DISCOVERING YOUR TRUE PURPOSE · 2017. 6. 28. · Discovering your True Purpose for Money is a...

NAME: _______________________________________________ DATE: _______________

DISCOVERING YOUR

FOR MONEY

DISCOVERING YOURTRUE PURPOSE

FOR MONEY

DISCOVERING YOUR

FOR MONEY

DISCOVERING YOUR

FOR MONEY

DISCOVERING YOURTRUE PURPOSE

FOR MONEY

w w w . m a t s o n m o n e y . c o m

S a v e T h e I n v e s t o r. S a v e T h e Wo r l d .

I N V E S T O R C O A C H I N G S E R I E S

™

© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.

TABLE OF CONTENTS

Understanding the Enigmatic Circle of Wealth

page 4 The Enigmatic Circle of Wealth

page 5 The Enigmatic Circle of Investing

page 6 Escaping the Enigmatic Circle

Discovering Your True Purpose For Money

page 7 Question 1: Dickens Question

page 10 Question 2: eVALUating your Goals Question

page 11 Crafting your True Purpose for Money Statement

page 14 The 20 Must-Answer Questions

2

All investing involves risks and costs. Your advisor can provide you with more information about the risks and costs associated with specific programs. No investment strategy (including asset allocation and diversification strategies) can ensure peace of mind, assure profit, or protect against loss.

This booklet is based on the views of Matson Money, Inc. Other persons may analyze investments and the approach to investing from a different perspective than that reflected in this booklet. Nothing included herein is intended to infer that the approach to investing espoused in this booklet will assure any particular results.

*Performance results for Matson Money Management Styles are for all accounts of each management style under Matson Money’s management for at least one quarter beginning with the first quarter of 1993, other than variable annuity accounts, with a minimum account size of $1,000 and that have fees paid directly out of the account and no other fees taken out of the account. These accounts are invested in various passive DFA or Free Market mutual funds according to the objective of the management style and rebalanced periodically. Actual results of accounts under Matson Money’s management may have been materially different from results shown herein because of differences in the inception date of the account and restrictions. Results are time-weighted and dollar-weighted. Gross returns are gross of transaction costs and any custodial fees. Net results are net of investment transaction costs, investment advisory fees, and any custodial fees. Performance results and comparative indices assume reinvestment of dividends and income plus capital appreciation.

The Enigmatic Circle of Wealth

The Enigmatic Circle of Investing

Escaping the Enigmatic Circle

4

5

6

Question 1: Dickens Question

Question 2: eVALUating your Goals Question

Crafting your True Purpose for Money Statement

The 20 Must-Answer Questions

7

10

11

14


Each of us has our own set of values and beliefs. One way that we express values is through financial decisions. Think of it this way: when financial decisions align with values, we experience a very real sense of satisfaction and contentment. However, when we struggle, worry, experience buyers’ remorse, or suffer over money, it’s very likely that our financial choices are inconsistent with our inner value system.

This is why, no matter what financial decision you are facing, the first step is to define your values. Discovering your True Purpose for Money can pave the way for long-lasting satisfaction and fulfillment regarding financial decisions.

UNDERSTANDING THE PROBLEM:

Why do you always want what you can’t have?Have you ever heard the sayings: “You always want what you can’t have” or “The grass is greener on the other side of the fence?” We all seem to get trapped at some time or another in the feeling that “if only I had ____, then I would be happier.” And then we get ____, and we do feel happy for a while, only to begin the pattern anew.

• What would it be like to make a financial decision without second guessing yourself?

• How would you feel if you had a long-term investment portfolio that you knew was going to help you fulfill all of your most crucial life goals?

• What if you never again had to worry about whether you were invested in the right stock at the right time?

• If you didn’t spend your time and energy continually working to obtain more of and better things, then what could you do?

DISCOVERING THE SOLUTION:Discovering your True Purpose for Money is a process. Because we are all unique, the end result will vary for each individual. However, the process can work for everyone. This workbook is designed to take you step-by-step through the process until you have revealed your own True Purpose for Money. The first part of the process involves understanding the Enigmatic Circle of Wealth. Awareness of this cycle explains why discovering your True Purpose for Money is so important.

3


UNDERSTANDING THE ENIGMATIC CIRCLE OF WEALTH

RESULT: Lack of FulfillmentWe tend to continue around and around the phases of this circle, only temporarily experiencing brief periods of satisfaction, before being caught again. As we travel through the circle over and over again, it becomes clear that no amount of money can ever bring happiness. There is no home or possession, no return on portfolio, no object or experience that will bring ongoing fulfillment, satisfaction, or peace of mind.

PHASE 1:Survivorship Stress“Survivorship Stress” is a deep-seated anxiety that we may not be able to acquire and maintain that which we deem necessary to our continued existence. It explains how we make the most basic choices in life.

PHASE 2: Human Wants“Want” means to feel the need for; long for; crave. Endless wishes for more taunt us. Human wants stem from competition. The accumulation of material assets provides the illusion that the chance of survival has increased.

PHASE 3: Obtainment“Obtain” means to get possession of; arrive at; reach or achieve. In this phase, we procure things and accomplish goals in an effort to satisfy the survival need and quench desire.

PHASE 4: Relief & ExuberanceRelief refers to anything that lessens tension or strain, or offers a pleasing change. Unfortunately, such relief tends to be temporary. Exuberance is the natural high we feel in the moment we first acquire something new. This feeling is short-lived, and is often confused with fulfillment.

PHASE 5:Comparative AnalysisThis means we compare our choices against others’ choices. Questions such as “Is it the best?” or “Did I really make a good choice?” plague us.

...A

nd s

o th

e cycl

e continues...

The Enigmatic Circle of Wealth: a cycle that explains the human emotions associated with financial decisions.

5.

4. 3.

2.

1.PHASE 1

NOFULFILLMENT

NO PEACE OF MIND

SurvivorshipStress

Human Wants

ObtainmentReliefand

Exuberance

ComparativeAnalysis

PHASE 2

PHASE 3PHASE 4

PHASE 5

4


THE ENIGMATIC CIRCLE OF INVESTING

The Technology EffectTechnological advancements and changes occur every second, creating opportunities for financial wealth like never before. Such rapid change only compounds the phenomenon of the Enigmatic Circle of Wealth. The Internet provides access to global commerce and new types of businesses and exponentially increases consumer choices. Yet such rapid change also leaves many feeling overwhelmed, confused, and frustrated—wondering just what, out of all these choices, is finally going to bring peace of mind.

Ever-changing technology only compounds and increases the speed with which the cycle occurs. In addition, we are bombarded with even more choices, options, and products.

InvestingNew technology, new options, and new ways to communicate do not make it easier to be an investor; they make it more difficult. As we apply the investing dimension to the Enigmatic Circle of Wealth, we see how we fall into the same continuous cycle.

Is More Really Better?New technology creates more investment options than ever before: stocks, bonds, mutual funds, futures, options — the list grows. Now we must choose between the options as a whole, and further, choose the options within the options. There are thousands of mutual funds from which to choose—more mutual funds now than there are individual stocks. Next, we have choices about how to procure these options: brokers, e-trades, information on a pager, e-mail, or cell phones. In order to stay in touch and “connected,” we feel that we must be accessible 24-hours a day, seven days a week. This brings more confusion instead of more peace of mind.

PHASE 1:Survivorship Stress in InvestingAs investors, we feel that the accumulation of wealth insures our survival. The underlying message when it comes to money— “more is better.”

PHASE 2:Human Wantsin InvestingWe want the best, most desirable, and well-known investments.

PHASE 3:Obtainment in InvestingWe buy, sell, and trade to obtain the best performing investment of the day.

PHASE 4:Relief & Exuberance in InvestingWe feel happy and hopeful that our most recent investment can bring long-lasting peace of mind.

PHASE 5:Comparative Analysis in InvestingWe hear aboutsomeone who gotbetter returns orstock quotes that performed betterthan ours. We wonderif we are doing theright thing.

5.

4. 3.

2.

1.PHASE 1

NOFULFILLMENT

NO PEACE OF MIND

SurvivorshipStress

in Investing

Human Wants in Investing

Obtainment in Investing

Relief andExuberance in Investing

ComparativeAnalysis

in Investing

PHASE 2

PHASE 3PHASE 4

PHASE 5

..

.And

so

the cy

cle continues...

The Enigmatic Circle of Investing

5


ESCAPING THE ENIGMATIC CIRCLE

Values and BehaviorTraveling around and around this endless cycle often leads us to act as if we want more money simply for the sake of having more money. Many of us are not fully aware of the internal values that we really want to express through the use of money. Until internal values are clarified, we continue to experience the worry, suffering, stress, anxiety, and frustration associated with this cycle.

Result:

“If all the gold in the world were melted down into a solid cube, it would be about the size of an eight room house. If a man got possession of all that gold—billions of dollars worth—he could not buy a friend, character,

peace of mind, clear conscience, or a sense of eternity.” -Charles F. Bunning

Result:

Value:Security

Value:Security

Internal Value =

External Behavior

Internal Value =

External Behavior

AnxietyStress

ConfusionFulfillment

Lasting Peace of Mind

The first step to overcoming the Enigmatic Circle is revealing innermost values. The best way to escape the Enigmatic Circle is to discover your True Purpose for Money.

6


For the most part, demands of daily life do not require us to assess what is most important. Many times it is not until we are faced with our own mortality that we consider the consequences of how we live.

Goal: An object or end that one strives to attain.

If we were planning a trip, “goals” would represent our destination (for example, Florida). “Goals” tell us where we are going and allow us to track our progress. However, goals are not the whole story. They do not tell us why we want to go there; they do not define our reason or our purpose for making the journey.

Value: That which is desirable or worthy of esteem for its own sake; a thing or quality having intrinsic worth.

If goals represent the destination, values symbolize the motivation. The reason we want to go to Florida could be for peace of mind, happiness, beauty, adventure, or love. Any value could apply, depending on the individual. After you have clearly identified what motivates you, it is easier to appreciate those qualities once you have arrived.

Family: Who is most important? Experiences: Adventures you want to have?

Charities: Which ones? How much? Travel: Where? How?

Education: For whom? Health: Yours? Family members’?

Retirement: When? Standard of living? Property: Homes? Land?

Possessions: Cars? Toys? Jewelry? What else? Interest: Hobbies or lessons you want to pursue?

Areas to Consider

One of the primary reasons we remain stuck in the unfulfilling Enigmatic Circle is because we continue to ask limiting, short-sighted questions, such as:

• “Will I make it?” • “Why can’t I have what they have?” • “How will I make it?” • “How can I get that sooner?” • “How can I get ahead?” • “Did I really make the right choice?” Instead, we have the option to ask empowering, visionary questions that get straight to the heart of the matter and supersede immediate doubts and fears.

This part of the process requires you to be introspective. You will need to focus internally to provide answers to these questions. There are two questions:

QUESTION 1: Dickens Question

QUESTION 2: eVALUate your Goals Question

“If I were at the end of my life, what would have to happen financially for me to be able to say I have

lived a life without regret?”

QUESTION 1:Dickens Question

7

DISCOVERING YOUR TRUE PURPOSE FOR MONEY


“If I were at the end of my life, what would have to happen financially for me to be able to say I have

lived a life without regret?”

QUESTION 1:Dickens Question

“When we set exciting, worthwhile goals for ourselves, they work in two ways: we work on them, and they work on us.”-Bob Moawad

GOALS

Write your answers:

e.g.: Family—I want my spouse to be financially independent and each of my two children to receive $50,000 in trust.

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2.

3.

4.

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6.

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8.

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“What are the underlying values and priorities expressed by my goal?”

QUESTION 2:eVALUating Your Goals Question

“There is no value in life except what you choose to place upon it and no happiness in any place except what you bring to it yourself.”

-Henry David Thoreau

Underlying each and every goal, there is a value—an internal, compelling reason for wanting to accomplish it. Values are the heart and soul of you. They reveal the legacy you want to leave behind. Once you identify the values behind the goals, you can use them to guide you in life’s most trying financial decisions.

First, re-write your goals and determine underlying values.Look at each goal and honestly evaluate why you want to achieve it. Why is it important to achieve this?

• In the left column, write down each goal that you stated.

• In the right column, identify the value(s) expressed by achieving that goal.

• List 7-12 total Value words.

Second, identify three values.Of the values you have written, choose three that personify all values stated and express you best. Circle those three.

Third, choose the most important value.Now, choose one—the one that could encompass the others. Say it out loud. If it sounds right and feels right, put a star () next to it. If that’s not it, keep trying until you find the one.

Security Freedom Love Respect

Peace of Mind Generosity Fulfillment Joy

Adventure Happiness Abundance Faith

Independence Honor Dignity Recognition

Comfort Beauty Creativity Energy

Value WordsThis is a sample of values often expressed. It is intended to inspire you, not limit your self-expression.

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QUESTION 2:eVALUating Your Goals Question

“It’s not hard to make decisions when you know what your values are.”-Roy Disney

GOALS VALUES

Re-write Goals here: What value(s) are expressed by this goal?

e.g.: Financial Independence for spouse e.g.: Security $50,000 inheritance for children Independence

1.

2.

3.

4.

5.

6.

7.

8.

“What are the underlying values andpriorities expressed by my goal?”

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“It’s not hard to make decisions when you know what your values are.”-Roy Disney

CRAFTING YOUR TRUE PURPOSE FOR MONEY STATEMENT

You have united goals and values. Together, they begin to declare your purpose. Now it is time to craft a powerful statement that reflects your goals, your values, and captures your unique personality. This is a declaration that solidifies your values and beliefs into one clearly communicated message. Forming your statement is an important and powerful step.

When creating your True Purpose for Money statement, clarity and brevity are important.

“What is conceived well is expressed clearly.” -Nicholas Boileau

Guidelines for Crafting Your True Purpose For Money Statement

1234

567

Begin with “My True Purpose for Money is...”

Utilize the single value word that best expresses your values (Your answer to the eVALUating your Goals Question.)

Your statement may simply include the opening phrase with your Value word. (e.g.:“My True Purpose for Money is love.”) -OR-

Your statement may be a short statement that describes how you want to express your Value word. (e.g.:“My True Purpose for Money is to share love.”)

Be selective with the words you use. Strive to have them completely signify your purpose.

Speak the statement, write the statement, and play with the words until you know that it inspires you.

When it’s right, you’ll know. It will resonate within you, as if you are speaking a truth that you have always known.

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MY TRUE PURPOSE FOR MONEY IS:

___________________________

_________________________

Once you have crafted your True Purpose for Money statement, write it here:

Your True Purpose for Money is not only a statement of the values you personally hold dear, but it also communicates what you want to create for others. Your statement can empower you as an individual, and it can also

symbolize what you stand for in the world.

MYTRUE PURPOSE FOR MONEY

STATEMENT

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Money itself is merely paper, metal, and electronic data. Throughout the course of life, each of us attaches other meanings associated with money. Some people have a lot of money, yet never find fulfillment, while others with relatively little money are happy, content, and satisfied.

True happiness comes from values being realized in your life—relationships, love, excitement, adventure, fulfillment. Money is the tool, and when it used purposefully, it helps to create the things that are most meaningful and important to you.

Remember:Money doesn’t make people happy

CONGRATULATIONS! Now you can use your True Purpose for Money to make important financial decisions!

“Great minds have purposes, others have wishes.” -Washington Irving

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THE 20 MUST-ANSWER QUESTIONS FOR YOUR JOURNEY TOWARD PEACE OF MIND

1. Have you discovered your True Purpose for Money, that which is more important than money itself?

q YES q NO

2. Are you invested in the Market?

q YES q NO

3. Do you know how markets work?

q YES q NO

4. Have you defined your Investment Philosophy?

q YES q NO

5. Have you identified your personal risk tolerance?

q YES q NO

6. Do you know how to measure diversification in your portfolio?

q YES q NO

7. Do you consistently and predictably achieve market returns?

q YES q NO

8. Have you measured the total amount of commissions and costs in your portfolio?

q YES q NO

9. Do you know where you fall on the Markowitz Efficient Frontier?

q YES q NO

10. When it comes to building your investment portfolio, do you know exactly what you are doing and why?

q YES q NO

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11. Are you working with a financial coach versus a financial planner?

q YES q NO

12. Do you have a customized lifelong game plan to guide all of your investing and spending decisions?

q YES q NO

13. Do you have an Investment Policy Statement?

q YES q NO

14. Have you devised a clear-cut method for measuring the success or failure of your portfolio?

q YES q NO

15. Do you fully understand the implications and applications of diversification in your portfolio?

q YES q NO

16. Do you have a system to measure portfolio volatility?

q YES q NO

17. Are you aware of the incentives brokerage firms and the financial community have when selling commission- based products?

q YES q NO

18. Do you know the three warning signs that you are gambling and speculating with your money versus prudently investing it?

q YES q NO

19. Can you identify the cultural messages and personal mind-sets about money that destroy your peace of mind?

q YES q NO

20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode?

q YES q NO

When you have achieved the ability to answer “yes” to all of these questions, you will be on your way to a high level of peace of mind.

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© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.16

© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc. 17

© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.18

© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc.© 2005-2012 McGriff Video Production, LLC., an Ohio limited liability company and a wholly-owned subsidiary of Matson Money, Inc. 19

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