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Financial Finish Lines

RL059 - Retirement Lifestyle: Financial Finish Lines


Today on the Retirement Lifestyle Show, Erik Olson and Adrian Nicholson talk about financial finish lines and how to set them. They tackle the question of “how much is enough?” from economic, social, and cultural points of view.


[03:57] Financial Finish Lines

[08:58] Absolute vs. Relative Wealth

[15:20] Can Money Buy Happiness?

[18:03] Greatest Predictor of Health & Happiness

[22:50] What to Do beyond a Financial Finish Line?

[26:22] Four Questions to Help You Set Financial Finish Lines

[30:13] Transition from Coveting to Contentment

[35:10] Make Generosity a Part of Your Plan.


How Much Income is “Enough”?

A study was conducted by Kahneman and Deaton in 2010 that wanted to find out how much income is enough to assure a sense of well-being. They found that well-being did not significantly improve beyond an annual income of 75,000 USD, which is equivalent to 92,000 USD today.


A longitudinal study by Harvard that spanned almost 80 years found that relationships contributed the most to happiness. At age 50, the best predictor of health in your 80s is the quality of your relationships. Watch Robert Waldinger’s TED Talk about the longest study of happiness here.


To see Full Show Notes keep scrolling down.


Roshan Loungani can be reached at roshan.loungani@aretewealth.com or at 202-536-4468.


Erik Olson can be reached at erik.olson@aretewealth.com or 815-940-4652.


Adrian Nicholson can be reached at adrian.nicholson@aretewealth.com or at 703-915-8905.

Listen to the whole episode on our website here: https://www.retirewithroshan.com/podcast


OR for links to your favorite platform like Spotify, iTunes and so on go here:

https://anchor.fm/roshan-a-loungani/episodes/RL058--Retirement-Lifestyle-Options-101-Portfolio-hedges--or-instruments-of-self-destruction-etti8f


Select episodes, like this one can be found on YouTube:

https://www.youtube.com/channel/UC0ZZPM3xk6onXNpb1ceAkCg




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Full Show Notes:


Financial Finish Lines

The concept of a financial finish line came from John Cortines and Gregory Baumer’s book, “God and Money”. Without an income and wealth finish line, people continue to want for more. It doesn’t help that our current society promotes a non-stop work culture that all too often leaves us unsatisfied. This never-ending quest to make a lot of money is also a safety behavior. The future is unpredictable, so we earn as much as we can in order to protect ourselves from uncertainty. Setting a finish line can help evaluate your goals, which can lead to feelings of contentment and security.


Absolute VS Relative Wealth

To determine your income and wealth finish line, make sure you are not comparing yourself to others. A financial finish line is your own criteria for self-evaluation. First, get a clear picture of your financial situation. Next, set the milestones you want to achieve. Use it to constantly re-examine yourself. The financial finish line itself is a metric that you can regularly tweak when there are major life changes. But having one is important, and promotes frequent self-reflection.


How Much Income is “Enough”?

A study was conducted by Kahneman and Deaton in 2010 that wanted to find out how much income is enough to assure a sense of well-being. They found that well-being did not significantly improve beyond an annual income of 75,000 USD, which is equivalent to 92,000 USD today.

A longitudinal study by Harvard that spanned almost 80 years found that relationships contributed the most to happiness. At age 50, the best predictor of health in your 80s is the quality of your relationships. Watch Robert Waldinger’s TED Talk about the longest study of happiness here.

Four Questions to Help You Set Financial Finish Lines

Here are some questions that can help you determine your income and wealth finish line:

  • What is the purpose of my wealth?

  • How much is enough for my family and me?

  • How much should I give to the next steward of this wealth?

  • Should I give now or later?


Make Generosity a Part of Your Plan

Saving and investing are good practices to build your wealth. As you grow your assets, don’t forget to be generous. If possible, include giving back in your plan from the start. Hopefully, you’ll reach a point where you can be radically generous with your wealth.



All opinions expressed by podcast hosts and guests are solely their own. While based on information that they believe is reliable, neither Arete Wealth nor its affiliates warrant its completeness or accuracy, nor do their opinions reflect the opinion of Arete Wealth. This podcast is for general informational purposes only, and should not be regarded as specific advice or recommendations for any individual. Before making any decisions, consult a professional.

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