Rethinking Financial Freedom – A Masterclass

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A Masterclass on Financial Freedom

‘Financial freedom’ is a subject that people tie only to money and not to the peace that no amount of money or wealth would get us. It is, however, a subject matter of the understanding within, of course, along with enough money.

I am holding a 2-hour online session on the subject of “Rethinking Financial Freedom.” The session is free for Mastermind members. However, if you are not one, you can join the session by registering here (India), or here (outside India).

In this session, I will cover –

• What financial freedom really means
• Roadblocks on our path towards such freedom
• Four horsemen of financial freedom
• What real wealth is all about
• Basic math of financial freedom
• Book suggestions

Please note that it’s not going to be a math-heavy discussion but more on the philosophy of the idea of financial freedom. I will not be sharing any magic tricks to multiply your money or grow your wealth, but a slow way to achieve your freedom from the worries of money.

If you are still interested, you can register here (India), or here (outside India). Seats are limited.

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Is Value Investing a Good Idea?

Here’s an answer by Jack Schwager, author of Market Wizards series, who invokes the wisdom of Joel Greenblatt, one of the foremost experts on value investing, while answering the question –

Value investing doesn’t always work. The market doesn’t always agree with you. Over time, value is roughly the way the market prices stocks, but over the short term, which sometimes can be as long as two or three years, there are periods when it doesn’t work. And that is a very good thing. The fact that our value approach doesn’t work over periods of time is precisely the reason why it continues to work over the long term.

It’s such a powerful thought – Value investing works (over the long term) because it sometimes does not work (in the short term).

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Time + Health > Wealth

I came across an article from Ben Carlson, author of the blog and a nice book by the same name – A Wealth of Common Sense – about few financial advices he thinks are not talked about much but offer big financial payoffs. One such advice, and that I believe makes great sense, is about why time and health matter more than wealth. Ben wrote –

Cornelius Vanderbilt’s son William was far and away the richest person in the world after doubling the inheritance given to him by his late father in just 6 years. But the burden of wealth brought him nothing but anxiety. He spent all of his time managing his substantial wealth through the family’s businesses, which meant he had no time to enjoy his money or take care of his body.

He once said of a neighbor who didn’t have as much money, “He isn’t worth a hundredth part as much as I am, but he has more of the real pleasures of life than I have. His house is as comfortable as mine, even if it didn’t cost so much; his team is about as good as mine; his opera box is next to mine; his health is better than mine, and he will probably outlive me. And he can trust his friends.”

William also told his nephew, “What’s the use, Sam, of having all this money if you cannot enjoy it? My wealth is no comfort to me if I have not good health behind it.”

All the money in the world doesn’t matter if you don’t have the time or the health to enjoy it.

This is one timeless advice, I think. You?

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Closing Thoughts

There are two things I would never say when referring to the market: “get out” and “it’s time.” I’m not that smart, and I’m never that sure. The media like to hear people say “get in” or “get out,” but most of the time the correct action is somewhere in between. Investing is not black or white, in or out, risky or safe. The key word is “calibrate.” The amount you have invested, your allocation of capital among the various possibilities, and the riskiness of the things you own all should be calibrated along a continuum that runs from aggressive to defensive. ~ Howard Marks, in Mastering the Market Cycle

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That’s about it from me for today.

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Thanks for your time.

Regards, Vishal