Thanks, Dad, from your older and wiser son

Next Sunday is Father’s Day, and I plan to lie in a hammock in my backyard, smoke an expensive cigar, drink a few cold beers and read The New York Times.

I’ll also think about my dad — as well as Mark Twain’s wise insight about fathers.

“When I was a boy of 14,” the author wrote, “my father was so ignorant, I could hardly stand to have the old man around. But when I got to be 21, I was astonished at how much the old man had learned in seven years.”

Like the young Samuel Langhorne Clemens and many other children, there were times growing up when I thought my dad didn’t understand anything about life. Then, as I grew older and raised my own kids, I came to realize just how much my dad truly did understand the complexities of life.

My dad passed away five summers ago. I miss him very much, especially his patience and insightful advice. I also miss his calm demeanor and the way he always had time to help me solve a problem.

My father certainly was temperamentally suited to his profession. He was a certified public accountant who served as a vice president at Chase Manhattan Bank, handling international fraud investigations.

With a strong financial background, my dad took a great deal of time to teach all his children how to handle money — especially the difference between financial wants and actual needs. This prepared us to make good spending decisions that shape us to this day.

Some of the longest-lasting financial lessons I learned came not from any formal lesson but merely by observing how my father dealt with money himself.

Although he earned his living, indirectly at least, from companies and people who took out loans, my father hated debt. I took that to heart because, aside from a mortgage, I’m debt-free and continue to avoid borrowing money. I also take pride in having an excellent credit score.

And thanks to my father’s financial lessons, I have a solid individual retirement account, a fixed annuity and Section 529 college savings plans for my kids.

In addition to following my father’s advice myself, I’ve always tried to do what he did and spend time discussing financial matters with my son, Andrew, who is now 20, and my 17-year-old daughter, Kaitlyn.

The 529 college plan has funded the majority of my son’s education.

A few weeks ago, while mapping out a financial plan for his senior year, I realized we were about $5,000 shy for the last semester. I turned to the custodial accounts my dad opened for each of his six grandchildren. His plan was for my sisters and me to use the money for our kids’ college education when the time came.

The account my dad established for Andrew had grown to $10,200, and I let Andrew know that he had Grandpa to thank for helping to fund his last year of college.

This means Andrew doesn’t need to take out a student loan in his senior year and that he will be graduating in May 2012 with a surplus of money. Aware that the average student loan debt among graduating seniors these days exceeds $23,000, Andrew considers himself one very lucky guy.

As I relax in my hammock next Sunday, I will raise a beer to toast my dad. He may not have known much when I was a teenager, but now that I have a teenager and a young adult of my own, boy, do I appreciate what he taught me as a man.

Jim Pavia is the editor of –InvestmentNews.

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