It’s easy to reduce your financial world to numbers and dollar signs, but there’s much more to the story than that. Expanding your focus to your Financial Quality of Life lets you approach financial information and decisions with a better understanding of your true opportunities and what they mean for you and your family. Here are five ways to give qualitative elements of wealth the attention they deserve:
1. Maintain a focus on the long term
Last week we wrote about investing for growth because we wanted to remind investors not to be overly cautious. Giving up growth opportunities in favor of short term safety may seem prudent at times, but don’t let a low-risk low-growth investment strategy go on for too long. Our youngest clients have an investment horizon that’s difficult to comprehend. Even our oldest readers likely have 30 years of investing ahead of them.
If you’re investing for the long term, you need the growth potential that stocks can provide. The major returns you’re looking for could come in the first year or they could come in the ninth year. A bond is not going to double or triple in value over that time. Stocks and diversified ETFs can and often do. Remember that time is your antidote to volatility.
2. Live like a Bostonian and be the millionaire next door
Boston is an unassuming city. Modesty and humility tend to be key values here. Maybe it’s the concentration of top talent among our world class companies and universities. Or maybe it’s a hangover from our puritanical origins.
The millionaire next door is common in Boston, and for good reason. It makes sense from an efficiency and stress management perspective to spend your time growing your business and investing in education and family while your assets grow and work for you. Millionaires next door earn a high quality of life by spending far less than they make. New Yorkers, by contrast, often face significant local pressure to solve financial problems by continuing to out-earn their spending. Very stressful.
3. Capture your full picture with a Net Worth report
The demand for better reporting for investors is constant. We often search for new reporting features that can bring clarity to our clients’ full financial lives. Fortunately the tools available for reporting on real estate, stock options, pensions, mortgages and lines of credit have improved significantly. Ask us how you can improve your financial reporting and we’ll be happy to show you the way.
4. Grow the intangibles
From our True Family Wealth series, we know that successful families count their wealth in more than just dollars. Human capital grows through family education, training and talent. Intellectual capital grows through shared knowledge, expertise and collaboration among family members. Social capital grows through more family connections through non-profit, community and business engagement. This has been written about extensively; ask us for the two marquee books on the subject if you want to learn more.
5. Add an expert to your bench
Experts are there to bring leverage and efficiency to the table when solving problems and answering complex questions. Lawyers, CPAs, and investment professionals like Osbon Capital Management will lower your costs, increase your outputs, increase your knowledge and save you time when they are operating at full potential.
If you’re ready to look beyond the numbers, let us know. We welcome you to raise your expectations.
This communication may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”
“Historical performance is not indicative of future results. The investment return will fluctuate with market conditions.
Past performance is not indicative of any specific investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor.
Investment strategies, philosophies, allocations and holdings are subject to change without prior notice.
This communication is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.
While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.
Adviser does not endorse the statements, services or performance of any third-party vendor.
Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Adviser’s clients may or may not hold the securities discussed in their portfolios. Adviser makes no representations that any of the securities discussed have been or will be profitable.
Any IPO alerts are purely informational and should not be construed as recommendations to invest.
Any case studies or hypothetical client profiles are for demonstration purposes only. They illustrate the breadth and depth of the many clients we represent at various life stages. Any similarities to actual Adviser’s clients past or present are strictly coincidental. Individual advice and results will vary based on each client’s circumstances, objectives and prevailing economic conditions.