Making It, Keeping It, Growing It

The rules of the road for the new investor

Rule No. 1: Never lose money. 

Rule No. 2: Never forget rule No. 1. — Warren Buffett

While playing golf with a good friend of mine the other day, the conversation turned towards his son’s upcoming graduation from the University of Texas at Austin and how the time is now to provide smart financial advice to prepare for the “real world” — having a job, saving money and covering his expenses. The conversation reminded me that even if you are a novice in the world of managing your wealth, thinking strategically about how to manage wealth is important from the day you receive your first paycheck.

The phrase ‘wealth management’ may sound more complicated than it actually is. Perhaps it sounds like something only reserved for someone who has saved for years? The reality is the moment you start working in the real world you have the opportunity to actively manage and plan for the future. Those who throw financial management to the wind often find themselves with challenges down the road that they are unprepared for financially. These challenges could prevent them from having the lifestyle they may have dreamed about. As I tell my clients, “dreams and financial strategies need to go hand-in-hand.”

Here are the 5 essential tips I recommend to young and new investors to proactively build financial well being:

Tip 1: Have liquid savings

Illiquidity is a word in personal finance that does not inspire warmth or confidence. Property and jewelry are two examples of illiquid investments that many rich and famous individuals are known for having. I also believe that it is very important to have cash savings tucked away in a safe place for any emergency you may encounter. I often suggest that my clients set a consistent goal of saving, for instance putting aside a minimum of 20% of their income each month. Often there is an instant feeling of self-confidence when there is cash in pocket. Having more cash available as opposed to the imbalance of only illiquid investments is preferred.

Tip 2: Use credit only when you can pay on time

Part of wealth management is to know how to use credit wisely so that it can be used to your advantage. Credit includes unsecured loans, mortgages and, of course, loans for bad credit. Paying back your credit on time is absolutely crucial, which is why only using credit that you can pay back in full each month is very important. A credit history showing that you applied for credit and repaid it on time helps to build a solid financial track record that future lenders will consider.

As clarification, I am not suggesting that it is bad to use credit cards; but using credit for impulse spending that you cannot afford without paying interest is unwise. Interest quickly adds up and sinks you deeper into debt, which can sabotage your wealth management plan.

Tip 3: Have an achievable goal in mind

Wealth management also involves knowing your goals. If you dream of owning a home or if you want to buy a car, you need to plan for the cash needed for big-ticket items. While it may be nice to dream of buying a home or even a luxury vehicle, it is foolish to dream without planning how to build wealth to pay for that dream. Every dollar spent by mortgaging your future and happiness can lead you to a life of financial misery.

Tip 4: Start planning for retirement

Retirement should be on your mind even if you are just dipping your fingers into wealth management. While many people who are approaching retirement age are thinking about the various ways they can afford to retire, many young people do not see the value in saving for retirement until later in life. However, with the cost of living high and people living longer, any money saved needs to stretch.

By incorporating your desired lifestyle and dreams into your retirement and wealth management plan now, you can reap the financial benefits later when you really need them.

Tip 5: Create a long-term strategy

Wealth management should not only be about wealth creation, but wealth preservation as well. The long-term view is better than short-term “get rich quick” schemes, which plague some wealth management beginners.

As an investor, you should be focused on creating a long-term strategy that can secure rewards for you in the future. A long-term strategy might include interest-bearing savings, investments in property, and investments in the stock market, depending on where your interests lie, your risk tolerance, and investment horizon.

Your advisor can create a road map that will help you think ahead to life events like marriage, children, school tuition, and more. Stay engaged in your investments and be involved in the decision-making process, but do so with a private wealth advisor so that you have a professional helping you make big decisions.

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David Osborne is the founder of Osborne Advisors, an independent private wealth management firm offering wealth management to high net worth individuals, families, estates and corporations since 1999. An extension of Osborne Advisors, Osborne Advisors Pro, is a sports wealth management offering created solely to focus on the unique financial management needs of professional athletes and coaches.

This article was written and prepared by Red Fan Communications (Austin, TX, 512.551.9253) and David Osborne. David Osborne is a registered representative and registered investment adviser representative of SWS Financial Services, Inc., a member of FINRA and SIPC and a registered broker dealer and registered investment adviser who does not provide tax or legal advice, located at 1201 Elm Street, Suite 3500, Dallas, TX 75270, 214.859.1800. Though information provided in this article was prepared by sources believed reliable, SWS Financial Services, Inc. does not guarantee its accuracy or its completeness. This article may not be duplicated or redistributed without the prior consent of SWS Financial Services, Inc. Red Fan Communications is unaffiliated with SWS Financial Services, Inc.

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San Antonio leads Texas on ending horse-drawn carriage rides by 2030

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Horses will no longer pull carriages on the streets of downtown San Antonio.

San Antonio has pulled off something that the rest of Texas has yet to do, but it didn't come without some contentious conversations. City Council has unanimously voted (with one abstention) to phase out the use of horse-drawn carriages over the next five years. That means by January 1, 2030, there will be none on the streets at all; instead, there will be electric carriages.

These plans have been in the making since 2022 — if not always at the same level of intensity — when District 2 Councilmember Jalen McKee-Rodriguez and District 3 Councilmember Phyllis Viagran wrote up some concerns about the horses' wellbeing. A special session at the end of October 2024 hinted to San Antonians that the end for this practice was neigh — sorry, nigh — and the final vote was made on December 12. In addition to accepting the plan, it extended its timeframe by two years.

The initial proposal included worries about the horses' exposure to traffic and pollution, as well how their presence might exacerbate those issues for the environment at large by slowing traffic. It also raised concerns about the effects of standing or walking on hard surfaces for too long, or spending time in extreme weather.

At the December 12 meeting, San Antonians gave impassioned speeches about animal welfare — both to call attention to the need for better conditions and to defend the reputations and jobs of current horse drivers — but it wasn't the first time the council heard from the public about the issue.

In a prior city survey, 50,476 respondents weighed in. Of those respondents, 51.98 percent said they liked the idea to "Transition horse-drawn carriages to electric carriages and pedicabs and ban horse drawn carriages completely." There were alternative solutions listed, but respondents were less drawn to them.

A cultural divide emerged in the data and continued in the December meeting: some people avoided the carriages because they worried about the treatment of the horses, while others enjoyed them because of their historical echoes and living legacy. Many speakers in favor of the plan used this to form their argument, raising questions about history versus progress.

More tangible objections to the plan hinged on the businesses — specifically five companies — and jobs that would be lost, which was the main factor behind extending the adjustment period.

Discussions about the particulars of the electric vehicles are still to come, as confirmed in the discussion near the end of the meeting. Councilmember Jalen McKee-Rodriguez addressed concerns about what would happen to the horses, mentioning the Brady Hunter Foundation as a future partner in finding them rescue homes.

Some council members also brought up rhetorical questions about animal exploitation by groups like Sea World, the San Antonio Stock Show & Rodeo, military and police forces, and even various groups in the Fiesta parade, although these did not come with a formal motion to pick the issues up.

This decision could have a ripple effect on other Texas cities. Dallas has recently considered a similar ban, but it appears to have stalled; Austin's attempts at a ban have been unsuccessful, but according to the Austin-American Statesman, only one operator is permitted to bring horses downtown. She declines to do so because the long hours are unfair to her and the horses. Houston does have horse-drawn carriages, and there seems to be little conversation about banning them.

Cities like Chicago and Salt Lake City have led the charge in the United States with some of the most prominent successful bans. Other cities around the world with bans include Brussels and Guadalajara, which both switched to electric models. Bans that have been around for years, like Guadalajara's and Prague's, still aren't out of the woods — people are still pushing back on the decision, so it sounds like San Antonio still has much work cut out for it.

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San Antonio leads Texas on ending horse-drawn carriage rides by 2030