Wealth- and Health-building Habits Go Hand in Hand
/In life, personal finance and health stand out as critical aspects that are important to get right. At the same time, these core areas often seem perplexing due to the abundance of available information and advice that frequently contradict each other. That’s why it's refreshing to come across a resource that offers unique insights and actionable guidance, shedding new light on these critical topics.
One such enlightening read I recently encountered was Outlive: The Science and Art of Longevity by Dr. Peter Attia, a renowned expert in longevity. In his book, Dr. Attia challenges the conventional notion of simply prolonging life and instead advocates for a focus on living healthier in a system that he calls Medicine 3.0. His personal journey, from being a marathon swimmer crossing challenging oceans to a patient dealing with a diagnosis of impending heart disease, underscores the importance of this perspective shift.
Shared Principles of Health and Wealth
Remarkably, Dr. Attia's health principles share striking parallels with key principles in wealth management.
1. Personalization Is Key: Dr. Attia emphasizes that a one-size-fits-all approach doesn't work when it comes to health. Everyone’s unique attributes, including genetics and family history, should inform their health action plan.
In his book, Dr. Attia discusses the chronic diseases of aging that he calls the Four Horsemen: heart disease, cancer, neurodegenerative disease, and type 2 diabetes. He emphasizes that to live longer as well as live better for longer we must understand and confront these causes of slow death. Most importantly, we must consider the patient as a unique individual.
Similarly, in financial planning a personalized approach is essential. While investment advisors provide strategies based on research, a client's specific preferences and beliefs must be considered when developing a successful monetary blueprint. The best investing strategy for a client is one that he or she can believe in that fits in with his or her own personal financial plan.
2. No Quick Fixes: Dr. Attia criticizes the prevailing desire for quick fixes in medicine, such as seeking a pill to solve problems. Similarly, in the financial realm, clients often seek instant solutions, hoping to pick winning investments or time the market perfectly. However, both health and wealth improvements typically require sustained effort over time.
Dr. Attia talks at length about Medicine 2.0 where everyone is looking for a quick fix, such as taking a pill to solve a problem. But what happens if there’s no quick fix? Often the patient leaves the doctor’s office empty-handed with an “accept the likelihood of disease” prognosis and moves on.
Conversely, Dr. Attia counsels that most of the Four Horsemen could be minimized in one’s life with serious attention to life habits that need correcting over the long haul. These include daily exercise and good sleep habits like consistent bedtimes. It also means focusing on proper nutrition, including avoiding processed sugar, reducing or eliminating alcohol consumption, quitting smoking, and so on. Dr. Attia emphasizes that since these habits are hard to change and can’t be packaged up with a price tag, they are too often neglected in the conversations that doctors have with patients.
When I first meet with some prospective clients, I often sense that they are looking for a “magic pill” that they can take to fix their finances. They may hope their money issues can be solved by picking a winning stock or timing the market.
While there are some solutions that can be implemented quickly, most improvements take years before a client can really see the impact.
Although the U.S. market has returned about 10% a year on average, it rarely does so in any given year. (Usually, it’s much higher or much lower.) In addition, taking advantage of the miracle of compounding requires time. Good investing, like good health, demands long-term discipline and commitment.
3. Prevention Over Cure: Dr. Attia highlights the importance of preventive measures in health, particularly in diseases like Alzheimer's. To combat this ailment, which is greatly affected by vascular and metabolic health, Dr. Attia’s prevention toolkit includes a Mediterranean-style diet, no smoking or alcohol, healthy sleep habits, and brushing and flossing. Most importantly, it requires daily exercise beyond walking, including endurance activities and weight training.
Similarly, in finance, preventive measures play a crucial role in securing a strong financial future. Actions like responsible spending, consistent saving, growth-oriented investing (even if it involves some volatility), and bad debt minimization are akin to the prevention toolkit in health.
As a physician, Dr. Attia serves as a "translator" to help patients understand medical advances that can improve their health. Financial advisors use a similar approach when counseling clients on the smartest strategies to build their wealth. Both professions require a blend of science and art to cater to an individual's unique needs and goals.
Ultimately, the objective in both health and wealth should be to make well-informed decisions, acknowledging that outcomes are uncertain. Dr. Attia seeks to extend not only lifespan but also "health span," allowing individuals to enjoy life to the fullest. Similarly, in financial planning the aim is to maximize "wealth span" by making informed choices that empower individuals to lead secure and fulfilling lives.
In essence, both physicians and financial planners share a common objective: empowering individuals to make informed choices, promoting healthier and wealthier lives. By emphasizing prevention and tailored strategies, we do more than simply help individuals survive. We lay the foundation for a future where they thrive in all aspects of life.
