Are You Getting the Best Return on Life?
It’s important to balance return on investments with return on life (ROL). ROL is defined as, ‘How well you are doing in living the life you want, with the money you have.”
Since money is a vessel that can help you navigate where you want to go in life, it is important to control your money, instead of letting your money control you. When you focus on ROL, your investments serve you, not vice versa.
You may have been told that every money issue should and can be solved through a formula: “Let’s take your age, the amount of money in your portfolio, run some calculations, and presto! Here’s the answer for your life.”
These calculations are important and necessary but work only if you understand the qualitative goals your investments are meant to fund.
The best financial conversation you will ever have is to ask yourself, “Who and what really makes me happy in life?” and then arrange your finances to keep those people and experiences front and center in your life.
Your values and principles with money are not the same as everyone else’s, nor should they be. The most important aspect to be derived from the numbers is to achieve the quality of life you desire.
The numbers do not exist to drive life but to support it.
It is important that your life before and during retirement is both challenging and enjoyable. When you achieve balance––and as a result, true financial freedom––you will still be confronted with issues that organically arise with retirement.
These manifold issues include the following:
• How you best spend your time and energy
• How you address your personal health and well-being
• How you continue to challenge yourself
• How you maintain independence and comfort
• The role you play in your parents’ and/or children’s futures
• The kind of legacy you want to leave
• Your definition of success
By engaging in a financial planning process focusing on what’s important to you, you will reach the ultimate goal of using your money to create your best retirement.