Health and Wealth: Exploring the Connection
More than 2,300 years ago, ancient Greek physician Herophilus famously said, “When health is absent…wealth becomes useless.” His words still stand as doctrine today for those in pursuit of “living life to the fullest.” Health and wealth are both important resources for living a happy and meaningful life. As Advisors, we counsel families about building and protecting their wealth. However, wealth accumulation may be less impactful for you and your family if you do not have your health to enjoy the fruits of your labor!
The condition of your health and wealth should be regularly reviewed, analyzed, and revised. A simple three step approach can be applied to both. The first step is finding a knowledgeable professional who is a good fit to help assess your condition. Second, your health and wealth should be reviewed at least annually. Lastly, based on the professional advice you receive, implement actions to optimize and achieve your goals!
Medical professionals often say that up to 80% of our wellbeing is associated with the twelve social determinants of health. Blue Zones are regions of the world where people often live longer and happier lives. “Blue Zone communities remind us that the secret to living longer and healthier may be simpler than we think. It's in everyday habits like living purposefully and being intentional about what we eat, how we move, connect, and show up in our lives.” Academic research on the topic of health and wealth emphasizes the idea that those who are healthier, tend to live longer and earn more. The basics for creating and maintaining a healthy lifestyle are widely accepted. Some of these factors include eating a balanced diet, reducing sugar intake, exercising regularly, avoid smoking, limiting alcohol consumption, managing stress, and getting enough sleep.
On the contrary, the basics for creating, implementing, and managing a sound financial plan are more complex because everyone’s financial framework and goals are unique. There are three cornerstones that should serve as the foundation for a strong financial plan. First, it is fundamental to understand your recurring needs and create a cash reserve or “emergency” bucket to provide a safety net in the event of unforeseen expenses. Second, it’s important to understand your risk tolerance and have a predetermined plan for navigating volatility and protecting against large and potentially catastrophic events. Lastly, it is often advised to invest some of your assets in growth-oriented investment vehicles in an effort to outpace inflation and help provide longevity protection, to work towards not outliving your assets.
The connection between health and wealth is profound. It is important to create, review, and revise strategies for both, your health and wealth, to give you the greatest chance to truly live the life you desire.
Hofer Family Wealth Advisors
Of Janney Montgomery Scott LLC
1551 Boston Post Rd 2nd Floor
Westbrook, CT 06498
CA Insurance License 0F52583
Janney Montgomery Scott LLC. Member: NYSE, FINRA, SIPC
References: https://njaes.rutgers.edu/sshw/book/02_Health_and_Wealth_Connections.pdf
https://www.verywellmind.com/blue-zone-secrets-11714202
The concepts illustrated here have legal, accounting and tax implications. Neither Janney Montgomery Scott LLC nor its Financial Advisors give tax, legal, or accounting advice. Please consult with the appropriate professional for advice concerning your individual circumstances. For more information about Janney, please see Janney's Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.
