Confusion, Wealth, and Options

© Can Stock Photo / bruesw

A confession: I am confused about a fairly important life question. Some of you have been, or will be, facing similar conundrums.

You may be surprised, depending on how well you know me. Clarity is something I strive for.

When I am home in Louisville Nebraska, there are no traffic lights between my modest abode and my shop at 228 Main Street, a ten minute walk if I choose. Life is simple, inexpensive, and easily within the means of future benefits from Social Security and a small pension.

I also have a home in Florida which is not particularly modest. We chose it a few years ago, when I was part of a ‘we.’ It met the needs of my high school sweetheart as she worked to extend her life in the face of serious health challenges. The original rationale for the decision no longer holds, as Cathy passed away last summer.

You may recall our original decision a decade ago to adopt a snowbird lifestyle, in the hopes of making my plan to work to age 92 a sustainable one. I had no appetite then for decades more of Nebraska winters.

Now I am confused.

• I still have little appetite for Nebraska winters.
• The Florida home is more than I need.
• It takes money to maintain a second home.
• Where I will want to spend how much time in the future is something I cannot answer now.

What is needed to cure my confusion is time. The old rule of thumb about dealing with wrenching personal change is “don’t make any big decisions for at least a year.” Now I understand this rule, after giving myself whiplash trying to make plans prematurely.

The answers will become clear with time.

What gives us the time we need is money. I have some; you have some. Money for its own sake has little value, but the time and flexibility it provides is priceless.

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

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

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


The Happiness Assassins

© Can Stock Photo / Feverpitched

A professor at the Harvard Business School studies the connections between happiness and wealth. Since our immediate business here at 228 Main is wealth, and our primary object as human beings is happiness, we are paying attention.

Michael Norton’s research says there are two main questions people with money ask themselves when thinking about their level of satisfaction or happiness. “Am I doing better than before?” and “Am I doing better than other people?”

We recognize the comparison to others as ‘keeping up with the Joneses,’ don’t we? And always doing better than before implies a treadmill of constant improvement, ignoring the natural ebb and flow of markets, business and the economy. These are high hurdles to happiness.

Somebody somewhere is always doing better than us. And we can never have enough, if we always want more. Perhaps this is why researchers have found that people feel if only they had two or three times as much money as they had, then they would be perfectly happy.

Being the best clients in the world, you as a group are a little different. You possess a certain kind of common sense, a groundedness, that has you considering your happiness in connection with what you need and with your natural aspirations for the future. You understand the “two steps forward, one step back” nature of the markets and economy. (You don’t always like it, but you do understand it.)

One friend quotes her granny on this point: “I have enough, and enough is as good as a feast.” This is sheer genius.

Clients, it is unimaginably more satisfying for us to work with you, instead of the kind of people these researchers talk to. If you would like to talk about this 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.