Are You Rich?
Bill and Melinda Gates shocked the world by announcing their divorce after twenty-seven years of marriage. Likewise, Jeff Bezos and his ex-wife, MacKenzie Scott, divorced two years ago after a quarter of a century of marital bliss. Collectively, these four are worth $380 billion, so it's true, money can't buy love.
Globally, more than 3 million people died from COVID. At the pandemic's peak, 15% of our population were unemployed, numbers not seen since the Great Depression. And, nearly 100,000 businesses closed their doors forever.
Closer to home, my dad had successful bypass surgery; my uncle endured a marathon cancer surgery. A college classmate lost his dad a few weeks ago, a friend from high school told me he was a recent cancer survivor, and a dear friend lost his life to COVID.
I recently switched cardiologists for insurance reasons, so I updated my vital signs. My doctor ran a battery of tests, checking me from head to toe, inside and out. Thankfully, no issues. I look like a Volkswagen, but I run like a Porsche.
My net worth calculates to the penny and updates in real-time. Several apps inform me of changes to my investments. In addition, I have spreadsheets from here to Mission Beach that calculate multiple financial scenarios. My HP 12c rarely leaves my side. I use professional financial planning software to determine my fate. My money never sleeps.
I've been in the investment business for thirty-plus years and have seen thousands of accounts from a few dollars to hundreds of millions. And, for the most part, the accounts are the same, save for a few zeros, and the goals are similar - people want to make money and avoid losses; they want wealth without risk. We want to be rich.
What does being rich mean? I can calculate your net worth to tell you if you're rich or not based on worldly data, but does it matter if you're in poor health or have tattered relationships? I don't think it does. Also, if you're losing sleep because of your investments, you own the wrong assets. If you're worried a market correction will ruin your life, your allocation to stocks is too high. Maybe it's time to redefine the definition of wealth.
I am rich because I'm healthy with a loving wife, a beautiful daughter, a supportive family, great friends, and a couple of crazy pets.
What's your definition?
Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle. ~ Proverbs 23:4-5
May 4, 2021
Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so our clients can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM's custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets.
Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren't suitable for every investor.
 https://fortune.com/2020/09/28/covid-buisnesses-shut-down-closed/, September 28, 2020 by Anne Sraders and Lance Lambert