True Wealth is "Funded Contentment" (with Blair and Brian Portnoy)

The Compound and Friends

Josh Brown

Business News, News, Investing, Business

4.7 • 2.2K Ratings

🗓️ 31 May 2019

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

Blair duQuesnay catches up with Brian Portnoy to discuss some of the biggest challenges in defining wealth, finding happiness in our success and being aware of the fact that we seem to always want more. Talk to Blair here: https://ritholtzwealth.com/team/blair-duquesnay/ Brian Portnoy, Ph.D., CFA, is an expert at simplifying the complex world of money. In his two books, The Investor's Paradox and The Geometry of Wealth, he tackles the challenges of not only making better investment decisions but also how money figures in to a joyful life. Here's Blair's conversation with Brian about The Geometry of Wealth, whether money buys happiness, what makes people truly content, gratitude, and financial planning and goals. Timestamps: 1:15 Being wealthy isn't the same as being rich 1:28 "I think of wealth as the ability to underwrite a meaningful life" (AKA funded contentment) - Brian 1:54 Blair on meeting goals - what she tells clients 2:20: "It's not about making more - it's about focusing on the goals" - Blair 2.35 Beating the market has become a cultural phenomenon, but it's irrelevant to meeting your goals 2:53 Hedonic adaptation: wherever you get, you then want more 3:20 Should I take my two-year old to Paris? 3:35: Two kinds of happiness: experienced happiness (in the moment) and reflective happiness (memory - "the step-back") 4:50 Distinction between pleasurable life and meaningful life 5:15 Blair's pro tip for Paris travel: how to skip to the front of the line at the Mona Lisa 5:40 What has Brian learned about gratitude? 6:15 Just saying "thank you" makes us feel better psychologically and physically 7:00 Does money not buy any level of happiness? 7:45 A higher salary doesn't make a big difference for gaining more experienced happiness (your day-to-day) 7:55 Going from $100k to $1M to $10M doesn't alter your emotional set point 8:30 The Geometry of Wealth - how do you afford a life that will make you happy? 9:00 You need to calibrate purpose and priorities - you need a plan (where financial advisors come in) 1-click play or subscribe on your favorite podcast app Subscribe to the mini podcast on iTunes or Spotify Enable our Alexa skill here - "Alexa, play the Compound show!" Talk to us about your portfolio or financial plan here: http://ritholtzwealth.com/ Obviously nothing on this channel should be considered as personalized financial advice just for you or a solicitation to buy or sell any securities. Please see this 3,000 word terms & conditions disclaimer: https://thereformedbroker.com/terms-and-conditions/ Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey guys it's Blair Duaney and I am here on the phone with Brian Portnoy.
0:05.0	Brian is the head of education at Magnetar Capital and he's the author of two books
0:10.4	The Investors Paradox and The Geometry of Wealth.
0:13.4	I saw Brian last month at the CFA Wealth Conference and he talked about some of the things
0:18.4	that he wrote about in the geometry of wealth.
0:21.3	Most importantly, how money and happiness relate to each other and how wealth is really defined as funded contentment in his description.
0:32.0	So Brian, thank you so much for agreeing to come on and talk to me a little bit about money and happiness.
0:37.6	Yeah, my pleasure, Blair.
0:39.4	Awesome. So happiness or wealth is funded contentment.
0:44.4	Could you elaborate a little bit on that concept?
0:47.1	Yeah, you know, been in the, I guess finance and investing
0:49.8	business for a couple decades now, you know,
0:52.1	mostly in the weeds on investing portfolio
0:56.7	management the science and art of portfolio construction and and all that fun
1:01.3	stuff but you know as I've begun to think about you know these
1:05.8	topics more broadly I wanted to get into what it meant to be truly wealthy and
1:11.1	what I've been writing about is the fact that being wealthy isn't the same as being rich.
1:15.9	Rich is having more money and the quest for more is often as we know from a lot of psychology
1:22.3	not particularly satisfying. I think of wealth as the ability to
1:27.0	underwrite a meaningful life and as you alluded to you know my shorthand for that is
1:32.4	funded contentment.
1:33.6	I think what all of us are trying to do
	...

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