CINCINNATI BUSINESS COURIER
February 10 – 16, 1986
INVESTMENTS
Charles Vaughan
SEND MONEY. Anyone with a child in college knows those words well. In fact, as we mature into adulthood, one of the most stark realities to face is that we lose the privilege of calling on others for our needs. The rest of adult life for most people is greatly involved in grappling with this reality.
Freedom is what most people really want economic freedom. Whether we enjoy our work or not, most of us would like nothing better than to get up in the morning knowing that whether or not we went to work was totally optional. It would be a great feeling to go in strictly because we want to. It would be truly wonderful to know that our families would be taken care of no matter what. Regardless of war, depression, political upheaval or rampant inflation, everything would be OK.
Obviously, very few people (if any) in the world enjoy that feeling. That is because not even billions of dollars can guarantee life without risk. It is often said that money can’t buy happiness. I wholeheartedly concur, but note that the substantial lack of money can buy a great deal of misery. Even those who do not aspire to great wealth want to have the feeling that they will have enough to meet their needs. The most vulnerable people, oddly enough, are those who seem the most secure.
The mid to upper-level corporate executive used to be the envy of all. Likewise, the successful professional with a sound medical or legal practice. In recent years, recognition has come that mergers and policy changes can cost an executive a job and that economic shifts or personal disability can sink a professional.
No wonder people line up around the block to buy a lottery ticket in hopes of winning a few million. We don’t want money, we want freedom units. Wealth for most people would be the ability to buy whatever they want whenever they want without worrying that circumstances might alter that ability.
So, what then is investing all about? For the vast majority of investors, it is the pursuit of this illusive security called financial freedom.
Although the stated objectives might be different, the real goal is usually just, what we refer to as “having it made.” Most people have come to realize that they cannot trust “the system” to do it for them.
Whether an individual can count on an inheritance, is rising rapidly in the corporate ranks, or is merely grinding out a living as an ordinary worker, the way in which reserve dollars are put to work will greatly influence his future independence.
Those who are unable to postpone present gratification to accumulate may pay dearly in the years to come. The onset of retirement is one of life’s most stressful times because it calls all of our past financial stewardship into question.
There is a proven approach that offers a ray of hope in this otherwise somber piece. It is simplicity itself, but few ever discover it:
1. Recognize that what you do today will influence your future; the responsibility is yours alone.
2. Consider your wealth accumulation program as a business.
3. Start today if you haven’t already.
4. Postpone part of your gratification now to save for later needs.
5. Take your savings dollars out first on a regular basis.
6. Work at your financial management, the pay is great.
7. Get professional ‘help when you are stuck; it’s cheap in the long run.
With such an approach, consistently applied, your financial freedom may become more than just another “check in the mail.”