Lance Alston - Wealthfulness

I dedicate this book to my parents, who watched with patience and encouragement as I chose roads less traveled; to my brothersDaryn, whom I will miss the rest of my life, and Chris, because you are uniquely you; and to Claire and Olivia. My precious girls, you represent my greatest joys today and my brightest hopes for tomorrow.

Acknowledgments

The original draft for this book was written in the mountains of New Mexico over the course of several years. Few words from that early manuscript found their way onto these pages, for which I have my editor, Darla Bruno, to thank. Darla was given a difficult task yet somehow managed to draw a completely differentand far more usefulbook from that first draft. Rewriting a book requires uncommon levels of commitment and patience from everyone involved, and Brown Books turned out to be the perfect publisher for this project. Milli Brown is a force of nature and the best cheerleader anyone could ever have on their team. Milli and Darla, thank you for your talent, for your professionalism, and for your kindness when this project became more challenging than anyone expected. Abigail Thrift, Katlin Stewart, and Hallie Raymond were essential in keeping this project on track and holding me accountable along the way.

Many of the ideas for this book sprouted from interviews I conducted between 2005 and 2008 with my former business partner and cohost, Jim Whiddon. Jim, you changed my life when you handed me that book on passive investing, exactly as you predicted. I will treasure my memories of those years as we grew the business and raised our families.

To this day, I am still awed by the fact that people like John Bogle, Scott Burns, and Burton Malkiel will answer a personal e-mail or phone call. Many busy people generously made time for our interviews over the years, and I thank each and every one of them. It was an honor and a privilege to be part of those conversations.

Barbara Saunders and Kathy Muldoon deserve special mention for their guidance early in my career. I wouldnt have made it without them. A handful of colleagues have shared their considerable personal and professional wisdom with me over the last two decades: Tom McIntire, Lyn McIntire, Patrick Dougherty, Jim Middlebrook, Trudy Turner, Harvey Matte, Brent Little, and John Gay. I am a better financial planner and a better person because of your friendships. My high school English teacher, Doris Wolff, introduced me to Henry David Thoreau and dared me to live the life I had imagined. Every kid deserves a teacher like Doris in his or her life.

Thanks also to the volunteers who read various versions of this book: Patrick Dougherty, Margaret ODay, Bob Purcell, Carol Purcell, Sharon Johnson, Amy Rogers, and my mom, Sue Alston. This book benefited from your literary insights and keen eyes for detail. Alesha Isaacs jumped in at the eleventh hour to help get the book print readyAlesha, you were awesome. Tona Bell, owner of The Paper Seahorse, was a joy to work with as we searched for a special image to go in the book.

A book, as any writer will tell you, is one of those projects resembling an iceberg: the bulk of it lies hidden below the waterline, invisible to a casual observer on the surface. There simply would be no book without the constant support and collaboration of my business partner, Tiffany Finney-Johnson. Tiffany, you are one of the most talented and intellectually curious individuals I know; however, its your heart that makes you special. No amount of training can teach someone to care about our clients the way you do. Thank you for making our firm what it is. Thanks also to Ryan Johnson, your husband, for the interesting questions and humor he regularly adds to our work day. Harper and Cole, your parents are wonderful people!

To my brother Chris, for keeping it interesting and fun all these years. You have always challenged me to become better. Thank you. I hope you find your personal ikigai, because you have so much to offer this world. I only wish our brother Daryn were here to share this part of the journey with us. Our parents, Dick and Sue Alston, have created an amazing community of family and friends during their life together. They embody the central idea of this booka life well lived, filled with happiness, friends, and success. Mom and Dad, thank you for your wisdom, values, and unconditional love.

And finally, to my girls, Claire and Olivia, who have put up with this book in our house for a very long time. You give my life joy and meaning, and it is for you two precious daughters that I write.

Preface

Before we begin, I would like to offer youmy readeran interesting concept to keep in mind as you read through this book. Dr. Atul Gawande is a bestselling author and a regular contributor to the New Yorker magazine. When hes not writing, Dr. Gawande is a full-time surgeon at one of Bostons most prestigious hospitals. In a recent article he discussed a fundamental challenge confronting modern medicine, one that I believe applies to personal financial planning as well.

As a surgeon, Dr. Gawandes primary job is to intervene in someones health care when there is a problem. If the intervention goes well, a problem is solved, and everyone moves on with their lives. This is how we view the practice of medicineget sick, go to the doctor, get cured. And yet, as he points out, most of the ways we can become and remain healthy require slow, incremental changes to our bodies systems. We do not lose weight, lower our blood pressure, or improve our cholesterol quickly or effortlessly. Committed care, where doctor and patient act as a team, provides the best path for sustained health; however, this kind of process takes much more time and effort than the interventionist approach.

The contrast is between an immediate, heroic intervention and a tedious, incremental rate of change. Interventionism or incrementalism? We all, of course, get more excited about the quick fix, but many important improvements in life dont respond well to grand interventions. In this respect, I believe personal financial planning is a lot like the practice of medicine. Consumers often look to the financial industry for a quick fix so they can get back to their busy lives. Theyre looking for someone to put their inheritance to work, fix their portfolio, or tell them its okay to retire.