We all strive for a happier and wealthier life, but the path to achieving these goals is often unclear. Recently, I attended a retreat for high-net-worth individuals hosted by Long Angle, where investors and financial experts shared insights on the intersection of wealth, happiness, and family.
Tad Fallows and I decided to share a recap of our top ten takeaways from these impactful discussions (which you can listen to in Ep 199 or watch here), offering a fresh perspective on how money shapes our lives in ways both expected and surprising.
1. Wealth Amplifies What’s Already There
Money tends to amplify what’s already present. If you’re happy, money can increase that sense of joy; if you’re dealing with personal or professional issues, wealth can actually make those struggles feel heavier. As Morgan Housel says, “Money is a financial asset, but a psychological liability.” It’s like a magnifying glass, intensifying both the good and the bad. The pursuit of “just a little bit more” can easily turn into a lifelong chase, and if happiness isn’t there to begin with, money alone won’t change that.
2. There’s No “Right” Way to Invest
Investing is like picking your favorite food—there’s no “right” answer. Just as some people love Mexican food while others swear by Italian, investing depends on personal preferences. Some people can tolerate more risk or less liquidity, while others want something stable and predictable. The key is understanding your own financial comfort zone and crafting an investment strategy that fits, rather than trying to follow a “perfect” method.
3. Understanding Trade-Offs Can Unlock Hidden Opportunities
While markets are generally efficient, they're also incredibly complex, operating across a multitude of variables. We heard from a real estate investor who accepts less liquidity in exchange for higher returns, embracing what’s called a “liquidity premium.” Every decision has a trade-off, whether it’s prioritizing growth, stability, or accessibility. Recognizing these nuances can help you make choices that work for your specific financial goals, revealing opportunities that might otherwise go unnoticed.
4. Building Resilience Is More Valuable Than Chasing Perfection
When it comes to investing, resilience often pays off more than perfection. Building a strong foundation and sticking with a plan allows your wealth to grow without constant disruption. As Charlie Munger famously said, “The first rule of compounding is to never interrupt it unnecessarily.” I'm at a point in my life where I'm able to fight the urge to react to daily market fluctuations, allowing my investments to work in the background without additional stress or anxiety.
5. Flexibility Is Essential in an Unpredictable World
Life is unpredictable, and the best financial plans are adaptable. We heard a story about an entrepreneur who invested heavily in a farmland trust, aiming for tax benefits, only to realize years later that he couldn’t access those funds when his family needed support. This example highlights the importance of flexibility in wealth management. As the saying goes, “The best-laid plans of mice and men often go awry.” Keeping room for adjustments in your plan allows you to navigate life’s curveballs with ease.
6. Everyone Can Benefit From Seeking Advice
No one has all the answers—not even seasoned investors. Talking through financial decisions with a trusted friend, spouse, or advisor can offer insights that you might overlook on your own. One story that stood out was about an attorney who chose to handle his own estate planning, only to accidentally leave one grandchild out of the will. The family fallout that followed underscored the value of consulting experts. The lesson? Having a sound advice network is essential, even if you think you can handle everything yourself.
7. Recognize That You’re Not at the End of History
Our values and priorities shift as we grow, and understanding that you’re constantly evolving can make a huge difference in financial planning. It’s much easier to look back and see how much you’ve changed than to imagine how much you’ll continue to change in the future. We heard so many examples from people further along in their journeys who had seen their priorities shift, and the message was clear: your financial plan should be flexible enough to adapt as you grow.
8. Happiness Requires a Purpose Beyond Just Accumulating Wealth
While financial success is important, it's not the sole key to happiness. Many individuals find that their happiness actually dips after achieving financial goals, particularly if their sense of identity was solely tied to their career or wealth accumulation. Cultivating passions outside of work—whether it's through philanthropy, hobbies, or meaningful relationships—is essential for creating a life of true fulfillment. In Ep #47, behavioral social scientist Arthur Brooks dives deep into how purpose is a greater driver of happiness than money alone, and this sentiment echoed throughout the retreat.
9. Teaching Kids About Money Is Complicated
Even the most experienced financial experts struggle with finding the correct way to teach children about money. Every child is different, and their relationship with money can be influenced by various factors, including their personality and the family's financial background. From my personal experience, here’s what you can do: model good behavior, have open conversations, and give your kids a hands-on experience with money. Whether it’s a modest allowance or encouraging a summer job, showing them the value of money can make a lasting impact.
10. Optimization Isn’t Binary
This key takeaway is very near and dear to my heart because it took me a while to understand that optimization doesn’t have to be an all-or-nothing game. Whether it’s with travel points, credit cards, or financial returns, you can reap the benefits without going overboard. Chasing every last point or dollar isn’t necessary to make meaningful progress, so find the level of optimization that works and brings you the most value, allowing yourself the freedom to enjoy the journey.
Ultimately, the biggest takeaway from the retreat was that financial decisions—and really, all life decisions—are inherently personal. There’s no universal answer to building wealth or happiness, so make choices that align with your values and goals. Surround yourself with a community of trusted people, seek advice when needed, and allow your plans to adapt as you grow. Embracing this freedom of choice means you can chart your own path to a happier, more fulfilling life.
