Steven Jobs ended his 2005 commencement address at Stanford University with a simple insight gleaned from the 1975 final edition of The Whole Earth Catalogue:
"Stay Hungry, Stay Foolish."
"Stay Hungry" means to never be satisfied with the status quo, never settle for "good enough" and never stop learning.
As a student, I often forgot those simple lessons. Because I knew everything back then, I took short cuts on the path to lifelong learning.
Like most of us, time and experience have taught me we are never too old to learn.
"Stay foolish" does not give us license to be idiots, but rather teaches us to not take life so seriously, as it can be taken away quickly.
Even though our family has had the opportunity to travel lately, more importantly, we've been building some great "foolish" memories right here at home. Those are things that can never be taken away from us.
One area where we need to stay hungry and set aside foolishness is in our financial plans. We must be open to new approaches and learn lessons that can only be learned by becoming students of personal finance.
That's not as difficult as it sounds, as there are only two basic rules:
The first is to ignore dangerous information.
Be aware of any idea that messes with logic. For instance, no one can promise you a high rate of return with low risk or low cost. There is simply no free lunch.
There is also not a soul alive who can tell you where the markets are headed. The news today, tomorrow and the days after will report a series of unexpected events that none of us ever saw coming and the markets will adjust accordingly.
There are two things we can predict with certainty though: Death and Taxes. The former we try to defer as long as possible and the latter we try to minimize as much as possible. Be wary of schemes that promise you unreasonable reductions in your income tax.
The second rule is to know where to find knowledge. Don't rely on sensationalized media or financial advertising. Its role is to promote panic, loosen your wallet and sell products. Spend time instead at the library or on some good personal finance websites.
The list of possibilities is too long for this column, so feel free to contact me for my favourites. Don't be surprised if the reading is a bit heavy though. After all, this should be like any other course of study.
Because of the healthy abundance of good material, you should also establish a relationship with a trusted financial advisor who can help you navigate your way.
Let's hit the books!
Richard Vetter, BA, CFP, CLU, ChFC, is a senior financial advisor and branch manager with WealthSmart Financial Group/Manulife Securities Incorporated in Richmond (www. wealthsmart.ca.)
