We hope everyone is enjoying their summer and spending time with loved ones. It’s hard to believe July is almost over.
Previously, I shared Dr. Riley Moynes’ TED talk about the four phases of retirement:
- Vacation Phase
- Loss Phase (loss of routine, identity, relationships, purpose, and power)
- Trial and Error Phase (finding new meaning)
- Reinvention Phase
Here’s the link for reference: Dr. Riley Moynes TED Talk.
Recently, I read a Forbes article that echoed Dr. Moynes’ points. It cited Richard Leider’s book, The Power of Purpose: Find Meaning, Live Longer, Better. A survey of over 1,000 Americans aged 45 to 74 found that “meaning is more important than money, and significance is more important than success.”
While a well-funded retirement plan is crucial, transitioning to retirement can be challenging. Consider these three questions:
- What will you do with your time?
- How will you connect with others?
- How will you use your skills and talents?
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Today, we received EdgePoint Wealth Management’s Second Quarter Commentaries. The Equity Comments provide a concise overview of the development of Artificial Intelligence and some of the challenges of making investments in this trend. EdgePoint’s thesis is to purchase ownership stakes in companies with solid fundamentals that will be further benefitted by the development of A.I.:
“…we have a thesis on why they [the companies inside the EdgePoint portfolio] can be significantly larger in five years, and we’re not being asked to pay of that growth. None of the investment in these businesses was based on an AI thesis. In other words, AI represents a free option for each.”
The Fixed Income Comments focus on the challenges associated with focusing on an index, be it the S&P500 or the Bloomberg US Aggregate Bond, when making investment decisions. We are often asked, “The Index was up yesterday and my portfolio is down, why is that?” The answer, of course, is that none of us own the index, and we don’t want to…for the reasons evidenced in EdgePoint’s commentary.
As an aside, we are all devastated with the terrible wildfire situation in Jasper. In the EdgePoint income portfolios they own Perimeter Solutions SA, which is a company you may not be familiar with:
“The cover image shows aerial fire-fighting chemicals deployed during a wildfire. The chemicals were made by Perimeter Solutions SA, the largest global producer of fire-fighting chemicals. Its retardant and foam products are fully qualified by the U.S. Department of Agriculture (USDA) for use by agencies such as the USDA Forest Service and CalFire. Perimeter’s service network can meet the emergency resupply needs of more than 150 air tanker bases in North America, as well as many other customer locations in North America and internationally.”
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In other news….Chat GPT’s humorous take on recent US political events….
In a surprise twist that shocked exactly no one, President Biden has decided to step down and let Vice President Kamala Harris take the wheel. When asked about his decision, Biden reportedly said, “I just wanted to see if the Oval Office chair is more comfortable as a vice president.”
Kamala Harris, on the other hand, seemed more than ready for the challenge. “I’ve been waiting for this moment ever since I figured out how to work the coffee machine in the West Wing,” she quipped.
Political analysts are having a field day, comparing the handover to passing a baton in a relay race—except this time, Biden didn’t trip on his shoelaces. As for Harris, she’s already planning to redecorate the Oval Office, starting with replacing the Resolute Desk with a standing desk to keep things energetic.
Meanwhile, Biden is looking forward to a peaceful retirement. “I hear Delaware is beautiful this time of year,” he said with a wink. “Plus, I’ve got a stack of puzzles at home that aren’t going to solve themselves.”
Feel free to reach out with any questions or thoughts on your retirement journey.
ROB
