what about joy that was the original title of this talk but nobody thought
title of this talk but nobody thought
title of this talk but nobody thought people would realize we were going to
people would realize we were going to
people would realize we were going to talk about money and investing if that
talk about money and investing if that
talk about money and investing if that was title that was a little bit the
was title that was a little bit the
was title that was a little bit the point why is that why is there such a
point why is that why is there such a
point why is that why is there such a disconnect between money and joy we
disconnect between money and joy we
disconnect between money and joy we ended with the title that was a take on
ended with the title that was a take on
ended with the title that was a take on the perennial question can money make
the perennial question can money make
the perennial question can money make you happy so much time and energy spent
you happy so much time and energy spent
you happy so much time and energy spent on that question and we flipped it to
on that question and we flipped it to
on that question and we flipped it to get to the heart of this talk and happy
get to the heart of this talk and happy
get to the heart of this talk and happy make you money a way more interesting
make you money a way more interesting
make you money a way more interesting topic to spend your time on can happy
topic to spend your time on can happy
topic to spend your time on can happy make you money
make you money
make you money what about joy and those are the
what about joy and those are the
what about joy and those are the questions we are going to answer today I
questions we are going to answer today I
questions we are going to answer today I have been in the financial services and
have been in the financial services and
have been in the financial services and investment industry for over 20 years
investment industry for over 20 years
investment industry for over 20 years almost 25 over the course of those years
almost 25 over the course of those years
almost 25 over the course of those years you could have found me in roles from
you could have found me in roles from
you could have found me in roles from trader to chief executive officer I have
trader to chief executive officer I have
trader to chief executive officer I have had the responsibility of managing money
had the responsibility of managing money
had the responsibility of managing money for large companies for institutions for
for large companies for institutions for
for large companies for institutions for families for endowments as a woman in an
families for endowments as a woman in an
families for endowments as a woman in an industry that has been tough for a woman
industry that has been tough for a woman
industry that has been tough for a woman I have to admit that in the early years
I have to admit that in the early years
I have to admit that in the early years I sort of tried to conform stay inside
I sort of tried to conform stay inside
I sort of tried to conform stay inside the box but that changed over the years
the box but that changed over the years
the box but that changed over the years the increasing disconnect between the
the increasing disconnect between the
the increasing disconnect between the prescribed solutions on what we should
prescribed solutions on what we should
prescribed solutions on what we should do with our money and its lack of impact
do with our money and its lack of impact
do with our money and its lack of impact on human happiness really started to
on human happiness really started to
on human happiness really started to jump off the page at me it was almost as
jump off the page at me it was almost as
jump off the page at me it was almost as if the math of Finance and the science
if the math of Finance and the science
if the math of Finance and the science on human happiness were operating in
on human happiness were operating in
on human happiness were operating in parallel universes
parallel universes
parallel universes in the 1990s Harry Markowitz won a Nobel
in the 1990s Harry Markowitz won a Nobel
in the 1990s Harry Markowitz won a Nobel Prize for his work on portfolio choice
Prize for his work on portfolio choice
Prize for his work on portfolio choice asset selection optimization the work
asset selection optimization the work
asset selection optimization the work solved for a smoother ride by combining
solved for a smoother ride by combining
solved for a smoother ride by combining many asset classes that were not well
many asset classes that were not well
many asset classes that were not well correlated you could get about the same
correlated you could get about the same
correlated you could get about the same return a smidge higher and the ride was
return a smidge higher and the ride was
return a smidge higher and the ride was somewhat smoother less volatility in the
somewhat smoother less volatility in the
somewhat smoother less volatility in the decades that followed the swirl of
decades that followed the swirl of
decades that followed the swirl of activity around solving for that
activity around solving for that
activity around solving for that question a smoother ride
question a smoother ride
question a smoother ride got us more and more asset classes more
got us more and more asset classes more
got us more and more asset classes more and more complexity harder and harder
and more complexity harder and harder
and more complexity harder and harder for anyone to understand what was going
for anyone to understand what was going
for anyone to understand what was going on creating more and more anxiety I
on creating more and more anxiety I
on creating more and more anxiety I think we have been solving for the wrong
think we have been solving for the wrong
think we have been solving for the wrong question or at a minimum an incomplete
question or at a minimum an incomplete
question or at a minimum an incomplete question the fact is a smoother ride
question the fact is a smoother ride
question the fact is a smoother ride does not make us happier and complexity
does not make us happier and complexity
does not make us happier and complexity causes anxiety what if we were to solve
causes anxiety what if we were to solve
causes anxiety what if we were to solve for a happier ride why does that matter
for a happier ride why does that matter
for a happier ride why does that matter the journey matters we have this one
the journey matters we have this one
the journey matters we have this one little bright bold beautiful life the
little bright bold beautiful life the
little bright bold beautiful life the journey matters the journey matters for
journey matters the journey matters for
journey matters the journey matters for us individually and the journey matters
us individually and the journey matters
us individually and the journey matters for us collectively happiness brings out
for us collectively happiness brings out
for us collectively happiness brings out the best in us a little bit of
the best in us a little bit of
the best in us a little bit of scientific perspective comes from the
scientific perspective comes from the
scientific perspective comes from the field of priming effects which are just
field of priming effects which are just
field of priming effects which are just exposing participants to certain
exposing participants to certain
exposing participants to certain conditions and seeing if that affects
conditions and seeing if that affects
conditions and seeing if that affects how they answer questions participants
how they answer questions participants
how they answer questions participants in a study who were shown images of
in a study who were shown images of
in a study who were shown images of money together with participants who
money together with participants who
money together with participants who were not shown images of money those
were not shown images of money those
were not shown images of money those participants who were shown images
participants who were shown images
participants who were shown images related to money and investing were less
related to money and investing were less
related to money and investing were less likely to ask for help and they were
likely to ask for help and they were
likely to ask for help and they were less likely to give help and in some
less likely to give help and in some
less likely to give help and in some studies where the participants were then
studies where the participants were then
studies where the participants were then asked to go into the next room and set
asked to go into the next room and set
asked to go into the next room and set up chairs in order to have a
up chairs in order to have a
up chairs in order to have a conversation and discuss the images that
conversation and discuss the images that
conversation and discuss the images that they’d seen the participants who’d seen
they’d seen the participants who’d seen
they’d seen the participants who’d seen images related to money and
images related to money and
images related to money and Nantz went into that room and they set
Nantz went into that room and they set
Nantz went into that room and they set up the chairs close to a foot and a half
up the chairs close to a foot and a half
up the chairs close to a foot and a half further apart one foot three inches how
further apart one foot three inches how
further apart one foot three inches how hard is it to communicate to build a
hard is it to communicate to build a
hard is it to communicate to build a common understanding about anything when
common understanding about anything when
common understanding about anything when the chairs are that far apart so how can
the chairs are that far apart so how can
the chairs are that far apart so how can we come to a solution that bends that
we come to a solution that bends that
we come to a solution that bends that curve the answer begins here rather than
curve the answer begins here rather than
curve the answer begins here rather than staying inside our own little discipline
staying inside our own little discipline
staying inside our own little discipline and drilling deeper and deeper into that
and drilling deeper and deeper into that
and drilling deeper and deeper into that discipline down to the complex roots to
discipline down to the complex roots to
discipline down to the complex roots to find the answer look up look out look to
find the answer look up look out look to
find the answer look up look out look to other disciplines to inform a deeper
other disciplines to inform a deeper
other disciplines to inform a deeper richer more complete answer so there are
richer more complete answer so there are
richer more complete answer so there are hundreds of items in each one of those
hundreds of items in each one of those
hundreds of items in each one of those sets enjoy the journey we could probably
sets enjoy the journey we could probably
sets enjoy the journey we could probably all come up with about a million items
all come up with about a million items
all come up with about a million items on that set quit your job and go hiking
on that set quit your job and go hiking
on that set quit your job and go hiking in the Swiss Alps trouble is many of
in the Swiss Alps trouble is many of
in the Swiss Alps trouble is many of those would not overlap with successful
those would not overlap with successful
those would not overlap with successful investing in solid planning and
investing in solid planning and
investing in solid planning and investing hundreds of ways to invest
investing hundreds of ways to invest
investing hundreds of ways to invest short term long term algorithms hedge
short term long term algorithms hedge
short term long term algorithms hedge funds the trouble is that many of those
funds the trouble is that many of those
funds the trouble is that many of those approaches do not overlap well with what
approaches do not overlap well with what
approaches do not overlap well with what we know about the science on human
we know about the science on human
we know about the science on human happiness and the science on human
happiness and the science on human
happiness and the science on human happiness we’re learning more and more
happiness we’re learning more and more
happiness we’re learning more and more happiness brings us closer together
happiness brings us closer together
happiness brings us closer together happiness makes us think better we know
happiness makes us think better we know
happiness makes us think better we know anxiety is a roadblock to happiness so
anxiety is a roadblock to happiness so
anxiety is a roadblock to happiness so how do we get to YES on the question can
how do we get to YES on the question can
how do we get to YES on the question can happy make us money after 20 plus years
happy make us money after 20 plus years
happy make us money after 20 plus years of investment experience and really more
of investment experience and really more
of investment experience and really more importantly twenty years of listening
importantly twenty years of listening
importantly twenty years of listening carefully to people and listening
carefully to people and listening
carefully to people and listening carefully to what experts outside of my
carefully to what experts outside of my
carefully to what experts outside of my discipline are saying and learning and
discipline are saying and learning and
discipline are saying and learning and proving out I think the most compelling
proving out I think the most compelling
proving out I think the most compelling overlaps
overlaps
overlaps our simplicity and purpose simplicity
our simplicity and purpose simplicity
our simplicity and purpose simplicity and purpose enable happiness simplicity
and purpose enable happiness simplicity
and purpose enable happiness simplicity and purpose are present in people I have
and purpose are present in people I have
and purpose are present in people I have met in my professional journey who have
met in my professional journey who have
met in my professional journey who have really figured out how to enjoy the
really figured out how to enjoy the
really figured out how to enjoy the journey and simplicity and purpose
journey and simplicity and purpose
journey and simplicity and purpose absolutely work from an investment
absolutely work from an investment
absolutely work from an investment perspective
perspective
perspective so how does that look from an investment
so how does that look from an investment
so how does that look from an investment perspective let’s start with simplicity
perspective let’s start with simplicity
perspective let’s start with simplicity it is a passion item of mine
it is a passion item of mine
it is a passion item of mine I think da Vinci spoke a profound truth
I think da Vinci spoke a profound truth
I think da Vinci spoke a profound truth when he said simplicity is the ultimate
when he said simplicity is the ultimate
when he said simplicity is the ultimate form of sophistication and I will tell
form of sophistication and I will tell
form of sophistication and I will tell you a secret investing can be simple in
you a secret investing can be simple in
you a secret investing can be simple in fact it probably should be simple my
fact it probably should be simple my
fact it probably should be simple my experience has been simplicity improves
experience has been simplicity improves
experience has been simplicity improves outcomes so how do we take that complex
outcomes so how do we take that complex
outcomes so how do we take that complex mix and boil it down to its essence boil
mix and boil it down to its essence boil
mix and boil it down to its essence boil it down to its simplest form we can’t
it down to its simplest form we can’t
it down to its simplest form we can’t cover every element of that in this
cover every element of that in this
cover every element of that in this forum but let’s get to the major
forum but let’s get to the major
forum but let’s get to the major building blocks if we think about the
building blocks if we think about the
building blocks if we think about the major building blocks
major building blocks
major building blocks there are really two major jobs going on
there are really two major jobs going on
there are really two major jobs going on in that complicated mix one of them is
in that complicated mix one of them is
in that complicated mix one of them is the job of your safety blanket and one
the job of your safety blanket and one
the job of your safety blanket and one of them is the job of growth assets that
of them is the job of growth assets that
of them is the job of growth assets that will grow to help you fulfill your
will grow to help you fulfill your
will grow to help you fulfill your aspirations your safety blanket this is
aspirations your safety blanket this is
aspirations your safety blanket this is really important important to spend time
really important important to spend time
really important important to spend time here maybe the majority of your time
here maybe the majority of your time
here maybe the majority of your time there is no bigger roadblock to
there is no bigger roadblock to
there is no bigger roadblock to happiness than anxiety and there’s no
happiness than anxiety and there’s no
happiness than anxiety and there’s no sure way of triggering anxiety than risk
sure way of triggering anxiety than risk
sure way of triggering anxiety than risk that is outside of your tolerance in the
that is outside of your tolerance in the
that is outside of your tolerance in the Markowitz model the safety blanket is
Markowitz model the safety blanket is
Markowitz model the safety blanket is the counterbalance to risky assets we
the counterbalance to risky assets we
the counterbalance to risky assets we need to spend time here because your
need to spend time here because your
need to spend time here because your perception of your risk tolerance
perception of your risk tolerance
perception of your risk tolerance changes over time and over days
changes over time and over days
changes over time and over days depending on how you happen to feel on
depending on how you happen to feel on
depending on how you happen to feel on that particular day let me give you a
that particular day let me give you a
that particular day let me give you a framework within which to consider this
framework within which to consider this
framework within which to consider this and it’s just one thing but a framework
and it’s just one thing but a framework
and it’s just one thing but a framework to consider equity markets correct 30%
to consider equity markets correct 30%
to consider equity markets correct 30% once every 10 years and it’s normal for
once every 10 years and it’s normal for
once every 10 years and it’s normal for an equity market to correct a 30% once
an equity market to correct a 30% once
an equity market to correct a 30% once every 10 years think about if you had
every 10 years think about if you had
every 10 years think about if you had all of your nest egg
all of your nest egg
all of your nest egg exposed to that decline how would that
exposed to that decline how would that
exposed to that decline how would that feel could you tolerate it for some of
feel could you tolerate it for some of
feel could you tolerate it for some of the Ansar Bayt maybe yes it’s not about
the Ansar Bayt maybe yes it’s not about
the Ansar Bayt maybe yes it’s not about making everything safe because growth
making everything safe because growth
making everything safe because growth has a role to fill we all have
has a role to fill we all have
has a role to fill we all have aspirations it’s about having enough set
aspirations it’s about having enough set
aspirations it’s about having enough set aside so that you can tolerate the ups
aside so that you can tolerate the ups
aside so that you can tolerate the ups and downs without the ups and downs
and downs without the ups and downs
and downs without the ups and downs impinging on every single day and growth
impinging on every single day and growth
impinging on every single day and growth so growth is weird the waters often get
so growth is weird the waters often get
so growth is weird the waters often get muddied with asset classes and
muddied with asset classes and
muddied with asset classes and international and emerging markets in
international and emerging markets in
international and emerging markets in order to create some clarity let’s take
order to create some clarity let’s take
order to create some clarity let’s take it up what is the job of the assets that
it up what is the job of the assets that
it up what is the job of the assets that are supposed to grow well it’s to grow
are supposed to grow well it’s to grow
are supposed to grow well it’s to grow and can we define that yes we can to
and can we define that yes we can to
and can we define that yes we can to find that quite explicitly equities are
find that quite explicitly equities are
find that quite explicitly equities are generally a large part of growth and
generally a large part of growth and
generally a large part of growth and using that as a measure your growth
using that as a measure your growth
using that as a measure your growth assets should be able to give you seven
assets should be able to give you seven
assets should be able to give you seven to nine percent on average per year not
to nine percent on average per year not
to nine percent on average per year not every year but overtime on average seven
every year but overtime on average seven
every year but overtime on average seven to nine percent at 7% your assets will
to nine percent at 7% your assets will
to nine percent at 7% your assets will double in ten years
double in ten years
double in ten years and I know your next question is how do
and I know your next question is how do
and I know your next question is how do I know if something can achieve 7 to 9
I know if something can achieve 7 to 9
I know if something can achieve 7 to 9 percent and that is not something that
percent and that is not something that
percent and that is not something that we have enough time to cover in this
we have enough time to cover in this
we have enough time to cover in this talk but I promise you it is informed by
talk but I promise you it is informed by
talk but I promise you it is informed by simple things as well the simple things
simple things as well the simple things
simple things as well the simple things that we all learned when we ran our
that we all learned when we ran our
that we all learned when we ran our first lemonade stand so make it simple
first lemonade stand so make it simple
first lemonade stand so make it simple make it straightforward simplicity
make it straightforward simplicity
make it straightforward simplicity improves outcomes and simplicity
improves outcomes and simplicity
improves outcomes and simplicity empowers us it is the math shaking hands
empowers us it is the math shaking hands
empowers us it is the math shaking hands with the science and purpose I don’t
with the science and purpose I don’t
with the science and purpose I don’t think we need any science for us to know
think we need any science for us to know
think we need any science for us to know that a sense of meaning and purpose
that a sense of meaning and purpose
that a sense of meaning and purpose fulfills us there are hundreds of ways
fulfills us there are hundreds of ways
fulfills us there are hundreds of ways to invest lets choose out the ones that
to invest lets choose out the ones that
to invest lets choose out the ones that have meaning and purpose to us think
have meaning and purpose to us think
have meaning and purpose to us think about things you love importantly things
about things you love importantly things
about things you love importantly things think about things you understand well
think about things you understand well
think about things you understand well I’ve had clients for whom real estate
I’ve had clients for whom real estate
I’ve had clients for whom real estate was their passion and their way of
was their passion and their way of
was their passion and their way of making a positive impact on the world
making a positive impact on the world
making a positive impact on the world I’ve had clients for whom their business
I’ve had clients for whom their business
I’ve had clients for whom their business with their sense of fulfillment and also
with their sense of fulfillment and also
with their sense of fulfillment and also their growth engine
their growth engine
their growth engine choose a mixture and give it purpose the
choose a mixture and give it purpose the
choose a mixture and give it purpose the investment industry has told us for
investment industry has told us for
investment industry has told us for decades
decades
decades what should make us happy beating
what should make us happy beating
what should make us happy beating indexes diversification some distant
indexes diversification some distant
indexes diversification some distant goal what does make us happy the actual
goal what does make us happy the actual
goal what does make us happy the actual science on human happiness has not
science on human happiness has not
science on human happiness has not really informed the approach and now it
really informed the approach and now it
really informed the approach and now it can turn the model on its head ask a
can turn the model on its head ask a
can turn the model on its head ask a different question
different question
different question let simplicity and purpose be your
let simplicity and purpose be your
let simplicity and purpose be your guides they can improve outcomes and
guides they can improve outcomes and
guides they can improve outcomes and they empower us and yes happy can make
they empower us and yes happy can make
they empower us and yes happy can make us money and with that maybe we can get
us money and with that maybe we can get
us money and with that maybe we can get those chairs closer together and who
those chairs closer together and who
those chairs closer together and who knows what will happen from there
”
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