4th Quarter 2024

Dear Valued Clients,

As I reflect on my journey in this business, I often hear news about clients facing health challenges or the loss of loved ones. These moments prompt deep introspection about life and its purpose. I wrote this letter not to evoke sadness, but to inspire you to truly embrace life and all it has to offer.

We all have a bucket list—a collection of experiences and goals we aspire to achieve. I encourage you to revisit yours and start checking off those items. Remember, not everything on your list requires a financial outlay. Perhaps it's celebrating a milestone anniversary, mending a relationship or pursuing a long-held dream.

When it comes to creating joyful experiences or acquiring items that bring happiness, financial considerations often come into play. This brings me to the concept of the “fun unit.” While I can't claim to have invented the term, I believe it's a valuable framework to share.

A fun unit measures the happiness or enjoyment derived from an experience relative to its cost. Let me give you an example. A 1-day park hopper to Disneyland now costs $259. Add a Lightning Lane Pass to get to the front of all the lines and you bump up to $289. Buy a pre-paid parking spot and you’re up to $324. The park is open from 8am to 12am, so you will get 16 hours of fun, assuming you stay the whole day like my family does. Based on that, the fun unit of a day at Disneyland is $20.25 an hour.  Let’s do another example. My daughter Cassidy loves Taylor Swift. The cheapest ticket for Taylor’s last Era’s tour concert in Vancouver is $2,000. If we were to go, which we are not, we would need 2 tickets. Taylor plays for 3.5 hours, so the fun unit cost for those tickets is $571 per hour.

This concept can also apply to purchases that can enhance your quality of life. Take vehicles, for example. A new Honda Civic can cost about $25,000, while a Tesla CyberTruck is around $100,000. If we project a 10-year ownership period, the fun unit for the Civic is $2,500 per year, versus $10,000 for the CyberTruck. The question is whether the additional cash outlay brings commensurate joy and satisfaction. I think it does!

The last example of the fun unit is the best one of all. Having a good time without having to pay anything. Think about taking your kids or grandkids to the park. Sleep outside under the stars. Go for a walk, run or hike around your neighborhood. Go swimming in the ocean. Get out there and have some fun!  

Many of you have been diligent savers and recent market trends have had a positive impact on your investments. Now is the time to reflect on the purpose behind your savings. What truly brings you happiness? I urge you to consider the fun unit analysis as you explore knocking out items off your bucket list. As my father often said, “Your casket doesn’t come with pockets, so make the most of your time here.”

To help you evaluate the value of your fun units, the following factors should be considered:

• The duration of enjoyment
• The happiness shared with others
• The total cost of the item or experience
• The opportunity cost—what alternatives you could pursue with the same funds

Embrace this opportunity to enrich your life and the lives of those around you.

Thank you so much for trusting us to guide you through your financial journey. We hope you remember that saving money is great, but spending it is why we saved it all.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.