longevity

Make the Most of It

© Can Stock Photo / AntonioGuillem

All seven billion of us have the same job. Whether we are among the poorest or wealthiest, sickest or healthiest, a single task unites us: wake up every day and make the most of it.

Taking that one step farther, we each can increase our ability to do things, to be better, to be stronger. Beginning each day a little better, a little stronger than the day before, that helps us make the most of it.

I won’t pretend to know or prescribe what you should eat or drink, how you should live, whether to exercise, or give you health tips. My professional expertise is devoted strictly to striving to grow your buckets, for use in your real life.

When you entrust me to help you with your wealth, I owe you the effort to make the most of it. Wouldn’t it be better for you if my brain was a little bigger? After all, thinking is how I do my job. The Harvard Health Blog recently cited studies that show exercise boosts the size of parts of the brain involved in memory and learning.

So exercise may be helping me make the most of it, in ways that help you, too.
This is a win-win choice: I have other, selfish reasons for exercise that have nothing to do with you. But if Harvard is correct, you get an advisor with a bigger brain out of the deal.

This essay began with a focus on the day to day, making the most of it. Oddly, my longest-range goal brings me to the same choice about exercise. It will help me serve you until I am 92 years old.

This congruence between my fondest ambitions and my daily life is good for you, too. Win-win.

Clients, if you would like to talk about this or anything else, please email us or call.

Sooner or Later…

© Can Stock Photo Inc. / SmallTownStudio

When I was a young man, my father told me that the mortality rate is 100 percent. I apologize for speaking so plainly, but sooner or later there is a funeral in store for every one of us.

This sad fact weighs on many of the financial decisions we make later in our lives. The issue is that we never get to know ahead of time when our funeral is going to be. A new retiree might live another forty years, or they might not live to see their next birthday. Plans that make sense for one scenario may not make sense for the other, and we do not get to know which scenario we will face.

When possible, we prefer to invest for retirement on a sustainable endowment-style basis, aiming to generate portfolio income to live on rather than spending down principal: “owning the orchard for the fruit crop.” The longer you can maintain your principal, the less likely it is that you will outlive your money. This approach also has the advantage of leaving a legacy intact to pass down to your heirs, if that is a priority for you.

But not all of us are fortunate enough to be able to comfortably retire on portfolio income alone. And not everyone is content to lock away a lifetime of earnings without getting the enjoyment of spending it themselves. Spending your principal is also an option if you want to live more luxuriously, although this increases the risk of outliving your money—you may wind up merely trading future comfort for present pleasures. The decision you make at 65 may haunt you at 85.

None of us knows the future, life has a way of getting in the way of our best laid plans. Our preference is to plan for a long, healthy life: we believe it is better to have money and not get to spend it than it is to need money and no longer have it. But ultimately, the choices you make about retirement are a matter of which risks you’re comfortable with. Figuring out your priorities is your job. Once you know what you want to do, talk to us and we’ll see if we can help you try to do it.