NFA GRS Dude, Why?
I am not a financial advisor, so this is not financial advice, and I have no idea who you are, but this series is what I have done for the last 20 years and a couple of outlines to get rich slowly, as well as a playbook if I knew then what I know now.
What is the purpose of this POST? Needs and self-determination or Why me, how I got rich slowly, who helped and who I helped.
A Decent Plan for a Dollar DudeâŚ
What do we need? Most of you have Maslovâs hierarchy of needs met. After food water and shelter Self Determination Theory says there are 3 fundamental human needs...
Relatedness
Competence
Autonomy
Relatedness: find people around you that you enjoy or love they will make life better and give it meaning. It can be colleagues, family or a Dungeons and Dragons group the Manawatu Plunderers Football Club specifically it does not matter. For you, it matters and may be a good enough why, to learn to build wealth.
Whakapappa as I understand the Te Ao MÄori expression is we enjoy the wealth of our ancestors borrowed from our children. Now is determined by what came before and the future is determined by what we do now. This interdependence imparts reverence for how we got here and where we are going.
I came from a fortunate upper-middle-class family, in the UK you would have called us middle class not working-class definitely not POSH. Everyone had to work for our wealth but I was taught the difference between an asset and a liability and had a healthy fear of debt. My grandparents to avoid taxes paid for my university and medical education. My purpose is not to squander that assistance, pay for my children's higher education and help others do the same. At the start of training, I wanted to "retire at 55 with no loss of income." As that date approaches ever sooner I realise I just want all the options that goal provides.
Warren Buffet would say I did well in the Ovarian Lottery.
My family did teach me to be very ethical and charitable with money. They taught me to get to know how people make their money. You get the advice you pay for, if you are not paying for the advice people are likely selling you something.
Competence: Concentrate on creating wealth while you are young then diversify to protect wealth when you are old because if you make a mistake, you donât have time to recover. Cole Hauptfuhrerâs father
Most of us became doctors and many specialists to be competent and give back while feeling useful, which is a fundamental human need medicine has a very large moat (school, colleges, medical councils, large organizations with oversite and patient protection) it is a concentrated field of study and very well enumerated. For many people deciding on a highly remunerated field and working a long time is enough to become wealthy.
When I was in university, I thought reading the Wall Street Journal WSJ at the time was America's second newspaper, and reading through the epidemiology of millionaires by Thomas J. Stanleyâs âThe Millionaire Next Doorâ highlights why many American doctors do not become millionaires. Doctors' failure to achieve lasting wealth is mainly around the delayed gratification and high salaries they think will always be there. The book gave lots of groups of people who earn less than doctors but do become wealthy and how.
I developed a lot of knowledge but as a busy doctor in training applied the pay someone smarter to "do it for you" financial advice strategy. I went straight to the financial services industry and had significant experience with the cost and benefits of many types of products and service models. With a high income, this strategy is fine as spend less than you earn save and try to not erode your purchasing power with slow gains in the broad market.
Since 2003 I have been giving a version of a financial outline basics talk which I originally titled "How to make a million dollars in 3 years: what I did in residency training to achieve this" I have reworked it to assess my strategy and continue to evolve. It was a lie it was a very basic talk to set out a framework of habits to achieve that target investing over a 30-year career. When my boss then and friend now Mike-O asked me "Did you really do all this stuff in your talk, set up IRA and save a moonlighting shift a month" I said yes. He was amazed and said your gonna do great.
Autonomy: if you get wealthy what do you do with it where are you aligned are you wielding money like a maniac or a tyrant? Jimmy Carter recently died and he spent 100 years helping people and I think that is an amazing and fulfilling life. Cole Hauptfurer said, "I am certain twenty per cent of the people would control eighty per cent of the wealth he just didn't want it to be twenty people." I don't either, I think being wealthy is okay if you are doing it with purpose.
Having a PURPOSE is very fulfilling. As a profession, I train emergency medicine physicians serving the patients and multiplying my effect through education is fulfilling. This is not my only purpose I want to enjoy my family and provide for them what my family provided for me. Whakapappa honour what your ancestors (all our ancestors) have given us in this world and pay it forward to the future.