What’s Your Overall Investment Strategy

I always ask this question of attendees at the commencement of our monthly educational workshops.  ‘What’s your overall investment strategy?’  The question is conceptual but puts into context – why.

Why be in business.

Why invest.

Why plan.

Why property or shares or managed funds.

In the first blog for the year we focused to health and wellness.  People who don’t focus to health and wellness don’t bother with health and wellness measures.  They don’t measure the input (diet, exercise) or the output (weight, blood, hair follicle testing, calcium build up, fitness).  So be it.  It’s not rocket science but it is formulaic.  Basic science taught us formulas.  Certain input when mixed with certain other inputs created a certain output.

Money and health are fundamental.  If you don’t understand the up side of health – good health, you won’t ask the question of yourself.  Why be healthy and well?  If you don’t understand the up side of having money (spare) you won’t ask the question of yourself.  Why have lots of money?  And you won’t change how you think and act if you don’t decide to be healthy or wealthy – or both, and you can have both.  You can’t buy health and you can’t buy wealth.  They come with decisions and disciplines – a practice over decades.  Of course there are levels for both.  How healthy, how fit, what weight, how supple, how much body fat – you choose.  How wealthy, what assets, what debt, what income, what lifestyle expenditure – you choose.

Thankfully people are starting to see the relevance of food to wellness.  Not just the amount we eat but the quality and type.  We investment types might call it asset allocation, the dieticians and nutritionists – carbohydrates or proteins, vitamins and minerals, fats and sugars.  The organics bonanza is now unstoppable.  You can’t fly around supermarkets these days – there’s so much label reading going on.  Even vineyards are going organic – the power of the ultimate consumer is paramount.  The balance of thought now is much more ‘environmental’ than even at the last election.  This year NZ will achieve an historic breakthrough on freshwater management – setting effective quality standards in all river catchments.  Over time this will drive better environmental performance by all sectors – rural and urban – and set farming on a more sustainable and profitable path.  The Wellington council may even deem it appropriate to reduce its own effluent into Wellington harbour before building more cycle lanes.

The environmental and organic movement now has unstoppable momentum.  ‘Greens’ parties around the world are growing in support and Gen X and Y are looking for sustainability ahead of profitability.  Legislation will empower communities in each water/river catchment to use limits and bottom lines on water quality and nutrient levels for better collaboration on land use and environmental management.  Even dairy farmers are reacting positively to improving economic efficiency.  Necessity is the mother of invention – sustainable growth in quality and volume of milk and produce will follow.  So why not multi-generational wealth.  Sustainability of assets (money).

We need to embrace financial organics.  Saving and enhancing lives financially for generations to come.  The legislation has been enacted and the regulators have stepped in – but will the consumers know ‘what’s best for them’.  I think so – it just takes time.  Food quality and environmental sustainability has taken many years to reach regulatory levels of prioritisation but more importantly, fundamental acceptance from the consumer – attitudes to good financial decisions and disciplines will be the same.  Except that communication has changed.  This generation will drive change online.  IT will be quicker.

Financial organics will entail health, wealth and relationships – a purpose filled life.  A balanced diet, a health vision and a happy life – if only we could bottle that from our new – National Objectives Framework for Fresh water.

Next week – Education.  That Nats have fired the first shot.  How will the teachers unions react?

The information provided in this blog is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.