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How Much is Enough?

By March 13, 2017January 20th, 2021Budget, Planning, Retirement, Uncategorized

The story goes that the managing director of Rolls Royce, when asked by a motoring journalist what the power output from the latest engine was replied with “Enough”.

Rolls Royce Phantom

This elegant reply in my mind speaks volumes for the confidence he had in his product, and shifted the focus away from a statistical measure to one of being fit for purpose, within the boundaries he had defined. The following from an article about the 1959-1968 Rolls Royce Phantom V also expresses this idea

Engines for the 1959-1968 Rolls-Royce Phantom V:

Type Size
ohv V-8 6,230 cc (380 cid) NA* 1959-1968

*Rolls-Royce customarily did not quote power or torque output

No doubt the RR engine delivered less horsepower than a screaming Ferrari of the day would, but at what cost? Should smooth delivery of seemingly effortless torque be sacrificed for a number, the achievement of which had no relevance to the intent of the strategy? David Ogilvy, perhaps the world’s most famous ad man penned this slogan for RR in 1958 ““At 60 miles an hour the loudest noise in this Rolls-Royce comes from the electric clock.

So when we look at our finances, how much is enough? How much risk are we prepared to accept to increase our rates of return beyond enough? When we assess the performance of our advisers, financial or otherwise, are we asking them for maximum benefit from a strategy, or …. enough.

Enough is just that, enough. Enough to achieve our goals, enough to meet our needs, enough to ensure we are not exposed to more potential downside than we need to be. Enough gives us a level of confidence that we can get the outcome we desire without needless worry or stress.

So how much is enough for you?

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