Review of: The Geometry of Wealth
The Geometry of Wealth, How to Shape a Life of Money and Meaning by Brian Portnoy. Published by Harriman House, LTD, Great Britan, 2018. Copyright Brian Portnoy.
Summary
Portnoy, a Certified Financial Planner, explores the question of finding (and funding) contentment.
He asserts that true wealth is not having more financial wherewithal, but in having enough to be content. This is a concept that many of us come to appreciate only after years of striving for that ‘more’.
Read this book to understand and address:
- Most financial advisers only address the mechanics of money, not the purposes to which you want to use it.
- Human happiness. Portnoy presents research that attempts to answer the question of human happiness. He supports his 4 ‘C’s’ of happiness with research and philosophy. The 4 C’s he lists are Connection (we are social animals and being connected to other humans is satisfying); Control (we are happiest when we feel in charge of at least some part of our world); Competence (we enjoy the ability and skill we must acquire to accomplish what is needed); and Context (the ability to find purpose beyond ourself).
- Psychological research exists to indicate that we are more content with experiences than with things. Things acquired (beyond basic survival needs) give a momentary lift, but the experience of pursuing the things that have meaning to us brings longer lasting contentment.
- Once you have an idea of WHAT makes you content, he focuses on high level pointers to fund that contentment. The first priority being to protect against loss (think insurance), the second being to track your finances, making sure that what you own and owe are in balance and lastly to pursue gratification from what he calls ‘more aspirational’ pursuits (think charity).
- Copious amounts of research are presented – proving that investors have typically made bad decisions on investing. Instead of buying low and selling high, many panic when things go awry and sell at a low point, then don’t get back in the market. In other words, we need to learn to manage our reactions to volatility and deal with the world of probability.
- The three most influential things in investing are: 1) our behavior 2) our asset allocation model and 3) the individual investments we choose – in that order of importance.
What I liked.
In today’s busy world, most self help books recommend that author’s write to the lowest common denomination, or to the 8th grade reading level. I liked that Portnoy stretched my vocabulary with a few college levels words.
What I wished for.
Although I appreciated the author’s attempt to simplify his concepts with a graphic representation – the geometrical shapes, I wished that the attempt had been less obtuse.
Favorite quotes.
“The ability to define one’s own predicament, control one’s attitude, and respond to adversity, can be an incredible source of inner strength.” p55
In the section of the book talking about protecting your resources, the author explored a thought experiment done by Blaise Paxal – using probability. “Pascal figured that if he chose to believe but God did not exist, the downside was limited.” p 87
“Through our narrative, we have defined wealth as funded contentment, the ability to underwrite a meaningful life. This has been, by and large, a story about enough.” p178
