Podcast Ep. 8: Don't Always Follow the Numbers
Invest In Your Life Podcast
Episode 8: Don’t Always Follow the Numbers
Every once in a while, the numbers are wrong. While I'm all about not doing something stupid, the whole point of blending our life planning with our financial planning is to experience life more richly. Sometimes that involves spending some money.
This episode is inspired by a meeting with a client where we agreed that not following the highest-probability scenario was absolutely the right decision. The decision was the difference between having knowledge and having wisdom.
Full Episode Transcript:
00:00 Welcome to the Invest In Your Life Podcast, the show where we explore the connection between personal growth and personal finance. My name is Patrick King and in each episode we'll talk about what you can do to live a life that’s truly rich. Don't take this the wrong way, but I am not giving you advice. I only give advice to clients who have hired me to be their fiduciary financial advisor. If you're not one of those folks, then just consider this to be helpful tips and information and be sure to consult with your financial advisor, your attorney, your CPA, your witch doctor or your mom before you try this at home.
01:01 Okay folks, welcome to the show. I'm your host, Patrick King and I've got a great episode in store for you today. Sometimes following the numbers just ate the right thing to do. Going to go get into a little bit of detail on that, give you a little context around what my thinking is. That's a maybe not something that you would expect to hear from somebody who's a financial planner type, but it's true. That's what the deal is. But before we get into that, I want to get into this week's gratitude.
01:44 All right. Some of my grads who this week has everything to do with, uh, my dad, my dad recently had a pacemaker put in. Uh, he's, um, he's got this, it's a, I guess a fairly benign, I guess, condition where his heartbeat will really slow down. And of course, uh, there's, you know, danger I guess a hand passing out or, or having low energy or whatnot. He's been doing well up until this point. But, uh, he recently had a pacemaker put in and my gratitude is that, well, first of all, everything went smoothly and then, Holy Shit, man, how crazy is it that, I mean, I think they just do these things all day long. You know, he was in and out. It was an outpatient deal. They put something on his heart and it was an outpatient surgery. Like how crazy is that? Like how incredible is the body of knowledge that it took to get us to this point? You know, you're talk about standing on the shoulders of giants, right? So I'm really grateful that all of this body of knowledge exists. Grateful that the surgeons had the skill and the knowledge and support staff was able to do what they were able to do. And uh, yeah, dad got in and out and he's doing well and recovering. So I hope to be playing golf with him at some point in the very, very near future. So that is definitely big gratitude for that today.
03:25 Okay. It's the topic de jure time topic de jure. I really kind of cracked myself up that, hey, I've got a bunch of like segments in this podcast and it's just like, yeah, I'm recording this. I'm just in my office with the recording equipment, just talking to the Monitor. But I'm thinking about you. I really am. I'm like, I'm trying to think like who's watching this? Try to imagine like different people. Anyway, just making shit up. So topic does your uh, alluded to it earlier? It's not always about the numbers and this was, I was inspired by a meeting I had with a client earlier today that it's just not always about the numbers. Sometimes it doesn't make sense to do the thing with the highest probability of success. So the client that I worked with the day, I can't obviously give out any details, but, uh, he, um, he has this dream to build a big house where he can entertain folks and have his kids over. And uh, yeah, he's kind of, I kind of creeping up on retirement and he wants to know if he can do it. He's always had this dream and you know, wants to get like an architect involved in everything. He's got a beautiful piece of land picked out. And, uh, and of course, as you would expect if he didn't build the house, his probabilities of running out of money in retirement are much, much lower.
05:01 You know what? But we can't take all that money with us. You know, we can't. So a, he, I mean, it was a dream of his, and I've talked through what, you know, that the scenario of, you know, hey, if you're on your deathbed and you're looking back and would you regret not doing that? And he was like, yeah, absolutely. This is something he's always dreamed of. I'm like, okay, cool. Let's do it. Let's figure out a plan. Yeah. Life Short folks. So, uh, so yeah, sometimes you got to chase those dreams. Even know the numbers don't always point in that direction because it's all about living. It's about having a life, uh, that's by design rather than by default. And so this, uh, this club, we did run the numbers by the way. At some point you got to do the math, you know, if it wouldn't, if it was one of those things where he built the house and he would crashing and burning, I would, I would wave him off on that.
05:58 But you know, it's like, okay, so we've got good probabilities. Even if you do build a house, so like this let her rip. It's not about dying with the most dollars in your accounts. It's about having experiences along the way. And sometimes those financial resources are directly related to those experiences. You know, the house for him, it's not actually about the brick and mortar or the sticks and the tile and the kitchen and all that shit. It's about the experience of being close to this, his friends and his family. It's about the experience of having that dream turned into a reality when he pulls into the driveway. It's about the, the dinner parties that it'll have with his closest friends.
06:52 Those are the experiences. And so having that wealth enables him to experience all those things. And that's, that's pretty awesome. Sometimes financial resource sources are not directly like linked to those experiences that we want to have in life. This is the time, these are the times where the numbers actually make sense. You know, the new car smell fades away, you know, the, the big mcmansion, hey, you know, maybe it is your dream. Maybe you just feel like you need to keep up with the Joneses. It'll eventually need a power wash. It will eventually need to have the fridge replaced. The new iPhone eventually just becomes the norm. It becomes your base level of happiness. I'm not saying don't buy those things. I mean, Shit. Yeah, absolutely. Need a car. You need a house and yeah, I, I, you probably need an smartphone these days. You know, it's got, it's kind of crazy, right? So often we can completely change our experience of life without a whole lot of financial upheaval. You know, when it comes to those things, right? The things that may not be your dreams, it might be other people's dreams. You know, we can maybe experience life in a good way without a ton of financial people if we choose, if we decide to pursue what we want rather than the default.
08:28 You know? But yeah, sometimes the unadvisable thing is the right thing and you know, having numbers, it's like having knowledge but having numbers isn't having wisdom. And that's the big difference that I kind of want to make sure that we touch on here. There's big difference between knowledge, knowing what you can do and wisdom, knowing what you should do. And that's the big difference that I try to help my clients with the clients that I work one on one with. Yeah. And I've, I've seen, I've seen this stuff done, I've seen it done the right way a bunch. And I've seen clients that, you know, in spite of my best efforts, chose not to, not to pursue the right way.
09:21 So yeah, having an experienced financial planner isn't about knowledge or is it just about the knowledge? It's about having the wisdom to, so think about that. If you've got those dreams, it's a difference between knowing what you can do and knowing what you should do. If you've got dreams that you're curious about, hit me up. Let's, let's talk about it. Maybe it's a good fit for us to talk about it and work together. Patrick at invest in your life, podcast.com invest in your life, podcast.com. Go to the website, hit me up there. Uh, check out my free resources. So that's it. It's not always about the numbers folks.
10:11 Okay. It's time for this week's ordering off the menu section. So how am I ordering off the menu this week? Uh, well guess what? I'm buying a new car. Well, east I'm set to, who knows, I'm buying it from an individual. So if he gets squirrely on, might not be doing shit. But yeah, it's time for me. Time for me to let the racecar go. I've got, um, I've got this BMW three 35, I s and I used to love, I mean, I still do, I love like a beautiful sports car and I love being totally connected to the road, but right now it's just not serving me anymore. It's just not, yeah. I'm not doing the track days. It's not suitable for parking in garages. It's definitely not suitable for the lunar moonscape of our Atlanta of streets. Right.
11:15 The stiff suspension that you need for a sports car. Um, yeah, it really knocks your fillings out when you hit a pothole. So account, I'm kind of sad about it because it, uh, you know, on one hand, you know, especially when I was younger, like, okay, love, just love the feeling of being connected to the road and all that. But, but now my priorities have changed. I mean, I've, I own this business. I really love this business. You know, much more excited about travel than I am about, about the car. So, so that's the why. What, how am I ordering off the menu? I'm not buying a new car for sure. And I'm not, again, this, this may be the prudent thing. I am buying a car that I like though. That is one piece of wisdom that someone gave me a long time ago that I really appreciate, get, get something that you like.
12:08 Now it doesn't have to mean that you get the Bentley. So for me, my ordering off the menu is that getting instead of an eight year old sports car, I'm trying to get out with a six or seven year old SUV. Yeah. So, uh, so BMW X5 is what it looks like it's going to be, it's a relatively inexpensive because people are afraid of German cars at a certain mileage. But, so yeah, it's super cheap relative. Um, if I sell my car, probably make a little money and the whole transaction and a, it's luxurious. Gosh, it's looks yours. And here's the thing, if it's maintained well, that is going to last forever.
12:57 Those folks really over engineer those cars. So that's Kind of how I'm ordering off the menu. This, uh, this episode, I'll let you know how it goes. The, uh, the guy, uh, potentially buying this thing from seems like he's maybe a little bit risk averse. So I dunno. I mean I got the cashier's check and everything, so we'll see how that works. But, but yeah. Yeah, I'm excited about it. I'm excited about not worrying about having a flat tire. Want to hit it, one of the myriad potholes that we have here in Atlanta.
13:30 So that's it. That's what we're going off the menu this week.
13:37 Okay. Q and a, send me your questions. We'd love to hear from you if you've got a topic that you want to hear about, hit me up, Patrick at invest in your life, podcast.com. Again, hit me up on the website as well. Invest in your life. podcast.com. Yeah. What's your gap for me?
14:03 Now we're down to the poor of veto section Pura Vida today and how am I living a good life? The good life. I made a difference today. You know, I mentioned earlier in the episode that I met with a client today, like I feel like I made a difference in somebody's life today. Somebody walked out of a meeting with me and one of their dreams got greenlit.
14:29 That's pretty damn good day. I love what I do. If you can't tell, I love what I do. I feel like I'm really good at it too. And today's days like today really kind of are those days where I just got to savor it.
14:44 Cause man, I love feeling like I have that impact. It's just great. So that's my Pura Vida today.
14:57 All right. All right folks, thank you. Thank you for listening to the podcast. If you're listening to this, you made it your “aural” a-u-r-a-l, I guess is the ears. Your aural suffering is over! Oh my Lord. Thank you all so much for tuning in. I will be back soon. See you next time. And until then, peace. Thank you for joining me today. To find out more and get access to my free financial resources visit. Invest in your life, podcast.com
15:48 The thoughts and opinions expressed here are my own and or for general information only. They are not intended to be recommendations or specific advice for anybody. I'm not a doctor or a licensed therapist, so please consult with your healthcare provider if you had any issues regarding your physical or mental health. Any investment performance that's referenced here is historical and of course has no guarantee of future results. Last but not least, the Easter Bunny isn’t real.