Optimizing Wealth ≠ Maximizing Wealth

My job as an investment advisor is to help people optimize their wealth. By optimize, I mean helping them use their money efficiently towards what they want to accomplish. This may be giving money to charity, paying down debt, growing their money, or even making sure they can sustain their comfortable lifestyle. You’ll notice that growing their money was one option. Too often people feel it’s the only option.

Let me use myself as an example. I paid off my mortgage last week. I value financial flexibility and want to have one less fixed payment. Plus, I think it feels really good to be completely debt free. Paying down my mortgage early optimized my wealth. If I wanted to maximize my wealth, I would have made only the minimum payments and kept my mortgage for another 30 years. I could have invested the difference and would be very likely to end up with more money in my 70s. I certainly understand the concept, but I value being debt free today more than I value having more money in my 70s.

What does optimizing your wealth mean to you? Let me know if you need help figuring that out.

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.