“Not to get too deep before the cocktail hour, but do I need to remind you of the finite nature of life?” – Roger Sterling / Mad Men
Memento mori are artistic reminders of the finite nature of our lives. This season, Halloween and Dia de los Muertos serve as calendar reminders. This year, COVID-19 has been a daily reminder. Why think about our mortality? Because the process helps us prioritize what truly matters as we go forward. Charlie Munger, Warren Buffett’s business partner, calls this process ‘inversion’, whereby problems are solved by starting at the end and working back. So, what’s the connection between memento mori and wealth management?
While we value all of the above, memento mori remind us to reflect on our lives, prioritize what matters, and hopefully minimize regrets down the road. Now, imagine that today is your last. Think back over the course of your life. Any regrets for things not done? Which experiences were most meaningful? Your answers will help define your priorities going forward. Perhaps you finally book that trip to Greece. Or maybe you reconnect with an old friend. For me, if today were my last, I would most value the memories of happy times and the people I shared them with. I would not give a second thought to the accumulated junk in my home or the numbers on my financial statements. To each his own.
On a related note, one of the greatest losses one can experience is the death of a personal relationship. With the election only a month away, the tension is palpable. We all have people in our lives with crazy political beliefs whom we would just love to straighten out. However, best keep your lip buttoned. Changing minds is darned near impossible. In the long run, friends and family are the ones who actually love us, stick with us through thick and thin, make us laugh, cheer our triumphs, and console our defeats. Politicians, on the other hand, come and go, don’t know us personally, and provide few if any of the aforementioned benefits. Come to think of it, I can’t recall a single president of our great land who’s ever hugged me … or treated me during the cocktail hour.
Cheers and Happy Halloween.
For more on memento mori, click here. If you enjoy my monthly missives, share them with a friend. And please let me know what’s on your mind. Thanks for your trust and friendship.
Copyright © 2020 - Any opinions are those of James Aldendifer and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of strategy selected. The above situation is a hypothetical example for illustration purpose only and does not represent an actual investment. Expressions of opinion as of this date are subject to change without notice. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct.
