Bull & Baird: The Siren's Call
There is one thing life needs more than anything else.
Purpose.
You could design the world’s best portfolio and pair it with a durable financial plan, but if there isn’t a clear-cut reason why you are doing this, it can fall apart when the World becomes chaotic.
Let’s talk about purpose using a 3000-year-old story.
In Homer’s epic poem the Odyssey, the central character Odysseus was a general responsible for helping the Greeks defeat the Trojans in a multiyear war. When the conflict ended, he only wanted one thing: to go home. His entire purpose shifted from winning the war to seeing his wife again.
On his journey home, Odysseus encountered the Sirens. Mythical creatures who don’t attack with force, but instead with distraction.
Every one of us has a purpose. But purpose rarely loses to catastrophe—it usually loses to distraction. The Sirens didn’t sink ships with storms or weapons. They simply convinced sailors to abandon their course. Odysseus, driven by his purpose, tied himself to the mast of the ship to defy their songs.
What he faced with the Sirens is the same for you and your money.
Why do you wake up in the morning? What motivates you? Is it family, work, a spouse, running a charity, a business? Purpose defines us as humans and is the foundation of thriving. But what happens if we lose it?
I’ve encountered wealthy retirees who struggle in their new life.
Why?
Because their purpose is suddenly gone. Their career ended, the children moved away, they moved to a new part of the country and now face countless empty hours in a day they need to fill. Some retirees choose to fill that void by watching news and it affects their enjoyment of the passage of time and their ability to be optimistic about the future.
They choose the distraction of politics and news over their life.
Money suffers from the same problem. Unless you give it a distinct purpose it can be very hard to stick to your plan when volatility rears its ugly head.
If your investment strategy is “make this number bigger” you are prone to failure. Why? Because every now and then the market falls significantly and you’ll likely say to yourself “it’s not getting bigger, I want out.”
However, if at the start of your journey you say: “the purpose of this investment is my future. A legacy, a new home, retirement, college education, the ability to have free time with my family and friends” it suddenly becomes easier to stick to your plan because you WANT those things more than anything else. Like Odysseus you refuse to let the Sirens distract you from your goal.
Ask yourself, right now, what is the purpose of my life (and my money) and build a plan around that.
I want a home in Black Butte Oregon one day to share with the people I love. I need to invest in the stock market (and my career) to make that happen. I won’t let the news, politics, market volatility, or mythic sea creature keep me from that. I simply do not care what stands in my way and I don’t care if every now and then the market sells off. I need to invest in the best companies in the World to help me fulfill that purpose.
The best kind of wealth management, the kind we do here at Baird, blends goals WITH purpose. One cannot exist without the other.
The information reflected in this post is an opinion and subject to change. Past performance is not a guarantee of future results. Diversification does not ensure profit or protect against loss. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances. Speak to your Baird Financial Advisor before making investment decisions.
