Working on 'Becoming Nobody'

"You spent the first half of your life becoming somebody.  Now you can work on becoming nobody, which is really somebody.  For when you become nobody there is no tension, no pretense, no one trying to be anyone or anything.  The natural state of the mind shines through unobstructed -- and the natural state of the mind is pure love."  Ram Dass

When reading this quote, many characters from my adolescence through adulthood come to mind:

• The "popular" kids in middle school and high school who suddenly became your "friends" in college because suddenly, instead of being the "big fish in the pond," they became the "small fish in the ocean."
• Adult acquaintances who ask, "What do you do?" then say "what they do" and why that's important within two minutes of meeting someone new.
• People who tell me how their investment portfolio has doubled in value in the last 12 months (without my asking them first).
• People who feel the need to say how they vote, what foods they eat, how their children behave in school, why they love guns, and where they get their tires rotated -- all on the rear bumper of their car/mini-van/SUV/truck/golf cart.

Now for a disclaimer:  In the past, I've been guilty of at least one of the above behavioral points and I won't say that someone is "wrong" for doing any or all of them.  I can, however, give testimony that I've found life to be immensely enjoyable when, as Ram Dass says in today's quote, "you become nobody" because "there is no tension, no pretense" by not "trying to be anyone or anything."

As you may have already guessed, I've found that there are many parallels to "becoming nobody" and prudent investing as well:

• Using index funds, such as Vanguard 500 Index and Fidelity Spartan 500 Index, or "boring" stock funds, such as Dodge & Cox Stock (which is behind "the market" this year but outperforming 99% of its large-value category peers for 15-year annualized return).
• By not trying to "beat the market," you'll likely end up out-performing (in the long-term) two-thirds of those investors trying to "be somebody" by beating it  in the short-term.
• Placing suitable asset allocation ahead of investment selection.  What I mean by this is that your investments should reflect your tolerance for risk and your investment objective -- not where your funds "rank" this year compared to others in its class.  That's "missing the forest for the trees."  If you need an 8% return for 20 years to reach your goal then why would you complain if you get 9% this year when the market is at 10%.  You're ahead -- not behind!
• Even better, combine all of the above "nobody" investment points together and you may consider "life cycle" or "target dated" funds, which invest in other funds that combine for an allocation suited for your target date, such as for retirement.  What's more, they slowly shift more conservative as your "target date" approaches!  Here's a few examples (using my favorite -- Vanguard): If your target date is in the next decade, you would place all of your investment assets in Vanguard Target Retirement 2010.  If you're much younger, say in your 20's, you might try Vanguard Target Retirement 2045 (Note:  As of 11/1/2007, year-to-date returns for the 2010 fund and the 2045 fund, respectively, were 8.42% and 10.06%.  What about "the market?"  As measured by the S&P 500 Index, it's at 7.96%.  The target dated funds out-performed "the market" -- all with less market risk!)   

Investing is not a race or a competition and neither is life.  If you arrive "on time" or "early" why does it matter if others are "passing you on the road?"  You should not "chase returns" or "chase money" or you'll find yourself in the "rat race."  Slow down; pace yourself; stop trying to "be somebody;" enjoy the scenery; become "nobody;" remove yourself from the race and you'll enter something much more important that will make you a winner -- your life...

Please share any personal examples of how "becoming nobody" has worked in your life...

TFPAuthor, Kent N. Thune, is the President and founder of Atlantic Capital Investments, LLC (ACI), a 'fee-only' Registered Investment Advisory firm located in Mount Pleasant, SC.

Comments

[John Forman]

I really need to visit your blog more often. :-)

If often find myself conflicted. On the one hand I rather enjoy being nobody. I can sit back and listen, observe, allow it all to flow around and through me. On the other hand, as an author and business person I am in a situation where being somebody is encouraged to achieve the objectives at hand.

At least in my trading I can be nobody. I can just trade with no real attachment to it all. Took me a long time to get to this point, though.

[The Financial Philosopher]

John:

I like the word, "becoming," as opposed to "being." The prior connotes a "path" or a "journey" that has its own intrinsic value and it promotes humility. The latter connotes an ending or the achievement of "mastery" that can often be unrealistic, pretentious, or even unachievable...

Of course, if you're at a party and someone asks you, "What do you do?" and you reply, "I'm a writer but I'm becoming a trader," you might have some explaining to do!

Personally, I believe it is perfectly acceptible if "what you do" and "who you are" are entirely different things. As long as we are trying to move those two things "together as one" then you will always be "becoming."

Thanks for the comment...