Last night, our family enjoyed one of the most controversial Christmas classic movies of all time. No, I'm not talking about It's a Wonderful Life, Love Actually, or Planes, Trains, and Automobiles.
We watched the action Christmas classic Die Hard. The most famous quotes are "Yippee, Ki Yay, expletive!" and "Now I have a machine gun; Ho-Ho-Ho". It is a fun movie in case it has been a while since you last watched it.
Many people will disagree that it is a holiday movie, but I am definitely on the side of a holiday classic for the following reasons:
The events take place during a Christmas and New Year company party
Many Christmas trees, Santas, and Ho-Ho-Hos throughout
One of the first songs was Christmas in Hollis by Run-D.M.C. - another all-time classic
While I'd love to continue digging deeper into the Die Hard holiday debate, I'll point out how this movie, now 35 years old, is also an excellent reference for financial planning.
Here are the 5 Financial Planning lessons from the classic movie, Die Hard.
Lesson 1 - Discover what is most important to you
The character John McClane (played by Bruce Willis) was a tough-as-nails New York City police officer. He was so dedicated to his job that he stayed on the force to finish some criminal cases while his wife, Holly (another Christmas reference), and kids moved 3,000 miles away to California to pursue her career in banking.
After a harrowing and near-death experience with terrorists, both John and Holly realized what was most important to them - their relationship and family.
Lesson 2 - Bonds can be important
The hostage scheme at Nakatomi Plaza was a heist to steal $640 million worth of bearer bonds. "Bearer bonds" simply means the bonds belong to whoever holds them. So the first part of this lesson is not to own securities in certificate form. Own them in a brokerage account instead.
Second, individual bonds like US Treasuries can be valuable and essential to a retirement plan. Treasury bonds provide a source of principal protection and some interest.
By matching a Treasury's maturity to a specific year, retirees can have a reliable source of income in the short term while letting the rest of a diversified portfolio grow (or recover) in the long term.
This strategy could cover essential expenses, bridge the gap from working to Social Security, or pay for a goal within a specific timeframe.
Lesson 3 - Life is precious, and our health is not guaranteed
Bruce Willis (John McClane) and Alan Rickman (Hans Gruber) were the movie's main hero and villain characters.
In real life, Rickman was treated for prostate cancer in 2006 and died following a battle with pancreatic cancer in 2016. He was 69 years young.
Meanwhile, Willis was diagnosed with aphasia in 2022. Earlier this year, the Willis family announced that he has frontotemporal dementia. He is 68 years young.
Health and life are precious gifts not to be taken for granted. And for those facing a health challenge today, we're pulling and praying for you.
One of my favorite quotes of all time with varying sources is:
The past is history, the future is a mystery, and this moment is a gift. That is why this moment is called 'the present'.
Thinking of this quote can be a good reminder and guide for how we spend and protect our time and money.
Lesson 4 - Have good passwords, but don't forget them
Joseph Takagi was the president of Nakatomi Corporation, which held the bearer bonds. Like any good president, he used a complex series of passwords, security, and a vault to protect the bear bonds. Unfortunately, he forgot the password and was shot in the head.
Ultimately, the security system worked to delay the heist so John McClane could win the day and save the bonds.
Lesson 5 - Have a plan, but also some rugged flexibility
Hans Gruber had a very detailed plan for stealing $640 million dollars in 1988 (or $1.6 BILLION in today's dollars).
He thought of many contingencies to crack the vault, blow up the building's roof, and even use rocket launchers to destroy a tank. For the terrorists, everything was exact and rehearsed. It was almost like their plan was written in stone.
The one thing Gruber did not plan for was John McClane.
McClane was street-smart and experienced in fighting crime. His physical strength was solid, and he could adjust his plan based on the current situation and tools at his disposal. Ultimately, McClane's more flexible and dynamic plan overcame the obstacles and saved the day.
We oftentimes talk about the value of "planning" versus just "the plan". Planning is the ongoing process of making adjustments to a plan in a dynamic world. The plans we make today will oftentimes have many adjustments and revisions over time. It pays to have some rugged flexibility with that plan.
As you can see, Die Hard is not just a great classic holiday movie but also provides many lessons on life and financial planning. What do you think? Is Die Hard a holiday movie or not?