I am convinced that money’s highest use is to support a good life. And one of the best ways to have a better life is to be of service to others.  Two of the most vital needs for humans are our need for connection, and our need for purpose. Sadly, I think these are some of the most commonly unmet needs in our society today.  But when you get out of your own head, away from your own needs and fears, and instead focus on what you can do to be of service to others, everything els

I’ve been thinking about how I’d like to be when I’m older. It’s a worthwhile question for anyone. Even if you’re in your 60s or 70s and have already “made it” to retirement, you still have many years ahead of you to shape your life.  Life is a creative act. Our future comes from how we spend our time today. The choices we make, the habits we form, the attitudes we cultivate.  When I find people I admire, or just specific qualities, I try to reverse engineer that back to the

I came across a talk from Arthur Brooks on leisure and found it thought-provoking. The biggest shift for me was the distinction between passive and active leisure. Here's the link to that, notes below: https://youtu.be/n0apNHGLBMo Passive leisure looks like watching TV, scrolling, or reading the news. Active leisure is more engaging. It involves creating, participating, or connecting with something in a more meaningful way. And it turns out, it contributes far more to happin

The thing about investing is that markets are volatile. When it comes to that reality, there are two broad approaches. One is to try to outguess the volatility, getting out when markets feel too high and getting back in when they’ve fallen. This tends to become a frantic, all-consuming process, and most people who follow it end up with less than they would have by simply staying invested. The second approach is the opposite. Buy and hold a diversified set of businesses for a

History is full of disruption. War, political upheaval, epidemics, technological change. Open a history book from any era or country, and you’ll see the same forces at play.  And yet, the broader pattern is clear: we encounter obstacles, we work through them, and we move forward. My bet is that this continues. At the onset of COVID, markets fell more than 30%. A global pandemic and widespread shutdowns led many investors to take a deeply pessimistic view of corporate profitab

At some point, most investors have an experience that changes how they see markets. Before that moment, it’s easy to get pulled around by headlines. The world feels fragile. Every downturn feels like it might be the one that doesn’t come back. After that moment, you start to see how resilient markets and the economy actually are. The short-term noise doesn’t disappear, but it loses its hold. For me, that moment was COVID. Think about what happened. The global economy is built

A mortgage touches nearly every part of your financial life. It affects your risk, your cash flow, your freedom, and your peace of mind.  Some see it as a burden to eliminate as quickly as possible. Others treat it as cheap access to capital and stretch it out for as long as they can. Both views capture part of the picture. But usually one lens will dominate depending on where you are in your financial journey.  Early on, a mortgage can offer modest leverage at a reasonable c

In this article: https://www.pihlfinancialplanning.com/post/how-long-can-wealth-really-last   I posed the thought experiment, “how might I design a portfolio designed to provide lasting multigenerational wealth?” This article shows a test of how that might play out, using a historical data set, and a very hypothetical family tree. The Portfolio For this idea to work, you need a portfolio with a high rate of growth. We are not only attempting to keep up with an exponentially-g

When people ask, “When should I take Social Security?” they usually want a definitive answer. They want to know what’s best, objectively. Asking, “What’s the optimal claiming age?” is like asking, “What’s the best car?” Best for whom? The best car for you  might be a Subaru Outback. Your neighbor might prefer a Toyota Tacoma. Both are excellent vehicles, but they solve different problems. The Social Security system is built around actuarial tables that reflect the entire popu

I’ve been thinking a lot lately about the idea of multi-generational wealth. Is it possible for wealth to survive multiple generations? Is it even advisable?  Most cultures have some description of the transience of wealth. The philosopher Voltaire once wrote that history is full of the sound of wooden clogs going up the stairs, and silk slippers coming down. In Japan, the expression is “rice paddies to rice paddies in 3 generations.” In Scotland, “shirtsleeves to shirtsleeve

They say your first million is the hardest, which makes sense. I was recently talking with a couple whose net worth had just crossed that threshold. It was a meaningful milestone, but it didn't change very much about their day to day lives. The mortgage was still there. They still went to their jobs the next day. And the long-term plan was largely the same. For most people, a $1,000,000 net worth isn’t enough to retire completely. It’s a strong foundation, though, and usually

These are reflections I’ve been thinking about personally and increasingly discussing with clients as they approach financial independence. It’s funny how your goals change as you become more successful. Most people know the feeling of “chasing the horizon.” No matter how far you’ve come, it remains just out ahead. That’s the nature of our financial goals. How much is enough? Just a little bit more. But I’ve also run into the opposite paradox. When I first started my busines

I recently read The Wealth Ladder  by Nick Maggiulli and found it both thoughtful and practical. Below are a few notes and reflections that stood out to me. If you’d like to go deeper, I’d recommend picking up a copy of the book. Maggiulli’s Wealth Ladder is a tool for thinking about wealth. He divides the financial world into 6 levels, each representing a different functional level of net worth. There’s nothing magical about where these levels start and end. What it highligh

I enjoy asking clients what their best experiences were since I last saw them. I like highlighting these moments consciously because it helps them to spot patterns and identify future opportunities for enjoyment. Often these moments are couched inside other experiences, like a trip abroad, or visiting with a relative. It isn’t the whole trip that was a blast, usually, but a few specific, shining moments. Often, these moments are optional and easily skipped, but are inexpensiv

My inbox is full of companies asking me to extend their “private lending solutions” to my clients. Just yesterday, I listened to a pitch from a large fund company offering what they called “alternative lending solutions.” They suggested interest rates in the 6–9% range, depending on the funds chosen. But at no point in their 90-minute presentation did they meaningfully discuss risk or security.  In what world would I ever invest the savings of my family and friends without a

Most lottery winners have nothing to show for it 12 months after winning. The statistics for inheritance are depressingly similar. True, a larger inheritance (or jackpot) tends to take longer to spend. But for the most part, such windfalls do not solve “the money problem” permanently.  Leaving money to your kids via a will (without a trust) does not give you much control over when they receive the money and how they spend it. Now, this article is not exactly for people in the

Many people I talk to do not have a pre-nup provision in their estate plan, and this creates a huge vulnerability for their financial legacy. This is especially pertinent for couples who have been married a long time, have kids together, and have no kids from a prior marriage.  A pre-nup clause is a short segment you put in your trust that says, “look, these assets are here to take care of the surviving spouse and eventually our kids. If the surviving spouse remarries, this m

When your net worth is less than $1,000,000, it may or may not make much sense to create a trust. You can often create feasible, low-cost workarounds for avoiding probate, as I outlined here:  https://www.pihlfinancialplanning.com/post/do-you-need-a-revocable-trust-to-avoid-probate-on-your-house However, as your net worth increases, it becomes more and more advantageous to have a trust in place. This is because the complexity of your financial life tends to expand alongside y

When it comes to avoiding probate on your primary residence, a revocable trust isn’t always necessary.  In Oregon, Washington, and New Mexico you can avoid probate by retitling your home’s deed to “transfer on death.” You still retain full ownership, including the right to change your beneficiary later on. However, when you eventually pass on from this world, your property goes directly to your beneficiary and skips probate. To do this, you get a “transfer on death” deed fro

As the year comes to a close, I like to take time to reflect, give thanks, and prepare thoughtfully for the year ahead. These reflections are less about markets or forecasts and more about the substance beneath them. The real value of financial planning how well our resources support a life well-lived. Money, while important, is just a means to bigger ends. My planning practice continues to grow nicely, helped along by personal introduction from existing clients. It is a priv