I Asked Four, Old, Wealthy Guys Five Questions About Money.
Takeaways from older, wiser, and accomplished money managers.
For context, all four of these individuals are financially independent, retired, do not rely on social security for their retirements, and have nice things like paid-off homes, luxury vehicles, second homes, and ample time with loved ones and close friends. In other words, the dream.
Here are the five questions (compliments of Ramit Sethi) and how they responded. Responses were edited for clarity and conciseness.
If you could go back in time, what would you do differently with money?
S: “I would have invested more in tax-sheltered investments, like a ROTH.”
E: “I would have been more strict about investing at least 15% of my income from the beginning.”
D: “I would have asked more questions about money, where it comes from, and what competing currencies have to do with one another. I would have learned more about the banking system.”
R: “Looking back, I would not change anything materially concerning money.”
How do you approach money now and (how did you) at my age (44)?
S: “Nowadays, I live off my pension and social security. “C” and I save and spend her pension and social security payments. When I was younger, I didn’t save as much as I would have liked, but it was hard before having a higher income to save as much as I wanted to.”
E: “Currently, I am in a distribution mode, so I spend! When I was your age, I couldn’t save enough!”
D: “No real difference, as I have always been focused on managing money for an outcome and cumulative effect.”
R: “Regarding my approach to money in the past, I had the philosophy that I would not allow money to drive me. Alternatively, I focused on getting a job I was qualified for and enjoyed. Then, the money aspect would fall into place. At my current age, I have gotten more conservative with my investments and comfortable with my current money situation.”
Who are your role models concerning money?
S: “(Uncle) B and T.G., along with accountants that have given good advice over the years. It was always someone doing better than me with money and wealth accumulation. I didn’t take advice from broke people on anything!”
E: “Bob Brinker, and more recently, Charles Payne.”
D: “My father, who was a CPA, and a benefit to me around money, if not even through direct advice.”
R: “My role models for money have been my Dad, who taught me about savings. Second, my Investment Professor, taught me about the relationship between Risk & Return, while introducing me to Barron’s Newspaper. And further, Louis Rukeyser, who hosted a PBS weekly show called Wall Street Week, a very informative investment experience for me.”
What do you spend a lot on today?
S: “Vacations, trips, and dining!”
E: “Dining out and entertainment.”
D: “Experiences, hobbies (photography and traveling), family legacy matters, and food.”
R: “I spend money on golf and annual trips with my wife and family.”
What do you spend very little on today?
S: “Housing. We have had the house paid off for decades. Even upgrades or improvements cost little comparatively.”
E: “Shows and going out. We like to avoid crowds.”
D: “Housing, fads and vices.”
R: “I have always been good about not spending extravagantly on things I don’t need.”
What are my key takeaways from these illuminating and interesting conversations?
Even for people who have a lot of money today, it seems most could always save more, and learn more about how money works. This is paramount. There is a school of thought that unless saving hurts, you aren’t saving enough. My own saving and investment journey has highlighted that there is no such thing as “enough”.
I have routinely discussed on this blog and in my personal life how financial education is not afforded to most people. As is apparent from my respondents, most people are forced to seek outside counsel if they are even so lucky as to have the awareness that saving and investing are important. Friends, family, and public celebrities who are good with money are a blessing, no doubt. Do you have a favorite money mentor?
Even though all four gentlemen have achieved financial independence, everyone is spending consciously and on things they value, largely experiences and passions. I think this is an important lesson for anyone regardless of age, as our “needs” list is very short. What is money other than a tool to allow you to live your life as you see fit? Don’t waste it on stuff that doesn’t matter simply to look cool for people you don’t even know.
Thanks for reading!
If you are looking for more help getting out of debt and building wealth, you can get my newly published Zero To Wealth Workbook here! This is the exact method I used to pay off debt and build wealth and will help guide you along.
Some of my other, recent popular stories on finance.
The Best Bitcoin ETF’s To Buy, And Whey They Matter
Dave Ramsey’s Home Buying Equation Is Impossible For (Most) Americans