Projections at 70

The journey to 70 has indeed left a wake on which I have reflected nonetheless as they say in investing; “past performance is not an indication of future performance”.

There’s a reason this warning label is included in every document that discusses the performance of a particular fund, asset class or strategy. That’s because when it comes to financial markets, circumstances can change—sometimes quickly and unexpectedly. As in life!

I have enjoyed the 2011 book – “The Pinch: How the Baby Boomers Took Their Children’s Future – And Why They Should Give It Back”, by David Willetts. It has been updated in a 2018 version.

The book is an account of intergenerational inequality how we baby boomers (or our parents) produced a large, rich generation. Now at the peak of our power and wealth, baby boomers drive the bus; by virtue of our demographic power. We have fashioned our world around us in a way that meets all our housing, healthcare, and financial needs. Lots to unpack there and before my millennial children shout ‘Ok Boomer’ ill insert it here.

Areas of interest for me these days are far more focussed on social, cultural, and economic factors than in my past. Apparently, we baby boomers have made provision for our reigning section of society, whilst the needs of the next generation have taken a back seat.

Willetts argues that if the political, economic, and cultural leaders do not begin to discharge obligations to the future, our kids will be taxed more, work longer hours for less money, have lower social mobility and live in a degraded environment in order to pay for our quality of life.

I for one, as a proud baby boomer, am worried about the kind of world I am passing on to Janet and Gareth – so I suppose I am at last beginning to take note.

However, whilst the imbalance in the quality of life between generations is becoming more obvious, what is less certain is whether our generation will be willing to make the sacrifices necessary for a more equal distribution.

Then recently I devoured, “Die With Zero: Getting All You Can from Your Money and Your Life”, by Bill Perkins. The book is essentially about getting the most out of your money while you’re alive. It suggests planning your life and finances around spending all your money before you die.

My most popular concept in the book is that experiences provide enjoyment in the present and also continue to enrich our lives as we remember and share them. Perkins believes giving money away at death is suboptimal. Instead, he suggests we plan to give to kids, charities, etc., during our lifetime. This way, we get to experience the joy of generosity while we’re still alive.

Interestingly, most people seem to be worried about running out of money in retirement. But seemingly nobody is worried about running out of time to enjoy that money, and life in general. The money is replaceable. Time is not. This concept is a notion about which I am thinking deeply.

Try and look into your grandchildren’s eyes and not be moved by their future prospects and how much time you have left with them.

Luckily Kay and I don’t need to be thinking hard about what will make a happy Grandma/ Grandpa, knowing that we didn’t fluff around and waste our best years in some shit job, or operate our finances in a state of fear, always enjoying ourselves because we didn’t worry about having ‘enough’. We understand how lucky we are and respect that deeply.

So, the focusing question is: “What’s the ‘ONE Thing’ Kay and I can do such that by doing it everything else will be easier or unnecessary?”. “There can only be one most important thing. Many things may be important, but only one can be the most important.” — Ross Garber. (another book!)

Extraordinary success is sequential, not simultaneous. You do the right thing, and then you do the next right thing. Over time it adds up, and the geometric potential of success is unleashed. Meaning whilst making my fair share of mistakes Kay and I have a sequential series of right decisions on which to build. But what is the next right decision?

I am in research mode!

First, I worked out our net worth and this revealed that 49% of our wealth is in bricks & mortar, 40% in Superannuation, 4% in Vehicles and 7% in Cash. This was a relatively simple process and with my spreadsheet I can monitor the rise and/ or lowering of that net wealth position monthly, so tracking our wealth situation can be guaranteed and is not a concern in the future equation – I can manage the process – Kay and I are in control.

So, for us what are the immutables?

• Family and Friends are everything.
• It’s Western Australia for life.
• Travel extensively while still capable.
• Retirement is a misnomer.

What are the ponderables?

• How to extract value from our bricks & mortar?
• How to manage the bricks & mortar as an asset to retain quality and value?
• How well will be look after our health?

What are the imponderables?

• How long shall we live?

The hypothesis that is forming is starting to provide clarity – Kay and I no longer do work we do not enjoy and have been in that position for some years, I have just locked in work to the end of 2025 providing income and enjoyment with substantial periods for travel extensively while still capable.

There is plenty of meaningful work available should I choose to accept it – acceptance of work involves concomitant benefits; for example, acceptance of work last year in Central Queensland resulted in substantial quality time with my Sister in Brisbane (the main aim).

Further work away may involve Kay with me, work funding the escapade, at Kay’s discretion.

We have the ability and the assets to travel the Wallaby (‘Freedom on the Wallaby’. (Written for the “Worker.”) Henry Lawson, Brisbane, May 1891) with the 4WD and visit a myriad of friends and family around this wonderful Country. In the current housing situation, the house can be rented which will probably cover the travel expenditure but requires some current asset improvements.

We’ve just been to Broome with Janet & Taylor as Janet joined friends celebrating 40th birthday celebrations.

We are off to Hong Kong next week to meet with Gareth & Scott, attend the Rugby 7s and partake in in fabulous Asian cuisine. Followed by a trip to Zambia for me to work on a Water Project in Ndola.

After that Kay and I are off to Singapore for the Rotary World Conference, some time in Malaysia catching up with friends with whom we have been friends since my apprenticeship commenced in 1970.

Looks like the only issue is the imponderable and that ‘One Thing’ on which to focus!