More Money = More Time for Family

We all want to have more money, but perhaps what is more important what we want to use the money for.

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Some want it for the recognition. Some want it for the sense of security. Some want to contribute more to support their causes.

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But for finance executive Brian Arcese, aged 46, a multi-asset and global equity fund manager at Foord Asset Management in Singapore, maximising wealth is not about getting rich, it is about allowing him to maximise time with his family.

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If you wish to do the same for yourself and your family, then let’s dive deeper into this article published in the recent Sunday Times Invest section, “Growing his money to have more time with his family”, as part of today’s 227th week of our #SundayTimesRecap learning series, to learn more:

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1. Income generated from investments replaces the need for earned income from a traditional job. This will be the main investment goal – to arrive at this point. This can allow us to achieve financial freedom to live comfortably while prioritising family and personal fulfilment. Designing such an investment portfolio that can generate enough income over time means that Mr Arcese can devote more time to his loved ones, including two boys aged five and seven.

2. Investing isn’t all about making money and getting rich and famous. Despite being an investor, money isn’t his main motivator. While having money helps reduce friction in many aspects of life, money alone does not make anyone happy. Instead, investments and the returns earned provide people with more time to do the things they love. such as learning, travelling and spending quality time with friends and family. He is driven to pursue this line of work because not only does he get to pursue his passion of investing for himself, but he also empowers his clients to live their best retired lives by freeing up their time with efficient financial management.

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3. His personal portfolio. He is a true multi-asset investor, both professionally and personally. His portfolio includes private equities, core positions in equity/multi-asset funds, multi-family investment properties, gold and some personal companies, such as Damsel Films, founded by his wife. His asset allocation decisions stem from two core principles: The need to generate returns exceeding inflation over the investment horizon; and to achieve these returns in a tax-efficient manner.

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Equities can be a hedge against inflation, especially those with strong pricing power and underlying assets. This includes companies that own real estate or other tangible assets (hard assets) or possess powerful brands and customer loyalty (soft assets).

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Including inflation-resistant equities in your portfolio is essential as he recommended. However, it’s crucial to remember that all investments carry risk. Property, unlike stocks or bonds, can be illiquid, meaning it may be difficult to sell quickly if needed.

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4. His biggest investing mistake, and best investment. His initiation into investing came at 18 with an online brokerage account, but his first $300 investment in a single stock failed when the firm promptly went bankrupt, providing a valuable lesson early on.

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His most notable investment success and failure are intertwined. He invested a modest amount in a small-cap US biotechnology firm which surged by 60 times over a relatively short period. This experience taught him the importance of aligning his investments with a high conviction in both the business and its management team. While he turned a modest sum into substantial returns, he realised he could have potentially garnered even greater gains.

Subsequently, he invested in a Canadian biotechnology company with a similar amount of conviction. Incorporating the lessons learnt from his prior success, he committed a larger capital amount to the investment. However, the company’s lead drug candidate was found to cause liver failure in a specific patient group, resulting in a sharp decline in share value. This experience taught him the opposite lesson: To not let a perceived high conviction blind him to the inherent risks associated with any investment.

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5. His lifestyle. He has two active boys who require a lot of space to run and play (in addition to two dogs). He and his family leased a three-bedroom detached house in Bukit Timah, which is approximately 3,000 sq feet. He commutes by bicycle and MRT. They also have a five-seater SUV, which serves as their family vehicle for weekend outings and is utilised by my wife for her business purposes.

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6. His retirement plan. When he does retire, he envisions a lifestyle similar to his current one, with more time for family and friends and less travelling for business. He aims to design a portfolio that requires minimal daily management, allowing him to enjoy time with loved ones while still investing for himself, his family and select clients.

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His retirement plan hinges on a combination of personal investments and the potential income stream from his wife’s businesses, particularly through dividends. While expenses for their sons’ education and potentially their housing costs will decrease, retirement often brings new priorities like travel such that retirees often allocate more funds to travel and healthcare.?

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To maintain the same standard of living, the amount of money required today would need to increase by at least one-third over 15 years even in a benign inflationary environment.?In short, it’s wise to save more than initially anticipated to ensure financial security throughout retirement.

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7. His reflection over his growing up years. He grew up in a middle-class household in the United States. His mother oversaw the family’s budgeting and always did an excellent job ensuring they were well provided for. They were never in want of anything necessary but they also learnt early on not to prioritise frivolous spending.

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His mother allocated a significant portion of their family income to savings and property. Family vacations were infrequent, but instead, they had a second home on a lake a few hours away, a practical investment that offered lasting enjoyment.

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This upbringing instilled in me the principle that money earned should be invested in assets, while income from those assets can be used for consumption.

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Additionally, experiencing a nine-month period of financial uncertainty when his father lost his job reinforced the importance of having a financial safety net. Thanks to his mother’s prudent budgeting and planning, their family weathered this period without sacrificing their lifestyle, although he was certain it was a stressful time for his parents.

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These valuable lessons in financial responsibility are ones he aims to pass on to his own children.

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How about you? Do you wish to take on the same mindset and philosophy?

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To learn how to invest such that the investment income replaces your salary from your job, join my teammates and I at our next webinar, “The Lifetime Income Streams”, on Tue 26th Nov 2024 at 8pm. This will be our last webinar for the year before we take a break.

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We will share simple investing tips to help you create monthly income that can last you for the rest of your life without constantly having to worry about money. You will feel more confident in managing your money matters as most of our attendees can testify.

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Register for the zoom link – select “Invited by Victor” - here: https://www.thelifetimeincomestreams.com/tlisvip

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To reach me over my personal Telegram chat, click here: t.me/victorfong

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