There Is No Destination

Most of us have some sort of financial goal. Here are some simple examples I have heard people say:

“I want to be rich.”
“I just want to be comfortable and enjoy life.”
“I want to double my investment every month.”
“I want to win the lottery.”

Some goals are more likely to become reality than others. The more realistic the goal the more likely you will achieve it.

Whatever your goal, it is important to have one. We all need something to aim at. And a goal allows you to measure your progress as you go along. But I encourage you to define your financial goals in terms of what they can do for you and not just in terms of money. Three out of the four goals stated above are defined in money.

Let’s say you achieve your financial goal to be rich. Now what? Now that you are rich, what do you do now? Does being rich change you?

My goal when I started my career was to be rich. And after 20 years or so, I was. I gave up a lot to do it. I kept the old jalopy for one more year… I waited to go on that perfect vacation. I worked hard and saved a lot.

And when I had achieved my goal, I looked around and saw what an empty place I had chosen to be. I kept asking myself, “Now what?” And after awhile I realized I did not really care about being rich, just to be rich.

I have owned 7 Series BMWs and old Chevrolet pickups. I really don’t see much difference, and most times, I prefer the pickup. Don’t get me wrong. There is nothing wrong with a BMW. It is a magnificent car.

The point is I bought the BMWs because I could afford the best. It really was not what I wanted. To me, going from here to there easily, safely and comfortably is as well accomplished in a BMW as a Chevrolet pickup.

I have owned more than one home. I found this to be nothing short of a nightmare. It is not only expensive but it added very little to the quality of my life.

I like to putter around the house doing projects that improve my home. And I have an excellent collection of tools, but I could never remember which house the tool I needed was in. I would spend hours looking for a tool that was not there. It is such a relief to have just one home again. I can find my tools now.

Investing your capital is all about increasing your wealth. The purpose of increasing your wealth is not to be wealthy, but to give you choices. Wealth gives me the ability to choose what my perfect day will be today...and every day.

Each of us has our own set of choices we want the power to make, and each of us has our own perfect day. Mine is to get up early, exercise, and then search all day, every work day, for investments that grow. Occasionally, I pretend to play golf, but not very often.

I think it is important to define our financial goals in terms of the choices we wish to make.

What choices do you want?

-Do you want to live near your children?
-Do you want to play golf every day?
-Do you and your spouse want to travel the world?
-Do you want to volunteer your time?
-Do you want to start a new business?

And when do you want to enjoy these choices?

Once you have outlined the choices, you can very easily tailor a portfolio that will help you meet them.

To me, there is no destination in investments, or in life. It is the journey and not the destination that matters.

I hope you enjoy yours a much as I have enjoyed mine.

Live long and prosper,

Mike Williams, CFA

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