Why a Personal Trainer Could Offer a Better ROI Than a Minor Market Gain
For a retiree with a multimillion-dollar portfolio, minor fluctuations in the markets might move your net worth up or down tens of thousands of dollars during a typical day, week, or month. After a year or two, these fluctuations will likely look like small blips on an upward, wealth-building trajectory.
But what if you earmarked that same five-figure sum for a different ROI: a return on your health?
Here is why incorporating personal training into your comprehensive financial plan during the early stages of retirement could be one of the best investments you ever make.
1. A Few Percent More?
To be clear: five-figure fluctuations are still a lot of money, no matter how wealthy you are.
But very few people make major life decisions or purchases based on these regular, minor swings. If your portfolio value jumps up by a point or two, you probably aren't going to run out and buy a new car before the markets close. That relatively minor increase usually stays in your account, where, depending on the day, it will compound up or dip.
On the other hand, think about all the ways you've intentionally planned for investments in other areas of your life: mortgages, college tuition, professional degrees and certifications, vehicles and transportation.
Your health deserves the same consideration. Whether your accounts are up 10% or 100% when you retire, the money isn't going to matter very much if you're not healthy enough to enjoy it. Just as your money compounds, an investment in functional strength during early retirement could create a foundation of wellness that will compound like a "health dividend" during the rest of your Golden Years.
2. The Cost of Elite Coaching
If a "health investment" has you thinking about that $10 monthly gym membership you cancelled because you never used it, then you're thinking too conservatively about your most valuable assets.
With proper planning, a retiree with a multimillion-dollar base can usually afford to hire a personal trainer. I can tell you from my experience that working one-on-one with someone who understands the science behind physiology, aging, mobility, and nutrition can be life-changing.
If we assume a reasonable rate of $100/hour for elite personal training, and start with two sessions per week, you'd be spending around $10,400 per year on your health. Build that out into a three-year plan, and that’s about a $31,200 investment.
So, again, I ask you: if you have a multimillion-dollar base, work is optional, and you're following a comprehensive financial plan that's balancing your long-term needs and short-term goals, do you really need an additional $31,200 sitting in a brokerage account that you might not be mobile enough to enjoy in 20 years? Or would you get more ROI from feeling better, having more energy, and improving your odds of a long and fulfilling retirement?
3. A Healthier ROI
Successful investors understand that, thanks to the magic of compounding interest, money makes money.
The ROI on investments in your health might be harder to picture, especially in those early stages of retirement when you’re still able to travel, play sports, and walk up and down the stairs with relative ease.
However, as seniors age, their ability to get around tends to decline and their health care needs and spending tend to rise. Older adults are also more susceptible to slip-and-fall accidents, especially if they don’t keep up their strength and balance.
While there’s no guaranteed ROI on any investment, a regular exercise routine that incorporates cardio with age-appropriate strength training is almost certainly going to improve your muscle mass and bone density. Establish that strong base early in retirement, and you might be able to:
Extend your “Go-Go” years and spend more time playing your favorite sports and seeing the world.
“Compound” your health investment further with investments in new experiences that might lead to new interests and passions. A healthier you might take up tennis or develop into an amateur chef.
Live independently longer.
Give your “future self” a better chance of experiencing more in your later years. Picture yourself chasing your grandkids around the yard, coaching their sports teams, and dancing at their weddings.
Preventative Maintenance and Comprehensive Planning
You take your car in for regular tune-ups.
You’ve replaced the loose shingles on your roof.
It’s time that you invested in some “preventative maintenance” for your most valuable asset: you.
20 years from now, you won’t remember when your portfolio was up or down a point here or there. But if you make an intentional investment in your health this year, you’ll feel the results when you wake up every morning, ready and able to enjoy another fulfilling day of retirement.
Ready to diversify your “portfolio” to include wellness? Make an appointment to visit Keen Wealth and let’s talk about how our comprehensive planning process could help you make more rewarding investments in every area of your life.
About Bill
Bill Keen is a financial advisor with over 30 years of industry experience. As the founder and CEO of Keen Wealth Advisors, a registered investment advisory firm, he focuses on providing personalized retirement planning designed to help people thrive before and during their retirement years. With a passion for educating others, Bill regularly blogs about retirement planning, hosts the podcast Keen on Retirement, and has contributed to Forbes, U.S. News and World Report, Reuters, Wall Street Journal’s Market Watch, Yahoo Finance, and other publications. Based in Overland Park, Kansas, Bill and his team work with clients throughout the greater Kansas City area and across the nation. To learn more, connect with him on LinkedIn or visit www.keenwealthadvisors.com.
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