flexibility

White-Knuckle Dreams

photo shows wooden chairs on wooden deck on a wooded lake

With decades in the financial industry, it’s been interesting to work alongside some friends and their families for years. I’ve gotten to witness many of their big milestones—and share mine, too.

Some goals have changed over time. It has happened in many different ways. Births and deaths can shift priorities. Sudden windfalls can open up opportunities and goals that once seemed unthinkable.

One quality connects a lot of the most successful goals: they stay flexible.

Is it cheating to say that a goal that changed is still a win? Well, was the birth or the death or the sudden windfall “cheating”? These questions are sort of beside the point. If life is change, a flexible mindset is the winning one.

It’s easy enough to mistake tension for focus or drive. But tense muscles don’t work as well as pliable ones. A marathon runner who cramps up, a surgeon who forgets to breathe—those are not success stories in the making.

We’ve loved getting to help clients meet those huge, lifelong dreams, of course, but there’s no romance in a dream that swallows you up. You can’t white-knuckle your way to your dreams.

We think it’s possible to set our sights high and roll with things along the way. That’s why we put so much stake in the plans and planning that go into your financial situation.

And it’s why we enjoy the work so much. Giving shape to dreams can be as thrilling as seeing them through—in fact, you can’t get there without it.

Clients, when you’re ready to talk about this or anything else, let us know.

If These Walls Could Talk (About Retirement)

photo shows four small model houses in the grass in decreasing size left to right

It’s generally a good thing when more cash is coming in than going out.

When our planned retirement income is greater than our expenses, we have the basis for a solvent retirement. The equation could be stated pretty simply: income > expenses.

The bigger part of our work and time and energy is devoted to striving to build your capital. More capital means more cash flow from your capital. We’re trying to get you access to the income you’ll need and want.

But lifestyle decisions may have a bigger impact on our finances, by way of expenses—that other side of our equation.

I recently decided to buy a different home, selling one I had originally purchased for a life chapter now ended. There is no sacrifice involved: the new place thrills me, although it is less than half the size of the old one. It actually feels like an upgrade to my quality of life.

The new place also features less than half the utilities, taxes, maintenance, insurance, and other expenses. Those add up to more than $1,000 in savings per month for me.

When downsizing helps you wipe out mortgage debt, that might improve your annual cash flow by thousands of dollars.

The effect of this lifestyle change on my retirement picture is amazing. Projected Social Security benefits cover a larger fraction of the budget. So a reduction in my need for income produces a much larger reduction in the capital I need to retire comfortably.

Reducing expenses means our money goes farther. Perhaps it means we can retire at a younger age or live with greater flexibility.

Clients, I still intend to work to age 92. And I’m looking forward to a new chapter where my living arrangements make more sense to me.

We are happy to talk with you about your retirement plans and planning, whenever you are ready. Email us or call.

Flexible Tactics, Timeless Values

© Can Stock Photo / happyalex

In business, the things that change draw a lot of energy. New technology, new ways of doing things, and new ideas grab our attention. The new offers the promise of competitive advantage.

Less attention goes to the things that never change. The timeless things can compound over long periods. Successful enterprises may need to harness both the new and the timeless. At 228 Main, we need both to serve you well.

For example, Amazon is one of the most dynamic companies in the world. The growth and evolution of the company has been astonishing. Yet founder Jeff Bezos focuses most closely on the things that never change.

According to Bezos, his customers want low prices, vast selection, and fast delivery. They wanted those things twenty years ago, and they will want those same things twenty years from now. When you invest in meeting unchanging needs, the returns may roll in for many years.

Writer and thinker Morgan Housel wrote that every sustainable business relies on one or more timeless features. We believe the key features you would like us to deliver include close human interaction, confidence and trust, and transparency. (Transparency in this context means ‘what you see is what you get.’)

We have previously noted that 21st century communications allow us to be radically transparent and to connect more closely. When we improve our processes for research and trading and portfolio analysis, we generate more time to work with you one on one. Our sense is that all these things together may increase your confidence in us.

Amazon continuously improves methods and tactics to deliver on its timeless strategy. We seek to do the same. Clients, if you would like to offer your perspective (or discuss anything else), please email us or call.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Amazon, Leibman Financial Services and LPL Financial are not affiliated.