You've got to be careful about wanting to go home because you may not be ready for what you may see. Recently, I went home to visit my father, and on the way to the small community of about 3,500—which takes about three hours to arrive, I had a few extra minutes and decided to go down Main Street, up Oak Street, and just drive by the old house of my childhood.
I knew that it was recently for sale and had been sold, and on this particular day, I saw three white pickup trucks parked in front. I thought to myself, "I know what I had heard: the house had not been taken care of." I just made the assumption then that there were probably some contractors inside. So, I made a U-turn, parked my car, walked up to the front door, knocked, walked in, saw the construction crew, and said the following: "I spent my childhood in this house. When I was born, this was the house I came to after leaving the hospital, and this was the house from which I left after high school graduation. My parents then owned it for another two years before buying another house for 20 years, and then another for 20 more."
So, I asked, "Would you mind if I take a walk around?" "Sure, no problem." In fact, I had an opportunity to meet the new owner as well. I found out that the wallpaper I hung with my mother for my 13th birthday had been removed just one day earlier. It had stood the test of time.
As I walked down the hallway, all of a sudden, I saw the stairs leading up to my bedroom. The same carpeting was there—in fact, my guess is that carpeting probably hadn't been cleaned for 50 years. I saw my parents' bedroom with a brand-new polished hardwood floor, and the bedroom my sisters shared. I went down into the family room in the basement and saw mold and mildew that I never experienced during my entire childhood. But because the previous owner hadn't taken care of the house, I knew there was a lot of work needed.
In fact, I asked for the price the new owner paid. It was probably undervalued by $50,000 to $75,000 because of the updated work required. Walking into the kitchen, it seemed smaller than I remembered as a youngster. There was this cabinet in the corner, and I said to the new owner, "I remember when I was eight years old, sitting at the kitchen table, looking at the little 12-inch black-and-white television, watching Neil Armstrong walk on the moon." And he said, "Oh, that's why there's an outlet there. We were trying to figure it out, and now we understand why."
They had taken one wall out to open up the living room, and I know when they're done, they'll bring the value of that house up to what it should be—and hopefully a little more.
What's the Lesson?
The house has good bones: solid structure, good location, wonderful community. But it requires maintenance when you own a home. In the home we're in now, we're constantly walking around thinking, "Hmm, we need to paint this wall. We need to update this plumbing. Perhaps it's time to consider the HVAC system. Is it up to date? Do we need some maintenance?"
A lot of people believe it's "one and done"—just let it go. Many live that way. But you can't do that with your financial life. It's not just one and done; you can't let it take care of itself. Suddenly, you may have things in your portfolio or life that are out of date, inappropriate, or don't work like they did 20, 30, or 40 years ago. You might have "mold and mildew" in the basement of your portfolio.
A home can be a very emotional thing. As I took photos with my phone while walking through, I knew I'd share these stories with my siblings and father. It would bring back memories, but also disappointment about the house we once loved and cherished—and what neglect did to it.
So, don't do this with your life. Don't neglect planning for now and the future. It all requires ongoing maintenance. You can't just pick one thing, say "Okay, now we're good," and let it deteriorate.
Planning your financial life can be mathematically correct—we can statistically analyze choices. But at the end of the day, you don't live in a world of numbers. Numbers are important; you want a plan with good bones. But ensure it's not just a "house" you live in—but that it's a home where you feel secure, comfortable, and know you'll be okay for the long term.
If that's what you're looking for, then perhaps it's time to schedule your Financialoscopy®.
