We are very excited to announce that Adam Bacher & Associates Wealth Management (ABWM) has joined up to be an accredited ROL Advisor member and will be incorporating the Return on Life ™(ROL) methodology into our practice for the benefit of our clients.

About ROL Advisor

In 2016 at a restaurant in Wisconsin USA, a meeting took place between two industry leaders who knew it was time for a seismic shift in how financial advice was offered.

One of those veterans was Mitch Anthony, a thought leader in our industry for over two decades, who had long been pointing out the shortcomings of traditional financial advice and planning processes and their over-reliance on numbers and neglect of life factors.  The other veteran was Steve Sanduski; a hugely respected coach of financial advisors and New York Times Bestselling author.

Both Mitch Anthony and Steve Sanduski realised that in order to thrive in the future, financial advisors needed to shift from a Return on Investment focus to a RETURN ON LIFE focus.  All the communication processes, from Discovery to Reviews, had to place the life of the client at the center of the conversation and provide immeasurable value that would not be questioned.

The company they founded, ROL Advisor, connects Mitch’s pioneering work in financial life planning with Steve’s work in advisor coaching and practice management, with the big goal to Transform the Way the World Plans ™.

Are You Getting the Best Return on Life You Possibly Can?

When it comes to investing, the current standard of return on investment (ROI) can be self-limiting, adding pressure that is counterproductive.  So much of ROI is not within our control. We can diversify investments––always a good strategy––but we cannot control how the markets perform or how global events affect the markets.  Just as meteorologists can predict the weather but still be wrong, we can try to predict and plan for market upheavals, but we cannot control them.

It’s important to balance return on investments with return on life (ROL).  ROL is defined as, ‘How well you are doing in living the life you want, with the money you have.”

Here are some key ROL indicators:

  • Living well within your means
  • Investing time, energy, and resources in people and engagements that energise you
  • Allowing yourself to have experiences and fulfillment whenever possible
  • Not comparing yourself to others who may live with a different set of circumstances
  • Living purposefully
  • Not allowing your identity to be defined by numbers

Since money is a vessel that can help you navigate where you want to go in life, it is important to control your money, instead of letting your money control you.  When you focus on ROL, your investments serve you, not vice versa.  Too many people feel as if life is little more than “getting ahead” of someone else’s definition of what a successful life ought to be.

The best financial conversation you will ever have is to ask yourself, “Who and what really makes me happy in life?” and then arrange your finances to keep those people and experiences front and center in your life.

Too often, when it comes to our financial lives, we don’t look at the big picture.  Instead, we move pieces around by replacing investments, insurance policies, debts, purchases, and the like––all the while paying too little attention to long-term and holistic perspectives.

You may have been told that every money issue should and can be solved through a formula: “Let’s take your age, the amount of money in your portfolio, run some calculations, and presto! Here’s the answer for your life.”  With this approach––and if that number is out of your reach––your future can become a self-fulfilling prophecy.

How can you balance the books between quantitative and qualitative factors in developing a financial plan?  By focusing on ROL––and ensuring you pay as much attention to your non-financial goals as your financial ones.

These calculations are important and necessary, but work only if you understand the qualitative goals your investments are meant to fund. In the traditional financial planning model, the primary components include asset management, risk management, debt management, tax planning, estate planning, and income planning.  While each area is essential to your financial well-being, there is an underlying assumption inherent in the solely quantitative approach used to perform these functions: everyone is essentially the same, and the only thing that really needs to change from one person to the next is which numbers get plugged in to the formula.  This is probably not an assumption you would want someone to make about you.

Your values and principles with money are not the same as everyone else’s, nor should they be.  The most important aspect to be derived from the numbers is to achieve the quality of life you desire.  The numbers do not exist to drive life but to support it.

When you achieve balance––and as a result, true financial freedom––you will still be confronted with issues that organically arise with retirement.  These manifold issues include the following:

  • How you best spend your time and energy
  • How you address your personal health and well-being
  • How you continue to challenge yourself
  • The role you play in your parents’ and/or children’s futures
  • The kind of legacy you want to leave
  • Your definition of success

It is important to understand the impact of money on every area of your life.  By engaging in a financial planning process focusing on what’s happening in your life––adjusted financially to facilitate those happenings––you will reach the ultimate goal of using your money to create a better life.

We look forward to having discussions with you around this in the future.  Please also check out our website and the section dedicated to ROL https://www.adambacherwealth.co.za/return-on-life/

Kind regards.

Adam

 

Contact us

We’d love to hear from you!   

 

5th Floor, North Wing, Hyde Park Shopping Centre, Hyde Park Corner, Hyde Park, Johannesburg, 2196

Phone: 011 033 3410

Adam Bacher [email protected]
Leigh-Ann Ritson [email protected]

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