What anniversaries can teach us about financial planning

As originally appeared in The Jerusalem Post on February 27, 2025.

“I have learned that only two things are necessary to keep one’s wife happy. First, let her think she’s having her own way. And second, let her have it.” -Lyndon B. Johnson

This coming week marks our 25th wedding anniversary. According to Brides.com, a publication that I frequently read- well not really, “You’re halfway to your golden anniversary! The 25-year mark has been denoted as the silver anniversary, and rightfully so. Representing both the traditional and modern gifts, silver reflects the brilliance and shine of your marriage. Spending a quarter of a century with your love definitely calls for a metal as valuable as silver. In fact, the tradition began during the Middle Ages when men would commemorate the milestone by gifting their wives a wreath of silver for their hair. The traditional flower for the 25th anniversary is the iris, and the color is (you guessed it) metallic silver. Although not a true stone, silver has also been associated with this milestone’s jewel of choice.”

I have no idea what gift I will give my wife, but there’s a good chance it won’t be a wreath of silver for her hair! I would like to wish my wife a happy anniversary and that we should merit a marriage like the metal. That we continue the ‘brilliance’ and shine’ of our marriage. I’m not sure what that means, but if that’s what they say on Brides.com, who am I to question? We continue to relate to each other with the same excitement and optimism for the future that we had at the time of our wedding!

Some of you who know me are saying, “Katsman. You used to be a real tough guy. You’ve gone soft!” I know that for me, that was about as emotional as I will ever get. I do have an image to keep, so trust me when I say that I am not getting ‘soft’ in my old age. So, what do silver and my wedding anniversary have to do with your investments?

Future

As many of you know, I am a big believer in goal-based investing. That means a client should measure their progress towards specific life goals such as saving for children’s education, marrying off children or building a retirement nest-egg, rather than focusing on generating the highest possible portfolio return or beating the market. Earlier this week I met with a couple who needed some help organizing their finances. They were both very nervous about their financial future. They felt they didn’t have enough money to make it through retirement, especially because they would have many weddings to make. After defining goals and financial needs, mostly for the wedding etc, and analyzing their situation, a plan was created to use various pots of money they have to fund each wedding.

Back in my single days, I used to get dating advice from my older sister. One bit of advice that has stayed with me to this day is that when you are dating, you both become great philosophers. Always talking about big issues. Changing the world. Making sure that you see eye to eye politically and on other ‘big’ issues. Then she would add, once you get married and life takes over your most philosophical conversation becomes where to buy the cheapest diapers or whether to use thick or thin dental floss? Back when you were engaged, you used to speak about life goals and dreams. As life takes over, more often than not, those goals and dreams become a distant memory.

Investors can’t allow for their portfolios to become stale. In order to keep a portfolio fresh and updated, it’s imperative for investors to redefine goals and needs every now and then. Your goals and dreams shouldn’t become a distant memory, rather they should be used as a springboard to plan for financial security. Is retirement approaching? Do you still have the same type of portfolio you had when you were 40? If so, you may have a portfolio that is far more aggressive than recommended.

If you are nearing retirement and you have given no thought to how you plan on spending time during retirement and how much that will cost, you may be in for a very rude awakening a few years down the road when you start running down your principal. I can’t stress enough the importance of planning your retirement. Obviously, the financial aspect of retirement is critical to plan for, but filling up the day in a meaningful way is even more important. Remember back to when you were engaged you sought advice from others newly married? Well, it’s the same concept. Speak to other retirees to understand how they made the transition from working to this new chapter in their life.

Anniversaries can be used as a way to re-energize your marriage, turn back the clock and get us to start dreaming again. Use this time to redefine goals and needs and get your portfolio allocated so that you can achieve what you set out to accomplish.

Happy 25th Anniversary Yael!

The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.

Aaron Katsman is the author of Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, SIFMA, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.