Topic: Thought Leadership

  • Rethinking Compounding: A Dual Lens on Wealth and Life

    Compounding is often viewed through the financial lens, but its magic can extend far beyond money and can be instrumental in shaping a richer life.  In this reflection, we will explore two powerful forms of compounding that intersect in remarkable ways.

    1. The Financial and Mathematical Power of Compounding
    2. The Human Potential Behind Goals, Growth, and Purpose

    Compounding Wealth

    First, financial compounding is the amazing ability to make money with money over time.  Albert Einstein famously said that “compounding interest is the eighth wonder of the world. He who understands it, earns it…he who doesn’t…pays it”. 

    The beauty lies in the math of compounding: 

    1 → 2 → 4 → 8 → 16 → 32

    Said differently in financial terms:

    $100,000 → $200,000 → $400,000 → $800,000 → $1,600,000 → $3,200,000

    This illustration shows us the importance of getting the process started as soon as possible.  That is why time is arguably the most important variable in the compounding equation. 

    The Rule of 72 is a simple way to figure out how long it would take to double your money at a specific rate of return.  If your money is earning 7%, dividing 72 by 7% shows your money will double roughly every 10.3 years.  At 9%, $1,600,000 will double in 8 years to $3,200,000. 

    Fundamentally, compounding relies on rate of return, time, discipline, risk/reward, and strategic asset allocation.  But the real ‘secret sauce’ is truly your savings rate.  You must save consistently to unlock compounding’s full potential.  For instance: setting up systematic monthly contributions to your 401(k), brokerage account, Roth IRA, 529 plan; and letting the process do the heavy lifting.

    Financial freedom doesn’t come from what you earn – it comes from what you save and own.

    Compounding Life: Growing Joy, Purpose, and Momentum

    Wealth is not the only thing that compounds.  In fact, the most meaningful kind of compounding happens when you apply the same principles to your life. 

    What are you really saving for? 

    What matters most to you?

    What is your why? 

    Just as money compounds, so do tiny efforts in the areas that can help maximize life:  

    • Learning something new (e.g., language, sport, hobby)
    • Building strong relationships (family/friends/colleagues)
    • Prioritizing health and mindset
    • Creating memorable experiences
    • Growing a business or team
    • Surrounding yourself with positive growth-minded people
    • Volunteering, mentoring, or giving back to others in your community

    Small daily actions like reading ten pages of a book in an evening, having one thoughtful conversation, taking a walk around the neighborhood with your significant other – they may seem insignificant in the moment, but over time these tiny wins snowball into momentum, resilience, and joy.

    Imagine planting a single acorn as your first “learning seed”.  You water it daily by practicing that new skill or reading/asking questions or simply staying curious.  At first, there is no sign of progress.  But then, a shoot appears.  A few leaves and a tiny tree.

    Decades later, that acorn becomes a mighty oak – a living testament to your consistency and care.  The leaves?  They’re the skills you’ve learned, the insights you’ve gained, the confidence you’ve earned. 

    The Parallel Truth

    Compounding in finance teaches us that lasting wealth is built quietly over time and not through quick wins.  The same is true in life. Whether in dollars or days, the power of compounding rewards those who begin early, act consistently, and stay the course. 

    Whether you are saving for retirement or learning to play the piano, the formula is similar:

    Start now.  Have a plan. Stay consistent.  Be patient.  Water the seed!

    Do you have a plan for maximizing your life?  Act now.   

    Sources: The Psychology of Money (Morgan Housel), Rethinking Investing (Charles D. Ellis), Simple Wealth, Inevitable Wealth (Nick Murray), Mindset (Carol S. Dweck).

    Zac Saunders
    About the Author

    Known for his professionalism and calming demeanor, Zac is focused on helping his clients reach their financial goals through comprehensive financial planning and unbiased guidance.  Zac and his team support and care for the overall financial well-being of their clients.

  • Finding Balance: Living in the Now, Learning from the Past, and Planning for the Future

    Are you focused on the past, present, or future?

    What is your time ratio? Here are a few thoughts to consider:

    10% – Past
    We benefit greatly from history, experiences, and lessons from our past. Unfortunately/fortunately, the past is over. We can no longer control or change it. Hold on to the positive experiences and valuable lessons, and leave the regrets behind.

    60% – Present
    It’s really all we have! Living in the moment is a gift. Waking up to the now and having a “be where your feet are” attitude is an important perspective to keep as you focus on the present. Let’s be careful not to allow fear, or distractions like cell phones, to steal our moments.

    30% – Future
    Happiness comes from believing your best days are ahead. Planning reduces stress, creates energy and increases the likelihood of a bright future. Don’t wonder if your best days are ahead of you, take concrete steps so that you can be sure!

    Let’s encourage each other to learn from the past, live in the present and believe in the future.

    We are grateful to be a part of your journey!

    Greg Weimer
    About the Author

    At the core of his personal and professional life, Greg is passionate about helping individuals and families maximize their lives and legacies. His dedication to this mission shines through as an individual, wealth manager, and leader.

  • 2024 Starts Here: Reflect, Plan, and Measure for a Purposeful Year

    The beginning of a new year is an exciting time to reflect, dream, and plan for the future. January is a month filled with anticipation and the good news is that we have control over 2024 and we can be the architects of our year.

    To do so effectively, we need to do 3 things:

    1. Reflect.
      1. To lay the foundation for an exceptional 2024, it’s important to get yourself in a positive state. The state you’re in matters! If you don’t take the time to reflect, you will likely come up short. Take a moment to flip through your phone’s photo album, review your calendar, and take inventory of what all you accomplished in 2023. Putting yourself in a positive state will help you dream and plan for the year ahead with excitement.
    2. Plan.
      1. What does an awesome 2024 look like for you? The more specific, the better! A good way to do this is to think about each quarter and what 3 or 5 things you want to accomplish. Dig into the ‘why’ behind these goals; make it emotional and powerful. The significance of your ‘why’ will inherently help you find the ‘how.’
    3. Measure and stay focused.
      1. To turn your dreams into accomplishments, it’s crucial to establish specific metrics and maintain your focus. In the hustle and bustle of life, staying focused on your ‘why’ can be challenging. Regularly revisit your goals, assess your progress, and adjust course if needed.

    By implementing the Reflect, Plan, Measure framework, we will become active participants in the creation of a year filled with intention and excitement.

    Great Days Ahead!

    Greg Weimer
    About the Author

    At the core of his personal and professional life, Greg is passionate about helping individuals and families maximize their lives and legacies. His dedication to this mission shines through as an individual, wealth manager, and leader.

  • Be the Architect of Your Future