Who Else Wants Their Investments To Take Care Of Their Family?

Most of our clients are over 55 and know what they want. But sometimes people are referred to me that simply want to know how their investments can help their family. Until you understand what money really is, raw material to live a life, can you appreciate and respect the investment process? How about I share with you what I do to take care of my family?

Stability Is Underrated

When you run a boutique wealth advisory firm, there is no corporation behind you to beat earnings or appear in front of a congressional committee. You get to do all of that yourself! One thing my business partner, Tracy Ann Miller, talks a lot about is our individual finances. She wants to make sure I am saving so much it hurts. 

While I can’t control market forces, I can hold back enough cash to pay for my daughter’s braces. You would be shocked, stunned, and horrified to know how many people make a decent income and still live hand to mouth. If that sounds like you, knock it off.

On a technical point, it’s extremely important to make sure you can replace your income at any time, not just at retirement. That means getting enough life insurance to let your family move on if you die prematurely. 

Everyone Thinks They Will Work Forever

My wife tells me if I won the lottery (buying a ticket only slightly increases your odds, and I don’t even do that) I would get bored and continue to work. Well, that may or may not be true but what is a fact is that we all age. At a certain point, my ability to work will clash with my willingness to work. As people age, they have limited bandwidth and want to spend their fleeting energy on what makes them happy. Work usually doesn’t win over time. 

Don’t tell me you want to work forever. That may be true, but nobody said they want you to work for them forever. Nobody wants an 80-year-old commercial airline pilot or surgeon. But there is a huge market for 80-year-old grandparents, and the non-financial benefits are huge. Don’t miss out on friends and family because you are forced to work for a living. 

For me, I want to work because it keeps me engaged. Eventually, I will slow down and want to focus on spending more time on the mountain. One hundred percent of my clients come to me because they want to transition from working for money to working on whatever they want.

Be A Great Example

When you save a lot, it’s like going to the gym and eating healthy. You know that no matter what happens you did the best you could. Showing you have the discipline to organize and face the reality of your financial life, sets the tone and pace for those around you. 

I had a client that retired from Los Alamos National Labs, but his wife didn’t want to quit her job. She didn’t like working but was nervous about losing the income stream. While it took a few times to make her comfortable letting go, she could clearly see all of us had an excellent plan to replace her income. Have the courage to live a life, not save until you die.

Every day I show my kids that it’s important to invest and enjoy what money does. When I pay for braces, I explain the investment I’m making. On ski weekends at Taos, I don’t hide the costs from my daughter. It's a sacrifice that will pay off for years to come. How else do you get teenagers and kids in their 20’s to go with you on a trip? Lift tickets.