THIS ARTICLE about spending makes some great points. However, it is rather long so how about I simple share my main takeaway from it?
The article starts as follows….
“Former General Electric CEO Jack Welch once nearly died of a heart attack. Years later he was asked what went through his mind while he was being rushed to the hospital in what could have been his last moments alive. “Damn it, I didn’t spend enough money,” was Welch’s response.”
The financial planning and investment world focusses on saving and investing, rather than spending, or what your wealth can most meaningfully be put towards.
That is because saving and investing is a piece of cake. We can easily work out how much you should put aside each month and where. It also makes sense for the investment industry to focus on this because more money invested = more fees earned.
What you are going to do with your wealth is not a piece of cake. It is not a matter that maths and spreadsheets can resolve, it is a deeply psychological and emotional issue. It is complex.
I see the struggle every day and I think we can do more to help.
For many of you, our clients, there is more in the pot than you are ever likely to need for yourselves. Which gets me thinking:
- Can you feel what I can see?
- If not, why not?
- Do you want to do something about it?
- How do we unlock that excess and put it to better use?
Unnecessary excess suggests that you and not spending what you can. I am not talking about spending on material things (although I am all for upgrading my sausage roll) – I am talking about new and/or better experiences. That could mean trying new things, experiencing the joy of helping future generations, those you are close to and love, or the charities and concerns that matter to you.
The possibilities are endless – the opportunity for greater joy is infinite – could you be missing out big time?
Our role is to help you minimise future regret. If we are not encouraging you to put your wealth to the best possible use, are we failing you?
Let me leave the emotive and return to the practical.
I think we need a more nuanced approach where this is relevant and important to you.
Perhaps we should be taking a multipronged approach to your wealth. There is the money for you, money you are the custodian of to give away, and then your final legacy.
Each of those “pots” might warrant a different, unique approach – should we be more adventurous with the ultra-long term (30 years+) money? Invest more speculatively in AI, biomedicine etc?
For many your headline goal – a growing, inexhaustible income – is being met. Once we recognise that as having been achieved we can move on and do more with the excess. It’s simply a matter of agreeing what “more” means for you.
Let’s get to work on that shall we?