Stupidity is Not an IQ Thing

Introduction

Linda: Welcome! This is Linda with the Truesdell Companies, and this is another LIP discussion. LIP is an acronym for Let’s Interview Paul, and it’s part of the Paul Truesdell Podcast. Today, we’re going to talk about stupidity. From an investment standpoint, it may sound odd that we’ll discuss stupidity because it’s assumed that stupid people don’t have the intelligence to make good decisions, accumulate money, become wealthy, or engage in highly complex professions. But as you’ll hear, Paul has a different philosophy that might just open your eyes.

We’ll be back after our disclaimer, and I’ll begin with, “Let’s interview Paul.”

DISCLAIMER

Linda: And we’re back! Paul, thank you for another opportunity to chat. Let’s begin our discussion on stupidity, and today let’s tee up five questions on stupidity, focusing primarily on those who are very close to retirement or are retired.

Paul: Sounds good, Linda. I’m ready. Let’s begin!

Linda: Before we begin, let’s talk about your philosophy on the pre-go, go-go, slow-go, and no-go years.

Paul: Sure, let’s cover that. The pre-go years are when an individual or couple is getting ready to retire. Big decisions are being made—many are moving, maybe coming to Florida, or have recently arrived, preparing for full-time retirement. It’s a stressful period because they’re shifting from earning an income to relying on accumulated wealth and income sources like pensions or investments. Then you have the go-go years, where people are active, traveling, spending money, and physically moving around. It’s a vibrant time, but activity creates friction—friction creates heat, meaning time, effort, and money get spent fast. Next come the slow-go years, where physical ailments, emotional challenges, or cognitive decline start to slow things down. Spending might decrease, but costs shift to medical care, household help, or just the rising difficulty of daily life. Finally, the no-go years are when mobility is limited—trips stop, even doctor’s appointments are exhausting. This can lead to assisted living, nursing homes, or memory care. Each phase has unique challenges.

Linda: I’ve always found your discussions on these transitions fascinating. Now, let’s get into how not to be stupid. My first question is: How do you define stupidity, especially for retirees who are managing their wealth and planning their future?

Paul: Linda, stupidity isn’t about being unintelligent—it’s about missing what’s right in front of you, what I call overlooking “conspicuously crucial information.” For retirees, this might mean ignoring a market signal when rebalancing their portfolio or rushing to sell a property without checking tax implications. I’ve seen folks in their go-go years, full of energy, make snap decisions—like buying a second home in Florida—without considering maintenance costs or hurricane risks, because they’re caught up in excitement. Stupidity happens when you’re stressed, distracted, or in an unfamiliar setting, like navigating Medicare options for the first time. It’s not about IQ; even smart people mess up in complex situations. For example, a client once overlooked a withdrawal penalty on an annuity because he was rushing to fund a trip. My advice? Pause, take a breath, and double-check the obvious stuff. Retirees have worked hard for their wealth—don’t let a moment of oversight derail it. Recognizing you’re in a “stupid zone” is the first step to avoiding costly mistakes.

Linda: That’s a great way to reframe it. You mentioned the “stupid zone.” What are some specific situations that push retirees into this zone, and how can they recognize it?

Paul: The stupid zone is when your brain gets hijacked by certain triggers, and retirees face these a lot. I’ve identified seven factors, but let’s focus on a few common for this group. First, rushing—say you’re in the pre-go years, selling your house up north to move to Florida, and you sign papers without reading because you’re in a hurry. Second, unfamiliar environments—like dealing with Social Security or healthcare plans, which are new and confusing. Third, stress or fatigue, especially in the slow-go years when health issues pile up, clouding your judgment. I had a client who nearly fell for a scam email because he was exhausted from caregiving. You recognize it by noticing when you’re feeling overwhelmed, rushed, or out of your depth. My tip? Use a mental checklist: Are you stressed? In a new situation? If so, slow down, maybe call a trusted advisor or friend to talk it through. That pause can save you from a big mistake.

Linda: I love the checklist idea. What’s one practical tool retirees can use to avoid these stupid mistakes, especially when making financial decisions?

Paul: One of the best tools is a simple checklist, like what surgeons use to avoid errors. Retirees are often juggling big financial moves—downsizing, adjusting investments, or setting up trusts. A checklist forces you to stop and confirm you’re not missing something obvious. For example, before withdrawing from a retirement account, your checklist might include: “Have I checked tax implications? Are there penalties? Does this fit my budget?” I worked with a couple in their go-go years who almost sold a rental property without a checklist—they would’ve missed a capital gains tax hit. Writing it down made them pause and consult their CPA. Another trick is to schedule decisions for when you’re rested, not after a long day. In the no-go years, when energy is low, lean on a trusted advisor to review your checklist with you. It’s not about distrusting yourself; it’s about adding a safety net to catch what stress or fatigue might hide.

Linda: That’s so practical. How do social pressures, like family or advisors, lead to stupid decisions for retirees, and what can they do about it?

Paul: Social pressures can be a huge trap, especially for retirees. In the go-go years, you might feel pushed by family to fund a grandkid’s college or buy a vacation home everyone loves, even if it strains your finances. Or, you’re at a seminar, and a slick advisor convinces you to buy an annuity that’s not right for you because they’re an “expert.” I’ve seen clients in their slow-go years defer to a pushy broker, ignoring their gut because they didn’t want to seem rude. That’s stupidity—missing the red flags right there. The fix? Be your own advocate. Before a big decision, ask, “Am I doing this because it makes sense or because someone’s leaning on me?” Get a second opinion from someone with no skin in the game, like a fee-only planner. And don’t be afraid to say, “I’ll think about it.” That pause gives you space to see what’s really going on and avoid a costly misstep.

Linda: That’s empowering advice. Finally, how can retirees use this idea of avoiding stupidity to live better, not just manage money?

Paul: Avoiding stupidity isn’t just about money—it’s about living with clarity and joy, especially in retirement. In the go-go years, it means saying no to trips or expenses that stretch you thin, so you have energy for what really matters, like time with family. In the slow-go and no-go years, it’s about simplifying—maybe using a checklist to manage meds or household tasks, so you’re not overwhelmed. I tell clients to stay curious, keep learning, like reading about markets or health—it keeps your mind sharp and cuts down on blind spots. One couple I know avoided a bad investment by pausing to research it, then used the savings for a dream cruise. It’s also about fun—stress makes you stupid, so enjoy your days, whether it’s golf or a good book. For retirees, dodging stupidity means more freedom to live intentionally, protect your wealth, and savor the years you’ve earned. That’s the bigger picture.

Linda: Thank you, Paul, and to our listeners: Remember that Paul is available, especially for those of you who live in the Central Florida area, as he hosts and is generally the primary speaker at his casual cocktail conversations. Visit truesdellwealth.com for details and stay tuned at the end of our discussion for more details, as well as taking a look at today’s show notes. Paul, once again, thank you.

Paul: As always, Linda, it’s a pleasure. Have a great day!

You’ve been listening to the Paul Truesdell Podcast, and now you have a fantastic opportunity to meet Paul and members of Team Truesdell in person by attending a Casual Cocktail Conversation right here in Central Florida. We have two exciting events scheduled for July, 2025, both will be held at the Stone Water Club in Stone Creek, located in Ocala, Florida.

The first event is on Friday, July 11th, starting at 6:30 PM. This is the last of a part three series regarding Essential Florida estate planning documents. Paul will dive deep into probate and trust administration, sharing practical tips, tricks, and tools to keep costs down and make the process smooth for you and your loved ones. Whether you are in the pre-go, go-go, or no-go years, this conversation will absolutely equip you with common sense strategies to protect your wealth and avoid common pitfalls.

Then, on Friday, July 25th, also at 6:30 PM at the Stone Water Club, Paul will tackle Foggy Financial Flim-Flams. That’s right. Foggy Financial Flim-Flams. This is a must-attend discussion, especially if you enjoyed today’s talk on avoiding stupidity. You see, Paul will walk us through a laundry list of red flags that retirees often miss, and expose the tactics of high-pressure salespeople. Paul will show us how to spot scams and how to make smarter decisions, tying the conversation directly to our podcast talk you just listened to about dodging stupid mistakes. Everyone can participate, ask questions, and learn in a relaxed, engaging setting.

Now, reservations are required. To reserve your spot for either or both of these Casual Cocktail Conversations, call or text Team Truesdell at three five two, six one two, one thousand. That’s three five two, six one two, one thousand, or visit Truesdell Wealth dot com. Space is limited, so don’t wait! These events are a great way to connect with Paul, get your questions answered, and enjoy a fun evening with like-minded folks over a few cocktails. And that’s a wrap, we will see you at the StoneWater Club!