“Do not take yearly results too seriously. Instead, focus on four or five-year averages.” ~ Warren Buffet
Year end transitions beg next year’s planning; and annual planning is a hallmark of wealth management and financial planning, but progress across many areas of life, including and especially in our our financial lives, often requires more than 365 days.
Be it health goals, academic goals, career goals, or wealth goals, expanding the time horizon beyond 365 days to 1000 days or more is a better interval for planning and outcome review. This is a concept learned during my years as a long course triathlete (little known fact: Johnny Hea and I are both former Ironman triathletes). When I was beginning my triathlon journey, I researched training protocols for ultra-endurance preparation. What I discovered is that it can take up to 3 years to get fit enough to complete a long-course race and another 3 years to meet personal potential. Essentially, to be competitive required physiological adaptation that took much longer than 365 days.
What became apparent over time is that the 1000 day increment is an excellent timeframe for planning gradual–but meaningful–change across many aspects of life, including our financial lives. A question I often ask clients is, “1000 days from now, what would you like to have happen for you to feel that the period had been a success?” With effective comprehensive planning and execution, a lot can happen over that timeframe, yet it’s compressed enough to provide sufficient motivation to keep course. In addition, each block of time provides a leverage point for the next series of goals and phases of life. “We overestimate what we can achieve in a year, but underestimate what we can achieve in ten.” ~ Bill Gates
The Ackerman Capital firm logo is compounding in graphical form. Compounding comes with time. In 2023, we look forward to continuing work with our clients, helping them progress toward their goals. Achieving goals requires systems and process. Our wealth management process relies on the traditional annual calendar, but we look forward to measuring progress over longer time frames.
Happy New Year.
For questions or comments reach out to me by email.
Keith A. Pillers, JD, CFP®, CIMA®, CPWA®
Director of Wealth Management
keith@ackermancapital.com
Disclosures
Investment advisory services offered through Ackerman Capital Management, L.P., a registered investment adviser.
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