On Saturday, April 8, Bauer College hosted our annual Financial Symposium open to students, faculty, staff and the community. The symposium is meant to provide UH students and the Houston community information on topics that will help them make better financial decisions. Students also listen to experts talk about careers in financial services, including commercial banking, financial analysis and personal financial planning. The goal of the symposium is to take learning to the community in ways that make a difference.
Consider the facts:
Today, only 13% of all private-sector workers have a traditional pension, compared with 38% in 1979, and close to 45% of Americans have nothing saved for retirement. More than 30 million people don’t have access to any retirement plan because the small businesses that they work for don’t provide one.
Clearly, we can and must do better.
At Bauer College, we take the message of financial literacy seriously. We need to share the message and share it often. In many ways, the actionable part of financial literacy has to do as much with discipline as it does with finance. As with any behavior, those that enforce discipline in our expenditure and savings plans are best taught early in life. It is for this reason that Bauer College makes every effort to share this message with students and with the community.
This year the keynote speaker at the Financial Symposium was Joe “JJ” Kinahan (@TDAJJKinahan), Chief Market Strategist and Managing Director at Ameritrade Client Services. He took this message one step further by connecting the message of financial literacy to a strong work ethic and character.
Work hard, for there is no substitute. Every job has parts that are frustrating. A typical job might have 25% that we absolutely enjoy and are engaged in, another 25% that we abhor, leaving the middle 50% in a neutral zone that we are neither excited about nor disgusted with. Success results when we move this middle 50% into the more exciting zone, leading us to love 75% of what we do. Plan the 25% that is frustrating and everything else will seem exciting. In everything you do, character matters. Not doing the right thing has financial implications. Your behavior builds reputation, and reputation is your biggest asset.
As you build your reputation, consider building your financial asset base as well — when you start working, make sure you maximize the contribution to your 401(K) or retirement plan. Starting early, and leveraging your employer’s contribution, can boost your total returns more than starting late and investing more for a shorter length of time. As they often say, when it comes to investment and maximizing returns, it is time, not timing. Time is your biggest ally when it comes to investment and returns. Timing assumes perfect foresight which is a fiction of the imagination.
At the same time, have fun. It is important that you love and enjoy what you do.
JJ Kinahan is a 30-year trading veteran who began his career as a Chicago Board Options Exchange (CBOE) market maker trading in the S&P 100 (OEX) and S&P 500 (SPX) pits. He also worked for ING Bank, Blue Capital and was Managing Director of Option Trading for Van Der Moolen, USA. Later in his career he joined the thinkorswim Group, which was eventually acquired by TD Ameritrade.
Thank you, JJ — thank you for inspiring us.