Financial Planning Step 5

What do you do with the money that you do not need for current lifestyle or for investments that guarantee that lifestyle even with inflation and unforeseeables?  Most people move to Aesthetics.

Things I buy solely because I like them.  Could be art.  Snoopy had a van Gogh in his dog house.  Not because he needed it, but because it gave him pleasure.  That it turned out to be a good investment was incidental.

Classic jewelry, antiques, collectibles of all kinds, provide pleasure and may be assets in the true sense of the word.  Among many other collection themes, Malcolm Forbes owned nine Faberge Imperial Easter eggs.  They turned out to be valuable, but his take on collecting them is useful.

“If anyone should seek my advice about collecting, I’d quickly point out the old truth–buy only what you like. Measure a work by the joy and satisfaction it will bring.”

Some people have little joy or appreciation for physical artifacts.  They prefer experiences.  A trip around the world.  Lunch with a famous author or philosopher or movie star or recording artist.  A private night with the New York Philharmonic.  I have checked and that is not appreciably more expensive than a high end stereo system.

The point is that money is for what it does, not for what it is.  There is little joy in counting surplus $100 bills.

Use money to do the things that give you pleasure.  Buy things you like, buy experiences, be a philanthropist.  It does not matter what pleases you.  Being a miser is a self-defeating career.  Study the life of Hetty Green.

Her life turned out poorly, but her investment philosophy was excellent.  From Wikipedia.  “She formulated an investment strategy to which she stuck throughout her life: conservative investments, substantial cash reserves to back up any movement, and an exceedingly cool head amidst turmoil.” 

All for what?

More from Malcolm Forbes.

“Life is not a dress rehearsal; you are here only once, so you better enjoy your job, because it takes up a lot of your waking hours”

Words to live by.

Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.  In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.

Contact:  705-748-5181

2 Comments on “Financial Planning Step 5

  1. Thank you once again for the Five Steps in Financial Planning we learn new ways and approaches from you every day.We are really humbled by your dedication and the research on the different subjects.I very much appreciate your take on the issue of debt it is really a crisis in South Africa especially with the young ones.They have coined them Black Diamonds and lure them into a life time or life sentence in debt because they are encouraged to spend big on assets or items that are far beyond their earning potential.This will help a lot in putting in some education when engaging.I was with one of my dearest young client a doctor by profession I encouraged her to save for her first car instead of buying on credit we achieved that and she is very happy and I am content and feel blessed to be able to assist.Don you have made a difference not only in me but to a host of my clients colleagues and friends keep up the good work.God will reward you handsomely

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