What’s the value of wealth if achieving it comes at the expense of our freedom to choose.
My wife and I recently hit a milestone – we’re halfway prepared for our future.
It took about 15 years to get here.
Keep earning, control our spending, and test our assumptions -If that’s all we do from here, we’re going to make it.
Throughout the next 15 years however, at some stage, we’ll need to shift our focus, from preparing, to protecting. It may involve taking a few chips off the table along the way, and keeping an eye for a changing world.
Every good financial decision should contain a mix of preparation, and protection.
Do we buy or do we rent? Renovate, trade up, of invest a lump sum? Move overseas or start trying for kids?
Big decisions create ‘make or break’ moments, which can shape our future.
We get ‘stuck’ sometimes though. Stuck preparing, stuck deciding, stuck being distracted, stuck being busy, and stuck taking risk…
When the skin in the game becomes too large to lose, it’s time to cut loose.
It’s about risk management more than just number go up.
Does this mean I should sell some rental properties? Change out of an aggressive tech-based investment fund? Take another look at the new ways you can save?!
It might, but after you’ve thought about your own world, now consider the big wide world ‘out there’.
Here’s what I mean:
Of course we want out investments in Apple, Google, Amazon or Microsoft to go infinitely higher, but what are we doing here? Are we not voting for technology firms to effectively rule the world?
Of course we want our property portfolio’s to double in price every 7-10 years. What about the challenge our children now have, or the exponentially increase quantity of
have-nots’.
Of course we want to see our governments solving more and more problems, but are we sure that won’t lead to a Stalinist nightmare?
For us to become more wealthy, we have to allow tech firms to become larger.
When what we pursue, ultimately enslaves, what happens next?
When subscriptions are taxation, those with wealth (aka influence) become the target. How are you protecting while you build?
If you’ve reached the midpoint of your investment journey , or thereabouts, you know – it’s about risk management more than just number go up.
Want to protect your wealth? Start with where you’re going to be at, at some time in the future. Then, think about where everything else is going to be at around the same time.
Get advice, and then start considering the new world.
Along the lines of this new world, I’m pleased to share a recent conversation I had with Professor Ananish Chaudhuri, a lecturer in experimental and behavioural economics at the University of Auckland.
