The Latte Factor: Can Skipping Coffee Really Make You a Millionaire?
September 9, 2025
You’ve probably heard the advice: “Skip your daily latte and retire rich.” This idea, now commonly known as The Latte Factor, was popularized by author David Bach. But is skipping coffee really the secret to building wealth or just financial clickbait?
What Is the Latte Factor?
The Latte Factor refers to small, everyday purchases that add up over time. A $5 coffee might not seem like much, but spent daily, that’s around $1,825 per year. If invested with a 7% annual return over 30 years, it could grow to $172,390.
Can It Make You a Millionaire?
In short, no, not by itself. Skipping coffee won’t make you a millionaire unless you pair it with other smart money moves like investing regularly, increasing your income, and avoiding high-interest debt.
The real point of the Latte Factor isn’t about coffee. It’s about awareness of where money is going. Small, unconscious spending habits can prevent you from achieving bigger financial goals.
When It Makes Sense to Cut Back
Consider cutting out small expenses if:
- You’re struggling to save or pay down debt
- You're living paycheck to paycheck
- You’re spending out of habit, not enjoyment
What Builds Real Wealth?
Skipping lattes might help, but true wealth comes from:
- Consistent saving and investing
- Growing your income
- Avoiding lifestyle inflation
- Making intentional financial choices
Final Thought
The Latte Factor is a helpful metaphor, but it is not a magic formula. It’s not about guilt; it’s about being mindful. If your coffee brings joy and fits your budget, enjoy it. Just make sure your financial habits support your long-term goals.
Sources:
1. The Latte Factor: Why you Don’t Have to Be Rich to Live Rich, by David Bach and Kohn David Mann. Copyright 2019.
All content presented is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. All examples are hypothetical, for illustrative purposes only, and are merely arithmetic calculations. They are not representative of the performance of any type of investment, security, or strategy offered by the firm. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Hypothetical returns do not reflect actual trading and may not be indicative of the performance of any specific investment. They are based on assumptions and estimates that may not be accurate or applicable to your individual situation. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure
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As retirees increasingly rely on digital tools for banking, investing, and communication, they’ve also become one of the primary targets for today’s most sophisticated financial scams. In 2025, Americans over the age of 65 represented the largest share of victims in reported financial cybercrimes. 1 With billions (16.6 billion in 2024) lost to phishing attacks, fake tech support calls, fraudulent investment schemes, credit card information stolen, and identity theft, many of these scams are no longer obvious. 1 They mimic real institutions, use familiar language, and in some cases even clone the voices of loved ones using AI. Why Are Retirees Targeted? Scammers often target retirees for several reasons: They are more likely to have accumulated savings. Many manage their finances independently, without employer oversight. Some may be less familiar with newer digital threats or fast-changing technology. Emotional manipulation. Such as pretending to be a grandchild in trouble is highly effective with this demographic. The Role of Financial Professionals Financial advisors and planners play a crucial role in protecting retirees. From market volatility to tax savings financial advisors help retirees stay concrete in their financial future. But as the digital age has grown, this also expands into the more prevalent invisible digital threats that may arise. Here’s how they help: 1. Education and Awareness Advisors can proactively teach clients how to spot scams, question suspicious requests, and avoid common traps like urgent money transfers or unfamiliar links. 2. Account Monitoring Many advisors help monitor for irregular account activity, unexpected withdrawals, or patterns that suggest coercion or fraud, especially for older clients. 3. Preventive Structures Professionals can set up account protections, including multi-factor authentication, trusted contact authorizations, and restricted access to certain funds or accounts. 4. Fraud Response In the event a scam does occur, financial professionals assist clients in contacting the right institutions, freezing accounts, reporting the fraud, and taking legal next steps if necessary. Peace of Mind Through Partnership In retirement, peace of mind doesn’t just come from a well-balanced portfolio. It comes from knowing your finances are protected, your accounts are monitored, and someone you trust is just a phone call away. The best financial advisors act as a first line of defense. If something feels suspicious, they want to hear about it before you respond or send money. One quick check-in could prevent a costly mistake. Final Thought If you're retired or approaching retirement, now is the time to strengthen your financial defenses. Make sure your financial professional is helping you stay not only invested, but protected. And remember: When in doubt, pause, then call your advisor. Sources: 1. https://www.pewresearch.org/internet/2025/07/31/online-scams-and-attacks-inamerica-today/
Learn how to find quality estate planning help in Grand Rapids, MI. Discover what to look for in professionals and services to protect your family's future.
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Talking about insurance isn’t exactly everyone’s favorite topic, but it’s an important one. Life insurance and long-term care (LTC) coverage are tools that can help you prepare for the unexpected. While many people wait until later in life, starting younger often means more flexibility, lower costs, and a wider range of choices. What They Cover Life insurance → pays a benefit to your beneficiaries if you pass away. This can help cover expenses like rent, loans, or general household costs. Long-term care insurance → helps cover care expenses if you ever need help with daily activities over an extended period. This can include in-home care, assisted living, or nursing facilities costs that typically aren’t covered by health insurance or Medicare. Why Younger Can Be Better Costs are usually lower. Premiums are generally based on age and health. Applying earlier can mean lower monthly payments. More likely to qualify. Good health makes approval easier. Waiting until health issues arise can limit options. More choices. Some policies or riders are only available if you apply earlier. Time to plan. Starting younger lets you spread out costs and build coverage into your budget gradually. Less uncertainty. Putting coverage in place sooner can reduce the risk of being caught off guard later. Things to Consider Premiums are an ongoing cost, so make sure they fit within your budget. You may be paying for long-term care coverage years before you use it. Inflation riders, waiting periods, and benefit limits vary by policy. It’s important to understand the details. Insurance needs can change over time. Reviewing coverage every few years is a good practice. Getting Started Think about who depends on your income now or who might in the future. Compare different companies and products to understand what’s available. Look at both stand-alone and combination (life + LTC) options. Work with a licensed professional and financial planner who can walk through your personal situation. Final Thought Exploring life insurance and long-term care while you’re younger doesn’t mean you expect the worst. It means you’re preparing ahead of time, so future choices are less stressful and potentially more affordable. Disclaimer: This blog is for informational purposes only. It is not intended as legal, tax, or investment advice. Insurance products vary, and everyone’s situation is different. Please consult with a licensed insurance or financial professional before making decisions about coverage. Any opinion included in this blog constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .
Imagine waking up in the morning and realizing your money has been busy working while you slept. That’s the power of a thoughtful financial plan—shifting from working for every dollar to having your dollars quietly working for you. Creating Your Financial Roadmap Financial planning starts with clarity. A financial advisor or consultant can help outline a plan that reflects your goals, resources, and time horizon. This can include: Individual and personal financial planning for major milestones like buying a home or funding education. Financial planning for businesses to align growth with long-term stability. Retirement plans for small businesses that support both owners and employees. A financial planning firm brings together these services so you can look at the bigger picture, not just one piece at a time. Preparing for the Unexpected Life doesn’t always go according to script, which is why planning for the “what ifs” is so important. Disability planning and life insurance services can provide support for you and your family in unforeseen circumstances. Estate planning is another key step. Working with an estate planner or using estate planning services helps organize how your assets are managed in the future. Making Your Investments Work Investing is one of the most effective ways to put your money to work. Investment advisors, investment managers, and advisory firms can provide guidance tailored to your situation. Services such as investment management and the use of investment models help bring structure and consistency to your approach. If retirement is on your horizon, retirement income planning, retirement plan investments, and ongoing retirement planning services can help align your resources with the lifestyle you want. Managing Risk Along the Way Every financial plan comes with some level of risk. That’s why risk management services and financial risk assessments are essential. A risk manager can help identify potential challenges before they become major issues. For those who need additional oversight, fiduciary services can help ensure that financial decisions are carried out in accordance with established standards. Support for Businesses Business owners often juggle both personal and commercial priorities. That’s where business plan consulting and commercial financial services come in. Combining these with broader financial planning creates a consistent framework for both sides of the equation. Letting Your Money Do the Work At the end of the day, the goal of financial planning isn’t about working harder—it’s about giving your money the chance to do some of the work for you. With support ranging from personal planning to investment management, retirement strategies, and risk awareness, your finances can be set up to keep moving even when you’re not. So go ahead—get some rest. Your plan can keep working while you sleep. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This is for informational purposes only and does not constitute an offer to sell or a solicitation to purchase any products or services. All investments involve risk (the amount of which may vary significantly), and investment recommendations will not always be profitable. Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .
As you likely know, tariffs have been a major theme of the Trump administration in 2025. These tariffs are being implemented for a few reasons: negotiation/bargaining, punishment/sanction, and improving the U.S.’s economic situation. As a reminder, a tariff is a tax on imported goods. For example, raising the tariff rate on Japan to 25% means that all goods that U.S. companies import from Japan will be subject to a 25% tax at the port of entry. Punitive and Reciprocal Tariffs The tariff announcements began in February, with President Trump threatening 25% punitive tariffs on Canada and Mexico if they didn’t stop the flow of fentanyl across their borders. In April, Trump and the Secretary of Commerce Howard Lutnick announced “reciprocal tariffs”, aimed at lowering the trade deficits between the U.S. and foreign countries. These included a base 10% duty on all countries that have tariffs on U.S. goods, as well as significantly higher rates on countries with high tariff rates on U.S goods (like 46% on Vietnam). This announcement sent stocks reeling as the rates were much higher than expected. Stocks fell 14% in the next 4 days. Then, Trump put a 90-day pause on these reciprocal tariff and stocks rose almost 10% that day. As of August, these tariffs have gone into effect for all countries who haven’t made deals with the U.S. (Japan, Vietnam, and the EU have notably made deals). Targeted 50% Tariffs: India & Brazil India and Brazil have emerged as focal points of the new tariff strategy. India initially faced a 25% reciprocal tariff, but that was doubled to 50% since they are continuing to import Russian oil. Brazil’s tariff rate was raised from 10% to 50%, mostly for political reasons.
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Interest rates may seem like a topic best left to economists and bankers, but they play a critical role in your everyday financial life. Whether you're borrowing money, saving for the future, or investing, understanding how interest rates work can help you make smarter financial decisions. What Are Interest Rates? An interest rate is the cost of borrowing money, expressed as a percentage1. When you take out a loan, you pay interest to the lender. When you deposit money in a savings account, the bank may pay you interest in return. It’s the price of using someone else's money or the reward for letting someone else use yours. Who Sets Interest Rates? In the U.S., the Federal Reserve (or “the Fed”) influences short-term interest rates through the federal funds rate. This rate affects everything from mortgage loans to credit card APRs. When the Fed raises rates, borrowing becomes more expensive. When it lowers rates, loans become more affordable, often to stimulate economic growth. Why Interest Rates Change Interest rates are adjusted to manage inflation, support employment, and stabilize the economy. For example: Rising rates can help cool inflation but also make borrowing more costly. We have seen this over the last couple of years. Falling rates can encourage borrowing and spending but may reduce returns on savings. This narrative has become more vocal in 2025 with our president begging for rates to fall. These shifts can impact both your short-term budget and long-term financial plans. How Interest Rates Affect You Loans & Mortgages: A small change in rates can significantly affect your monthly payments and total loan costs. Credit Cards: Most credit cards have variable rates, meaning your debt becomes more expensive when rates rise. Savings & Investments: Higher interest rates can increase your savings returns and influence investment strategies. Consumer Behavior: Rate changes often affect when and how people borrow, spend, and save. How a Financial Advisor Can Help Navigating interest rate environments can be complex, especially when you're balancing multiple financial goals. A financial advisor can: Help you time major financial decisions, such as refinancing a mortgage or locking in a fixed-rate loan Adjust your investment strategy to account for rate-sensitive assets like bonds or real estate Guide your savings plan to take advantage of higher-yield opportunities Offer personalized advice on managing debt in rising-rate environments With expert insight, an advisor can help you avoid common pitfalls and align your financial strategy with current economic conditions. Final Thoughts Interest rates may not seem like a personal concern, but they directly affect your finances: from your debt to your savings to your investment portfolio. Understanding how they work and working with a financial advisor can help you make confident, well-timed financial choices in any rate environment. Sources: https://www.investopedia.com/terms/i/interestrate.asp
Retirement represents a pivotal phase in an individual’s life, marked by the transition from employment to a lifestyle supported by accumulated financial resources and personal planning. While often approached primarily through a financial lens, effective retirement planning must also incorporate qualitative factors that influence well-being, identity, and life satisfaction. This article outlines both the quantitative and qualitative dimensions of retirement, emphasizing the importance of a balanced and holistic perspective. Qualitative Aspects Beyond the numbers, retirement is a profound personal and emotional transition that affects daily life, self-perception, and interpersonal relationships. Here are a few aspects that influence a successful retirement transition: 1. Sense of Purpose Many retirees experience a loss of identity upon leaving the workforce. A successful retirement often involves finding new purpose through activities such as volunteering, mentoring, or creative pursuits. 2. Social Engagement Social isolation is a common challenge, particularly for those who derived much of their interaction from the workplace. Maintaining strong social networks contributes significantly to mental health and emotional resilience. 3. Health and Lifestyle Retirement presents an opportunity to focus on physical and mental well-being. Establishing healthy routines, engaging in regular exercise, and pursuing intellectual interests are vital for a high quality of life. 4. Psychological Adjustment The emotional shift into retirement can be complex, requiring time to adjust to a new identity and lifestyle. Gradual retirement or pre-retirement counseling may ease this transition. Quantitative Aspects The quantitative side of retirement focuses on measurable financial and logistical elements essential to sustaining one’s standard of living. 1. Financial Preparedness This includes the evaluation of retirement savings, income streams such as pensions and Social Security, and investment portfolios. 2. Life Expectancy and Longevity Risk With increasing life expectancy, retirees must plan for potentially 25–30 years of post-employment life.1 Longevity risk is the risk of outliving one’s assets and necessitates careful financial forecasting and often calls for conservative investment and withdrawal strategies. 3. Healthcare Costs Healthcare remains one of the most significant expenses in retirement. Retirees must anticipate out-of-pocket costs for insurance premiums, medical procedures, medications, and potential long-term care. Planning for these costs is critical to avoid financial strain later in life. 4. Investment Strategy and Risk Management Retirement typically involves a shift from growth-focused investing to capital preservation. Retirees must balance the need for income generation with the desire to protect against market volatility and inflation. Conclusion A meaningful and secure retirement depends on both quantitative preparation and qualitative enrichment. Financial planning lays the foundation, but personal fulfillment, health, and social engagement define the experience. A truly successful retirement is one that aligns financial stability with purposeful and satisfying living. Source: https://www.dunham.com/FA/Blog/Posts/financial-planning-in-an-era-of-longer-lifespans?ref=dunham.ghost.io
The financial advisory industry is undergoing a significant transformation, driven by rapid advances in technology. Once reliant solely on face-to-face meetings and manual portfolio management, today’s financial advisors are leveraging digital tools to offer smarter, faster, and more personalized financial guidance. Far from replacing financial advisors, technology enhances their capabilities, allowing them to deliver more value to clients, stay compliant, and compete in a fast-changing market. 1. The Digital Shift in Financial Advising The traditional model of financial advising that involves paper documents, in-person meetings, and delayed communications, is becoming obsolete. Clients now expect real-time updates, mobile access, and digitally driven experiences. Advisors who embrace technology are not just meeting these expectations; they’re creating new value. Cloud-based platforms, CRM tools, and secure client portals are streamlining workflows, freeing up more time for relationship-building and strategic planning. 2. Robo-Advisors: Competitor or Complement? Robo-advisors are automated, algorithm-driven investment platforms that were initially seen as a threat to traditional advisors. But the story has changed. Instead of replacing human advisors, robo-advisors are now often integrated into hybrid advisory models, combining the efficiency of automation with the insight of human expertise. For example, financial advisors can use robo platforms to handle routine tasks like portfolio rebalancing or tax-loss harvesting, while focusing their time on complex planning, retirement strategies, and holistic financial coaching. 3. Artificial Intelligence and Data Analytics AI is becoming a trusted partner for financial advisors. By analyzing massive amounts of client data, AI tools can uncover patterns, identify risks, and generate tailored recommendations that help advisors offer more proactive and customized advice. With predictive analytics, advisors can forecast life events and suggest actions long before clients even ask. This makes the advisor not just a service provider, but a true financial partner. 4. Client Experience: Personalized, Digital, and On-Demand Modern clients, especially Millennials and Gen Z, expect a digital-first approach to money management. Advisors are meeting this need with client dashboards, mobile apps, and video conferencing tools that make communication fast and convenient. Technologies like e-signatures, digital onboarding, and interactive financial planning software improve transparency and foster engagement. Some advisors even use gamification or AI-powered chatbots to make financial literacy more accessible. 5. Compliance and Cybersecurity in a Digital World As advisors handle more client data online, cybersecurity and regulatory compliance are top priorities. Fortunately, technology also provides solutions here. Compliance tools can monitor communication, generate audit trails, and ensure KYC/AML standards are met with minimal manual input. Secure document storage, multi-factor authentication, and encrypted messaging platforms help advisors build trust and maintain client confidentiality. 6. Open Banking and Financial Integration Tools Thanks to Open Banking and API-driven platforms, advisors can now access clients’ complete financial picture. From banking and loans to retirement accounts and insurance, advisors can get up to date data all in one place without having to ask for updated paper statements. This integrated view allows for holistic planning and better decision-making. Tech-forward advisors are leveraging aggregation tools like eMoney, MoneyGuidePro, or RightCapital to deliver dynamic plans that evolve with clients' goals and can track real time habits of their clients. 7. Fiduciaries vs. Technology? As technology becomes central to financial services and governance, fiduciaries must evolve to meet new standards of care, loyalty, and prudence. Today’s fiduciary responsibilities extend beyond traditional decision-making to include oversight of AI tools, digital platforms, data privacy, and cybersecurity. Whether it’s relying on algorithm-driven investment strategies or evaluating third-party tech vendors, fiduciaries are now expected to exercise digital literacy and ethical judgment in tandem with legal obligations. The rise of opaque algorithms, ESG scoring tools, and automated systems requires not only informed adoption but transparent governance. Technology is no longer a support function it’s becoming a core fiduciary consideration within decision making and putting client’s best interests forward. In conclusion, while some may fear that the integration of technology into the financial sector could diminish control, the reality is quite the opposite. By leveraging advanced tools, advisors are empowered to deliver enhanced, personalized service, allowing them to focus more effectively on their clients and streamline the overall experience. Sources: Nitrogen Launches Its Own AI Notetaker (And More Of The Latest In Financial) Bot Versus Human: For Financial Planning, It’s No Contest Meet the AI agents defining the new customer experience