Exploring the connections between Healthy Habits and Wealthy Outcomes.
Financial Harvest Wealth Advisors’ clients are familiar with our working relationship with Dimensional Fund Advisors, and that we use components within Dimensional’s investment portfolio. To learn more about the “Dimensional Difference,” and why we strategically and confidently choose them, you can tune into our Plant. Harvest. Prosper podcast, Episode 13.
Last week, David Booth, Chairman and Founder at Dimensional, posted a thoughtful commentary titled, “Practicing Healthy Habits, Pursuing Wealthy Outcomes.”
David writes that he has been reading a book that also has captivated several members of the Financial Harvest team this summer, Peter Attia’s Outlive: The Science & Art of Longevity. The article draws parallels between “healthy habits and wealthy outcomes,” which, not surprisingly, is a point we frequently make at Financial Harvest.
Specifically, David Booth observes that there are no one-size fits all solutions either for health or wealth and no quick fixes. More importantly, prevention is better than having to solve problems in both cases.
He elaborates, saying:
- “There’s no one-size-fits-all investment solution because different investors have different goals and risk tolerances. I believe that the best investment plan is the one a person can stick with.
- There are no quick fixes in investing. This is for two reasons: First, although the US market has returned, on average, about 10% a year, it rarely does that in any given year.1 (Usually, it’s much higher or much lower.) Second, to take advantage of the miracle of compounding, an investor needs time. Good investing, like good health, requires long-term discipline and commitment.
- Investors can be proactive about how they approach investing by making peace with uncertainty, building smart portfolios, and developing a plan that accounts for a wide range of outcomes.
F.I.T. Faithful, Intentional, Transparent. Financial Harvest
The comparison between the values at Financial Harvest Wealth Advisors and Dimensional Fund Advisors is further evidenced when you realize that our firm’s core values are summarized by the acronym, “FIT.”
F: Faithfully committed to doing what is wise
I: Intentional with growth and learning
T: Transparency is paramount to authentic client service
Understanding More about Healthy Habits and Wealthy Outcomes
While health and wealth are two of life’s most important objectives, the tremendous volume of data and advice available on each topic can be both informative and confusing. Consider reading “Practicing Healthy Habits, Pursuing Wealthy Outcomes,” which is available by logging into the Dimensional website. You may also be interested in reading Outlive by Dr. Peter Attia and contributing author, Bill Gifford, available at bookstores and online retailers.
FOOTNOTES
1In US dollars. Based on S&P 500 index annual returns, 1926–2022. S&P data © 2023 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.
