Sometimes we need to have a little fun. Credit for this “Yoda” idea goes to Brandon, one of the regular readers here on The Retirement Manifesto. In response to my article on “Retirement: Reality Vs. Expectations”, Brandon left a comment with some relevant Yoda quotes (read his original comment using this link).
Curious, I Googled “Yoda Quotes” and the idea for today’s fun post was born.Yoda's Best Quotes, and how they apply to Personal Finance Click To Tweet
For those of you that live in a cave and don’t know who Yoda is, enjoy this short YouTube clip of Yoda teaching Luke Skywalker about the power of Faith. As the oldest and most powerful Grand Jedi Master, perhaps he can teach us a few things about personal finance. I can only imagine the lessons he must have learned during his 800+ years of work…..
Yoda: The Greatest Personal Finance Teacher Ever?
Personal Finance is a world of patience. It takes years for compounding to truly impact your portfolio size. Make it your habit to automate your savings by setting up ACH transfers from your checking account into your investments, or using payroll deductions to contribute to your employer’s savings plan. Set it, be consistent in your savings, and then be patient.
“You will know (the good from the bad) when you are calm, at peace. Passive. A Jedi uses the Force for knowledge and defense, never for attack.”
It would appear that our friend Yoda prefers passive investments over the actively managed accounts. I suspect he may have been the first Boglehead? Good call, as passive index funds offer lower expense ratios than actively managed funds. Over time, evidence suggests the extra fee does not result in better results, and most experts are now recommending personal investors focus the majority of their investments in passive index funds.
One of my goals in writing this blog is to share the lessons I’ve learned in over 30 years of personal investing. I’m now making it a focus to teach those lessons to my daughter. Take the time to share lessons you’ve learned. Listen to Yoda.
Looks to me like Yoda’s not a fan of market timing. Don’t get caught up in a panic when the market enters it’s inevitable “correction” cycles. Maintain a long term perspective on your investments, and don’t get caught up in the hype. Read how I manage my investments during times of volatility.
Yoda doesn’t like excuses. If you’re “trying to save more”, get over it. Either do, or do not. You’ll live with the consequences either way. Find a way to “Do”, find a way to save. The clock never stops running, and at some point your retirement is inevitable. Be ready. Save now.
Looks like Yoda’s not a big fan of speculative buying. Dollar cost average your way into a well diversified portfolio.
“You think Yoda stops teaching, just because his student does not want to hear? A teacher Yoda is. Yoda teaches like drunkards drink, like killers kill.”
My final Yoda quote for today. Proof that Yoda was a great teacher.
Perhaps, even, the greatest personal finance teacher ever.
And, just for fun, I’m closing this post with a silly picture of a Yoda dog. Just because I can. Smiles!