June 2021  Greetings, "Poker is about becoming comfortable with the fact that there is no such thing as a sure thing – ever. You will never have all the information you want, and you will have to act all the same," writes Maria Konnikova in her fascinating book The Biggest Bluff. I picked up the book not because I wanted to learn to play poker and increase my chances of beating my husband, who regularly plays (over Zoom) with friends. What interested me were life lessons from the author, who is a keen student of human nature. The game of poker offers a myriad of insights into personal finance. As my colleague, Tim Maurer, reminds us, personal finance is more personal than finance. Take investing -- it's less about knowing the markets than it is about knowing yourself and your capacity for risk, and putting guardrails in place to keep your plans from veering off course. It’s about understanding your financial decisions and the reasoning behind them. Whatever the question on your mind – from market risks to planning for the next generation, I hope you will find a gem or two that will give you a deeper insight into your financial self. And if you would like to learn how to use the tools of a con artist to your benefit, check out Konnikova's keynote at the Worlds Economic Forum at Davos. Happy Summer Dream. Plan. Prosper.

YOU CAN’T GET OUTPERFORMANCE WITHOUT UNDERPERFORMANCE Nobody minds market volatility when it moves in an upward direction. Big declines are another matter entirely. Go inside the stock market’s scariest moments of the past 50 years, first for some perspective on just how quickly the market historically has recovered ground and next to glean some insight about what these events can teach us about our personal willingness to endure risk. Read the full article.

SAVING STRATEGIES FOR YOUR CHILD OR GRANDCHILD’S FUTURE It’s no secret that kids cost a pretty penny, and pondering the best way to prepare for future needs and expenses can result in a lot of lost sleep. Start by understanding why you want to put money aside and your intention for it. Then read on for a review of some options and accounts you can use to achieve those goals and begin saving for the next generation. Read the full article.

WHAT YOU NEED TO KNOW ABOUT PARENT PLUS LOANS Many families will likely need to seek additional sources of funding to foot the bill for higher education, and that’s where a crash course on Parent PLUS Loans can come in handy. If you have kids approaching college age, study up on the ins and outs of this loan with a primer on its fundamental features and some considerations that go into the borrowing decision. Read the full article.

DON’T LET THE PERFECT BE THE ENEMY OF THE COMFORTABLE Patience and discipline in an investment strategy is far more important than the strategy itself, because it doesn’t matter how sound the approach is if you abandon it. Learn why successful investors recognize that the best portfolio isn’t the one that has the potential to make the most money, but is instead the one they feel comfortable holding through thick and thin. Read the full article.

ESTATE PLANNING BASICS: WRITING A WILL Your will is foremost among the essential documents that make up your estate plan, and sitting down to create one can bring into the present some tough and emotional decisions about what you want for the future. Tune in to our Ask Buckingham video podcast series for a back-to-basics look at what a will does, why it’s important, and who should have one. Watch the video.

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