George Washington's First Thanksgiving

Financial Lessons from Thanksgiving


By Steve Davis, CERTIFIED FINANCIAL PLANNER™

President George Washington designated November 26, 1777 as the first Thanksgiving Day recognized by the US government. In the years that followed, each state scheduled its own Thanksgiving holiday at different times, until Abraham Lincoln made it an ongoing National holiday. His proclamation read, “I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next, as a day of Thanksgiving and Praise to our beneficent Father who dwells in the Heavens.” For most of us, Thanksgiving goes by in a blur of family, friends, holiday preparations, and a table of traditional dishes. The story of the first Thanksgiving was very different from our own and holds important lessons for us today.

The Fruit of One’s Labors:
After landing on our shores, life was almost unbearable for the Pilgrims for the first few years. Crop yields were poor and many went hungry. William Bradford, the Governor of Plymouth Bay Colony later reasoned that the old English tradition of farming in common – where the harvest was collected and rationed based on need – led to a lack of productivity. It seems that some of the colonists resented not receiving a share of the harvest proportional to their labors. When Bradford decided to abandon farming in common in the spring of 1623, things changed. He set aside a plot of land for each family as their own private property to supply themselves with corn. The result was a bountiful harvest. The idea of enjoying the fruits of one’s own labor caused productivity to soar. Bradford wrote, “It made all hands very industrious, so much more corn was planted then otherwise would have been by any means.” And so, in the fall of 1623 Governor Bradford “set apart a day of thanksgiving.”

Recover from Mistakes:
When the Pilgrims first packed their belongings into trunks and crossed the rickety wooden gangplank onto the deck of the Mayflower, they were setting sail much later than they had originally planned. Instead of reaching their planned destination in Virginia, they found themselves hundreds of miles off course. They anchored in Massachusetts and braved a frigid first New England winter and then suffered three years of near starvation. Many would curse their bad luck and consider giving up, but not these hardy souls. The Pilgrims accepted the things they could not change and adapted and adjusted to their unforeseen and new conditions. How do we respond to setbacks? If you have experience investment losses, or if you’ve racked up too much credit card debt, or if you’ve made some bad career moves, resolve to recover and bounce back. We can learn from the Pilgrim’s example and ability to overcome.

Weather Hardships:
The men and women that first landed on these shores back in 1621 were not seasoned explorers or soldiers; they were mostly a group of religious Separatists who held regular jobs. They were farmers and printers and shoemakers with no experience or knowledge in establishing a settlement in an adverse land. During that first traumatic winter, half the pilgrims died.


And here we are, almost 400 years later, living in vastly different times. Still, human hardship remains. People get sick, loved ones die and we sometimes struggle because of unemployment or any number of other life events. The Pilgrims were a small group who leaned on each other and their Native American allies. What is your support network like? As you gather with your family and friends this week, take time to develop and appreciate the ability you have to offer support and guidance to one another.

Move Ahead:
Those first years in Plymouth must have been dreadful. Of course they didn’t have consumer confidence surveys back then so we don’t know the sentiment in the early 1620s. Eventually, the fledgling colonial economy became so successful that Governor Bradford wrote these words 24 years after the first Thanksgiving, “Any general want or famine has not been amongst them since to this day.” Years of abundance followed the first few hard winters. Eventually the colony produced enough corn to spare and trade for other comforts and enjoyment.

What about today? According to Bloomberg Consumer Comfort Index, confidence hovered last week near a record low. However, unemployment is slowly improving, businesses generally have good balance sheets and profits have been boosted by cost cutting on everything including capital spending and inventories. While the economic data doesn’t point to robust economic growth, the economy is expanding. It is my hope that soon workers will be enjoying the fruits of their labors with years of abundance.


Give Thanks:
Before you enjoy your meal this Thursday, perhaps you might like to share the words of President George Washington with those at your table. Here is his Thanksgiving Proclamation from October 3, 1789:

     Whereas it is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor; and Whereas both Houses of Congress have, by their joint committee, requested me to “recommend to the people of the United States a day of public thanksgiving and prayer, to be observed by acknowledging with grateful hearts the many and signal favors of Almighty God, especially by affording them an opportunity peaceably to establish a form of government for their safety and happiness:”
     Now, therefore, I do recommend and assign Thursday, the 26th day of November next, to be devoted by the people of these States to the service of that great and glorious Being who is the beneficent author of all the good that was, that is, or that will be; that we may then all unite in rendering unto Him our sincere and humble thanks for His kind care and protection of the people of this country previous to their becoming a nation; for the signal and manifold mercies and the favorable interpositions of His providence in the course and conclusion of the late war; for the great degree of tranquility, union, and plenty which we have since enjoyed; for the peaceable and rational manner in which we have been enable to establish constitutions of government for our safety and happiness, and particularly the national one now lately instituted for the civil and religious liberty with which we are blessed, and the means we have of acquiring and diffusing useful knowledge; and, in general, for all the great and various favors which He has been pleased to confer upon us.
     And also that we may then unite in most humbly offering our prayers and supplications to the great Lord and Ruler of Nations and beseech Him to pardon our national and other transgressions; to enable us all, whether in public or private stations, to perform our several and relative duties properly and punctually; to render our National Government a blessing to all the people by constantly being a Government of wise, just, and constitutional laws, discreetly and faithfully executed and obeyed; to protect and guide all sovereigns and nations (especially such as have shown kindness to us), and to bless them with good governments, peace, and concord; to promote the knowledge and practice of true religion and virtue, and the increase of science among them and us; and, generally to grant unto all mankind such a degree of temporal prosperity as He alone knows to be best.
     Given under my hand, at the city of New York, the 3d day of October, A.D. 1789.

The High Cost of Weddings: 4 Consequences to Newlyweds

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™



My wife and I have four children – all boys – and I used to joke that this was a strategic financial planning decision because it meant that we wouldn’t need to pay for any wedding expenses in the future.

The short-lived Kardashian celebrity wedding covered by the E! Network was said to have cost $10 million. And TLC’s “Say Yes to the Dress” routinely shows brides and their parents forking out tens of thousands of dollars for a dress. According to Bride Magazine, the average cost of a wedding in 2010 was $26,501. Sure, that’s chump change next to the Kardashian debacle, but seriously, 26 grand? Are you kidding me? These days the average cost of a wedding almost makes a year at Northeastern University affordable.


Running of the Brides at Filene's Basement


The news gets worse for frugal brides: just last week Filene’s Basement filed for bankruptcy protection. For years, Filene’s advertised an annual bridal sale where dresses sold for $249 to $649 – a huge markdown from full retail prices of $900 to $9,000. Now that the 102-year-old retailer is closing its doors, their annual “Running of the Brides” event is a thing of the past.

The cost of dresses, photographers, caterers, flowers and honeymoon all add up.  So what kind of impact does this sort of expense have on newlyweds? Here are four consequences:

1. Debt.
Some couples start their marriage deeply in debt. Sure, it’s not unusual for most twenty-somethings to have school loans to pay back, but adding debt to pay for an expensive wedding compounds the problem and often strains a couple’s resources and adds stress to a young marriage.

Couples can avoid wedding debt by listing what they really want and identifying what they can do without. Learning to prioritize is a key financial skill for couples to develop. What is more important... to have a down payment on a house or a big wedding with a costly open bar? If you can afford both, great! If not, make some concessions: invite fewer people, change the venue, use a DJ rather than a band. In all cases, couples should make a budget and avoid wedding debt by putting money aside. The old wedding custom of “something borrowed something blue” wasn’t referring to bank or credit card debt.


2. Lost Opportunity.
The biggest cost of a wedding isn’t the actual dollar spent on the event itself. It’s all the money you could have accumulated if it were saved instead. Economists call this “Opportunity Cost”. Here’s a hypothetical example using a 25-year old bride who invites fewer people to her wedding and consequently cuts her wedding expenses by $10,000. If she saves that $10,000 over her working life of 40-years, her savings could grow to more than $70,000 assuming a five percent interest rate. Some would say that the true cost of inviting the extra guests wasn’t $10,000, but $70,000.

3. Obligation to Dom and Dad.
I often advise parents that they should not create a retirement problem down the road by trying to solve a wedding funding problem for one of their kids today. According to wedding planners, the tradition of having the bride’s parents pay for everything is slowing fading away. Why? Because newlyweds realize that if mom and dad can’t afford to pay for their own retirement, they’re going to have to have to invite mom and dad to live with them, or pay for their assisted living.


4. Crime?
Here’s a weird story. Earlier this year, police say that one Pennsylvania couple resorted to crime in order to pay for their wedding. April Carter, 24, and Joseph Russell, 23, allegedly stripped more than $7,000 worth of copper wire from 18 utility poles and then sold it to a salvage company. PennPower officials inspected the area and found that transformer ground wires had been cut. Surely there are better ways to plan and pay for a wedding than resorting to theft! I can’t imagine that spending a honeymoon in the clink would be much fun either…

Financial Routines for Financial Success

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™


There’s a different routine in my house these days. I’m writing this on the first day of school for my younger two boys and over the past few weeks my older two sons have gone to their respective colleges (VCU in Richmond and MassArt in Boston). The lazy days of summer are over and the kids are going to bed early and getting up at the crack of dawn. And with the older boys out of the house, there is no more having to wait up until they’re safely in the driveway after a night out with friends. It’s great!

For many families, the beginning of the school year marks the start of new routines -- packing lunches in the morning, extra-curricular activities in the afternoon and homework at night. At dinner tonight, our family talked about the day’s events and about the changes to our schedules and routines. We spoke about how success in the classroom often starts with having a good attitude toward school. And this got me thinking about personal finance and how simple changes in one’s attitude and routine can often have a profound effect.



Eat Your Brocolli



A lot of people view personal finance as complete drudgery, a task to be avoided in favor of … pretty much anything else in life. For folks who keep that negative attitude, personal finance success will be very difficult. Instead, we should view it as a personal challenge – just like eating our broccoli. Who knows, if you go into it with a positive attitude, maybe you’ll find it isn’t that bad after all. It took me a long time, but I finally realized broccoli doesn't taste so bad; in fact, I think it's delicious.

 

Perhaps you’ve got the equivalent to cold broccoli sitting on the corner of your empty dinner plate. I can’t begin to tell you how many people I meet who have sizable amounts of money saved up in their old company’s 401k plan, but who never really pay any attention to the portfolio; it just sits there neglected. Simalarly, you'd be surprised at how many times bank CDs get automatically rolled over at ridiculously low interest rates just because individuals don’t take the time to explore their options. If you’re ready to start a new financial routine, you need to start with a checkup.  

Create Habits to Handle Personal Finance

Take a moment and think about how you currently handle your personal finances. Do you have a system for paying your bills on time? Letting a bill sit on your desk even one day too long can cost you in hefty late payments or lost discounts. How about your investments? Do you check your portfolio regularly and know what you’re investing in? What about the way you budget for vacations or big ticket purchases or expenses? After some self-examination you should be able to determine whether your existing financial habits are good ones or bad ones in need of change.

The goal, of course, is to create good financial routines which become habits that are burned into your subconscious – things you do because you’ve trained your mind to do them automatically. It is financial routines like this that play a huge role in financial success.



This article was written by Steve Davis and appeared in the column "Talking with Davis about Money Matters" found at http://mansfield-ma.patch.com



The 2011 Pan Mass Challenge Recap

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™

It has been a month since my most excellent adventure and I can happily tell you that I’m fully recovered. I’m writing this note to offer my heartfelt thanks to those who supported my ride in the Pan Mass Challenge. Thanks to you, we are able to contribute $6,500 toward the expected $35 million total for the weekend; that’s more than half the Jimmy Fund’s annual revenue. Wow!

Hannah’s Huckleberries

I’ve been riding the PMC for 14 consecutive years and I thought it would be appropriate to share some thoughts and descriptions of this year’s four day, four hundred mile bike ride.

Our Pedal Partner: Hannah Hughes

For me, this year was particularly memorable because of a little girl named Hannah Hughes. Only eight months earlier Hannah had been diagnosed with a fast-growing cancer that required her family to routinely travel 200 miles each way from their home in Ballston Spa NY to the Dana Farber Cancer Institute where Hannah could receive treatment. While at the Jimmy Fund clinic, Hannah learned about the PMC and its “Pedal Partner” program which matches young patients with teams of cyclists. I ride on team Huckleberry which is comprised of a group of friends who routinely start the PMC a day early and ride from West Stockbridge so we can cross the whole state in a true Pan-Mass Challenge. Our team was honored to adopt Hannah and because her commute to Boston is so long, we thought it only made sense for us to bring the PMC to her.

On Wednesday, Sandy and I drove to Saratoga Springs, New York in anticipation of rendezvousing with several of my teammates the next morning. We had a wonderful evening together walking up and down the streets of that famous horse racing town. There was a big event scheduled at the track that weekend so the place was buzzing with activity. Main Street was lined with art galleries, restaurants and all sorts of interesting shops. Only later did we learn that the place once received the “Great American Main Street” award – who knew such an award even existed?! We found a nice restaurant where we could both do some serious people watching and where I loaded up on carbohydrates.  

Thursday morning dawned with clear skies and soon Sandy and I were off to meet the Hucks at a local Dunkin Donuts so that we could then travel together to Hannah’s home. It was fun for me to have Sandy there; she was able to meet a bunch of guys I’ve know and hung out with every summer, buy many of whom she had not yet had the pleasure to meet. Shortly after 9am, we all piled back into our cars and drove the short distance to Hannah’s home. We were greeted enthusiastically by Hannah, her mom and dad, her younger sister, and all sorts of neighbors, friends and extended family – they had all taken the morning off from work and gave us a warm welcome. For all the years I’ve ridden the PMC, I’ve always had a personal motivation to do so. When my mom was first diagnosed, it gave me an outlet; when friends were diagnosed or died from this terrible disease, it gave me an opportunity to ride in their honor… or their memory. This time, however, I was riding for someone I had just met and it added a new dimension to the PMC. I can’t imagine what it must be like for Hannah’s parents Jeff and Rana. For all the heartache they surely must be enduring, it gave my friends and me a great deal of joy to be able to show them support and hopefully buoy their spirits. And Hannah? She was vibrant, expressive and seemed genuinely happy. After an hour of warm conversation, our team prepared to leave for the first leg of our journey. Before we did, however, Hannah presented each one of us with a purple bandana embroidered with the words, “Love, Hannah”. I pray that God will heal this child and her family.  



Hannah and her mom, Rana



Hannah's Dad Jeff, Hannah, Huckleberry Hound
and Team Captain Dave Grossman



Ballston Spa NY to West Stockbridge MA

Hannah’s Huckleberry’s lined up in her driveway and after I gave Sandy a goodbye kiss and a few final hugs and high-fives to everybody else, we were off. There were thirteen of us riding in a single paceline following a route planned out and downloaded to a few bicycle GPS computers owned by some members of the team (very cool). We headed west across the Hudson River and then south parallel to the MA border until we finally crossed the state line in West Stockbridge. The route was nice, but one of the things those fancy GPS units can’t do is distinguish between dirt and asphalt roads. A few times we were surprised when the roads turned to gravel, but nothing was more surprising than the time I was bombing down a hill toward the finish at 35+ mph when the smooth decent turned to gravel… Yikes.



Paul Davis on the Summit of Mt Whitney



When I look back on the ride that day there were two things that stand out. First, when we crossed the Hudson, several of us spotted a huge American Bald Eagle. I had never seen one in the wild so it was pretty thrilling to see the majestic nature of this remarkable bird. Next, as we were approaching our lunch stop, I could feel my cell phone vibrating in my jersey pocket; it was an incoming text from my son Paul (who previously had joined me on three PMCs). Paul was hiking the 200-mile John Muir Trail from Yellowstone National Park through the Sierra Nevada mountain range and since there is no cell coverage along the trail, it had been several days since I last heard from him. Once we stopped for lunch and I pulled out my phone, I was thrilled to not only see that it was Paul who had texted, but that he included a photo from the summit of Mt Whitney, the highest point in the Continental US. I’m thankful that my teammates humored me while I acted like a proud dad and passed my phone around so they too could see my boy safe, sound and on top of the world. I imagine my feelings of relief were in stark contrast to the anxiety faced each day by Hannah’s dad and mom.



Dinner at the Shaker Mill Tavern





We arrived at the finish around 4 o’clock. In most years, the members of team Huckleberry drive out to West Stockbridge early Friday morning, but because we were all there Thursday night, we had the unique opportunity of sharing dinner together. This really was a lot of fun and is something I hope we can repeat in the future. I’m sure the proprietors of the Shaker Mill Tavern hope this same group of hungry cyclists makes it a recurring event too.

West Stockbridge to Sturbridge



In 1999 my good friend Jim Boyko and I planned to ride the PMC. It would be my second year riding and Jim’s first. He suggested that we start a day early and ride from the New York state line. Somehow Jim discovered that a few other guys had a similar idea and beat us to the punch by riding from West Stockbridge the year before. We were invited to join them and this was the genesis of Team Huckleberry. Since Jim grew up in Western Mass, he was able to tweak the original route and helped us discover some great roads and a terrific lunch stop (Atkins Farm in Amherst). But before lunch, we needed a place to grab a mid-morning snack – the place was a bakery in Huntington called Huckleberries. The food was great, the owner a doll and the locals even welcomed our group of sweaty stinky cyclists by putting PMC donations into a coffee can on the counter. A few years ago, the shop sadly closed down, but we keep its name alive.



The official Team Huckleberry jersey



Steve Siegel at the Huckleberry Bakery in 2004



 Since the beginning, we have always started our ride by lining up in front of the “Welcome to New York” sign so that we can capture a group photo. This year’s photo was different from all the previous ones because this year we posed wearing Team Huckleberry jerseys. After all these years, we finally had an official jersey! For the next 100 miles we managed to stay together throughout the day and finally arrived in Sturbridge as one. Our paceline was smooth and fast, plus we looked really good too!

  

The 2011 Team Huckleberry: Steve Weiss, , Tom Tinory, Steve Davis, Mark Stockwell, Mark Dolny, Jon Siegel, Ellen (Huck Chick) Kirk, Steve Siegel, Mike Lucas, Rawson Hubbel, Dave Grossman, Tim Conry, Joel Bard, Remy Evard, Scott Taylor

  

One of the most shocking things for me during the entire weekend was riding along Route 20 just west of Sturbridge. It was here that the June 1 tornado touched down and left a scar of devastation. In Brimfield, a ½ mile swath of broken trees extended for what is said to be 20 miles; our route went right through the middle of it.   



Aerial photo of tornado devastation along Rt 20 -- How did this house survive?

The PMC festivities take place at the Sturbridge Host Hotel and it is here that thousands of PMC riders converge to register, receive their PMC jerseys, and take place in the annual carbo-loading dinner and opening ceremonies. Lance Armstrong was one of the 5,227 riders taking place in the event. While everyone was celebrating and catching up with old PMC buddies, I received a somber phone call from Sandy. My grandmother, Gladys Davis had died earlier in the day. Nanny was 98 years-old and lived a good long life. I have such fond memories of Nanny and was always impressed with her enthusiastic outlook. In recent years, her mind had started to go and one of my last memories was visiting Nanny in her nursing home – Sandy and I were preparing to say goodbye when Nanny looked directly at us and said, “I’m SO happy.” It was the story of her life. We should all live to be her age.

 



Great Nanny and my dad



The Pan Mass Challenge: Sturbridge to Bourne

My friend Mike Lucas and I share a room together each year and Mike is in charge of the alarm clock. It went off at 4 am. Ugh. The PMC starts early in an effort to beat traffic. We’re up before sunrise and amazingly the hotel is buzzing with volunteer activity even at that hour. Folks are serving the riders Dunkin Donuts coffee and muffins, mechanics are pumping tires and performing last-minute adjustments, and hundreds of supporters line the start to cheer us on. Once all the cyclists are up, the place becomes a zoo. Not only do we need to eat, but we need to find our bikes and place them in the correct corral so the fast riders aren’t mixed in with the pedestrian riders (and vice-versa).



Thousands of cyclists crowd the starting line



This year, I made a huge mistake. Because the place was so crowded I decided to skip breakfast and fuel up at the first water stop 20-miles into the ride. Not a good idea, especially when my tank was near empty from riding the previous two days. You would think I was a rookie!

One of the most difficult parts of the Saturday ride is the mile long Muggett Hill in Charlton. This is early in the ride when thousands of riders are still bunched together and all too often a slower rider overestimates their abilities and starts with the fast group but then slows to a crawl on the uphill. When this happens it can become dangerous with riders changing their lines to get past the bottleneck. I came across one such rider on Saturday and asked her if she’d like some help. “What do you mean” she asked. At that point I placed my hand on the small of her back and pushed her up the hill while riding alongside. She was able to keep pace with the group and kept thanking me over and over as we rode along. No sooner had we reached the top that I realized my expending more energy on the climb was causing me to *really* wish I hadn’t skipped breakfast. The first rest stop couldn’t come soon enough – I was starting to bonk and wondered how in the world was I going to ride 112 miles today.



Riding in the Paceline behind Steve Weiss aka "Big George"



I ate a sensible amount at the first rest stop and then suffered alone for the next 20 miles since the number of cyclists, all wearing identical PMC jerseys, made it next to impossible to find the other members of my team. When I arrived at the next rest stop, my friend and teammate Ellen Kirk saw me sitting on the grass by one of the food tents. She could tell I was struggling and without saying much, picked up my bike and rolled it over to the area where the rest of Team Huckleberry had started to congregate after finding one another. “No Huck left behind” has been a motto for our group and on this day I got to understand what a wonderful sentiment that really is. For the rest of the day, I rode easily in the slipstream of my friends and gradually recovered enough to finish the ride feeling strong. It’s said that one uses up to 30 percent less energy when riding in the back of a paceline. Thanks Ellen!

Team Huckleberry at the cemetery with Mike

 

I’m so happy that I was able to hook onto the Huckleberry train because the rest of the day was so memorable and I was pleased to be able to share it with them all. First, we took a planned ¼ mile detour off the PMC route so that we could visit the cemetery in Berklee where Mike’s wife and mother were buried after having lost their battles with cancer many years ago. The team rode quietly into the cemetery and stopped giving Mike an opportunity to share a few thoughts with us all. Coincidentally, another good friend (and PMC rider on sabbatical), Seth Dillingham also has family members buried at this cemetery too. All who ride the PMC have been touched by cancer in one way or another. Standing silently in that small private graveyard certainly reminded us once again of the reason for the ride.



The Davis' in Lakeville -- Mom wearing her Living Proof Button

After rejoining the PMC route, we rode to Lakeville where a Pedal Partner Picnic was scheduled for Hannah and all the other Jimmy Fund patients adopted by other teams. Sandy and the boys along with my folks planned to join us there too. Seeing my mom on Saturday has become a PMC tradition for me and it’s always an emotional experience for both of us. And once again, mom would be wearing the “Living Proof” button that I had given her after my first PMC in 1998. As we neared the water stop, the road was lined with posters of the children participating as Pedal Partners and was another telling reminder of the reason for the ride. Seeing my boys interact with Hannah – Dan playing catch with a beach ball, for example – made me feel that my kids “got it”. That it is important to be compassionate and kind to everyone, especially those in need. We spent at least an hour in Lakeville making sure that the Hughes family got a taste of what the PMC is all about. In the end, my friends, family and I came away having received more from Hannah than we could possibly have given. She and her family are a wonderful example of strength and courage.

A high-5 with Hannah before heading out on the road again

While my body was feeling better as Saturday’s ride progressed, something began to go wrong with my bike -- it developed an annoying click with every rotation of the pedals. At 90 revolutions per minute and with a couple of hours left to ride, it was driving me crazy and undoubtedly driving my teammates even crazier. Click, click, click… In any event, we arrived safe and sound in Bourne and would soon shower, change and enjoy plenty of food and beer. But first, I took my bike over to the Landry’s bike shop repair tent and they completely overhauled the drivetrain on my bike and fixed the problem. The pedals turned smooth as butter and were quiet too. Awesome!

Look Ma, no pedals

Saturday’s ride ends at the Mass Maritime Academy and the school grounds are turned into party central. There is a tent that would make Ringling Brothers’ big top look small. Thousands of riders and volunteers mill about eating hamburgers, clam chowder, pizza, baked potatoes, and just about anything else you can think of. Live bands play set after set of music and hundreds of massage therapists volunteer to help ease the aches and pains in the riders’ legs and backs. Over the years, the PMC has gotten bigger and bigger and one of the downsides to this growth is that it sometimes becomes hard to find your friends. It was impossible to use cell phones because so many riders inundated the towers and consequently the lines were jammed. My friend and Mansfield neighbor, Tony Bretti, rode the Wellesley to Bourne route and while he was under the tent the whole afternoon, we never saw each other once. Go figure. 

 

As the day turned to evening, the tent thinned out as riders started to retire to their sleeping quarters. Some stayed in dorms, others in tents. I stayed on the training ship and slept in the lowest level berth with 40 plus other guys. The beds were stacked three-high and so cramped that the sailors call them coffin bunks. It didn’t bother me at all and I think I fell fast asleep by 8:30.

The Pan Mass Challenge: Bourne to Provincetown

Reveille came early. At 4 am we were awake and soon learned that it was pouring outside. I joined the throngs heading to the breakfast tent – there was no way I was skipping breakfast today! I grabbed an egg and ham sandwich and stood silently under the tent watching the rain pour down and puddle on the grass. Was it starting to slow down? Yes! By 5:00 the rain was a drizzle and soon it stopped altogether, just in time for our 5:15 departure. Riding over the Bourne Bridge is a big effort on a bike. It’s a steep climb and is crowded with tons of cyclists who are elbow to elbow trying to share space with one another and the occasional car and truck making an early escape to the beach. Once over the bridge, we ride along the Cape Cod Canal and eventually head down Route 6A. It’s a beautiful ride and one of the highlights each year is in Brewster. There, hundreds of campers at the Cape Cod Sea Camp line the street and cheer loudly and enthusiastically as wave after wave of pacelines make their way past the hedge in front of the camp. It’s an amazing feeling and creates quite a surge of adrenalin in me every year. So cool!





Jack and Paul

Right after the camp, the route turns into Nickerson State Park and every year I have ridden the event, a boy named Jack has greeted us. The first year I rode his parents stood there pushing a baby carriage and holding a sign that said, “I’m two because of you.” The first time I saw Jack and his parents, I cried. And in each succeeding year the little boy got older and the sign changed. When Jack turned 8, he passed out little plastic medals to any and all cyclists. Mine still hangs in my office and reads, “Thank you, from Jack.” In 2006 when my son Paul was 15 (the minimum age for riding the PMC), he met Jack at the Brewster stop and I recall commenting to Jack that it wouldn’t be long before he would be old enough to ride too. Well, this year Jack turned 15 and for the first time he wasn’t in Brewster to greet us – he was riding! I saw him on the road too and get this; he was riding with one foot in a cast. He broke his foot trying to land a 360 on his BMX bike a few months before the PMC. Jack was no longer a little boy with cancer. He was a normal teenager doing all the things that 15 year-old kids do. That’s the hope that I have for Hannah too.

Home

Team Huckleberry stayed together all weekend and we arrived in Provincetown around 10:30 Sunday morning. We celebrated another completed PMC and before too long, we were all off on our separate ways. I took one of the fast ferries from Provincetown to Boston and was greeted at the dock by Sandy.  We drove back home to Mansfield where I crashed on the couch feeling both exhausted and exhilarated. The PMC was over, but its memories will continue.



A Happy Group of Friends at the Provincetown Finish Line



Boston Skyline from the PMC Fast Ferry

Sign greeting riders at the dock in Boston



Thanks again for your continued support.  It means so much to me and I'm convinced now more than ever that the contributions we make and the time we spend is making a world of difference in the lives of many.   

 



5 Money Tips Every College Freshmen Should Know

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™


For many college freshman and their parents, the next few weeks will be the beginning of a new adventure. I should know since another one of my boys heads off to college this year. The freshmen are leaving home, orientation is in full-swing and the students are sizing each other up and getting used to their new surroundings. Similarly, parents are getting acclimated to new surroundings too – an unusual silence in the home and questions about how best to fill the hours that were previously spent with our sons and daughters watching their sporting events and attending their school activities.

Saying Goodbye: Toy Story 3                        © Disney/Pixar

As a parent, I have conflicting emotions; I eagerly anticipate the wonderful experiences my son will enjoy over the next four years, and like Andy’s mom in Toy Story 3, I have feelings of melancholy and longing. Parents of college freshmen will fondly remember reading bed-time stories and taking their sons or daughters to the soccer fields on Saturday mornings. For those of us who can’t comprehend that it has already been 18 years since our kids were born, they will quickly show us that the next four years will go even faster.

Members of this year’s freshman class, most of them born in 1993, grew up just as the internet was starting to take off. This was incredibly helpful for parents like me who often turned to their kids to get tips on how to use the “interweb” or how to fix their computers. Yet for all the help our kids have given us, we are still their parents and can offer valuable advice too – even if they won’t recognize our wisdom for a few more years. As Mark Twain once said, “When I got to be 21, I was astonished at how much the old man had learned in a few short years.” 

Here are five money tips every college freshmen should know.

1. Go to Class. While it may be tempting to sleep-in and skip that early Monday morning English 101 class, doing so is like throwing money out the window. I hate to state the obvious, but college is expensive. According to a newly released Sallie May study, college costs last year averaged $21,889, and some schools like Northeastern University cost more than $50,000 per year. Assuming a schedule of four classes that meet three times per week over a fifteen week semester, each class skipped costs between $120 and $275. That’s some expensive shut-eye.

2. Don’t get a credit card. Sure, the guys sitting behind the sign-up table may be offering some free t-shirts and cool merchandise as an enticement to get you to apply for their credit card, but they’re not there to help you. College campuses are where many young Americans are introduced to credit and the possibility of spending beyond their means – a problem confronting the nation as a whole. If you must use a credit card, avoid non-academic debt. It might seem like a good idea to put that restaurant tab or your new iPad on a credit card, but it’s not. Learn to save, and then splurge.

3. Don’t hang out with big spenders. You’re a college student, so live like one. Don’t pretend to live a lifestyle you can’t afford. Some kids have parents with deep pockets while others are on their way to financial ruin. Hanging out with these free spenders can lead you to spend more than you can afford. Instead, socialize in the dorms, learn to cook in your apartment, use your student ID and take advantage of campus activities and student discounts.

4. Have a Spending Plan. Set a weekly budget for spending categories like food, entertainment, road-trips and the like. At the start of each month, estimate how much income you’ll receive and decide how much you want to allocate to each category. If you anticipate taking a date to an expensive restaurant, skip your morning cup at Starbucks that month or reduce spending in other areas. It is amazing how little things can add up. A couple of energy drinks, lunch at the local Chipotle, several ATM fees and a couple of apps for your iPad means that at the end of the month you may find yourself looking at a large part of your budget going towards “inexpensive” things you splurged on without thinking. Spend less than you earn.

5. Get a job. Being broke in college is no fun. If you would like to spend more, you’ll need to earn more. If you need or want a job, look for ones that you can eventually put on your resume or will bolster your internship options later on. Alternatively, seek out positions that add to your personal development. Like to mountain climb? Work at a rock gym. Enjoy cooking? Get a job in a restaurant. Want to help people? Try a non-profit. Finally, remember the story of Facebook and consider starting your own business. It could be that you have an idea that might be the next big thing, but it could equally be a simple babysitting service, tutoring, or buying and reselling stuff on eBay. Above all, remember that your first “job” is to graduate on time. Earning some extra cash each month is great but those semesters of school don’t come cheap.

Now stop worrying about money and get out there and have some fun. I’ll see you when you come home for Thanksgiving!



This article was written by Steve Davis and appeared in the column "Talking with Davis about Money Matters" found at http://mansfield-ma.patch.com/articles/five-money-tips-every-college-freshmen-should-know

The Pan Massachusetts Challenge

A Hero Story

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™

My Hero: 

For the past 14 summers, I have participated in the Pan Mass Challenge.  When I first rode the PMC in 1988, my mom had recently been diagnosed with cancer. Today, mom continues to cheer the Davis family paceline, having courageously beaten cancer three times. She is my hero!

Everyday Heroes:
When I first rode the PMC, one of my lasting memories was riding up a long, steep hill where someone had written on the pavement in chalk the words, "Everyday Heroes!".  The crowds who cheered and willed us up that hill thought the cyclists were the everyday heros, but they were wrong.  The true everyday heros were all those who  fight this dreadful disease and those who contribute funds toward beating it.  Last year 230,000 PMC contributors donated $33 million for cancer research and treatment at the Dana Farber Cancer Institute. And since 1980, the PMC has contributed an amazing $303 million which finances research in its earliest stages. Known as “seed money”, PMC funds enable clinicians and scientists to pursue innovative research that has the potential to achieve the results that will warrant National Institutes of Health (NIH), or other private and government grants. In so many cases, this early support has fostered the development of some of the most important advances made in cancer research over the last two decades.


A Young Hero: 
As I mentioned, I ride each year to honor my mom, a three-time survivor. This year, I will also be riding for Hannah Hughes, a young 7-year-old “Jimmy Fund Pedal Partner”. Hannah has a rare cancer but is doing well after recently undergoing a bone marrow transplant from her sister. Several of my friends and I plan to ride from her home in Ballston Spa, New York to the official start of the PMC in Sturbridge – a 180 mile journey we hope to cover over two additional days of riding. All told, we hope to ride almost 400 miles over four days. We’ll ride from Ballston Spa to West Stockbridge; West Stockbridge to Sturbridge; Sturbridge to Bourne; and Bourne to Provincetown.


You Can Help: 

If you would like to join us in the cause, please visit the Pan Massachusetts Challenge website or see my rider profile page: http://www.pmc.org/profile/SD0039

3 Reasons to Hire a Financial Advisor

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™


Ah, spring has sprung! The flowers and trees are budding, the birds are chirping and the loud, incessant drone of lawnmowers reverberates throughout the neighborhoods of Mansfield.

As a young teenager, I remember the great sense of satisfaction I experienced when my dad taught me how to cut the grass. I pulled the starter cord and got the lawnmower running all by myself. I pushed the mower in straight-lines in such a way that even Joe Mooney -- the long-time groundskeeper at Fenway -- would be proud. What joy and fun! That is, until dad asked me to cut the lawn the following week. Like most boys, I found cutting the lawn was fun the first time. But after that? Not so much. It became a terrible chore.

Today, I still cut my own grass. I have grown to like the activity. I enjoy being outside. I like walking around my yard. And I still get a sense of satisfaction when the job is done and the green carpet of grass looks nicely manicured. Some folks, however hate cutting the lawn and consequently hire someone to do it instead. Why? There are lots of good reasons:

• You’re too busy
• You don’t have the health, skills or tools
• You would prefer to spend your weekends doing something more fun


Interestingly, these are some of the very same reasons why people hire financial advisors. As a CERTIFIED FINANCIAL PLANNER™, I can confidently tell you that financial planning is not brain surgery or rocket science. In fact, I believe that most people are capable of managing their own money. The internet, TV and radio talk-shows offer no shortage of financial tools, calculators, research and education. But if you don’t have the time, interest or inclination to focus on your finances, you should seek professional help.

Here are three warning signs that it is time for you to hire a financial advisor:

1. Procrastination: You know you should fund your IRA, buy that additional life insurance, or open a 529 college plan, but you just never get around to it. Let’s face it, we all have too many other things to do, or at least that’s what we tell ourselves. If you know you should develop a retirement plan, but find yourself rearranging your sock drawer instead, it’s time to hire an advisor. Or, if your daughter is five and you’ve been telling yourself since the day she was born that you’ll open that college savings plan, it’s time. A good financial advisor will call you to make sure you don’t miss the IRA deadline, forget to send in your insurance paperwork, or fund your daughter’s college savings plan.

2. Disinterest: If the money section of your newspaper never gets read or if your eyes roll in the back of your head when the subject of the economy or finance comes up in conversation, then it’s probably time to get help. If you don’t know the difference between a Roth and a Traditional IRA, or if you think a 401k is a very long running race, it’s time. There is so much information floating around that if you’re really not interested in investments, insurance, taxation and the like, you’ll probably struggle educating yourself on these important matters. One of the great values of a financial advisor is having someone to tell you what you need to know.

3. Lack of Time: A famous Greek philosopher once said, “Time is the most valuable thing a man can spend”. (1)  Just like the golfer who prefers to hire a lawn company to cut his grass so he spend his time on the golf course each Saturday, some folks prefer to hire a financial advisor so that when they get home from work they can relax, spend time with their family and know that their finances aren’t being neglected. Many people know they could handle their own finances, but either can’t take the time, or don’t want to take the time to do so. If you’re struggling to balance work and family time and find that your financial and retirement goals are being ignored, it’s time to get help.


Don't Let Your Lawn (or Finances) Go to Seed

It’s one thing to let the lawn go and find it overgrown. It’s another thing all together to let your finances go and discover too late that your financial affairs have suffered as a result.



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This article was written by Steve Davis and appeared in the column "Talking with Davis about Money Matters" found at http://mansfield-ma.patch.com/articles/three-reasons-to-hire-a-financial-advisor 



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


(1) Theophrastus: “Father of Botany” and student of Aristotle.

What, The Boomers Are Retiring?

By Steve Davis, CERTIFIED FINANCIAL PLANNER ™



The first Baby Boomer turned 65 this year

The last time I visited my parents in Florida, we were missing one ingredient needed for that night’s dinner. I offered to take a “quick” run to the store to pick it up. Well, if you’ve ever gone grocery shopping there, you’ll know that there is no such thing as a quick run to the store. You see, the people there don’t work anymore and have all the time in the world -- I got back just in time for dessert. Okay, I may be exaggerating but you get the point; there are a lot of retirees in Southern Florida. Believe it or not, it won’t be long before the whole country has the same proportion of “seniors” as Florida does today. Can you believe that the first of the baby boomer generation turned 65 years old on January 1 of this year? It’s true. And for the next 19 years, ten thousand boomers a day will reach that milestone. I was born in 1963 and that means that I’m among the last of the Baby Boomers. By the time I reach retirement age it is estimated that nearly 20 percent of the US population will be age 65 or older.

Turning Retirement Savings into Retirement Income

Retirement presents a unique financial challenge for many of us because at one point we will all stop working either by choice, or by circumstance (health, layoffs, etc). When retirement finally arrives, it will become necessary to turn our savings into a reliable source of income to replace the paychecks we once earned. It sounds simple enough, but there is one major risk that threatens to ruin retirement and cause retirees to lose their independence and become dependent on their children.

Risk: Living longer than your money lasts. When the first of the baby boomers were born in 1946, the average life expectancy in the United States was 67 years old. Today, life expectancy is at record highs and a couple retiring at age 65 has a 50 percent chance of seeing one spouse live to age 92. Think about it; that’s almost 30 years without a paycheck!

When my grandfather retired from the phone company, Ma Bell paid him a life-time income that increased each year with the cost of living. When Gramps died in 1995, his retirement check was more than the paycheck he earned working 40 hours per week. Sadly, companies can’t afford that anymore. Take a look at General Motors, for example. Today, GM’s 70,000 workers have to earn enough profits to pay pension and health benefits to approximately 688,000 GM retirees. It’s no wonder that only about 15 percent of private sector employees now retire with pensions. By comparison, 89 of the largest 100 US companies offered a traditional pension plan in 1985.

Creating a 5-step Retirement Income Plan

Making your money last as long as you do can be a daunting challenge, but with planning, you may find reassurance that you’re headed in the right direction. Here are 5 steps that offer the potential to help you turn your hard earned savings into an income that will last for decades to come.

Step 1: Create a realistic budget. Identify your income needs and determine which expenses are essential must-haves, and which could be considered discretionary spending.

Step 2: Identify your sources of future retirement income. Review all the income and assets you have to fund your retirement. Work with your advisor or conduct your own research to determine the best time to begin taking your Social Security and company pension benefits (if any).

Step 3: Compare your income and expenses. This is a critical step. Here you want to match your most predictable income sources against your essential expenses and determine whether there is a gap between the two. If you realize that your essential expenses are not sufficiently covered by reliable income, then you’ll likely need a source of sustainable lifetime income to fill the gap. Income annuities, bond ladders and a variety of other financial products have been designed for such purposes. Fund your discretionary expenses with other financial assets like your IRAs and taxable accounts. Remember, however, there is no one-size-fits-all strategy so it’s a good idea to work with a professional to evaluate your options carefully.

Step 4: Allocate your investment portfolio to meet growth needs. During a thirty-year retirement, prices will likely be rising. So, even if your essential expenses are covered by a lifetime income, it will still be necessary to invest for growth. Remember that 1968 Ford Mustang the cool kids drove around campus? It cost $2,500. In 1981, that same Mustang cost $6,500, and today a base model Mustang goes for $26,500. At several points during retirement, you’ll likely need to replace your car and who knows how much it will cost then. Choose investments while taking into account such factors as your age, risk appetite and time-horizon.

Step 5: Monitor your plan. Work with your advisor regularly so you can adjust your plan as you age, as your life changes and as your retirement evolves over the years.

See you at the checkout line

Finally, let’s look for each other at the grocery store where we can chat about the grandchildren. We’ll be there before you know it!

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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.



This article was written by Steve Davis and appeared in the column "Talking with Davis about Money Matters" found at http://mansfield-ma.patch.com/articles/what-the-boomers-are-retiring

Word Pictures: Imagining Your Financial Future

By Steve Davis, CFP®


One of my sons is a high school senior and last Friday my wife and I took him on a college tour. Years ago, during those cold and rainy spring days at the Otis Street Little League fields, I thought this day would never come. My folks used to warn, “They grow up so fast”, but I imagined myself stuck at the ball fields forever. With four boys playing back-to-back games, some of those days never seemed to end. But time marches on.

When we arrived at the Massachusetts College of Art in downtown Boston, the first thing our tour director did was lead us to the top floor of the library where we enjoyed spectacular views of the city. She pointed out the other nearby schools, the world-famous museums, and even the Citgo sign above Fenway Park. From there, our group proceeded to visit the different studios, lecture halls, and dorms on campus. Our guide that day was a painting major and perhaps it was this background that allowed her to use her words to so perfectly paint for us the college experience. In our minds, we could see perfectly what school would be like at Mass Art. In a way, the students in our group were transported to the future where they could see what the next four years of their lives would be like.

There is a lesson in all of this. When it comes to achieving financial goals like funding a child’s college education or retiring at age 65, picturing the life of your dreams can be a wonderful motivator. Whatever your aspirations for the future, the only way to achieve the vision of how you’ll spend the years ahead is to commit to a plan that can take you there.

Dreaming and Discovery

How you envision the rest of your life might involve traveling the world or pursuing a career you postponed to raise a family. Maybe you picture spending more time with your family or volunteering at local charities. The point is, everyone’s dreams for the future are unique and there is no one-size fits all financial plan. Taking the time to imagine and articulate your hopes and fears is probably the most important first step. Often times a professional financial advisor can help facilitate this conversation, but some folks are able to do this well on their own. The key is to discover and visualize your ultimate financial goals. Here’s why: If you want something badly enough you’ll make small sacrifices now in order to acquire what you really want later.

I have a client who graduated from college with many thousands of dollars in student loans. This debt created a huge burden that resulted in a lot of financial difficulties during the early years of her marriage. For this client, funding her children’s education was hugely important. She didn’t want her kids to struggle the way she had. This tangible desire to create a college fund made it easier for her to pass up expensive vacations and the like because these would have prevented her from reaching her goal.

 

Roadmaps and Directions

Of course, a vision without action is just a dream. Once you know your financial destination, the next step is to create a roadmap that will take you there.

Bruce Springsteen once sang, “Take a right at the light, keep going straight until night, and then boy, you’re on your own.” While this makes for great rock lyrics, it is lousy financial advice. Instead, it is best to have precise turn-by-turn directions that will help you navigate the twists and turns of life. Create specific and measurable goals and understand which ones can be accomplished in less than a year, which ones will take three to five years to achieve, and which ones are truly long-term in nature. As you accomplish the short term goals, you’ll build momentum to carry on toward achieving longer term objectives.

Just as there are many routes that will take you to the same destination, there are many financial tools, investments and tax strategies that will help you work toward your life’s dreams. If you don’t have the time, interest or inclination to research this on your own, a financial advisor can provide meaningful guidance at this stage.

Over the course of your lifetime, your goals and circumstances may change. There may be detours along the way. Flexibility and planning for contingencies is critical here because just when you make plans, life gets in the way. Events small or large can change everything. Getting laid off or changing jobs can result in the loss of anticipated retirement benefits. Losing your health could force an early retirement. Caring for aging parents may have never been on your radar. The best financial plans are the ones that can adapt for the unexpected, anticipate change and adjust over time.

Enjoy the Journey

My children are growing up and before I know it, they’ll all be off to college. Yes, time marches on. It seemed like just yesterday when I was in college. I once had a professor who said, “It is good to have an end to journey toward; but it is the journey that matters, in the end.”

As a dad, I wouldn’t change anything; not even those long days at the Otis Street fields when my back was sore, my hands were cold and my shoes were covered in dust and dirt. One of the greatest benefits to taking the time to envision and plan your future is that it gives you the ability to live in the present and focus your time and attention on those things that matter most.
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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.



This article was written by Steve Davis and appeared in the column "Talking with Davis about Money Matters" found at http://mansfield-ma.patch.com/articles/word-pictures-imaging-your-financial-aid-future