3 Important Observations on Wealth and Health, Ep #229

I recently read an article by David Booth—the executive chairman of Dimensional Fund Advisors—titled “Practicing Healthy Habits, Pursuing Wealthy Outcomes.” In the article, David shares some correlations he saw between health and investing after reading “Outlive: The Science and Art of Longevity” by Peter Attia.

The book dissects scientific research on aging to explore strategies to live longer and healthier. David saw some parallels between how we talk about health and think about investing. In this episode of Best in Wealth, I will share how you can invest in your wealth—and your health—by taking these three observations to heart.

Outline of This Episode

• [1:03] How are you doing with your healthy habits?
• [2:55] The Science and Art of Longevity
• [6:52] Observation #1: There is no one-size-fits-all solution
• [9:33] Observation #2: There are no quick fixes
• [14:31] Observation #3: Prevent problems vs. fix them

Observation #1: There is no one-size-fits-all solution to health and wealth

There is no one-size-fits-all solution for health. Everyone’s body is different. Some people need to lose weight, others need to gain it. Some people need to focus on building muscle and others need to focus on cardiovascular health. The list goes on.

There is also no one-size-fits-all solution for investing. Every investor has different goals and risk tolerances. Some people want a cabin up north. Some people want a condo. Some people would rather have a boat or luxury car. Some people want none of those things.

Secondly, everyone has a different risk tolerance. The best investment plan is one that you can stick with through hard times.

Observation #2: There are no quick fixes

There is no special pill for health or wealth. Exercise programs and diets will not get you results in days and weeks. Most of us will never have a six-pack. If you have a bad heart, you cannot stop eating something today and reverse everything immediately.

And when it comes to being wealthy, there are definitely no quick fixes. Why? The stock market has an average return of 10% per year. That means that your money can double every seven years. However, we rarely hit 10% in any given year. Out of the last 100 years, the stock market has only been up between 8–12% six times. It is usually much higher or lower.

To take advantage of the miracle of compounding, it takes time. David Booth points out that “Good investing, like good health, requires long-term discipline and commitment.”

Observation #3: Prevent problems vs. fix them

It is better to exercise regularly and eat well to prevent illness than find yourself in a position of having to fix something. Start being healthy now versus being told you have high cholesterol and a weak heart. Do not wait for the bad things to happen.

You can proactively approach investing. You can build a smart portfolio and develop a plan that accounts for a wide range of outcomes. You can make peace with uncertainty. Do not wait to start planning for retirement. You can save more, plan better, get the right insurance in place, and much more if you start early and prevent not being able to retire on time.

Start with an investment policy statement. It allows you to stay disciplined and committed. What is the next step? Learn more in this episode of Best in Wealth.

Resources Mentioned

• Practicing Healthy Habits, Pursuing Wealthy Outcomes by David Booth
• Withstanding the Roller-Coaster of Investing, Ep #215
• The Pros and Cons of Owning a Second Home, Ep #227
• Outlive: The Science and Art of Longevity by Peter Attia.

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Podcast Disclaimer:

The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.

About the author, Scott Wellens

Scott Wellens, CFP® is an investment advisor and founder of Fortress Planning Group. After earning his Bachelor of Science degree from the University of Wisconsin-Oshkosh, Scott quickly ascended to become a Vice President of North American Sales at a major regional provider of telecommunications infrastructure. While financially successful in this role, Scott searched for ways to pursue his passion related to financial literacy and providing financial freedom for both his own family and others. During his search, Scott became curious about the significant gap he found in the financial services sector: he was unable to find a comprehensive financial planner that maintained a family stewardship lens without being attached to financial products. Scott decided to fill that gap by creating his own planning firm that maintains a strong passion for comprehensive, unbiased wealth planning that is genuinely client-centered.

Scott resides in Menomonee Falls, WI with his family. He is the father of three active and independent daughters who keep him on his toes. Scott is an active community member, serving on the Hamilton Education Foundation Board, serves as a Dave Ramsey Financial Peace facilitator and leads the All Pro Dad’s group at their local elementary school. Scott enjoys spending his free time visiting state parks with his family, reading, and watching the Milwaukee Bucks and the Green Bay Packers win ball games.

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