Several 75-year-old men gathered near the starting line inside the enormous Air Force Academy indoor track. They shook out their muscles and limbered up, readying themselves for the physical challenge that lay before them. They took their marks, got set, and…BANG! These men, supposedly past their prime, sprinted 60 meters to the finish line with great fanfare from the less-than-packed crowd. I watched on my little phone screen as I was out of town on an airline trip; thankfully, my son was gracious enough to Facetime me so I could watch. It occurred to me that this was an excellent analogy for investing. Some people are exceptional athletes when they are younger and can perform amazing feats only to get burned out or hang up their cleats shortly afterward. Some were All-Americans, and some used athletics to pay for college and should be commended. However, just like so many things in life, we should put a premium on sticking with it, not just short-term results. We should applaud long-term persistence. These older gentlemen, who had continued their physical training throughout their lives, had clearly placed importance on longterm health through physical activity and were reaping the benefits of their active lifestyle well into their 70s.
According to the CDC, “Regular physical activity is vital for healthy aging because it helps delay, prevent, or manage many costly, chronic diseases. Physical activity can also reduce the risk of premature death. Despite these benefits, 31 million adults age 50 or older were inactive in 2014.” 1
Too many people get burned out looking for short-term gains and miss the bigger picture of simply doing workouts they can stick with for the long run. Many younger folks work so hard and fast that their bodies break, and physical prowess is much more challenging later in life. As an aging man, I try to look at the big picture and value long-term results, not just shortterm victories, although these may be more exciting.
As I watched these grandads sprint, I saw their commitment to longevity as a big win. Sure, we like to watch the young run fast and catch things as they can do it better than the rest, but what is the endgame? I contend that being a lifelong athlete should be one of our goals if we want to age gracefully. You will be able to play more and enjoy life to its fullest for longer.
Investing is no different; those who stick with it outperform the supposed rockstars who timed the market a couple of times or got in early on crypto, beanie babies, or tulips. We have to look no further than The Oracle of Omaha. Most people know Warren Buffet is wealthy; they may know his net worth is around 133 Billion, with a B, dollars. But many do not realize he made 99% of his net worth after age 50! The Oracle has made some incredible investments, but his ability to stay in the game has created enormous wealth. Buffet has been investing since he was 11 years old and has been able to use the law of compounding to the extreme, having made only 4 of the 133 Billion before he was considered a senior by society.
Value the long-term success rather than overnight millionaires. I know this is not as catchy, but it will likely lead to better investment results. So, pick a workout or a portfolio you can stick with. Sure, you will tweak it over time, but sticking with it is key. If your portfolio is 100/0 (meaning 100% stocks, 0% bonds, and you are holding a riskier profile with higher expected returns). This is great if you sleep okay at night when a deep recession comes along and you experience the pain of seeing 50% of your portfolio washed away. But if you do not sleep okay and are likely to bail on this investment, consider a more conservative portfolio with more bonds to help buoy your portfolio when stocks fall…or at least have some dry powder to buy stocks on the cheap. Some of this is education. If you are younger and not retiring for 20-plus years, I will ask you, “Do you want the stock market to go up or down?”
There is a good argument that, as long as you have stable income, you should prefer the market to go down. Through dollar cost averaging, when the market goes down, you effectively buy more shares or own more of the companies you are buying with the same amount of dollars. The opposite is also true; if the market goes up, you buy fewer shares with the same amount of dollars. Of course, we want the market to go upmaybe just not right now.
Now, for a family brag, my Dad was one of the men sprinting that day at 75. He is one of those rare individuals who had great success as a youth and has been able to continue his athleticism into his 70s! My Dad, Larry Eklund, held the Colorado High School State long jump record for 24 years with a jump of 22 feet 9 and 34 inches his senior year of high school at the state championships in 1966. He went on to run track in college and has remained active while playing basketball, hiking, working our family ranch, and, perhaps most importantly, maintaining a youthful attitude regarding physical activities. He recently helped me move a dresser to the second story of my house (my wife likes to rearrange our furniture to keep up my moving skills), and his “Old Man” strength was on full display as he effortlessly lifted the heavy dresser as if it were a party balloon.
I am so proud of my Dad for running the race at 75, as I am of his long jump record. Now, I am deep into my midforties, a retired combat pilot in the Air Force, a Southwest Airlines Captain, a Dad of an amazing son, and a husband to a brilliantly gorgeous wife and know a few things, but my Dad continues to take me to school in the game of life teaching me that staying in the game is the name of the game. Thank you, Dad!
Until next time, I wish you tailwinds and
https://www.cdc.gov/physicalactivity /inactivity-among-adults50plus/index.html
At Wings & Wealth, we believe the goal isn’t to guess where the smoothest ride will be – it’s to be prepared for the full journey. Shoot me a message if you have any questions or comments or need some help figuring out all of this (707)712-9387.
Rob Eklund Pilot. Fiduciary. Investor.
Wings & Wealth
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