Consistency and discipline are key to long-term wealth management. Read on to see how a steady strategy leads to lasting success.
I was sitting with a client that I started with in 1994, 30 years into our relationship, and another client, with whom I started with in 2004, so, 20 years into our relationship. And I was looking back, and we had created an asset allocation and a forecast for their future. The forecast included assumptions about social security, income, and retirement, and what they’d be spending based on inflation—and the projection of assets they’d have.
We’re now 23 years later, in two different cases, and the spending is almost exactly what we had projected.
They had moved, they had relocated—a lot of things changed in their life. But the spending, as we forecasted, was going to increase by 3 % a year, basically doubling every 24 years. That was pretty much on target. And the assets and the accumulation of investable assets to be able to draw in and support that spend rate was pretty close, plus or minus 10%.
Why did it work? Because they were disciplined, they stuck to the plan, and they ignored the noise. They didn’t get caught up in the hype of the day.
So, you can live a really fulfilling, full life by just sticking to the plan on your path to Wisdom, Wealth, and Wellness.
Have a great day.
