Bruce Helmer and Peg Webb

As financial advisers, we spend most of our time helping clients look forward. But some of the most valuable insights we’ve ever encountered and incorporated into the advice we give come from older people looking back.

In recent years, we’ve made a point of asking our septuagenarian and octogenarian clients what they wish they had done differently with their money. Their answers, presented here in composite form, are honest, sometimes emotional and often strikingly similar (names have been changed for privacy). If you’re in your 40s or 50s and are just now getting serious about your financial life, these reflections could save you years of stress and regret. They also contain useful nuggets of wisdom for younger investors.

‘I waited too long to get serious’

Harold, 83, a retired business owner, spoke plainly: “I always thought I had more time. More time to save, to plan, to start. But time sneaks up on you — and then it’s gone.”

Many mid-career folks misperceive the power of compounding. They spent their 30s and 40s assuming they could “make up for it later,” only to find that later is an expensive time to start building wealth. If you’re earning well now, maxing out retirement accounts and investing aggressively should be a priority (but wisely, using effective diversification and tax-smart strategies).

‘We lived modestly even when we didn’t have to’

One of our most financially secure clients, Eleanor, 79, said something unforgettable: “We lived modestly even when we didn’t have to. That’s the reason we were able to travel in our 70s and help the grandkids with college. No fancy cars were worth that.”

Living below your means is the bedrock of financial independence. Regardless of income level, those who focused on savings and delayed gratification in midlife are often the ones who enjoy the greatest freedom in retirement.

‘I didn’t prepare for health care costs’

Frank, an 84-year-old retired engineer, shared a painful truth: “I thought I was healthy enough to never need long-term care. I was wrong, and it cost us more than I ever imagined.”

Medical expenses and long-term care costs can derail even a well-planned retirement. Planning early, by considering long-term care insurance or building specific savings buckets for health-related costs, is essential — especially for high-net-worth individuals.

‘I stayed invested, and I’m glad I did’

The most experienced investors understand that financial markets move in cycles, and over longer time periods, they have always recovered from downturns. George, now 80, revealed an enduring truth: “In 2008, I almost sold everything. But I remembered what my father told me: never make big decisions on your worst day. So I stayed in, and I’m glad I did.”

The lesson? Emotional decisions are the enemy of long-term investing. Staying the course often beats trying to time the market, especially when your time horizon is decades, not days.

‘Giving while you’re alive is more rewarding than waiting’

Lucille, 85, lit up when she told us about helping her daughter launch a business: “The best check I ever wrote was to my daughter when she started her own business. I got to see her thrive. That joy? You can’t buy that at 85!”

For those with the means, strategic lifetime giving can be deeply fulfilling and tax-efficient. Don’t wait until your estate plan executes to experience the joy of generosity, whether you’re giving to family or charitable causes.

What you can do now

If you’re in your peak earning years, this is the time to act, not “someday soon.” Consider a “regret audit:” What would your 80-year-old self wish you’d handled differently today? Here are four immediate next steps:

• Max out your 401(k), Roth IRA, and HSA, and consider opening a brokerage account for investment and tax diversification.

• Stress-test your retirement income plan and make revisiting it an annual or semiannual habit.

• Plan for unexpected longevity — financially, medically and emotionally.

• Talk to your spouse, kids and adviser about your long-term wishes now, not later.

Ruth, 87, summed it up perfectly: “If I could go back, I wouldn’t chase more money. I’d chase more freedom. Freedom comes from knowing what’s enough.”

You don’t need to be perfect. You just need to start. The people who’ve lived through decades of financial ups and downs are telling us what really matters. The question is: Are you ready to listen?

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO 830 AM on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Securities offered through LPL Financial, member FINRA/SIPC. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor. Wealth Enhancement Group and Wealth Enhancement Advisory Services are separate entities from LPL Financial.

 

A driver died in a single-vehicle crash early Saturday in Scandia.

Emergency personnel responded at about 3:30 a.m. to a report of a crash in the 22600 block of Olinda Trail North.

The driver, James Raymond Lowe, Jr., 23, of Lindstrom, was found dead at the scene, according to the Washington County sheriff’s office.

Distracted driving appears to be a factor in the crash, which remains under investigation, the sheriff’s office said.

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Gunshots followed a graduation ceremony Friday at Burnsville High School, according to police.

There were reports of multiple altercations west of Burnsville High School at about 8:30 p.m., about 30 minutes after the end of a graduation ceremony at the school. Burnsville police officers on site for the ceremony heard and immediately responded to reports of gun shots, police said.

No injuries were reported and four people have been apprehended, according to Burnsville police.

The incident remains under investigation.

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Amy Lindgren

Second Sunday Series – Editor’s Note: This is the tenth of 12 columns on AI and work, appearing the second Sunday of each month, from September through August. Last month’s column described AI issues for writers, while previous columns looked at AI tools for organizing or conducting the job search; interview prep; resumes and cover letters; best practices for companies using AI; tips for using ChatGPT; work opportunities with artificial intelligence; AI use in the hiring process; and an overview of artificial intelligence in general. 

One concern about artificial intelligence is whether using it will erode workers’ skill sets. And if so, is that just the inevitable cost of productivity gains?

It’s a topic that deserves at least a book or two for analysis. Even so, I’ll jump in with this brief look as part of my monthly Second Sunday series on AI and work.

We’ll start with the skills side of the equation. Career counselors know that skills are a foundational concept and a way of ordering everything from different kinds of jobs to the stair-stepping needed for certain career paths.

I use a stripped down definition of “skill” and rely on a few distinct categories.

• Definition: A skill is something you can do, regardless of why/how. That is, you could be self-taught, formally trained, or just talented in a specific area. But if you can do that thing, whatever it is, you have that skill. Note that this definition doesn’t describe proving the skill, but most employers will want more than just your word for it.

The categories of skills as I see them:

• Task / industry skills and knowledge — such as the skills an actuary or barber would use in their specific jobs. I’ve also seen these called “hard skills.”

• Soft skills — which include human-centered strengths, such as empathy or conflict management or leadership.

• Core skills — which I identify as the baseline skills I believe every worker needs, regardless of the job: Writing, speaking/presenting, persuading, computing, and managing. These are sometimes called universal skills, and the list might shift depending your viewpoint.

• Transferrable skills — which is really an amalgamation of all other skills. Since every skill is transferrable, the question is to what, and for what reason. Core skills are the easiest to transfer from one job or profession to another, while deep industry knowledge might be the least transferrable.

Now that we have a definition and categories of skills, what do they have to do with artificial intelligence? Just this: Skills are the building blocks for jobs. All of them. Employers may say they’re hiring you for your degrees or experience, but in truth, it’s your skills they’re after. If you remember that a skill is “something you can do,” you’ll see that employers hire you to do something, not be something. Except for situations when specific training is regulated — nursing, for example — employers are free to ignore how you got the skill they need.

They’re also free to ignore whether you’re human.

And there’s the issue in a nutshell: If employers need the skill, not the degree or even the human pulse, then what keeps them from using AI instead of a worker for any specific task? The answer: nothing, except for the limitations presented by the technology itself. For example, if AI is too expensive, too cumbersome, or simply not feasible, it won’t take over that role. Easy examples include high-touch work (nursing again) or physical roles such as most jobs in the trades.

Having posed the question earlier about whether AI erodes worker skills, I have to believe it does — because that happens with pretty much every technology. As an example, ask yourself how many people can read a map, now that they routinely get directions from GPS?

Which brings us to core skills — those that are fundamental to every job, from the trades to the C-suite, and which are highly transferrable between jobs, careers, and even self-employment. If I were going to ensure that any of my skills remained strong, I’d focus on building/rebuilding my communication skills (writing, speaking, managing, persuading) and my computing/technology skills (including use of AI tools).

These are the skills that make each person unique, but also the skills we most need in our regular lives and not just our jobs. They’re also the skills used to navigate sudden changes brought on by AI, which are certain to keep coming.

In next month’s Second Sunday column, I’ll share resources to help you maintain core skills and better navigate an increasingly AI-driven world.

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Amy Lindgren owns a career consulting firm in St. Paul. She can be reached at alindgren@prototypecareerservice.com.