life planning

Peak Experience

© Can Stock Photo / Nejron

You know we are endlessly fascinated by the search for investment bargains, the interplay of human behavior and the markets, and economic cycles. We enjoy talking with you, and collaborating on your plans and planning. But the pinnacle of our work is in a whole different category.

Once, a life-long friend of a close client had not been able to solve the question, “Can I afford to retire?” Mrs. S had raised two children on her own after being widowed at a young age, and was working at a job that had become onerous as she approached retirement age. For two years she had pursued the answer, but could not find it.

She needed to gain the confidence that she could retire. The resources were there, through her lifetime of diligent saving. We were able to explain the meaning of her wealth, how it could help her work toward where she wanted to go, in terms she could understand.

A year and a half after that, she called to ask another question. Would it be possible for her to own a home, or was that a pipe dream? She had spent thirty years in a modest rental duplex. Some time later she began her home search.

These questions, and others like them, are the reason we are in business. Our real work is not about making money. It is about helping clients make decisions that could change their lives.

Mrs. S was never our largest client. She never paid us the highest fees. But the personal satisfaction we felt from our work was vast.

Many will never need that much help. They come to a comfortable understanding of the meaning of their wealth without our context and perspective. We are still very happy to play a role investing their resources, and answering those financial planning questions that do arise.

Clients, if you would like to talk about these things or 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.

 

Case Study: The Life of Mr. S, and Working to 92

© Can Stock Photo / Leaf

Long ago, I met a man in his late forties. He had just resigned one position and accepted another. Needing a place for a 401(k) rollover, he agreed to do business with me. Our methods and access to investments were quite limited then (I was still in my twenties!), but I did the best I could.

Through the years his life evolved and changed; like all of us, he had his share of joy and pain. His wife began to suffer a chronic illness. His industry consolidated which caused some moves from town to town. But his children all ended up in successful marriages and careers, and grandchildren came. I advised him on wealth management throughout, helping him manage challenges from family health expenses and other things.

At sixty-six he retired, fearing he had not saved enough. The size of the fruit crop he needed each year seemed too large for the orchard he had grown, so to speak. We devised a plan that gave him a chance for things to work, although without any guarantees.

Of course, through these years, our knowledge and experience and confidence and capabilities flourished. We grew together.

Mr. S is pushing eighty-one years old now; poor Mrs. S had her disease go from chronic to acute and she succumbed a short while back. Mr. S stays busy helping with grandchildren and keeping up his home.

His retirement finances have worked out well, although this is not evidence of anything to anyone else. Good fortune played a role, past performance is no guarantee of future results, and all that. But I still want to tell you what happened so far.

Over fifteen years, Mr. S has withdrawn more than he retired with—and he also still has a current account balance that is larger than when he started. He tells us it is like the endless coffee refills they have at the café.

I call Mr. S when I need a pick-me-up; his gratitude is boundless. This, friends, is why I want to work to age 92.

That gives us a little more than thirty years to help many more of you get to eighty with more confidence than you ever thought possible. If you are fifty or older now, we will do our best between now and then to earn your gratitude when you turn age eighty. Clients, if you would like to talk about this or anything else, please email or call us.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This is a hypothetical example and is not representative of any specific investment. Your results may vary.

The Problem with Goals

© Can Stock Photo Inc. / imagesbyrob

Scott Adams, creator of the wildly successful comic strip Dilbert, is a man of big ideas. Some of them are fantastic, some of them are questionable, a few of them may be literally insane. However, for all his eccentricity it’s hard to argue with results: over the past three decades Adams has managed to parlay his workplace doodles into a multi-million dollar franchise.

Among his many ideas, there’s one in particular that he credits his success to: he doesn’t believe in setting goals for himself. Instead, he believes in building systems to work towards what he wants. The idea is simple. Most peoples’ goals depend on factors outside their direct control, which leads to frustration. By focusing on what you’re doing to manage those goals, though, you can build a system or framework for trying to achieve what you want. This way, you’re only concerned about the things that you control yourself, rather than worrying about goals that are outside your immediate reach.

For example, suppose a freshly minted high school graduate wants to be a doctor. That goal will take an enormous amount of dedication and training, and no amount of passion or talent is going to replace that. At any given moment, they’re an entire decade away from reaching their goal—it will take them five years of school before they even reach a point with any kind of real hands-on training. When faced with such a distant goal it’s easy to despair of ever reaching it. But while they can’t just up and be a doctor, they can always work on their system for trying to become a doctor. By focusing on their immediate day to day studies instead of their long-term goal, every day is a success. They simply use their system.

We think this makes great life advice in general, but it’s particularly important when it comes to investing. Our goal is to grow our portfolio over time, but what the market does day to day is entirely beyond our control: we can’t force our portfolio to go up. What we can always do, though, is work our system. In our case, this means practicing our three core principles: avoid stampedes in the market, look for the biggest bargains we can find, and own the orchard for the fruit crop. We can’t push a button and make your portfolio grow. But we can practice our investing discipline every day, even when the markets don’t cooperate.