Part II: Playing The Odds at Every Turn

Wednesday, August 8th, 2018

Good Morning Relaxing Retirement Member,

Last week, I walked you through a spirited conversation we had with a friend over dinner a few years back about health, and my updated statistical findings on the leading causes of death from The World Health Organization’s website (www.who.int).

This was all sparked by our friend’s comment, “All your exercise and attention to healthy eating is great, but there’s no guarantee you won’t still drop dead of a heart attack. My father and grandfather both died of a heart attack before they were 62.

What we discovered through our research was that 71% of all deaths world-wide (and 88% in high income countries like the United States) are related to non-communicable diseases (NCDs), i.e. not an epidemic and not an accident.

And, that among the four leading NCDs, the startling commonality is that they are not random, and not genetic. They’re primarily brought on by lifestyle choices and the physical effects these choices have on our body:

  • Eating: what do we eat, when do we eat, and how much do we eat?
  • Drinking: how much alcohol do we consume? How much water do we consume?
  • Smoking
  • Exercise: how often, and what type
  • Stress
  • Sleep: how much do you get, and what’s the quality of your sleep?

In health, it’s 100% true that you could get hit by a bus and die. It’s also true that genetics plays a role in your longevity.

However, as The World Health Organization statistics suggest, your lifestyle choices have a much greater impact on your health, vitality, and ultimately, your longevity.

If you have a sincere desire to be healthy and live a long life, why would you not play the odds?

Study how to eat better, drink much more water and less alcohol, stop smoking cigarettes, exercise rigorously on a daily basis, etc.

Those like our friend who choose to focus on the role that genetics or accidents play in our long-term health, etc. prefer believing it’s out of their control because it absolves them of any responsibility or role in the outcome. After all, “there’s no guarantee.”

What they’re really saying is they prefer not to make the proper choices and, instead, just do whatever feels good in the moment without any regard to the long-term ramifications.

It’s easier to say it’s out of our control, it’s random, or it’s predetermined.

However, that’s a rejection of the reality that we all have the freedom to make the choice to play the odds at every turn and reap the rewards the statistics demonstrate.

I know I run the risk of that coming across as mean spirited when pointing this out. Or, that I’m not sympathetic. Nothing could be further from the truth. My mother died of a brain tumor which later spread to her lungs at the age of 57.

She strictly ate three square meals a day, never smoked a cigarette in her life, and she consumed one cocktail a year on Christmas Eve. She played the odds and still passed away at a very young age.

My Revelation:
The Analogy to Financial Health

At this point, you’re probably wondering what this has to do with financial health???

In short…everything!

When you step outside of our Relaxing Retirement membership community, and you read or listen to the majority of individuals (and, by extension, the financial media) talk about those who have achieved financial success, what do you hear?

  • Right Place, Right Time, Luck: Those who have done well had the luck of good timing, choosing to work for many years for company X vs. Y, the business they created benefitted from outside events, etc. and they earned a large income,
  • Trust fund kid, i.e. they inherited it (despite Forbes annual statistics of the remotely small minority to have sustained wealth coming from inheritance),
  • Magic Investment: they somehow obtained information, probably unethically or unfairly, that lead to a great investing outcome,
  • Education: they went to X school and thus had connections that nobody else had.

Do you see the commonality in all of this?

It all adds up to the belief that financial independence is all random, luck, and good fortune, and you have very little influence over the financial outcomes in your life.

As potentially mean spirited as this may sound, just as it is with the health examples I gave, it’s easy and convenient to believe that financial independence is all random, luck, and good fortune.

Believing that absolves them of the responsibility of focusing on the long-term and making the necessary choices you have made which have generated your financial independence!

It’s easier to just block all of that out and focus on what brings instant, short term pleasure today, i.e. a new car I can’t afford, a 60-inch flat screen television, eating out five nights a week and running up the balance on my credit cards, or investing in a new “can’t invest” venture I heard about with money borrowed from my home equity line of credit.

Stark Contrast

The reality that I have witnessed amongst our members over the last 29 years is that almost none of you inherited anything. The majority did not earn extraordinarily large incomes during your working years. And, very, very few of you went to Harvard or Yale!

The reason you have achieved financial independence has nothing to do with any of the traditional dogma most folks conveniently buy into, or that Hollywood loves to portray and demonize.

You made decisions long ago that you stuck with over your lifetime to spend much less than you made, i.e. live within your means, and save and intelligently invest the difference.

You took 100% responsibility for the outcome you’ve experienced. You didn’t look for a mystical guarantee, or a magic pill (investment). You never panicked. And, you stuck with your plan.

In short, you played the odds slow and steady.

And, this is what it all boils down to. There are no guarantees and no magic pills, so you may alert anyone and everyone you know to call off the search.

There are, however, successful formulas built on highly probable odds in both health and finance that are in plain view for all of us to see. If you carefully examine each component of our Relaxing Retirement Formula™, it’s all about playing the odds at every turn.

I’ve often said that if I fail, it’s certainly not going to be because I wasn’t prepared or I wasn’t willing to accept 100% responsibility for whatever outcome I realized.

In health, and in finance, we should all welcome our wonderful freedom to exercise control and choose our actions. And, happily do whatever is necessary to play the odds at every turn.

Committed To Your Relaxing Retirement,

Jack Phelps
The Retirement Coach

P.S. Arm yourself with the questions you must ask to determine if your financial advisor has a legal obligation to work in your best interest at all times vs. the best interest of the company they represent. To receive a free copy of the Consumer Guide titled: “The 13 Questions You Must Ask Your Retirement Advisor (or Any Financial Advisor You’re Thinking of Working With) Before You Hire Them”, simply click this link: http://www.theretirementcoach.com/free-consumer-guide-how-to-protect-yourself

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I appreciate the trust you place in us. Thank you!

(The content of this letter does not constitute a tax opinion. Always consult with a competent tax professional service provider for advice on tax matters specific to your situation.)