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Time is Everything

Given my profession, I’ve often wondered,” What are the most commonly used words or phrases in finance?”  What would you think?  Money, the stock market, Interest rates, rate of return, buy, sell, gains, losses? And depending on the day, some may not be suitable for mixed company, am I right? I don’t have an answer, really, and your guess is as good as mine. I would imagine time would have been one of those “also receiving votes” in the poll above, don’t you think?  The time value of money, for example. Or when’s the best time to buy or sell. The most popular use of that word, for me anyway, is when discussing timing the market vs. time in the market. It comes up quite frequently. So much so, I’ve recorded videos on the subject which have been shared with hundreds of investors. It’s that important. But this weekend, I witnessed two defining moments where time expanded the lives of some and tragically departed from others.

On a perfect Saturday afternoon in September, my wife and I traveled to a small, remote town in northwest Georgia to witness the wedding of one our best friend’s daughters. We’ll call this young bride, “Kaitlyn.”  And we’ll call her that because that’s her name.  She’s a brilliant, accomplished, and beautiful young lady who recently graduated from Auburn with honors – in three years – and all while working a full-time job. (I know, sickening.) And she’s marrying one of those “too-good-to-be-true” type of guys. His name is Garrett, of course. You know him, one of those handsome, chivalrous, strong, scraggily bearded leader-types who doesn’t need a set of pronouns to show he’s a man. (They still exist, folks.) Back to our friend. He adopted Kaitlyn many years ago and is as wonderful a father as the day is long. He’s also one of those too-good-to-be-true types – just with a little less hair and a little more weight. As the sun was setting across the hills of north Georgia, the tribute he offered to his daughter was one of those only a father of girls could deliver. A sweet glimpse of their relationship over the many years as father and daughter. He filled a paternal void in Kaitlyn’s life and became her protector, provider, care giver, and just what God knew she needed – a dad. A few memorable phrases used in his speech that evening:  There was the time, Do you remember that time, and I look forward to the time…

Fast forward 19 hours…

She was a beautiful, vibrant, young lady. A beloved daughter, sister, and cherished friend to many in the community. She was only 16 and tragically killed in an automobile accident earlier that week. And with no warning, she was gone. We attended her visitation on Sunday afternoon along with what must have been thousands of friends, family and acquaintances wanting to pay their respects. They waited for hours to love on her family and perhaps share stories of how she lived and loved so mightily.  The funeral home was adorned with hundreds of pictures of this sweet young girl surrounded by friends, families, and even one of her and her approaching homecoming date.  As we moved through the procession, I couldn’t help but think back to my friend’s speech just 19 hours earlier – There was the time, Do you remember that time, I look forward to the time.  And I imagined what questions were running through her dad’s mind at this moment. It was heartbreaking. If our world shares a common belief, it’s that parents shouldn’t have to bury their children. Children shouldn’t have to mourn their friends. And a sweet young lady shouldn’t have to lose her life. But as we’re all painfully aware, life doesn’t always work out that way. All of us will experience loss. It’s inevitable. And it’s a matter of time.

Forty-eight hours ago, this article was to have covered a vastly different topic.  But forty-eight hours ago, I hadn’t experienced a wedding and a wake. I am ill-equipped to even begin to capture the raw emotion of saying good-bye to a daughter until such time the Lord sees fit for a reunion. Each day, we witnessed two stories on this notion of time. Time spent, time hopefully to be shared again soon, and time to long for yet never get back. I’m apologetically incapable of expressing the weight that the word time carries for many families this evening. My prayer for all of us is that we’re blessed to make the most of what we have of it.

And God willing, maybe I’ll be able to write about that another time.

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm.

Embrace the Summer Season: A Guide to Summer Delights

As the sun shines its brightest and the temperatures rise, we find ourselves in the heart of summer—a season filled with endless possibilities and energy. While we understand the importance of managing your financial future, it’s equally important to seize the day and make the most of this season. So, grab your sunglasses, put on your favorite flip-flops, and allow us to be your lighthearted guide to enjoying summer delights.

Diversify Your Summer Experiences:

Just as diversifying your investment portfolio is a component of financial success, diversifying your summer experiences can add a splash of excitement to your life. Step out of your comfort zone and try something new—a water sport, a local festival or event, or even a spontaneous road trip. Unleash your adventurous side and let the summer memories unfold.

Financially Bask in the Sun:

While you’re soaking up the summer sun, take a moment to review your financial goals and evaluate your progress. Celebrate the successes you’ve achieved so far and make any necessary adjustments to ensure you stay on track. Remember, financial well-being is an ongoing process, and the midsummer break offers the perfect opportunity for reflection.

Invest in Time Well Spent:

Embrace the summer season by investing in activities that bring you joy and create lasting memories. Spend quality time with loved ones, take a picnic, or simply enjoy a sunset stroll. The value of these moments cannot be measured in dollars and cents.

Savor the Flavors of the Season:

Summer is a feast for the taste buds with a cold and sweet watermelon, fresh salads, and barbecues. Indulge in the culinary delights that this season has to offer. Whether it’s a backyard cookout with friends or diving into that new Blue Bell ice cream flavor, let your taste buds enjoy the flavors (and splurges) of summer.

Recharge Your Batteries: (this might be the most important of all!)

While the hustle and bustle of daily life may continue, it’s essential to find time for relaxation and down time. Embrace the slower pace of summer and take a well-deserved break. Whether it’s lounging by the pool, enjoying a day on the golf course, or simply unwinding with a good book, allow yourself the gift of self-care.

Have an Attitude of Gratitude:

Be reminded of the blessings in your life. Take a moment to appreciate the goodness that surrounds you—the beauty of nature, friendships, and the opportunities that your hard work provides. Gratitude is a powerful tool that can enhance your overall well-being and bring a sense of fulfillment.

Plan for the Future, but Live in the Present:

While we encourage planning for the future, it’s important not to let it overshadow the present. Use the midsummer season to strike a balance between your financial aspirations and the experiences that bring you joy. Plan for your long-term goals, but remember to live in the moment and savor the magic of summer.

We hope this lighthearted guide encourages you to embrace the summer sizzle and make the most of this enjoyable season. Life is not just about a balance sheet—it’s about creating a life filled with laughter, love, and unforgettable moments.

To learn more about CapSouth Wealth Management visit our website at capsouthwm.com/what-we-do/ or Connect With Us to learn more about our process.

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature, and is not intended as specific advice. This article was produced with the assistance of ChatGPT (May 24 Version); Chat GPT is an artificial intelligence model owned by OpenAI. CapSouth is not affiliated with OpenAI.

Take a Number

Seven weeks ago, I was standing in a rustic, beautifully decorated back room of a local restaurant, toasting my son and soon-to-be daughter-in-law on the eve of their wedding. It was the culmination of months of planning, coordination, scheduling, and maybe a few tears here and there. (And that was just the toast.) Before I stood, I watched the two of them engaged, separately, with various family members from ages 7 to 72. Barely able to finish one conversation without being brought into another. In-between, they were able to share a glance if only for a moment. And in the midst of all of that busyness, they made every person in the room feel like the one being celebrated. And despite the growing bar tab (thank you, Uncle Tom), the looming dinner bill, and my growing curiosity as to the cost of the 72 table arrangements, the only thing that truly mattered was the glow around her face and the adoration in his eyes for his bride. And my heart was delighted in that moment. It would prove to be worth every penny.

Seventy-two hours earlier… I had just finished a series of hour-long 401(k) presentations to various groups when my voice definitively called it a day. It was done. Gone. Forcing the words only produced pain. So, there I was, a few days before my son’s rehearsal dinner, with the inaugural toast to give and a song to perform (believe it or not), and I couldn’t speak without pain. Those were a long 72 hours…

For just a few moments, let’s put the number 72 in a different context. Do you remember those days in school when you had to memorize formulas to find certain areas, lengths, or angles or whatever? Sure, you do! Who can forget those nights at the dinner table grappling with the Quadratic Equation, or maybe that family favorite, the Pythagorean Theorem? And you said to your parents, “When am I ever going to use this?” And maybe you’ve even heard that from your kids? And while you agreed with them, you certainly couldn’t let on that you did. Well, today, we’re going to cover a formula the entire family can use.

It’s The Rule of 72, and it’s a simple mathematical formula used to estimate how long it will take for an investment to double. Easy to remember and even easier to use. It’ll give you a quick and rough idea of the potential growth of your investments over time. The formula for the Rule of 72 is: Years to Double = 72 / Annual Rate of Return. Here’s how it works:

Let’s say you have an investment that earns an annual rate of return of 8%. Using the Rule of 72, you can quickly estimate how long it will take for your investment to double:

Years to Double = 72 / 8%

Years to Double = 9

So, with an 8% annual return, it would take approximately 9 years for your investment to double in value.

Okay, let’s say you’re 25 years old and have 30,000 to invest. And you plan on earning 8% annually. What does the Rule of 72 look like for you?

At 34, you’d have approximately $60,000

At 43, you’d have approximately $120,000

At 52, you’d have approximately $240,000

At 61, you’d have approximately $480,000

At 70, you’d have approximately $960.000

Now, allow me to remind you of a few key points here. This calculation is based on a one-time deposit of $30,000. This does NOT include any annual contributions you may be making, nor does it include any employer contributions you may be receiving if this were 401(k) account, for example. Yes, that’s potentially even more money in your account. Pretty powerful stuff, huh? Not impressed? Well, you could have chosen to purchase a new vehicle with that money. Drive it off the lot and it’s now a $27,000 vehicle. (You get the point.)

A few important caveats: The Rule of 72 is most accurate for growth rates or assumed rates of return that are between 6% and 10%. For very high or very low interest growth rates, the approximation may become less accurate. The Keep in mind that the Rule of 72 is just a rough estimate and not an exact calculation. Actual investment returns can be affected by various factors such as inflation, taxes, market volatility, and fees. Nevertheless, it’s a handy tool for understanding the potential growth of investments and making quick calculations when evaluating different investment opportunities.

So, before I get back to the rehearsal dinner, I did a quick internet search on the number 72 and here’s what I found:

“When you see the number 72 repeatedly, it is a sign that the universe is trying to tell you something. This number is all about abundance and prosperity, so when you see it, it means that the universe is trying to let you know that good things are on the way!”

Sounds like hogwash to me, but my voice did return in time for me to fulfill my father of the groom duties. I’ll chalk that up to prayer and a small steroid shot in the rear end. I can recommend both for what ails you. And speaking of prayer, my wife has been praying for years for the woman who would be our son’s bride. I prayed for football scholarships. We both had our prayers answered, but he chose med school. Whatever.

Praying now for many happy years together. Seventy-two sounds like a great place to start.

To further discuss the rule of 72 or the services provided by CapSouth, contact our office at 800.929.1001. Or if you’d first like to take a look around our website to learn more about us and our team, visit www.CapSouthWM.com or www.CapSouthWM.com/what-we-do/

By: Billy McCarthy, Wealth Manager

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Example(s) utilize an assumed or sample rate of return. CapSouth makes no guarantee any assumed rate of return can be achieved.

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