In case you are not aware, June 8th is National Best Friends Day. This day gives me pause (and a smile), as I remember how I met my two best friends, all of us new kids from different states in seventh grade. One I liked instantly—the other I did not—and she liked us both, refusing to choose between us. Things were simplified when we realized the one I was not fond of shared the same birth date as me—so we planned a joint 13th birthday party together, and we’ve been best friends ever since. We are different people, with different backgrounds, growing up in different places, two are children of immigrants, one from generations in the US. Some people say a friend group of three can have problems—two gang up, someone feels like a third wheel, etc. But we have found the number and diversity actually balances each other over the years.
There are good times and bad, marriages, children, job changes, divorces, trips, health issues, life experiences, all happening at different intervals for each of us. When one is celebrating, or needs help, we all celebrate or pitch in for whatever is needed. We’ve supported the random fast-friends that entered our lives over the years, yet know our core friendship is absolutely secure—decades later, we are still best friends.
You are probably wondering….how can this relate to my finances? Friends influence so much of our lives—who we spend time with, where we spend time, and especially major purchases or investments. What it comes down to is balance with a long-term focus. Friendships are up and down at different times, sometimes correlated, sometimes not, and we share in a mutually beneficially future, just like a portfolio with diversified asset classes—when one asset class may struggle, another holds steady, and another reaches new highs. Portfolios, like friendships, benefit from carefully curated, diverse positions that align with who you are, where you are going, and what you want to achieve. Not all positions will remain in the core, not all positions will behave as expected, and some positions will come in and out to enhance and provide support for goal attainment and short term needs. But the reality of that diverse balance and long-term focus remains essential for success.
Now if you’ll excuse me, I need to hop on a virtual Happy Hour with my two best friends…