You may have heard the phrase The Great Intergenerational Wealth Transfer . It’s a mouthful, but it refers to something very human: over the next few decades, a huge amount of wealth will move from one generation to the next. In New Zealand and around the world, people are inheriting homes, savings, investments—or sometimes, just decisions to make. For many, this idea might feel distant or even a bit awkward. Money and family are two things we often avoid mixing in conversation. But here’s the thing: if you still have parents, grandparents, or even older aunties and uncles, there’s a good chance you might one day inherit something. And that’s worth preparing for—emotionally, practically, and financially. Here are three things to keep in mind when it comes to your Wealth Transfer: #1 Receiving an Inheritance: A Gift, But Also a Responsibility (Tip & Myth) The quote 'with great power comes great responsibility' could have just as easily been about 'great money', because inheriting wealth sounds like a good problem to have... And in many ways, it is. But when the time actually comes, it can feel overwhelming. You might wonder, Am I making the most of this? What if I mess it up? Should I pay off debt, invest, give to the kids, or put it away for retirement? The truth is, having more options doesn’t always make decisions easier—it can make them harder. That’s why having a financial sounding board, someone to help you weigh your choices and understand the long-term impacts, can make a huge difference. Ideally, you talk to someone before anything happens—not just after. Extra, ideally, that person is a professional, who knows how to help navigate that chat. #2 Eventually, the Roles Reverse (Tip) It’s a funny thing about time—it moves faster than we expect. One day we’re the ones with ageing parents, and the next we’re the ones writing Wills and wondering how best to support our adult children. There’s a quiet truth in the old saying, “this too shall pass.”  At some point, we’ll all pass on what we’ve built, whether it’s a house, a bit of savings, or just the example we leave behind. The best way to make sure what we leave is helpful—not confusing or burdensome—is to have the right documents in place. A valid Will is essential. Enduring powers of attorney are equally important, especially if your health changes suddenly. For some families, setting up a trust might also make sense. These aren’t just boxes to tick—they’re practical tools that can protect what you’ve worked hard for and reduce stress for your family when it matters most. #3 And Sometimes, There’s Nothing Left to Pass On (Tip & Myth) Not everyone will leave behind a tidy inheritance. In fact, with people living longer than ever before in New Zealand, a lot of retirees will need to stretch their savings further than expected. Long-term care—whether at home or in a facility—can be expensive, and it’s often needed for years, not months. Understanding Aged Care Costs: A Breakdown of Basic, Care, Accommodation, and Additional Services Fees. It’s entirely possible that someone could enter retirement with $500,000 saved and see most of it go toward care costs. That doesn’t mean they did something wrong—it just means they lived a long life in a system that’s changing. But planning ahead, even just a little, can help protect against that risk. There are ways to structure your finances that can preserve some wealth, or at the very least make sure your needs are met without putting pressure on your family. Start thinking about your Great Intergenerational Wealth Transfer before it's here The Great Intergenerational Wealth Transfer can be great, but like all things in life, it's not guaranteed to be. Money is a deeply personal topic, and so is family. But waiting for a “perfect time” to talk about either usually means waiting too long. Whether you're potentially inheriting or thinking about what you’ll one day leave behind, starting the conversation now can help avoid confusion and regret later. You don’t need to have all the answers—just a willingness to ask a few good questions. That’s often where clarity begins. Sources: https://en.wikipedia.org/wiki/Great_Wealth_Transfer https://www.investopedia.com/navigating-the-great-wealth-transfer-8697256 https://berl.co.nz/economic-insights/great-wealth-transfer-and-inequality

If you see someone driving a car worth $100,000 you might feel a sense of envy, but let’s stop and think about that. Maybe it's not a car that you desire, but it's a luxurious holiday that you see pictures of online, or a beautiful home, or something else entirely. That's actually beside the point though. Let's just say it is a nice car but let's pause to realise, in that moment all that is known, to be verifiably true is that that person has a car worth $100,000. Now, that almost certainly means they now have $100,000 less than they did before buying the car (or they have $100,000 more debt). That’s the fact. Here’s what we don’t see though: · Their bank statements · Their happiness · Their investments · Their life satisfaction · Their relationships and well-being Wealth is much more based on abstract stuff rather than the material things someone owns and it's difficult to see something that isn't visible to the human eye. Think about the saying, “you can’t have your cake and eat it too.” That’s exactly how money works ! The more you spend, the less money you have, and the more ‘stuff’ you accumulate instead. There are many people in the world that look modest but have more money than they would ever need. On the other hand, there are many on the opposite side that have flash lifestyles but live pay check to pay check. It's actually more common than you might think, and a good example is found in a book called, The Psychology of Money , where the author describes two men: Ronald Read was a janitor his whole life, who saved his money whole life, spent it carefully and died with more than $8M in his accounts. Richard Fuscone was a Merrill-Lynch CEO, Harvard educated MBA, who lost everything. Read was patient, while Fuscone was greedy, and that eclipsed the massive differences between the two. (If you're wondering what's happened to Richard Fuscone, you can follow him on LinkedIn . He's a Principal for an advisory company in the US.) So, what can you do about your spending? The best thing to do is start saving something to an account that is out of your everyday view. If you pay yourself first, then your spending will automatically follow. This is the best solution to adjust your spending, without having to re-prioritise your entire budget. You can also choose your peers carefully, because you are not the Joneses . This may sound cold, but remember it’s hard to not compare to others around us. If you spend most of your time around people who either are millionaires or spend like they are millionaires, you’re spending is likely to be similar. If you spend most of your time around Nepalese monks, you are less likely to buy a Ferrari. This makes sense because how would you learn to spend if you didn’t have any role models or people to compare to? Our peers determine a lot about our spending habits. So choose your peers wisely, because you’re also inadvertently choosing your spending too. Celebrity icon, Rihanna , has more money than most of us (not necessarily more wealth). The issue for Rihanna is that she almost declared bankruptcy and she tried to sue her financial adviser who replied with “was it really necessary to tell her that if you spend money on things, you will end up with things and not the money?” – In this case, it seems like the answer is, “yes”. Even if it’s not necessary, it’s still a good reminder. Think about it, wanting to spend a million dollars is literally the exact opposite of wanting to have a million dollars. Wealth gives you the choice (but not the obligation) to spend on something later - Anything ( here's an article that talks about why saving now and not spending until later has an unintended benefit ). Wealth provides flexibility, options, and the opportunity to grow and do more in the future.

It’s easy to make a million dollars... ... If you are patient. It’s hard to make a million dollars if you’re a human though, because there’s always “a new thing” that makes it really difficult to be, well… patient. There’s always something new that we want or need to buy and we can tell ourselves, “I’ll start saving in the future”… but what about when the future arrives? If a person saves $500 per month and gets a 7.5% return for 40 years, they will end up with a little over $1.5m (it’s $1,511,911 to be precise). That could mean someone saves from the age of 19 – 58 or it could be from age 31 – 70, it really doesn’t matter. The problem is, humans don’t tend to think quite like that because life happens. Let’s like at an example of a typical person, called Bob. Bob wants to save some of his money for the future. It’s not clear what, but he knows that saving is important because his parents always saved and everyone else seems to do it. Bob is 23 years old and makes good enough money that he can save $1,000 per month. After 8 years of investing his savings in an evidence-based portfolio, Bob has just under $131,000. That’s pretty good. Bob is on track, right? Well, it depends on the choices Bob makes in the future, because it’s not over. After 8 years, Bob is 31 years old and thinks “Maybe I want to buy a house…” And you know what? That’s just what Bob does. He buys a property. But in order to have enough deposit, Bob has to withdraw all his investment savings, so he goes back to $0, and then starts over. It doesn’t seem like a big deal, because Bob tells himself that he’s a good saver and and he’ll get pay rises so he can save even more in the future. It won’t be hard to make it up. In other words, Bob is taking an early withdrawal. Maybe that’s all true (maybe it’s not), but let’s see what that 8-year difference makes in Bob’s future. If Bob kept saving all the way until age 65, without ever withdrawing for his deposit, he’d have a tad over $3.5M ( $3,537,347 ). Instead, Bob withdrew at 31 and started over, so he’ll still be ok because he can save and he knows he’ll earn more. Afterall, how much is he missing out on from those 8 years? Maybe a little. Well… maybe a lot more than a little. Bob’s final balance of saving from 31-65 will be $1,872,939, which is $1,664,407 less , compared to saving from age 23-65.   Basically, Bob will have half as much money in retirement for withdrawing his early years of saving. That's how taking early withdrawals hurts your future and this is just one quick example, that shows why it’s important to let your wealth compound, uninterrupted for as long as you possibly can. A little withdrawal can have a big effect. Of course buying a house is a big decision and most people that can, choose to do it at some point, but just be aware that using your savings and wealth for one thing can come at the expense of something else (such as your future, having security or choices, being financially independent sooner, travel, etc). If you’re wondering what a practical solution it, it’s quite simple. Nothing. All you have to do is nothing. Don’t withdraw. Set aside some money and savings that can be used for things through your life, but make sure you keep some buckets of money that are protected and only used for the long-term stuff. If you never touch the long-term buckets of money, then they grow more than you can imagine because the human brain thinks about things in straight lines. We can do the math for 8 + 8 + 8 + 8 + 8. Human brains don’t naturally calculate compounding, so it’s hard to quickly answer what is 8 x 8 x 8 x 8 x 8. Just remember, dollars that are used today for something, are dollars that you can’t use later for anything. In other words: “You get the chicken by hatching the egg, not by smashing it” – Arnold Glasglow

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Matt Wenborn - Dec 2024 As a Certified Financial Planner, I assist those of all walks of life, with their own unique stories, however fundamentally, all of my clients can fit somewhere on this graph, either they are on track to run out of money, or they will never spend all of it. For those whose situations resembles the green line above, it is an interesting conversation. When I show the green line to my clients, many for the first time can see that they are able to fulfil their financial goals and objectives comfortably. This erodes away a lot of anxiety and answers the question, ‘am I going to be okay’? We even work on the green line, so it more closely resembles the purple line in the graph below. But, why on earth would I want to do that? Essentially my client now has less money at the end of their life than they would have if they haven’t spoken to me at all. And that, is the point. The difference between the green and purple line is my client utilizing their wealth on things that bring happiness to their life. That may be travel, philanthropy and gifting, home renovations or something else entirely. The point being my clients are using their wealth to bring a greater degree of joy and purpose in their lives. Sometimes, I see people with say, a green line type scenario and after running through all the data and offering differing probabilities of favourable and unfavourable market conditions the line still goes up. Even at that point some of my clients are still not willing to spend, and sometimes those individuals continue to lead a very frugal lifestyle. This is a tricky point of contention, and the reason for the article. Many of you may be reading this thinking this must be rare. You might be thinking, ‘If I had the money, I’d be spending it!’ It’s not rare at all. Anecdotally, I see this more often than you may think! A study by Black Rock found that the vast majority of retirees still have at least 80% of their savings after two decades in retirement. A further study from the Employee Benefit Research Institute surveyed average retirees between age 62 and 75 and found that three-quarters of them had seen their assets remain the same or grow in retirement. That means their line is looking like the green line, more so than the purple. To me, that is not a good outcome. I sat down with Rebekha, a clinical psychologist to try and get to the bottom of why this is occurring and what can be done to circumvent this. Here's what we discussed... 1. Changing your mentality (Spender vs. Saver) Rebekha stated this could be due to a multitude of reasons. One reason is that a saving mentality is much different than a spending mentality. Someone may have conditioned their brain to save for 40+ years and that is an extremely difficult mindset to break. To go from accumulating all your life to de-cumulating is a completely opposite skill set, and potentially a scary prospect for some individuals and may bring about a sense of anxiety. One way to circumvent this is look at the numbers and trust the financial projections. By running multiple financial scenarios with differing rates of return (both good and bad) will help overcome the anxiety of running out of money. I mentioned to Rebekha that we do this regularly with our clients however, some clients are still reluctant to spend. Rebekha went on to say, that sometimes it’s as simple as dipping your toe in the water and spending a little bit to get comfortable with it. This may be via a small regular monthly withdrawal, or a small lump sum. Either way, by just trying a little bit, it helps you to slowly become accustomed to changing the save to spend mindset. Rebecka went on to say the same could be said for investing... If you have received a windfall, to make yourself feel more at ease you could slowly drip feed yourself the money to help assist with anxiety. There are multiple stories on scams, so anxiety behind investment is warranted but sometimes doing nothing is just as bad. 2. Changing your spending habits? Have your spending habits or expenses changed over time? This can be often seen in the case of empty-nester's or those who have suffered a relationship loss. An example of this could be... You were spending money frequently on financial dependents, or prior to the loss in relationship, traveling regularly with your partner? Has this changed drastically, and you are now spending far less? Although difficult, try to remember and ask yourself the following questions: 'Are the things I always thought I wanted coming true?' If you enjoy travel, 'Could I travel with friends or family?' If you enjoyed frequently dining out, 'Could you do this with friends or family?' Nothing will ever replace the loss; however, you can still enjoy the things you once did, just in a different way. Do you find yourself wondering, 'what it would be like if…?' Sometimes the anticipation is far more anxious and scary than the action. And sometimes, there may be something getting in the way of actioning a spend. Be honest with yourself and ask yourself what that might be so you can begin to overcome it. 3. Do your homework. Research. Rebekha mentioned that another great way is to look at the evidence and data. Do your own research and due diligence and find out what the data says, rather than someone’s opinion. You don’t need to turn into a financial specialist, however reading an article here or there about spending patterns, rates of return or risks to avoid wouldn’t hurt. The more educated you are on the topic, the more likely this will erode some of the anxiety you may have around spending in retirement. As a financial planner, I can empathize here. Unpredictable factors such as; market performance, life expectancy and health issues make spending your money easier said than done. Some people may be hesitant to tap their savings because they think, “I have X amount of dollars which must last the rest of my life, but I my future is uncertain. So, if I spend too much too soon, I’m putting myself in jeopardy.” Although I run projections for my clients, to help them see if they can afford to spend a little more than they assume, I also tell them, “Now the money is doing the work [so they] don’t have to” and that seems to help people. 4. What else can help me? Fundamentals such as diaphragmatic breathing, diet and activity or exercise can also help calm spending anxiety. Potentially, 1 or 2 sessions with a clinical psychologist can help because talking though your concerns with someone out of your regular support network is often a prudent thing. Sometimes family can be too close. A clinical psychologist can give you support and guide you with things to work on. Ask yourself: 'What is the purpose of the money? To have it? Or to use it as a tool to do what you want and to avoid what you don’t want?' Ask yourself what you want to accomplish and to view savings as the means to an end. In conclusion, as a financial planner it seems (for most people) there’s a little voice in the back of their head telling them, “Sure, it worked out for most people in the past but what if the future is different?" "What if I retire at the worst possible time?” I totally understand this sentiment. It can be a scary proposition to leave the working world behind and be forced to cover the majority of your expenses from your life savings. You have to budget for your basic cost of living, travel, healthcare, inflation, taxes and any unexpected expenses. Plus, there’s the added bonus of having no idea what future returns in the markets will look like. My advice to those with any resemblance of financial anxiety, is to reach out and ask for advice. It always comes back to the same basic question, ‘am I going to be okay, and if not, what do I need to do?' We can give clarity around this and in many instances, give you a small push into better realizing your financial goals and objectives when monetarily these may be achievable, something is just getting in the way. In many instances, we can overcome those hurdles together. If you have questions or queries with regards to this article, or if you would like to reach out regarding your financial planning goals and objectives feel free to contact me. Matt Wenborn Director – Certified Financial Planner cm   021 495 190 matt@irvinewenborn.co.nz

Matt Wenborn - Dec 2024 In 1969, Doctor Elisabeth Kubler-Ross a Swiss-American psychiatrist established a theory that defines emotional stages that people go through after losing a loved one. According to her findings, everybody who has suffered a loss must go through all the stages of sorrow. How does this apply to your finances? Well, money is essentially a means to an end – its’ a tool. It’s what we ultimately do with that money that helps to satisfy our financial goals, ambitions, and objectives. Too often I see individuals that have suffered a devastating loss in which they never emotionally recover from. By not emotionally recovering from this loss, many of those financial dreams become unfulfilled when many times, monetarily speaking they can be comfortably achieved. Everyone's grief experience is different and, while Doctor Ross’s theory recognizes ‘grief phases’, it is crucial to emphasize that they are not rigid: the stages might overlap or, you may revert to earlier phases. 6 Stages of Grief Below is an adaptation of Dr Ross’s 1969 report in which I have categorized into six grief phases. My hope is that this will help individuals recognize the feelings that they may encounter and how in the abnormal situation of loss, the feelings they are experiencing is actually quite normal. By recognizing and then overcoming these phases, it is my expectation that individuals will be in a better emotional position to achieve their financial dreams. Shock ‘Sad things happen. They do. But we don’t need to live sad forever’. Mattie Stepanek The shock phase begins as soon as one learns of the loss. You have a concept of what happened, but you aren't aware of its full ramifications. Even if we believe we have had enough time to prepare for the loss of a loved one, shock is unavoidable in almost every circumstance. We know it will happen, but not right away, not that day. Typical types of thoughts that you may encounter at this phase can make you feel alone, vulnerable, and insecure. This period is typically characterised by a torrent of enquiries. There may be questioning of yourself or others, seeking immediate and definitive answers. Give yourself some time. Over time as the dust begins to settle everything will begin to make sense. There are ways in which to combat or reduce shock. You can attempt meditation or other relaxing interests, or physical activity such as going for walks to distract yourself, however this phase might linger for days, weeks, or even months. Denial ‘Denial ain’t just a river in Egypt’. Unknown Following shock, the second phase is denial. Denial is a normal reaction to overwhelming situations and surroundings. Individuals may refuse to face reality and keep their feelings bottled up. Many people who go through loss believe that if they don't accept the reality, the loss didn't truly happen, allowing for a reconciliation, such as in the case of a divorce. In the case of a break-up, during this period, it is typical to call, follow on social media, or text excessively in order to postpone the process of dealing with grief. People frequently mention a ‘mental fog’ in addition to shock and denial. These symptoms might include forgetfulness, loss of attention, insomnia, lack of motivation, recurrent thinking, and inability to make a choice. Denial sometimes gives individuals the time to gather your strength for something you know you must face soon. It is essential to realize that shutting down or ignoring reality will only leave you stuck during this phase. To move forward, try to accept the present, even if it hurts. Denial can be tricky and scary, but overcoming it can be as simple as surrounding yourself with trustworthy, supportive people and opening up emotionally. Living an honest life and dealing with your emotions head-on is a path to successful, sustained recovery. Confide in a friend or pen your feelings and fears in a journal. This stage leads directly into the “Anger Phase,” which can happen quickly after the denial phase. Anger ‘Anger is an acid that can do more harm to the vessel in which it is stored than to anything on which it is poured’. Mark Twain Your heart shifts from sad to hostile throughout this time. In the event of a break-up, fury aimed at the ex for his or her involvement in the breakup, or maybe at yourself for your role, fuels it. Many people engage in aggressive behaviour at this time, such as deleting old photographs, holding their ex's possessions hostage, slandering their ex, or worse. Anger at oneself can be characterized by a lot of negative self-talk or regretful and furious internal dialogues. All is being done to find something or someone to blame. When someone realizes that denial is no longer an option, they get frustrated, often with individuals close to them. Some people may take their frustrations out on loved ones and other family members. It's common to feel angry after a loss, and many individuals may try to keep this stage of sorrow buried. This is a difficult stage because you may not be ready to let go of your hopes and future plans for this relationship, and you want answers to comprehend what occurred. In the case of a break-up, in many instances there is a perception that the ex has all the answers and that they also hold the key to happiness, since one conversation with them may turn things around and stop the misery, restoring things to their previous state. Anger is a tough feeling to cope with, and it is easy for people to dismiss it, therefore it is critical to find someone with whom you can relate to honestly. Try writing your feelings down, practicing relaxation strategies such as listening to music or deep breathing exercises, or engaging in physical activity. Studies have shown this can reduce stress. Also, recognize when it is time and how to get help from a therapist or Psychologist. Bargaining ‘Love knows no bargaining’. Swami Vivekananda The bargaining stage involves making commitments to yourself or a higher entity and begging the universe for a second chance. An individual facing loss may seek rationale where there is none and may feel guilty or to blame for their actions. The bargaining stage of relationship sadness is typically characterised by anxiety and uncertainty. It's also the time when couples may try to reconcile just to split up again a few weeks or months later. In the bargaining stage of grief, people attempt to postpone their sadness by imagining ‘what if’ scenarios. Individuals may also feel a sense of guilt or responsibility, leading them to bargain for ways to prevent more emotional pain or future losses. In the case of a break-up, it's critical to evaluate and consider why the partnership didn't work. This act will assist the mind in adjusting to the new reality rather than easily clinging to false hopes. Staying grounded in reality, understanding that the agony one is feeling will pass, provides place for individual development and stability. If possible, cutting off all contact with the ex is a healthy way so that you can focus your time and energy on emotional rehabilitation. The no contact rule is a most effective strategy to maintain a healthy distance from the ex. Relationship grief's bargaining stage may be both perplexing and distressing. Still, it allows you to reconnect with yourself, and chart a new positive course in life. Depression ‘You will feel better than this, maybe not yet, but you will. You just keep living until you are alive again’. Unknown. The tangle of emotions that frequently accompany the mourning of a loved one or a divorce process can lead to feelings of sorrow, loneliness, worry, and dismay. Sometimes the pain is too great to endure. Someone may ponder the meaning of existence or wish to be reunited with a deceased loved one. Dealing with your emotions and realities might feel all too daunting once you comprehend the enormity of your loss. There may be numerous days of profound unhappiness that mimics moderate depression. It might be difficult to remember life before the relationship during this stage. Getting out of bed or routine day to day tasks can be challenging for many people. During this period, it is critical to surround oneself with optimism. Maintain contact with friends and family and do your best to not retreat from life. Increase your physical activity and confront your worries. Don't avoid the things that are challenging for you, limit your alcohol consumption and try to consume a nutritious diet. Above all, know when it's time to seek professional assistance – you don’t have to face your loss alone. Acceptance and hope ‘We must accept finite disappointment, but never lose infinite hope’. Martin Luther King, Jr Humans, by nature, crave contact, connection, and support, and at some stage in the grieving or loss process individuals will want to engage with friends and family again. Acceptance is about realising you can’t change the circumstances, but that you can gain some control over how you respond. This is also a stage where one may slip backwards and find themselves feeling overwhelmed from all the emotions again. It’s normal to move between any of the stages of grief from hour to hour, or even minute to minute. Acceptance doesn't Ignore the loss. Acceptance means embracing the present (both good and bad) in order to shape the future. It does not mean that we no longer can think about the loved one. Out of sight does not have to mean out of mind. It means that finally one is able to accept the reality of what's happened and begin to look for avenues to move on. It's important that during this stage one accepts how this loss has changed their life and ceases wishing for everything to go back to how it used to be. At first acceptance may simply mean more good days than bad ones. Life continues – never the same, enriched by the lessons one has learnt throughout their journey. This is a huge milestone and accomplishment. This means that now, you choose to no longer waste all your energy on things you can't change and you can begin to look ahead. Are you seeking support? ‘Asking for help is never a sign of weakness. It's one of the bravest things you can do. And it can save your life’. Lily Collins. Conclusion Throughout the phases listed above, each presents a situation where vulnerable people can be taken advantage. In the early stages, such as Shock and Denial, financial decisions can be made with haste and can cause long-term harm, whilst stages such as Bargaining, and Depression lead themselves to being taken advantage of from those who don’t have your best interests at heart. No investment should be implemented without a thorough understanding of your financial goals and objectives, and during this period, your financial goals and objectives are usually clouded and ever changing. As a Certified Financial Planner, I am held to strict fiduciary duties and ethical standards. Client care is at the forefront of my process. If you’re going through a devastating breakup or have lost a loved one through tragic circumstances and your emotions seem to be getting the better of you, don’t hesitate to seek professional help. If you are looking for support, a valuable resource is Find a Clinical Psychologist | NZCCP to help you come to terms with your past, learn strategies to cope with your pain, and move ahead with a positive perspective on life. If you have questions or queries with regards to this article, or if you would like to reach out regarding your financial planning goals and objectives feel free to contact me (below). Matt Wenborn Director – CERTIFIED FINANCIAL PLANNER cm   021 495 190 matt@irvinewenborn.co.nz

Matt Wenborn - Dec 2024 Many times, individual financial goals morph into joint financial goals. Examples can include, travel, the reallocation of time together, gifting, philanthropy or leisure activities. Sometimes, those joint financial goals and objectives through the loss of a loved one become individual again. What’s more, sometimes when we lose a loved one, those once joint financial goals do not materialize at all due to the grief of losing the one person you wanted to achieve these with. The goals that were once joint, just don’t feel the same anymore. There is no one set way to grieve, nor a set time frame, however there are evidence-based action steps that you can take to help assist navigating the process. My hope, that even through the loss of a loved one, you can still achieve financial milestones and individual fulfilment. Below is a quick snapshot of the Five Ways to Well-being via the Mental Health Foundation of New Zealand. For more information about the Five Ways to Well-being and the New Economics Foundations report, click this link: Five Ways to Well-being | Mental Health Foundation. Give. Your time. Your words. Your presence. Giving goes beyond simply sharing physical items with others. It involves nurturing a generous mindset and encouraging active engagement in community and social activities. Participating in volunteer work and community service is closely associated with positive emotions and overall well-being. When individuals help others, share their skills, and engage in actions that foster teamwork, they often experience an increase in self-esteem and a boost in their emotional health. The act of giving holds significance for people of all ages. For children, it aids in building strong social understanding, while for adults, it fosters a sense of purpose and enhances self-worth. This is especially true for older adults who may have retired and now have the opportunity to contribute their time and talents to others. Engaging in acts of kindness and generosity not only benefits those receiving help but also enriches the giver's life. It creates a cycle of positivity that strengthens community bonds and promotes a sense of belonging. Ultimately, giving is a vital part of a fulfilling life, encouraging connections and shared experiences among individuals. Be Active. Do what you can. Enjoy what you do. Move your mood. Studies indicate a strong link between engaging in physical activity and improved overall well-being, along with reduced levels of depression and anxiety. It is now recognized as vital for individuals of all ages and has been proven to help slow down cognitive decline associated with aging. Evidence points to the fact that being physically active can boost self-confidence, enhance coping skills in tough situations, and foster a sense of achievement. Additionally, it can promote social connections among individuals, which is another important aspect of mental health. It's important to note that physical activity doesn't have to be intense to be effective. Participating in moderate exercise three to five times a week can greatly lessen symptoms of depression, and even short sessions of less than 10 minutes can lead to noticeable improvements in mood and mental health. Keep Learning. Embrace new experiences. See opportunities. Surprise yourself. Staying curious and setting goals is essential for people of all ages. For kids, this curiosity fosters healthy cognitive and social growth. For adults, it can boost self-esteem, enhance social connections, and encourage a more engaged lifestyle. Additionally, continuous learning has been linked to reducing the risk of depression in later life. In particular, adult learning emphasizes the importance of setting goals, which is closely tied to improved well-being. When individuals create their own goals that are positive and resonate with their personal values, they tend to experience greater satisfaction and fulfilment in life. This process of goal-setting can significantly impact their overall happiness. Learning goes beyond traditional education: it encompasses various ways to nurture curiosity and a desire to explore. Engaging in different activities that stimulate the mind can help maintain an inquisitive attitude, making life more enriching and enjoyable. Embracing this broader view of learning can lead to lifelong benefits for everyone. Take Notice. Appreciate the little things. Savour the moment. Developing skills that allow us to pay attention to our surroundings and our inner thoughts and feelings, both physically and mentally, can really enhance our overall well-being. Even short workshops that cover fundamental techniques can provide benefits that last for years to come. There's been a ton of research on mindfulness, and it shows some pretty great outcomes, like improved self-awareness. This research suggests that being receptive to our experiences can really help us make choices that resonate with our personal needs, values, and interests. When our actions are in sync with what we truly value, it becomes much easier to create lasting changes in how we behave. Some effective strategies that can enhance our well-being include practicing gratitude, embracing forgiveness, engaging in self-reflection, and seeking meaning in our lives. These practices can play a significant role in boosting our overall sense of well-being and happiness. Connect. Appreciate the little things. Savor the moment. Feeling connected to others and being appreciated by them is a basic human necessity. No matter the age, having relationships and engaging in social activities play a vital role in maintaining mental health and serve as a strong defence against mental health issues. When we have solid social ties, they provide us with support, motivation, and a sense of purpose, while a broader social circle enhances our feelings of belonging and self-esteem. The main takeaway from the idea of connection is that dedicating time and effort to both deepen and expand our social networks is crucial for our overall well-being. It’s not just about having a few close friends: it’s about creating a rich tapestry of relationships that can uplift us and help us navigate life’s challenges. Moreover, individual well-being is closely linked to the health of the communities we belong to. Focusing solely on personal gains can be less effective than prioritizing the cultivation of relationships with others. By nurturing our connections, we not only enhance our own lives but also contribute to the well-being of those around us. Matt Wenborn

2024 is now in the rear view mirror. Attached is a review of what took place in markets, however more importantly a collection of materials we have written that our clients have found valuable. Happy New Year, Matt & Cam

Let's start by understanding wellness vs wellbeing. “Wellness” focuses on good physical health, like exercise and nutrition. In contrast, “wellbeing” takes a more holistic view, considering all aspects of a person’s life—physical, emotional, social, and financial. Financial wellbeing is about creating stability and peace of mind in your financial life, ensuring that your resources align with your values, needs, and long-term goals. What Is Financial Wellbeing? Financial wellbeing is the confidence and ability to manage your money in a way that supports your life, both now and in the future. It’s not just about having a high income or significant savings—it’s about being in control of your finances, prepared for unexpected events, and confident that you’re on track for a secure future. Key components include: Earning : Having a reliable income that supports your lifestyle. Saving and Investing : Setting money aside for emergencies and future goals while allowing it to grow through smart investments. Spending Responsibly : Making thoughtful decisions about where your money goes, avoiding unnecessary debt, and ensuring spending aligns with your goals. Protecting : Safeguarding your financial resources with insurance and having a safety net for emergencies. Why Financial Wellbeing Matters Financial wellbeing affects every area of your life. When your finances are under control, you feel more secure and less stressed, which contributes to better health, stronger relationships, and greater productivity. When your finances are out of control, you don't feel good. In fact, you probably feel terrible. This means your mental health is sub-optimal. Most people that feel stressed tend to also make decisions that hurt their physical health as well. Think about when you're pressed for a work deadline or feel 'timepoor' - that's not usually when you are consistently following your workout regimen. Thus, your physical health starts to wane. This often leads to more isolating behaviours and spending less time with people you want to spend time with. This means relationships are the next car off the rank to suffer. These are all related, so as your financial wellbeing starts to slip, so do other areas for most people's lives. This reiterates why having financial wellbeing is important, beyond the dollars and cents. Strategies to Improve Financial Wellbeing So what can you do to improve your financial wellbeing? Well, here are a few things you can start with: Learn Financial Basics : Start by educating yourself about key financial concepts, like budgeting, investing, managing debt, and understanding taxes. Knowledge is the foundation of good financial decision-making. Create a Budget : A budget helps you track your income and expenses, prioritize needs over wants, and plan for future goals. Regularly revisiting your budget ensures you stay on track as your circumstances change. Build an Emergency Fund : Save three to six months’ worth of living expenses to prepare for unexpected events, like medical bills or job loss. This safety net can prevent you from falling into debt. Set Long-Term Goals : Whether it’s buying a home, retiring comfortably, or funding a child’s education, having clear goals helps you stay motivated and focused on your financial journey. Seek Professional Advice : Financial advisors can provide tailored guidance based on your unique situation, helping you avoid pitfalls and create a solid financial plan. Common Misconceptions About Financial Wellbeing 'Financial wellbeing' gets thrown around a lot these days. Unfortunately, that brings about some wrong ideas that we not well communicated. Below are some misconceptions about financial wellbeing that are worth understanding: It’s Not Just About Wealth : You don’t need to be wealthy to be financially well. Even with a modest income, good financial habits—like budgeting, saving, and avoiding unnecessary debt—can lead to financial wellbeing. It’s Not Only About Saving : While saving is crucial, financial wellbeing also includes earning a stable income, spending wisely, and protecting yourself with insurance and an emergency fund. It’s Not Achieved Overnight : Financial wellbeing is a journey. It takes time, discipline, and ongoing learning to build a secure financial foundation and maintain it over the long term. Wrapping This All Up Financial wellbeing isn’t just about numbers in a bank account—it’s about achieving balance, security, and peace of mind in your financial life. Start by educating yourself, creating a budget, saving for emergencies, and setting meaningful goals. While the journey takes effort, the rewards—reduced stress, improved health, and greater confidence—are well worth it. With the right strategies and mindset, financial wellbeing is within reach. It’s not about being rich; it’s about living a balanced, fulfilled, and secure life, free from financial stress.

Welcome to the latest in our series on the reasons why people should consider paying for professional financial advice. In Maslow’s hierarchy of human needs, the top of the pyramid encompasses elements such as a sense of accomplishment and reaching one’s full potential. But if your needs at the base of the pyramid aren’t met, you can forget about those at the top. Just above the very basic necessities of food, water, clothing and shelter rests a building block of human sanity. This is a feeling of security, a sense that everything will be OK. For many of us, it is the single biggest reason for seeking out financial advice. The Value of Feeling Secure From Financial Advice A Sense Of Security Is there any Value of Feeling Secure From Financial Advice? It's a fair question, but before we answer that, let's look back to when we were in the middle of a global pandemic, having an attentive, understanding GP is a godsend. As well as filling your usual prescriptions, a good doctor can provide a framework to help keep you and your family safe. There is standard information on mask-wearing, vaccinations and how to build up your immune system. But there is also a recognition of you as an individual, your own sensitivities, existing ailments, anxieties and family circumstances. What a good GP gives you is a sense of security amid unresolvable uncertainty. Of course, she has all the technical qualifications. But what really makes her an effective doctor is her ability to get to the emotion behind the physical complaint. The feeling behind the issue An effective financial adviser works the same way. You go along with what you think is a simple practical financial issue to resolve — a tax notice, a debt overhang, an inheritance, a looming retirement, a family split. But often behind each of those superficial issues is a tight knot of insecurity and trepidation. Each question you want to ask often masks a bigger underlying question that will not go away: “Am I going to be OK?” This idea of a strong emotional connection to money issues should not be dismissed as mere pop psychology. On the contrary, there is a growing body of serious evidence that a sense of security is the cornerstone of “financial wellness”. In the US, the Consumer Financial Protection Bureau , after interviewing thousands of people, came up with a definition of financial well-being as a sense of having control over one’s finances, the capacity to absorb a financial shock, a sense of being on track to meet one’s financial goals and the freedom to make choices. “The specific individual goals and vision of a satisfying life differed greatly among respondents, yet there were two common themes that arose consistently — security and freedom of choice, in the present and in the future,” the bureau says. It stands then that a key benefit of seeking out a financial adviser is to have someone on hand who can ask probing questions to better understand what you care most about, what keeps you up at night and how you would like to live your life. The Value of Feeling Secure From Financial Advice Listening before talking A good financial adviser, like your trusted GP, will listen more than they talk. They will not jump in with a prescription prematurely, but attempt to understand the emotional issue that underpins the material one. Only once they have sought to understand your hopes and anxieties can they proceed to deal with the practical problems. And that involves providing you with some controllable actions amid the flux and uncertainty of life. Dimensional Fund Advisors, a global asset manager, last year showcased how advisers it works with were finding that during the pandemic the most important service they were providing was a safe place for clients to express their worst fears. “Right now, applying expertise in human behaviour is more important than discussing numbers and statistics,” one adviser said. “Clients want to know that I understand and feel their fear and concerns. I don’t try to reason with them. I focus on calming them.” In other words, you need your concerns acknowledged as real before the adviser can deal with the financial issue that you are seeking to resolve. Money and emotional security are inseparable, never more so than at a time like this. To be sure, financial advisers are not psychologists. But they can help you separate out the practical financial issues and deal with them more readily by first acknowledging the uncertainty you are feeling. With the right financial plan — one that takes account of uncertain outcomes and focuses on controllable factors — you can feel more resilient, more rested and more ready to address the other issues in your life. That’s a very valuable service. Written by TEBI This article dovetails nicely with another article that we have, that discusses some other benefits of financial advice.

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Happiness Equals Reality Minus Expectations. Put another way, this means the lower your expectations, the happier you are. Some people view that as depressing and it’s easy to see why… On the other hand, those that understand this and apply it in their lives, are just plain more likely to be happier people.   While we hope our expectations and reality will match up, they often don't. The difference in someone’s expectations vs. reality can lead to feelings of discontentment and un happiness. Think about it this way, have you ever thought you were going to get something like a big bonus, a gift from someone, or an invitation… and then… didn’t? How’d that feel. This is because of a little chemical in your brain called dopamine. It may not look like much when you see it as a chemical compound, but dopamine gives you feelings of pleasure, satisfaction, and motivation (amongst others). Dopamine signals come from the root of your brain where your spinal cord connects. The brain has approximately 100 billion neurons and well under one-thousandth of one percent (0.00001) produce dopamine, but that small amount has BIG power of you.   If your expectation was to receive something and you do receive it, then there’s no increase your dopamine. Meanwhile, ALL unexpected  gains have a big increase. When a reward comes as a surprise, the dopamine neurons fire longer and stronger than they do in response to a reward that was signaled ahead of time. Think back to any incredible surprise you’ve received. Again, maybe it was a big bonus from work, a lovely meal with someone, or a new friendship. It probably felt great. If a reward is expected but it fails to materialize then dopamine dries right up. This just all points to the same thing as before: having no expectations doesn’t hurt your happiness, but it can definitely increase it when there’s a positive surprise.   Think of it this way. This table shows what’s expected on the top, and what’s received on the left. Starting with when someone receives a gain. If they expect it, it’s not really anything, it’s more neutral, but if they expect nothing. Awesome. On the bottom we have receiving nothing. If we expect to receive and don’t, that’s a bummer, but expecting nothing and receiving nothing is also neutral. So the column on the right of expecting nothing is the only path that doesn’t have downsides, but does have upsides.   What you can do with this information is assess what your expectations are for different areas of life. If you are planning on retirement and think it will be the best thing ever, understand that many retirees struggle to find purpose in life, structure for their day, meaning, friends and family to spend time with, and can end up directionless and bored. If you think you are going to receive a large inheritance, know that often that doesn’t happen whether it’s due to the benefactor spending their wealth, the inheritance diminishing from costs and processing fees, or not having a discussion about when/how much it truly would be. It’s easy to feel like bad things happen to other people that are unlucky, until… Remember that bad luck can strike anyone. You can become one of those ‘other people’. A good financial adviser should be aware of what kinds of things to expect, like how often life-events take place, what affect it could have on a person, and how to best prepare for these things. This is where a financial adviser can be valuable – by using foresight to be a barrier at the top, instead of an ambulance at the bottom of the cliff.   The main Take Aways from this are simple: The less you expect or lower your set your expectations, the better for your happiness. The happier you are, the more likely you are to feel in control of your life.   Our goal at Irvine Wenborn is to help people live better lives by improving their decision-making, and we do that through a financial lens. You can find us at our website, email, or on socials. You can also share this video with anyone you’ve heard that has incredibly high standards, and get their take. If you enjoyed this video, here’s a link to part 2, where we dive into this and how it affects a person’s investments and the choices they make with capital allocation.