Health and wealth are interconnected, and an imbalance in one can cause problems with the other. Chronic health problems can be very expensive, leading to erosion of wealth while poor financial decisions can lead to undue stress which can cause a decline in health. However, the money decisions made over a thirty- or forty-year career can create wealth that will support you for another thirty or forty years of retirement, while health decisions should begin early in life and need to be maintained for life.
Planning for All Phases of Life
Many of our clients come to us when they are in their 40’s, 50’s, or 60’s seeking guidance on being prepared for the distribution phase of their financial lives. The working years are referred to as the accumulation phase when contributions are made to retirement accounts, investment accounts, and investments in business or real estate. The retirement years are the distribution phase when the assets accumulated are relied on to generate the income needed to live the lifestyle desired. If handled well, the assets may not only support one’s lifestyle but will allow for a legacy to be left to family and/or charity.
This doesn’t mean that once enough money is saved to support retirement, there is nothing more to be done. Tax rules often change, Social Security benefit decisions have multiple options, investment values fluctuate wildly sometimes, interest rates rise and fall, and emotions can lead to poor decisions. A qualified Certified Financial Planner™ can develop a long-term plan and be there to adjust it according to market conditions. They can execute strategies to factor in taxes and longevity.
The Health Impact of Wealth
A recent article in the Wall Street Journal, “Money Can Buy You a Longer Life – To a Point,” confirms the data that the wealthiest 10% live about fourteen years longer than the poorest 10%. Obvious reasons include affording healthier food choices and having better access to healthcare. Additionally, the wealthier live in communities that are safer and have higher quality amenities that keep them engaged in activities. Money allows for a less stressful life as people can be hired to do time consuming chores to restore time. The worries that come from financial insecurity don’t exist so that time can be used for exercise, meals, and truly meaningful activities.
The Way Many Achieve Wealth
Having started my career with a negative net worth having taken on student debt while working to put myself through college, I understand how impossible it can seem to be able to save enough to one day think that those savings would be sufficient to provide support not just for life’s needs but for an adventurous lifestyle. Not everyone has a finance degree with an understanding of tax accounting like I did when I started in the business decades ago. I learned to understand the value of compounding so that I invested a portion of my paycheck into my retirement funds even though I could barely cover my expenses and keep up with the student debt payments in the early years of my career. 
I knew that each month, or quarter, or year I waited to start investing could potentially add up to multiples of that amount when time was factored in. Investing $1,000 per year over a 40-year career with an assumed historical 10% return of the market could be worth over $400,000. $10,000 per year might be worth over $4 million and so forth.
The Rewards of Discipline
Starting young and being disciplined to save at least 10% of income can contribute to a meaningful retirement. The potential for accumulation of wealth through regular savings is achievable and aligns with the experiences of many clients.
Put in these terms, money can be thought of as a component of living a good life. Work hard at a career or business, saving 10% or more of your earnings and invest that money tax-efficiently, and over time, you may have enough saved to support you for many more years. Not everyone has patience and discipline, but the approach to financial success can be straightforward. If you aim to be in the top 10 percent, consider making regular investments a priority.
“Just Do It!”
Good health habits should also start at an early age, but no matter how good you take care of your health, there is no age when you can retire and stop being healthy. By the same token, if some of your life choices haven’t been ideal for you to this point, don’t wait to make a change for the better and get help if you need it. If anything, as we age, we need to do more to stay healthy.
More and more people are living to 100, and although that is still a small percentage of our population, most people want to live a long and meaningful life while maintaining good health to the end. Research on the topic of longevity shows that beliefs and attitudes about health and longevity can influence your personal outcome. If you live with the mindset that no one in your family lives beyond their 70’s, there may be a higher likelihood that you won’t either.
Make the Journey Fun!
Decisions about health and wealth make an impact on our lives many decades into the future. Life is a constant series of decisions balancing today with the future. We actively encourage our clients to do things to bring happiness throughout life and not to defer everything to the future.
Whether you dance and swim like Myra, hike and ski like Chuck, play tennis like George, or travel like Karen, take on activities throughout your life with others and learn new ones as you age. With a Certified Financial Planner on your team, your mind can focus on living the best life and reach for a most meaningful 100 years.
