On Saving for Your Kids and Keeping Up With the Joneses

When my kid turns 18, she might not be able to live off income from covered calls or dividends, but she'll be a lot closer than many other "Southies" and probably a lot closer than quite a few "Northies," who probably should have stayed "Southies."

It's about priorities. Why do you work? Why do you save? Why do you invest? Why do you buy a home? There's no right or wrong answer to any of those questions. It's about personal circumstance and experience as well as your goals and outlook on life and the economy.

If we buy property, it will be all about cash flow: Live in a unit, rent out the other one or two. I do not view home ownership as a workable proposition in this market unless it's the type of investment that generates cash, rather than just a place to park it.

Given that I am self-employed (and my wife takes a traditional wage), the tax benefits of ownership (and being a landlord) will not hurt either. But, limiting the debt I am on the hook for every month will always be a priority. I prefer to let somebody else pay it for me.

Southie. Northie. Who really cares? At day's end, it's not about what you have; it's about where you want to go and laying out a plan to get there.

Never make assumptions about the guy who drives a used car and wears the same clothes every day. He doesn't keep up with the Joneses, but that doesn't mean he's not investing for his child's future.

At the time of publication, Pendola held shares of KFT, VIA.B and MSG in a custodial account for his daughter.