Panic at Orlando airport spoiled my golfing trip

Golf season in Canada can be very short because of bad weather. One of my guilty pleasures is heading south for an annual golf trip with the boys every November. We started this tradition sixteen years ago and I would have to be very ill to miss it.

As a volunteer driver, I experienced first-hand the panic at the Orlando airport while dropping off a friend after our last round of golf. We decided to go early so we could have   dinner together at the airport. Walking in, we faced a stampede of frighten travelers running and screaming to the exits.

Some travelers thought they heard gun fire while others thought that they heard an explosion. Standing outside watching the Orlando Police conduct their investigation with weapons drawn was very alarming.

It turns out that a camera battery exploded in a bag which cause people to panic and the airport to be evacuated. Thousands of travelers faced hours of waiting at security checkpoints.

Phil Brown, CEO of the Greater Orlando Aviation Authority, said a full ground-stop was issued at 5:30 p.m. and lasted until 9 p.m. At a press conference Friday night, Brown said 24 flights were canceled and 27 others were diverted. He acknowledged that some passengers will have to book new flights, and others might struggle to find hotel rooms for the night.

He added that some airport staff and TSA agents instructed the crowd to take cover, when the initial explosion created confusion among staff and passengers.

At first glance, it may seem that the Orlando Aviation Authority may have over reacted to a faulty camera battery. However, it happened on the same day that Americans celebrate veteran’s day.  Plus no one wants to read about children getting hurt after visiting Disney World.

I felt bad for my friend who ended up sleeping at the airport as his flight was cancelled and rescheduled for 2:30 p.m. the next day. I was lucky that my early morning flight was cancelled and I got some extra sleep. It made delays in my rescheduled flight a little more bearable.

Will this unfortunate incidence stop me from going south golfing? Not a chance, however I may decide to spend a few extra days driving instead of flying.

The moral of this story is managing risk extends beyond the financial markets. Panic and over reaction can easily cause a major sell off in stock markets. You can’t predict what will cause a stampede to the exits.

 

 

 

 

 

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Is joining an investment club a good idea?

Now, you can learn about investing in countless books, magazines and Web sites, but you may enjoy the learning process more by joining an investment club. After all, most of us are social creatures by nature, so we like being with other people.

A blogger that I follow “Bear With The Bull” belongs to a club that just shares investment ideas. He was kind enough to answer a few of my questions about his club.

How many members are in your club?

“We currently have 36 members on Meetup, not all are active. We use Meetup.com as our internet platform and we have a Facebook group page as well.  We have a 6 month activity clause. Basically we remove anybody who is inactive for 6 months.”

How often to you meet?

“We meet once a month at a local Denny’s. We try to keep the meeting short less than 2 hours. We usually have anywhere from 3 or 4 to a dozen or more show up for the monthly meetings.”

What are the experience levels of the membership, any newbies to investing?

“We have all different experience levels and investment styles. It was surprising to find out that we have pure Chartists, option traders (mostly selling), IBD folks, and people who followed other systems and sites. This past meetup we had 4 new members.  1 newbie, 2 experienced traders but new to IBD (Investor’s Business Daily), and a retired couple who had just consolidated their retirement portfolios into one.”

Is every member required to bring a stock pick or ETF to the meeting or do you take turns?

“A week before each meeting we send out an email asking for stocks and investment topics of interest. Basically this is a solicitation for topics and stocks to discuss and forms the basics of our agenda. We generally give each person the opportunity to talk about their suggestions during the meeting.”

Do you find the information useful and have you invested in any ideas that were presented?

“Generally I and others in the group find the information interesting and informative. Sometime members invest in others watch lists but for the most part I think people use it as a learning experience.”

Are recommendations review at the next meeting?

“We keep a list of all stock suggestions and track their performance. We do keep an informal tally of whose stocks are best or not.”

Thank you “Bear With The Bull” for sharing information about your investment club!

Now, do you lack the confidence or discipline to invest on your own? There are also investment clubs that you can join where members’ pool their money, study different investments and the group decides to buy or sell based on a majority vote. Most of these clubs require a small monthly investment anywhere from $50 to $100 a month.

Some Advantages:

  • Investment clubs can be fun.
  • It is a good way to get your feet wet.
  • Clubs provide an affordable way to invest. (Sharing the costs)
  • Investment clubs, by their very nature, tend to have a long-term focus. Members are interested in following investments over time, not buying and selling at a frantic pace.
  • You can find wisdom in a group

Some Disadvantages:

  • Unregulated – You have to have a high degree of trust. (Income & tax liability is calculated correctly)
  • Disagreements – Democracy is great but you could disagree with the direction of the club or with some of the investments choices.
  • Risk tolerance – Make sure that you’re comfortable with a club’s investment philosophy and the amount of investment risk.
  • Difficulty leaving – Make sure that the club has a reasonable exit time for members who want to leave.

Did you know that Warren Buffett’s wealth to acquire Berkshire Hathaway in 1965 was created primarily from his investment partnerships? The first of which was Buffett Associates, established out of his bedroom in May 1, 1956, at the age of 25. It started with $105,000 from seven partners, all of whom were close family and friends.

He was solely responsible for managing a significant amount of other people’s money with investors agreeing to pay a fee for strong investment performance. These investment partnerships eventually fell under the umbrella of Buffett Partnership, Ltd., which was the entity that bought a controlling stake in Berkshire Hathaway.

I would classify “Buffett Associates” as a legalized type of investment club.  

On a personal note: My investment club just celebrated it’s 15 year anniversary.

You need more than money to have a pleasurable retirement

9th hole

Having worked as a financial advisor, my main focus in retirement planning was building a sizable nest egg for clients’ to enjoy their golden years. I used to think that the senior who greeted me at Walmart, rang in my groceries or served me coffee needed the extra income in retirement. Did something gone wrong with their retirement plan or did they just fail to save enough to enjoy a life of leisure?

However, I am starting to think that these seniors may also be bored. Imagine, you have been traveling at 100 miles an hour at work and now have come to a dead stop in retirement. No one really prepares you for the shock of getting up in the morning with no place to go. What do you do with all that extra time?

Step One: Avoid the retirement shock, start to plan ahead

There is more to life than your work. Most of your work friends will slowly disappear once you retire. Having a social network outside of your work place is a key to a pleasurable retirement. A common mistake is not developing a balanced lifestyle before you retire. (All work and no play!)

One of my business associate retired at 63 and decided to start to play golf. He join a golf club and found that he didn’t really enjoy playing golf. He hated winning the most honest golfer award. (A prize for the worse score)

Here are a few networking opportunities to make some new friends prior to retirement:

  • Over 55 sports leagues, baseball, basketball, hockey …..
  • Racket, curling and golf clubs
  • Bowling & dart leagues
  • Church groups
  • Alumni groups – high school, college and sport teams
  • Being a scout leader for boys or girls
  • Coaching or being a mentor

If you don’t have any hobbies yet, I suggest that you plan to get some before you retire. Sitting on a beach under an umbrella drinking margaritas sounds great but you will get bored after a while. You may not have the time right now but many schools offer adult learning classes. A friend of mine took a class on how to fix small engines. It is never too late to learn something new and it might just keep your brain from turning to mush.

Step Two: Retirement is a life changing event, prepare to change

Married couples have to adjust to being together 24 /7 which can add stress to your relationship. It’s a good idea for couples to have different hobbies and interests. Spending some time apart makes for more interesting dinner conversations. For example, I like to golf and my wife enjoys genealogy.

Household chores can be a thorny issue. Sharing or dividing these tasks will depend on your individual skill levels. My wife does most of the cooking but I will do most of grocery shopping and together we maintain the lawn & gardens. I recommend scheduling your household chores to be done during a weekday, save your nights and weekends for socializing.

Avoid becoming a couch potato, it is a sure way to shorten your retirement years. A regular exercise program should be part of your everyday routine. You don’t have to go to the gym and lift weights to stay fit. There are many simple ways to keep active; walking, cycling and swimming, just to name a few. If you have a partner, find something that you both enjoy doing, having someone to workout with can help you get off the couch.

Step Three: Take on new challenges

Learn to play a musical instrument, speak a second language or better yet give back to the community. There are many fine organizations that are in desperate need for volunteers. You have a wealth of experience, professional expertise and invaluable personal wisdom that shouldn’t go to waste. You have a lot to offer, find things that you are passionate about.

In my case, playing football was a strong positive influence in my life. In honor of all my football coaches, I spent six wonderful years coaching kid’s football.

When people ask me what I do all day, I tell them; “I am so busy in retirement that I was surprised I found the time to work”! Remember, variety is the spice of life.

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Moms rule and Dads drool: Happy Father’s Day

Sorry dads, but more money is spent on Mother’s Day than Father’s Day. The National Retail Federation expects Father’s Day spending to reach $12.7 billion. That sounds like a lot of money, but it doesn’t stack up to what was spent on Mother’s Day: $21.2 billion. There are a number of factors that contribute to making Father’s Day a lesser commercial holiday when compared to Mother’s Day.

Let’s face it, the majority of Moms prepare the family meals, so it is easy for restaurants to promote giving Mom a break from cooking by offering a Sunday brunch special. I asked the food & beverage manager at my golf club why they did not offer a Sunday brunch for Father’s Day. Her answer; “We tried it but had to cancelled due to lack of interest”. By the way, the mother’s day brunch is sold out every year.

Father’s day spending is now competing with Memorial Day, graduation and of course, June is prevalent for weddings. It is easy for children to justify spending less on dad who is laid back enough to be okay with receiving a smaller gift. Plus buying for Dad is tricky: Mom is probably going to appreciate flowers and chocolate more than Dad is going to dig his Daffy Duck novelty tie.

The most popular Father’s Day gift: quality time, it costs nothing.

father day

 

But Dads do matter: they really have an important role to play

Human beings are social animals and we learn by modeling behavior. In fact, all primates learn how to survive and function successfully in the world through social imitation. Those early patterns of interaction are all children know. It is those patterns that effect how they feel about themselves and how they develop.

Fathers are central to the emotional well-being of their children; they are capable caretakers and disciplinarians. Children who are well-bonded and loved by involved fathers, tend to have less behavioral problems, and are somewhat protected against alcohol and drug abuse.

Studies show that if your child’s father is affectionate, supportive, and involved, he can contribute greatly to your child’s cognitive, language, and social development, as well as academic achievement, a strong inner core resource, sense of well-being, good self-esteem, and authenticity.

How fathers influence our relationships.

Girls will look for men who hold the patterns of good old dad. If father was kind, loving, and gentle, they will reach for those characteristics in men. Girls will look for, in others, what they have experienced and become familiar with in childhood. Because they’ve gotten used to those familial and historic behavioral patterns, they think that they can handle them in relationships.

Boys on the other hand, will model themselves after their fathers. They will look for their father’s approval in everything they do, and copy those behaviors that they recognize as both successful and familiar. Thus, if dad was abusive, controlling, and dominating, those will be the patterns that their sons will imitate and emulate. However, if father is loving, kind, supportive, and protective, boys will want to be that.

As a father of two, a boy and a girl, I have accepted the fact that Moms will get a lot more attention than Dads. It doesn’t mean that your children love you less. Your reward comes from knowing that your sons or daughters will be successful academically, become well-adjusted members of society, be in loving relationships and have good careers. Hopefully, they will eventually become good parents.

This post is dedicated to my Dad who was done too soon and to my son who has begun his journey as a great Dad.