Dear Valued Client:

 

It may sound strange to hear a financial advisor say this but achieving the things you care about most

requires more than just money. There are certain habits and behaviors that, while not directly related to

finance, can spell the difference between reaching your goals or not.

 

In our experience, people rarely hear about these things from their financial advisors.

Recently, we decided to share some non-financial lessons we have learned. It’s our belief that applying these lessons makes working towards your goals both easier and more rewarding.

 

So, without further ado, here is:

 

Things Most Advisors Don’t Tell

Managing your most precious asset

Do you know what your most precious asset is?

 

It’s not your house. It’s not your car. It’s not your investment portfolio.

 

It’s your time.

 

Benjamin Franklin once said:

 

If time be of all things the most precious, wasting time must be the greatest

prodigality, since lost time is never found again, and what we call time enough,

aways proves little enough.

 

You’ve probably seen or heard a lot of fancy terms related to your finances. “Asset management,” for

example, or “Investment management.” You get the idea. But just as important is the concept of time

management.

 

The definition of time management is, “The act of planning and exercising control over the amount of

time spent on specific activities, especially to increase effectiveness, efficiency, or productivity.”1 Look

at those words again. Planning. Control. Effectiveness. Productivity. All things that can have a big

impact on how much money you have to achieve what you want most.

 

The art of time management is essentially the art of prioritizing your life. It’s the art of recognizing

which activities are most important in terms of reaching your goals. Some activities will bring you

closer; others will move you further away. Many activities, of course, will have no effect either way.

 

Let’s call them “A” activities, “B” activities, and “C” activities. “A” brings you closer to your goal, “B”

keeps you stationary, and “C” moves you further away.

 

For example, let’s say one of your most cherished goals is to travel to the country your ancestors came

from. “A” activities could include creating a plan for getting there, setting aside money specifically for

the trip, or learning that country’s language. “B” activities, meanwhile, could be anything from going to

the grocery store, to playing a round of golf once a month, or sleeping.

 

Some examples of “C” activities? How about buying that new $1,000-version of the phone you already

have? Or deciding not to plan, but just wing it, instead?

 

As you can see, “B” and even “C” activities are NOT inherently bad! In many cases, those activities can

be fun, rewarding, or even necessary. But when you prioritize “B” activities over “A” activities, or when

you spend your time or money mainly on “C” activities, then your most cherished goal will always be a

fantasy instead of a reality.

 

Time management, then, is the process of:

• Determining what you need to do to get where you want to go. (These are your “A” activities.)

• Making those activities be your first priority on a daily, weekly, and monthly basis.

• Filling up the remainder of your time with “B” activities after the “A” activities are done.

• Being very cautious about when you spend time or money on “C” activities.

 

As you may know, we help people plan for retirement. In our experience, people who don’t practice time management end up planning for retirement this way:

1. First, they dream about what they’d like to do in retirement, and then decide it’ll probably

happen “some day.” Then they start thinking about what to do for the weekend.

2. A few months or years later, they read a book or article on retirement planning and think, “This

makes sense, I’ll have to get on that sometime.” Then they turn on the TV.

3. Occasionally, they remember to save or invest a portion of their income, between bouts of buying

the latest thingamajig that everyone else seems to have.

 

Then, before they know it, they’re in their sixties, and realize they’re nowhere close to being ready for

retirement.

 

The point is time is an asset. But like all assets – money, property, personal skills – if you

fail to manage it properly, it will go to waste and be lost forever. That’s why, when it comes to

accomplishing what really matters, time management is just as important as money management.

 

And that’s something most advisors just don’t bother to tell you.

 

Sincerely,

 

 

The Omell Financial Group

 

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.

 

Sourced from Bill Good Letters Library

 

Original from BGM Head Writer Matthew Bailey