By Ted Schwartz, CFP®
As I prepare for my upcoming 70th birthday next month, I find it to be a significant birthday (as was my 50th but not my 60th in my own mind!). Client meetings now often include a discussion of “when are you planning to retire”. I think it is time that I share my
thoughts on this topic and my own plans for restyling my life going forward.
First, I have already been cutting back my time behind the desk a little bit. I am here and managing investment portfolios for all clients and meeting with clients as time permits. I love my work and, quite frankly, believe I am still good at it (more on that topic later). Some of my time not spent behind the desk is
allocated to learning new things, reading more, travel, fitness goals, and trying to make a difference in things that are important to me.
All of this comes under what at Capstone we call Restylement. Since most of my discussion when I meet with clients is about their restylement, I wanted to provide some insight into my own restylement. Briefly, restylement is creating financial freedom to
do what one wants when wanted. One of the biggest areas of restylement is in finding a vocation one finds fulfilling and worthy of one’s efforts. I am lucky to work with clients I enjoy and conduct the investment process for them.
In the coming year(s), I hope to spend even a bit less time sitting behind my office desk (e.g. hopefully more time enjoying my morning coffee with a gentle Mexican sea
breeze blowing across my face). After coffee, I can still attend to client accounts and needs with the help of our whole Capstone team of advisors and operational staff. My goal is to continue to work on your ”return on investment” while other advisors on our team focus on your “return on life.” Specifically, they will be more focused on planning and goal setting and I will be more focused on portfolio management.
I must say that it remains a huge privilege to serve as your investment advisor, entrusted with your savings and their important role in securing your present and future. It is an awesome responsibility and I cherish the trust others have put in me over the years. If I may seem less than humble for a moment, I do believe this is a role for which I am extremely well suited. It is hard to know exactly why my makeup as a person is what it is, but it is truly second nature to
me to be a fiduciary (that is, put others best interests above my own). Somehow, that is in my DNA. I don’t have to fight instincts that increase my wealth by decreasing someone else’s. My personal wealth is of secondary importance to me versus the satisfaction provided by helping a client succeed. That is my true payday-so, I am selfish in seeking the emotional payday rather than a cash return. Early in my career I read a Canadian advisor’s book stating that you should put 99% of your focus on
the client rather than yourself and you will ultimately succeed in this profession. This rang true for me then and still does. Sitting in my chair for all these years, I am saddened by how often I see people in financial services who do not have the proper reverence for OPM (other people’s money). Such people have no legitimate place in this industry.
The other major concern for my personal restylement is a far more difficult one, both in assessment
and in dealing with it. That is, trying to make sure that I am “on top of my game” and am useful to clients, adding value through my work. While wisdom and acumen hopefully increase as we age, let’s face it, the brain deteriorates like the rest of one’s body. According to a study in the British Medical Journal by University College London researchers, brain deterioration can begin around age 45. The deterioration speeds up with age and is, of course, offset by taking care of your brain and
exercising it regularly. I try to do plenty of that and believe I have been fairly successful with my efforts to date. So, there is a bit of an ongoing battle between one’s increasing wisdom and experience and the computing self (i.e. the brain) slowing a bit as time goes on. At some future point (hopefully far, far away!) it is inevitable that everyone will reach a tipping point and will experience a decline in mental functioning if we live long enough. So, there is some difficult decision
making at some point where “You got to know when to hold them, know when to fold them”. I suspect this needs to be a group effort as it is dubious whether or not one is a good judge of one’s own mental acuity as it diminishes.
Warren Buffett, just turned 87, continues to manage a mammoth portfolio. I hope to continue to follow in his footsteps (not for quite that long!), as long as I continue to enjoy what I am doing and I and the group at
Capstone feel I am creating value.
A few months ago, I wrote about Leonard Cohen and his unbelievable achievements in life after age 70. As he neared death, he worked on and released his last album (click here to listen) . Obviously, he was compromised
physically while he worked on his final project. He recorded from home as he was not up to being in the studio. That said, he released an important part of his musical legacy on the way out.
On the far other side, Gary Burton (another of my favorite musicians) announced his retirement in his early 70s. Having seen him this past March, he appeared to this uneducated fan of music to still be at the
very highest level as a virtuoso vibe player (Click here to listen). He mentioned that it would be his final tour when we saw him at Birdland in New York City. It turns out he felt that he is no longer at his zenith physically or mentally and giving up playing music was his choice in life at this point. He even told the Miami Herald that he no
longer planned to play music at all, on or off the stage.
Should I at some point decide that I no longer should manage the investments Jamie Cornehlsen will become your portfolio manager and Hillary Hienton will focus on your financial planning. A couple of notes on the investment process: Jamie started managing investments for his firm starting in 2000. Since Jamie and I joined forces in
2014 we have collaborated on the management of the investments and have remained aligned with the globally diversified, multi-asset investment strategy that I have long employed at Capstone. So, I suspect that the investment process that was used for so long at Capstone will continue on when I am no longer managing the investment portfolios. I plan for my portfolios to remain under Capstone management.
At this time I see myself wanting to be somewhere in between these two paths. I know that as of right now I still enjoy what I do and I am pretty darned sure that I am still good at my job. Will I enjoy it and still be proficient five years from now? I don’t see that as something that I can really answer now but will monitor as the years go by . For now, I still love what I do and…that is how I wish to spend my time-doing the things I love.
No, I won't fade away, I won't fade away, I don't fade away
Unless I want to -Van Morrison, Raincheck
I will keep you posted as the years roll on. Should I decide the time to fade away is near, you will receive an update of my plans well in advance of such a life event. For now, I am still here
enjoying serving you and hope this note finds you well and pursuing your passions also. Hillary, Jamie, and I look forward to helping each of you with your own restylement.
