The big idea and why it matters: Regardless of one’s political views, the coming four years will allow ample opportunity for personal and financial growth. We each have the choice to embrace that opportunity (or not), and it will make all the difference in terms of our worldview and what we accomplish.
“Lovin’ is what I got.” -Sublime in What I Got
I still recall a conversation with my colleague, Angel, while working as an expediter at the North Hills (Pittsburgh) Applebee’s as a 17-year-old. The year was 1997, and I exuded coolness (nope). Playing through the ceiling speakers in the kitchen was 311’s All Mixed Up – one of the more popular songs of that time. Angel turned and said to me, “Hey Scooby – I’m sort of getting sick of this song, but do you know what song I never get sick of?” [and, yes, my nickname was Scooby Doo – perhaps a story for another day]
I said, “Yeah. What I Got.”
She said, “Yes! How did you know!?”
For whatever reason, I just knew. Both songs have a more upbeat feel and were my first exposure to a blended hip-hop/reggae/rock vibe – which I loved. When she posed the question, all that flashed through my brain, and I knew what she meant. I couldn’t have agreed more with Angel then; over 25 years later, I’m still not sick of it. What has changed is that I would have described Bradley Nowell as an “older dude,” and now his photos look like he’s just a kid.
What I Got and Sublime have not only stood the test of time. They have sparked a movement out of Southern California directly responsible for an entire genre of music (affectionately known as “White Boy Reggae”), a taste of which can be garnered from this list of relatively well-known bands (e.g., Pepper, Dirty Heads, Slightly Stoopid, Rebelution, Cisco Adler, Iration, etc.); my guess is that all of the bands included, except for 311, would cite Sublime as a major influence on not only their style of music, but also why they even started playing music in the first place.
As a tribute, today we’ll use some lyrics from What I Got to gain a healthier perspective on current events, wealth management, and maybe even Alts. Here we go!
“Life is too short, so love the one you got ’cause you might get run over, or you might get shot.”
Some Americans love the outcome of the recent election. Others loathe it. Many feel politically lost or homeless. In my personal relationships, many of those opinions are based on misinformation, but it doesn’t change the validity of one’s feelings (whether that changes my level of respect for said feelings is perhaps a whole other discussion 😊). If “emotional struggle” is an accurate summary of how you expect the next four years to play out, then perspective can be helpful.
Life is too short, and four years is a long time. Don’t waste it. We can’t control politics, but we can control a) our reaction to any environment and b) choose how we live on a daily basis. Focus on what you can control: exercising, eating healthy foods, and “loving the one(s) you got.” People around you need you, and you need them. Turn off the TV, put down the phone, get outside, and spend time with people in real life.
From a wealth management perspective, we don’t know whether we have one day or tens of thousands of days ahead of us, so make sure your estate plan is up to date; this will ensure your wishes are carried out, regardless of your personal longevity. It will also make the estate settlement process much easier on your loved ones, so it is a way of loving them even after your death. Keep in mind that proper estate planning also addresses powers of attorney and healthcare directives that apply while you’re alive, so this isn’t just about death.
You can also more efficiently leave gifts to charity vs. your heirs through simple beneficiary updates that don’t require an estate planning attorney. Yesterday, this topic came up with a group of my advisor-colleagues at TBG: a traditional IRA account is not only included as part of a person’s gross estate (upon which estate taxes are potentially levied) but then is also fully taxable after being received by heirs – known as “income in respect of a decedent” (IRD). It sounds like a nice thing. It’s not. In the worst cases, it can mean double taxation. None of that applies to IRA assets left to charity. Ask your advisor or estate attorney for more info.
From an Alts perspective, if I decide to give some of my IRA to charity and don’t need that portion to contribute to retirement income, I could consider investing it more for growth and less for income; part of that growth allocation could accept less liquidity and incorporate more private investments, for example. Many factors must be considered in a given situation, but having a well-constructed plan can allow for a broader opportunity set of investments.
Got to find the reason, reason things went wrong. Got to find a reason why my money’s all gone.
It is more of a perpetual issue, but people blame the powers that be when they aren’t happy with their personal circumstances. Even if that’s wired within some of us, it’s still our choice to determine how we react to that inclination.
The inflation spike of 2022 has subsided. It was caused by global supply chain disruptions and rapid economic recovery from a global pandemic (along with some temporary flush bank accounts and pent-up demand). It wasn’t Democratic or Republican. Yet, when I saw this recent 60 Minutes piece that attempted to explain the overwhelming shift from “blue” to “red” across the US in this cycle, I found it fascinating that people kept citing higher costs as a common reason.
I get it. There’s real financial pain. Prices generally went higher in recent years, and they have basically stayed higher. But I don’t see an immediate reason why we should expect them to fall suddenly, regardless of who was elected to be the next US President. If we can somehow experience modest price softening while the economy continues to muddle along and push wages slowly higher, perhaps we’ll leave the average consumer in a better place. But I’d urge those average consumers to bet on themselves rather than the government threading that proverbial needle.
Regarding one’s portfolio, it’s vital to include assets that can help outpace inflation (long-term growth assets), like stocks, private equity, and real estate. For those who choose to hold cash for the long-term, don’t be surprised when your “money’s all gone.” Speaking of money, I’m 100% sure that pointing fingers at politicians isn’t going to pay your bills or manifest more dollars in your bank account. However, making a sound plan and sticking to it – concerning finances and personal development – might do the trick.
Remember that lovin’ is what I got
Bradley Nowell didn’t live to see the real impact of his music or enjoy much of the success that should have come with it, but the amount of love, joy, and positive vibes spread through the world over the past 3 decades (and counting) is a legacy one could only dream of leaving behind. And with his son, Jakob (who was only a year old when Brad died in May of 1996), becoming lead singer of Sublime as of late 2023, things have come full circle. I hope he’s smiling down from above.
May we all be able to find reasons for love and gratitude this holiday season. Hint: focus on what “you got” instead of what you don’t have. Happy Thanksgiving!
Until next time, this is the end of alt.Blend.
Thanks for reading,
Steve
