Good morning!
Want to start this week's letter by bouncing an idea off you...
There's a project I've been thinking about for a while. Something I've been referring to in my head as "planning in public."
And I'd love your feedback. Or to know if you're at all interested.
I would start by creating a completely fictional client profile.
And for this client, I would build a financial plan.
Further, I'd populate the plan with a handful of real client accounts, which of course would be completely anonymized.
Why the real accounts?
Because we could track - over time - how the plan reacts to real changes in real accounts. I think it might provide a nice blend of a hypothetical person's plan with a touch of real-world accounts and investment results.
As you might guess, I wouldn't put this together with the intent to offer weekly updates. Just as I encourage you not to look at this financial stuff too often, there's no benefit to be gained from micro-managing a financial plan.
I'm thinking an update every couple of months or so.
The idea would be to create a plan and then regularly update and report on the plan as things change in the world. Give you a peek into what "ongoing planning" looks like since I'm so fond of the concept.
My clients get to experience this first hand, but for those of you who aren't clients, what do you think?
Sound interesting?
Something you'd like to follow along with to get a better sense of a more practical application of ongoing financial planning?
Hit reply and let me know what you think. I welcome any feedback.
Thankyouverymuch!
Moving along... the subject of this week's email is "chasing commas."
This is an idea I've been thinking about for a while. So here goes...
If you look at a figure like $100,000 or $1,000,000, you'll see some commas separating the zeroes.
Many people are often chasing these commas. And not much else.
They want money. And more of it.
Because more is always better, right?
But I've found I work best with - and most enjoy - people who are chasing a different kind of comma.
These folks are chasing things like "Jane, wife, mother, & entrepreneur" or "Bob, husband, father, & friend."
Or maybe something as simple as "Melinda, fun, interesting person."
You'll see some commas above separating the words that describe who they are.
Not how much they have.
Jane, Bob, & Melinda haven't declared a vow of poverty. In fact, they're very successful, financially and otherwise.
These types of commas ARE NOT mutually exclusive.
But this second group of commas chasers see money as a tool to help them experience life while caring for themselves and the people and organizations that are important to them.
They're chasing commas, but not just the financial kind.
Sure they want more.
More life. More experiences. More learning.
Which commas are you chasing?
Links & things
Really love this latest article from Rubin Miller. In it, he writes about risk-free rates, opportunity cost, and more. Give it a read and let me know what you think:
Whether it's a mortgage or a student loan, one way to think about your debt is like a negative bond. As a result, reducing this debt could be considered an indirect bond or fixed income investment. Read this from Humble Dollar and see what you think:
If you're up for a long read, you may find this 7,500-word piece from Lawrence Yeo worth your time. Echoing some of my thoughts above about "chasing commas," Yeo contends that:
Thank you, as always, for reading.
And if you have any questions or an idea for a future newsletter, blog post, or YouTube video, I'd love your input.
Just hit reply - I read (and appreciate) every email you send.
Until next Wednesday,
Russ