It’s human nature to hope that someone will give us the gifts we’ve always dreamed of. Little did we know they’re already ours.
Life’s Best Gifts Are Yours
Hi, this is Jan Blakeley Holman, Director of Advisor Education at Thornburg Investment Management and host of the #NowMe podcast.
Each year, we celebrate holidays and life milestones that are associated with gifts. When it comes to gifts, it’s human nature to hope that this year, someone will give us the gift we’ve always been dreaming of. Too often that doesn’t happen.
There is a way to break the lifelong cycle of hope and disappointment. This week, Hollis Walker reads my recent article, “The Best Gifts in Life Can Be Yours”. Enjoy.
—
Life’s Best Gifts Are Yours
By Jan Blakeley Holman, Director of Advisor Education for Thornburg Investment Management
The best things in life really are free.
How was your last Valentine’s Day, the holidays, your birthday, your anniversary? Did you receive gifts that made your dreams come true—or, were you disappointed? Odds are, you were disappointed. Gifts are sometimes emotional traps that we unintentionally lay for others. Without being direct and specific about our hopes, we expect our loved ones to read our minds and give us the perfect gift.
The same is true when it comes to the small gifts we give ourselves, like the clothes we buy when our weight, style, or, the weather changes. But with clothing and everything else we receive or buy for ourselves, satisfaction is fleeting. All sports enthusiasts, collectors, craftspeople, and hobbyists know that once they finally acquire the top-rated racket, club membership, collectible or tool, they need one more thing or an upgrade to something they already have. It’s human nature to want today’s best thing.
But life’s most valuable gifts, while abundant, are priceless. To count them as your own, you don’t have to be a prodigy, have superhuman skills, or possess a fortune. They can’t be bought at the mall, or purchased online. To acquire these gifts, you must be aware of them, recognize their importance, and integrate them into your day-to-day life. Once they are yours, they will always be with you, and unlike other things that break, wear out or disintegrate, these gifts improve with age.
Here are some of the special gifts I’m talking about.
First, humility. Humility is a quality possessed by most successful individuals. When you’re humble, you’re comfortable with your limitations. You’re honest about what you know and what you don’t, and you’re willing to admit your shortcomings. And humility is a huge determinant of financial success. Years ago, with little fanfare, employers abdicated their responsibility for ensuring employees’ retirement security. For many people, employee benefits like pensions and retiree health care coverage disappeared. Instead of being dependent on others to make decisions about our future financial success, suddenly we were in charge of the tools, such as our retirement accounts. Individuals who demonstrate humility admit when they have limited financial knowledge or investment skills and seek advice from experts, and those individuals—the ones with humility—are usually rewarded handsomely.
Another of these special gifts is purpose. At some point in life, it’s common to question our purpose. While this exercise is often associated with aging or some other life milestone, the onset of COVID-19 gave all of us time to think, and caused people of all ages to question their life’s purpose. The millions of Americans who left jobs and caused the COVID-19-inspired employment migration we now call “The Great Resignation,” demonstrated the power of purpose. Short, medium, and long-term financial goals are steppingstones that help us achieve our life’s purpose. While the dollar amount may not be the end goal, a strong financial foundation often creates the conditions that enable us to identify and live up to our life’s purpose.
The third gift is moderation. While it’s common to test boundaries, at some point we learn that excess and extremes may not be the answers. The 118-year-old woman who attributes her longevity to a couple of stogies and a bottle of Jack every day, may have found her fountain of youth, but she’s an outlier and the same approach probably won’t work for most of us. The gift of moderation is one all investors need. To be clear, no one investment is the answer. Throughout history we’ve seen what happens when people sink all their money in the investment they believe will make them rich. We saw it recently with crypto currency. Sure, there were people who made money speculating on crypto, but there are way too many who lost their shirts. There will always be the Ponzis, the Madoffs and the Bankman-Frieds, but you don’t have to be one of their victims. To avoid that outcome, beware of people promising extreme returns that are out of line with current reality. To practice moderation with your finances, learn how credit works; diversify your investments; and, if you want to speculate, carefully manage the amount you’re willing to risk.
Life’s best gifts won’t come from your spouse, your partner, your parents, your pet, or your secret admirer—or anyone else. They aren’t mandated by the calendar, or a life event. These are gifts you already have; they’re right in front of your eyes; you just need to open your arms and make them your own.
This podcast is for informational purposes only, and should not be relied upon as investment, legal, accounting, or tax advice. It is not intended to predict the performance of any investment or market, and is not a recommendation, offer, or solicitation to buy or sell any security or product, or adopt any investment strategy. Past performance is not an indication of future performance. Investing involves risk including possible loss of the money you invest. Consult your investment advisor before making any investment decisions. The information contained herein has been obtained from sources believed to be reliable. However, Thornburg Investment Management makes no representations or guarantees as to the accuracy or completeness of the information and has no obligation to provide any updates or changes. The views expressed are subject to change and do not necessarily reflect the views of Thornburg Investment Management. This podcast is for your personal and non-commercial use only. You may not use it in any other manner without the prior written consent of Thornburg Investment Management. Thank you for listening.
More Insights
Investing in Turkey? Opportunities Exist Among All the Challenges
Will Closing the Korea Discount Create Investment Opportunities?
Why Is There a Korea Discount?
The ABCs of Personal Finance
How to Position Bond Portfolios as the Fed Ponders a Pivot
