO- This was new to me. Instead of FOMO (fear of missing out), JOMO is an acronym for “joy of missing out.” In other words, people are happy not indulging in high-cost activities that put a strain on their finances. Instead, they save money and achieve financial independence (FI).

 

Women’s Finances- The gap between average salaries for men and women can add up to hundreds of thousands of dollars over working years. Five steps for women to take charge of their financial future are: 1. Setting goals, 2. Building an emergency fund, 3. Getting involved in family finances (e.g., net worth and cash flow), 4. Learning about investing, and 5. Saving for retirement.

 

Tax Diversification- It is risky to put all your retirement savings in tax-deferred accounts (a.k.a., qualified plans) because you don’t know what future tax rates will be when required minimum distributions begin. The highest U.S. tax rate was once 90% for over 20 years. Instead, select multiple investment accounts with different tax structures (e.g., tax-deferred, tax-free, taxable).

 

“Free” Money- There is truly “free” money and free money with strings attached. Gifts and inheritances are typically 100% free. They are not taxed and typically do not require anything of recipients. On the other hand, employer retirement plan match requires worker savings and credit card rewards and restaurant and retailer rewards programs require consumer spending.

 

Building Wealth- Where you grew up does not need to stop you from who you want to be. A simple path to wealth is dollar-cost averaging (i.e., investing regular amounts at regular time intervals) into index funds over time. Yes, it is “boring,” but you don’t need to know earnings per share or study corporation balance sheets. The more modestly you live, the easier it is to reach FI.

 

Generative AI- Data for generative AI (e.g., ChatGPT) is derived from the internet with all of its biases including racism and sexism. As a result, many organizations are creating their own large language models (LLMs). The best way to start using AI is to just get out there and play.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Highlights of Recent Webinars: First Quarter 2024

 

Every quarter, I like to review and summarize my notes from webinars I attended during the last three months. Below are some interesting tidbits from recent programs that I attended:

Future Self Thinking- Many people often think of their “future self” (who they will be decades in the future) as a stranger. As a result, they don’t think about the consequences of doing something now because their actions are affecting another person rather than themselves personally.

 

Required Minimum Distributions (RMDs)- Only IRAs and 403(b) plans (for school and non-profit sector employees) can be aggregated to calculate RMDs. All other tax-deferred plans, like 401(k)s and the thrift savings plan (TSP), must have RMDs calculated separately.

 

Saving Money on College Expenses- Suggested strategies include going to community college first, living at home with parents, going to a public college in your home state, applying for scholarships, buying used textbooks or renting textbooks, and getting a job at a college.

 

“Loud Budgeting”- This is where people (mostly young adults) post videos, primarily on TikTok, about ways they are reducing expenses and saving money. In many cases, they are repackaging “tried and true” strategies from the past but are doing so to appeal to a new generation.

 

ChatGPT- This program, developed by Open AI, is the most popular large learning model (LLM). It is trained on a massive data set of text, pulls information from multiple sources, and consolidates it to create brand new content in response to prompts by users.

 

Financial Trauma- The textbook definition is any negative experience that affects how people handle money (e.g., saving and credit). The trauma can be “little t” (relatively minor) or “Big T” (a major event). Financial advisors should always remember that people are the expert of their life.

 

Roth Conversions- It is best to move money from a pre-tax account to a Roth account in low-taxable income years, during stock market downturns, and/or in small increments over time. When you do a Roth conversion, you are front-loading taxes to avoid taxes at higher rates later.

 

A Dollar Too Much- RMDs often push older taxpayers into a higher marginal tax bracket. Just one extra dollar in income can trigger tax on Social Security benefits, higher Medicare premiums, and the 3.8% net investment income tax.

 

IRMAA Medicare Surcharge- The income-related monthly adjustment amount (IRMAA) is an extra amount that high-earning retirees pay for Medicare coverage. Currently about 7% of retirees pay IRMAA and there are five IRMAA income thresholds beyond the standard Medicare premium. IRMAA is based on income earned two years earlier (e.g., 2022 for 2024) and can be avoided by lowering adjusted gross income or making an appeal to Medicare based on life events.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Useful Information from Recent Webinars- Part 3

During the past two months, I summarized information from various recent webinars that might be useful to others. Below are seven more information tidbits in my final installment:

Back-Door IRAs- This is where people who earn too much income to qualify for a Roth IRA contribution put money into a non-deductible traditional IRA because there are no income limits for non-deductible traditional IRAs. They then convert the traditional IRA balance to a Roth IRA within a short time. The converted amount, plus any pro-rated earnings for the short time money is in the traditional IRA, are taxed at ordinary income tax rates.

 

Super Savers- It is unlikely that people who saved for retirement for decades in tax-deferred plans will die without leaving some money in an IRA, 401(k), or other tax-deferred asset. This speaks to the importance of beneficiary planning, especially for non-spouse beneficiaries who must withdraw all money from an inherited account within 10 years after the owner’s death.

 

Financial Education Mandates- By mid-June 2023, 22 states passed laws that require graduating students to take a personal finance course. Financial literacy is one of few topics today that has bipartisan support, as evidenced by state legislature voting and bills signed by Republican and Democratic state governors. There is little cost as schools generally reallocate existing teachers and free curricula and teacher professional development are widely available.

 

Financial Trauma- This was defined as the cumulative harm to a person’s wealth-building capability and relationship with money over time. As a result of financial trauma, many people feel shame about their finances. Financial educators and others in helping roles were advised to “meet people where they are” without any judgment and to use empathy by connecting to the emotions than underpin people’s lived experiences. Start with “What can I help you with?”

 

Estate Planning Triggers- The following events often increase interest in estate planning: birth/adoption of a child or grandchild, marriage, divorce, illness/disability, a large debt, a large change in the value of assets, purchase of a major asset (e.g., house), a major life or career change, receipt of an inheritance, and a required change in a guardian, executor, or trustee.

 

Gen Z Investing- A high school-age webinar presenter spoke about opening a Roth IRA at age 14 with earned income and the early compound interest gained by starting to save for retirement almost a decade earlier vs. waiting until college graduation. She also recommended a “set it and forget it” approach by combining a target date mutual fund with automatic deposits.

 

Portfolio Rebalancing- Left alone, an investment portfolio can go wildly off track, especially during stock market peaks and dips. Rebalancing is recommended and it is easier to rebalance regularly than wait for long periods of time. Rebalancing can be done by selling overweighted assets (do this within tax-deferred accounts) or with new cash deposits to underweighted assets.

 

Financial knowledge is power. I hope that you found these information tidbits useful.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Barbservations From Online RMD Webinars

After I left New Jersey and was no longer a recognizable figure as a financial educator for Rutgers University, I attended a few free meal seminars “undercover” in my new home state of Florida. Few people here know about my financial education work and I knew I wouldn't  be "outed" and asked to leave because I'm a CFP(R). 

Knowing that these seminars have been linked to an increased risk of abusive sales practices, if not outright investment fraud, and having read a detailed expose’ by Helaine Olen in the book Pound Foolish, I was curious to see the sales techniques used by the program organizers up close and personal.

Last year, I noticed a new trend that has continued into 2023: ads on social media about online financial seminars focused on required minimum distributions (RMDs) and income taxes owed in later life. In other words, no free meal; just the seminar…and the sales pitch. Curious as I was before, I attended 4 or 5 of these online seminars. Below are some of my “Barbservations”:

Canned Presentation- After viewing several webinars, I noticed that the event organizers were using the same slides and reading the same script, along with personal tweaks, of course. There must be a “central source” that provides program materials to event organizers. Unfortunately, some webinars that I viewed were not updated with latest (2022) IRS life expectancy factors.

 

Pesky Pop-Ups- Throughout all of the presentations, there were pop-up boxes on the screen encouraging viewers to sign up for a free consultation. This was very similar to postcards or door prize entry forms passed around at in-person seminars. In both situations, completing the forms was optional.

 

Scary Tactics- The webinars began with an image of a “tax train” about to run people over and the specter of the highest marginal tax bracket once again being 91% as it once was in the past (1951-1963). The colorful term “tax torpedo,” conjuring up a large explosion, was used to describe how a small income increment can result in a big increase in income taxes.

 

More Scary Tactics- A few that I noted were: “One or two bad years and your money is gone,” “massive amounts of government debt will cripple us,” “Uncle Sam is money hungry,” “taxes have no place to go but up,” and references to “Biden’s taxes,” to stir up some angry political undertones. Some presenters, no doubt prompted by a written script, also ripped up a sheet of paper several times to graphically illustrate the loss of $1million in savings due to taxes.

 

Teaser Tools- Some presenters offered free resources- but only to webinar viewers who made appointments for a consultation. These included an e-book, and something called “safe money tools.” One speaker also disparaged so-called “steak dinner guys” while acting just like them.

 

Kernels of Truth- Wrapped up in the colorful language and scare tactics was accurate core information: 1. Tax diversification throughout one’s working years can reduce taxes in later life, 2. Roth conversions and charitable gift planning (e.g., Qualified Charitable Distributions or QCDs) are strategies to reduce taxes, 3. RMD divisors grow by almost a factor of 1 every year, 4. Setting up automatic withdrawals with plan custodians can help avoid missed RMDs and tax penalties, and 5. Interest and/or dividends from investments should, ideally, satisfy RMDs, at least initially, with no impact on invested principal.

 

Bottom line: Be as cautious when attending online seminars as those that include free meals.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Thirteen Miscellaneous Financial Nuggets from Recent Webinars

It’s that time again…time to recap “nuggets” from recent webinars and conferences that I attended. Below is a list, in no particular order, of insights, facts, and recommendations that stood out to me as being original, significant, and/or useful:

New Definition of Retirement- The word “retire” does not necessarily mean “stop working.” Instead, it means “not having to work.” Retirement is not a uniform experience for everyone. Ironically, people with the most capacity to choose leisure are frequently choosing labor. Many people stick with activities that they are comfortable and competent with.

 

Inflation Rate- Annual inflation rates reached four-decade highs during the first half of 2022. The core inflation rate strips out food and energy but includes housing, used cars, airline tickets, and more. Inflation is measured by the consumer price index (CPI) based on data from household spending surveys conducted by the Bureau of Labor Statistics. The Federal Reserve is increasing interest rates to slow down the economy in an effort to combat high inflation.

 

Lack of Retirement Planning- Many people spend time planning meetings that last an hour, weddings that last a day or a weekend, and higher education (4-5 years). However, when it comes to planning what they will do over what could be a 30-year retirement, many people “just show up.” A benefit of planning is increased likelihood of a desired outcome.

 

Life Expectancy- On average, retirement has almost tripled in length and can last 20, 25, even 35 years for some. In 1935, if you lived to age 65, you had a life expectancy of 6 years. In 2018, the life expectancy of a 65-year-old was 17 years. The needs of 60-something retirees are very different from those in their 80s or 90s. There are a lot of nuances.

 

Retirement Stages- There are six distinct stages of retirement, although not everyone experiences every stage, depending on their lifestyle. The stages are 1. Euphoria (new-found freedom from…and checking off “to do” items), 2. What, That’s It? (a disillusionment when unstructured time becomes unfulfilling), 3. Re-engagement (figuring out how to spend time), 4. Grandparenthood (a new center of attention), 5. Adult Caregiving, and 6. Widowhood (loss of someone’s “co-pilot”).

 

Bitcoin Basics- According to algorithms laid out in a 2008 white paper by Satoshi Nakamoto, there will be a finite number of bitcoins. Only 21 million bitcoins will ever exist, and one estimate is that the year 2140 is when all bitcoins will be in circulation. Advantages include user anonymity, accessibility, and high return potential (albeit with high risk). Bitcoin disadvantages include extreme volatility and no government regulations or support in the event of a loss.

 

Blogging Tips- Bloggers should post at least once a week and use keywords (for easier searchability) and graphics (to attract users and keep them online longer). They should also try to get backlinks, which are external links that lead to a website. Backlinks are an important factor for high search engine optimization (SEO) rankings. Blogs should also include a disclaimer stating that posts are for educational purposes only and do not constitute personalized advice.

 

Financial Literacy- This is one of few topics today that crosses political party lines and has bipartisan support. As of May 2022, 13 states have financial education mandates. An increasing body of rigorous research with randomized control trials has found clear evidence of positive effects  (e.g., increased credit scores, lower loan delinquency) of financial education on financial behaviors. An understanding of personal finance is a key to success for a person’s entire life. Three key points: financial education is good for students, parents want it, and teachers are prepared to teach this subject.

 

Decision-Making- If someone does not make a decision due to procrastination, an inability (or lack of interest) to narrow down options, fear of making a mistake, or any other reason, a decision has still been made. To quote a phrase attributed to Harvey Cox, “Not to decide is to decide” because someone has still made a choice.

 

Money Conversations with Children- Many parents want to have money conversations with their kids but don’t know how to get started. Experts recommend using “life as it happens” (e.g., a shopping trip or a visit to a bank) to talk about financial topics (e.g., using coupons to save money and compound interest) . It does not have to be a special time.

 

Sequence of Returns Risk- This is a stock market downturn late in someone’s working years or early in retirement. If money is withdrawn during this “fragile” time, asset value can be difficult to recover. To avoid this risk, older adults are advised to build a cash cushion (2-3 years of expenses above guaranteed income) to avoid having to sell securities.

 

Financial Stress- It is not just a high level of debt that causes people financial stress. It is also the absence of protection when bad things happen. This speaks to the need to boost financial resiliency through savings, insurance, community resources, and other methods. COVID-19 showed that people hit the hardest by negative events had the fewest resources.

 

Tax Diversification- Ideally, retirees should have savings in tax-deferred, taxable, and tax-free accounts (e.g., Roth IRAs and municipal bonds or bond funds). Each has a different type of tax treatment. Tax diversification provides an opportunity to strategize to manage taxes better in retirement. For example, to manage taxable income so it is below the limits for the IRMAA Medicare premium surcharge for high earners and the 3.8% net investment income tax (NIIT).

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Financial and Lifestyle Insights - Part 1

 As long-time Money Talk blog readers know, I love to learn by attending webinars and conferences and listening to podcasts.

Then, to make sure that key points stick in my mind, I review my notes and summarize them for readers.

As you set goals for 2022, below are twelve tips from presentations that I heard during the past few months:

Deal With Debt- Do not be ashamed of how you got into debt. Make a plan to dig out from under. Two good options include adding extra money to payments using the snowball (paying extra on smallest debts first) or avalanche (paying extra on highest interest rate debt first) methods. Non-profit credit counseling agency services may also be useful.

Name Your Savings- Identify a purpose for savings/investment dollars such as “new car down payment fund” and “vacation fund” and “financial freedom account.” People who have an emotional attachment to their savings (versus just saving for savings sake) are more likely to delay gratification, set aside savings, and keep their savings intact.

Think 10 Percent- Act upon this verbatim comment from a webinar speaker: “You can generate a lot of wealth by investing ten cents of every dollar you make (i.e., 10% of gross income) over your entire working life.” Example: $5,000 of savings if you earn $50,000. Be the CFO (chief financial officer) of your financial life starting today!

Plan for Later Life- A podcast speaker noted “when you plan for retirement, it is easy to forget that you also need to plan for getting older.” Middle-aged adults and recent retirees have a hard time picturing themselves at age 80 or 90. Topics to consider include housing, solo aging, sources of long-term care (if needed), and the cost of long-term care.

Be Joyful- Spark more joy in your life. A webinar speaker noted that joy “is a feeling of grinning inside.” Speaking specifically about finding happiness in later life, she advised viewers to experiment with what makes them joyful, take risks, and do more joyful activities.

Reduce COVID-19 Risk- “Wear a mask indoors and keep a distance away from others when you do not know their vaccination status,” advised a webinar speaker. This includes many public events where you are near strangers. Even if people are vaccinated, they can still get COVID and be asymptomatic. The virus thrives in cold and dry environments. This speaker also advised reducing COVID risk by staying away from indoor dining and “happy hour” situations.

Learn Key Economic Concepts- Review these four key concepts shared by a webinar speaker: 1. “There is no such thing as a free lunch” (TNSTAAFL), 2. Opportunity cost (the cost of foregone alternative decisions and actions), 3. Supply and demand, and 4. Behavioral finance (people do not always make rational choices).

Think Positively- Remember that “what people think about, they bring about.” Mindset is such a critical component of success with finances and in life. Small actions can lead to big results over time. One of the most important financial concepts that young adults can learn is the awesome power of compound interest and long-term investing.

Live a Healthy Lifestyle- Practice healthy habits (e.g., nutritious diet) that affect how long and how well you age. It is never too late to start living a healthy lifestyle. Try to stave off diabetes, which increases the risk of Alzheimer’s disease. Obesity also increases the risk of dementia. Mental exercise (e.g., games and socializing) help protect aging brains.

Practice Powerful Habits- Adopt habits with the power to improve your life. There are three components of habits: 1. Cues (triggers for habits to start), Routines (habitual behaviors themselves), and Rewards (outcomes that increase motivation). Habits are like compound interest: they don’t feel like much day-to-day but their outcomes add up over time.

Be an Organized Entrepreneur- Follow these four tips shared by a webinar presenter: 1. Do market research, 2. Track business costs, 3. Use a separate bank account, and 4. Set aside 25% to 30% of earnings for Social Security and income taxes. Income taxes need to be paid to the IRS on a “pay as you go” basis in four quarterly installments.

Plan Proactively for Later Life- Beware of future costs for four areas of spending that retirees often underestimate: 1. longevity (you could live to 100!), 2. health care (becomes more expensive with age), 3. home repairs (especially for people who “age in place” and need a new roof, etc.), and 4. income taxes (when required minimum distributions or RMDs start and when a spouse dies and the surviving spouse must file as a single taxpayer).

In my next blog post, I’ll recap some additional tips and insights from presentations that I heard late last year.

This post provides general personal finance information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.