Isn't That Rich Podcast

John Forbes is a well-respected financial advisor with over 27 years of experience in the financial industry. Originally from Carterville, Illinois, John’s journey began at Southern Illinois University, where he initially majored in finance. However, after the market crash of 1987, he pivoted to accounting, eventually becoming a CPA. His career took him and his wife to St. Louis, where he worked for KPMG Pete Marwick and later served as a financial officer for a small company. After the birth of their first child, John and his wife decided to return to Southern Illinois, recognizing the value of raising their family in a close-knit community.

John spent a decade as a financial advisor with a national firm before realizing that the firm’s approach was too restrictive for his clients’ needs. This led him to establish his own advisory practice, where he could offer a broader range of financial solutions—akin to expanding from a single-flavor Dairy Queen to a 31-flavor Baskin Robbins. Now, with nearly three decades of experience, John is dedicated to helping his clients achieve their financial goals and build a legacy that lasts.

Redefining Wealth: The True Riches

John begins his presentation by challenging the traditional notion of wealth, which often focuses solely on monetary assets. Instead, he introduces a more holistic perspective through the acronym "WEALTH," which stands for Wisdom, Experiences, Affluence, Legacy, Time, and Health. These elements, John argues, are the true riches that define a meaningful and fulfilling life.

W is for Wisdom

Wisdom, John explains, is the foundation of true wealth. It encompasses the quality of experience, knowledge, and good judgment accumulated over time. Wisdom is often gained through life’s challenges and the lessons learned from both successes and failures. On a personal level, John emphasizes the importance of cultivating relationships with those who matter most. He shares a mantra that resonates deeply: "You can't be everything to everyone, but you can be everything to those who mean everything to you."

Professionally, John advocates for the value of mentorship. He encourages those with experience to actively seek out opportunities to mentor younger individuals, who are often in desperate need of guidance and aspiration. He highlights the importance of passing on wisdom to the next generation, noting that young people may feel intimidated to seek out mentors themselves. By stepping up and offering mentorship, you can have a profound impact on someone’s life and help shape their future.

E is for Experiences

Experiences are another crucial component of wealth. John suggests that true wealth is found in the richness of life’s experiences, whether it’s traveling, pursuing hobbies, or learning new skills. He notes that many of his clients, particularly those entering retirement, struggle with the concept of spending money on experiences after a lifetime of saving. This shift from accumulation to enjoyment can be difficult, but it’s essential for finding joy and fulfillment in retirement.

John advises that any solid financial plan should include strategies not only for accumulating wealth but also for how to wisely spend it. This includes determining which accounts to draw from and ensuring that spending aligns with your overall financial goals. By planning for these experiences, you can ensure that your retirement years are not just comfortable, but truly enjoyable.

A is for Affluence

When most people think of wealth, they think of money—affluence. John acknowledges the importance of financial resources but emphasizes that it’s not just about having money; it’s about managing it wisely. Affluence, derived from the Latin word meaning "to flow abundantly," suggests that with wealth comes the responsibility to direct where your money flows.

John provides practical advice on creating and managing affluence. He stresses the importance of paying yourself first, especially for younger individuals just starting their careers. He notes that while many people contribute to retirement plans up to their employer’s match, they often don’t consider whether this amount is sufficient to meet their retirement goals. John recommends aiming to save 12% of your pre-tax income to ensure a comfortable retirement.

He also advises against the common mistake of prioritizing saving for children’s education over retirement. While saving for college is important, John reminds parents that you can borrow for college, but you can’t borrow for retirement. Ensuring that your financial house is in order—paying off unsecured debt, establishing an emergency fund, and contributing to retirement accounts—should take precedence.

For grandparents, John suggests creating excitement around financial literacy by offering a matching program for savings. By matching what their grandchildren save, grandparents can instill the importance of saving and make financial education engaging and rewarding.

L is for Legacy

Legacy is perhaps the most significant aspect of true wealth. John explains that legacy is not just about the money or assets you leave behind, but the lasting impact you have on your loved ones and community. He encourages taking proactive steps in estate planning, including considering gifting strategies and charitable giving, to ensure that your legacy reflects your values.

John also touches on the emotional aspect of legacy, noting that your loved ones will remember you not for the assets you leave them, but for the love, wisdom, and memories you’ve shared. He shares a poignant example of the importance of pre-planning your funeral, not necessarily in a financial sense, but to relieve your loved ones of the emotional burden during an already difficult time.

He also underscores the importance of capturing and preserving personal stories and experiences. John urges individuals to document their proudest achievements, biggest regrets, and sources of inspiration so that these stories can be passed down to future generations. These personal narratives are the true treasures that will be cherished long after you’re gone.

T is for Time and H is for Health

John concludes by emphasizing the importance of time and health, which are often overlooked in the pursuit of financial wealth. Time and health, he explains, are finite resources that need to be managed with care. He highlights the devastating effects of dementia, particularly early-onset dementia, which not only robs individuals of their memories but also deprives families of the memories they could have made together.

To make the most of the time we have, John encourages being intentional with how we spend it. He suggests identifying key relationships and making a conscious effort to nurture them. He also advises against wasting time on trivial pursuits, such as excessive television or social media, and instead focusing on activities that bring genuine joy and fulfillment.

John ends with a powerful reference to Tim McGraw’s song "Live Like You Were Dying," encouraging listeners to embrace life fully and pursue the things that truly matter. Whether it’s taking that long-delayed trip, spending more time with loved ones, or simply living more intentionally, John’s message is clear: time is precious, and it should be spent wisely.

Avoiding Common Financial Mistakes

Throughout his presentation, John also addresses five common financial mistakes that can derail even the best-laid plans. These mistakes include:

1. Misunderstanding What’s Normal: Many investors have unrealistic expectations of market performance, assuming that steady, predictable returns are the norm. John explains that market returns are inherently inconsistent, and understanding this can help investors avoid panic during downturns.
2. Letting Emotions Dictate Decisions: The financial media often sensationalizes market movements, leading investors to make emotional decisions based on fear or greed. John advises staying informed but maintaining a level-headed approach to investing.
3. Not Controlling What You Can: While the stock market is unpredictable, investors can control the level of risk they take. John emphasizes the importance of diversification and aligning your portfolio with your risk tolerance and financial goals.
4. Allowing Politics to Influence Financial Decisions: John warns against letting political biases affect investment decisions. He points out that the market often performs best under divided government, regardless of which party is in power.
5. Focusing on the Past Instead of the Future: Investors often chase past performance, investing in funds that have recently performed well, only to see them underperform. John advocates for diversification and forward-looking investment strategies instead.

Conclusion: True Wealth is More Than Money

John Forbes’ presentation offers a comprehensive and thought-provoking perspective on what it means to be truly wealthy. By focusing on wisdom, experiences, affluence, legacy, time, and health, individuals can build a legacy that extends far beyond material wealth. John’s insights remind us that true wealth is not just about accumulating money, but about living a life that is rich in meaning, relationships, and purpose.

As you reflect on these concepts, consider how you can apply them to your own life and financial planning. Whether it’s mentoring a young person, prioritizing experiences over possessions, or planning for your legacy, the steps you take today can have a profound impact on your future and the future of those you love.