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The Health 401(K)

Posted on 

October 17, 2023


At the intersection of wealth and health lies a profound insight: the greatest asset you can possess isn’t in your bank or brokerage account, but in your body and mind.

Enter the concept of the “Health 401(k)” – a mindset shift that could redefine how we approach our well-being.

For decades, the 401(k) has been emblematic of the American dream and the promise of a comfortable retirement.

It’s all about playing the long game, about making consistent investments today for a return that’s realized years down the line.

Given that our body is the vessel carrying us through this marathon of life, why not apply this forward-thinking approach to our health?

The Economics of Health

First off, let’s dispense with the notion that health and finance are distinct realms.

In the 21st century, it’s hard to underestimate just how much they’re intertwined. Also, lest we forget, medical bills remain one of the leading causes of bankruptcy in the U.S.

Conversely, good health can be one of the most potent wealth multipliers.

Here’s why:

  1. Increased Productivity: A healthier individual is, more often than not, a more productive individual. This isn’t just about the days you don’t call in sick but about the enhanced cognitive and physical performance. It’s an edge in a hyper-competitive economy.
  2. Longevity Dividend: Living longer gives you more time in the market, amplifying the effects of compound interest. Imagine adding another decade of investment returns to your portfolio because you took your health seriously.
  3. Reduced Medical Costs: This one’s a no-brainer. A healthier life today translates to fewer medical interventions tomorrow. The astronomical costs of healthcare treatments can be curbed, or at least postponed, with proactive health management.

Investing in Your Health 401(k)

Embracing a Health 401(k) mindset means prioritizing and investing in your health with the same discipline and foresight you apply to your financial portfolio.

Here’s how to get started:

  1. Regular Check-ups: Think of this as an audit… for your health. Just as you’d periodically review your 401(k) performance, regular health check-ups are vital. These serve as indicators of how well your investments (in diet, exercise, mental well-being) are paying off. Consider working with a doctor who practices integrative and/or functional medicine.
  2. Diversify Investments: A savvy investor wouldn’t put all their funds into a single stock. Similarly, health demands attention across multiple fronts – nutrition, physical activity, mental wellness, sleep, and routine medical care.
  3. Avoid High-Risk Behaviors: Just as you’d be wary of a high-risk, dubious-return investment, avoid health behaviors that pose unnecessary risks. This includes excessive consumption of alcohol, smoking, and neglecting sleep.
  4. Hire the Right Advisors: Seek guidance from professionals. Nutritionists, personal trainers, therapists – these are the ‘financial advisors’ for your Health 401(k), guiding you to make the most optimal decisions.
  5. Long-Term Vision: Good health, like good wealth, is a marathon, not a sprint. Crash diets and extreme fitness regimes can be likened to get-rich-quick schemes. They may offer short-term gains but can be detrimental in the long run.

The ROI of Health

In the digital age, human capital – our cognitive and physical prowess – has become paramount.

The Health 401(k) isn’t just about dodging diseases or living longer; it’s about enhancing the quality of those added years (i.e. maximizing healthspan).

A study by the Journal of the American Medical Association indicated that individuals with healthier lifestyles not only live longer but also experience fewer years of disability.

This means more years doing what you love, be it traveling, playing with your grandkids, or starting that business you always dreamt of.

The Bottom Line

There’s a reason why we respect the 401(k): it represents foresight, discipline, and the promise of delayed gratification.

It’s time we bring the same respect and discipline to our health.

The next time you make a decision about what to eat, whether to exercise, or how much to sleep, think about it as making your daily deposit to your Health 401(k).

In the grand ledger of life, your health and wealth are entries on the same page. And like any smart investor will tell you, it’s always wise to balance and grow both portfolios concurrently.

So, invest in your Health 401(k) today, and reap the dividends for years to come. Your future self will thank you, both in vitality and in net worth.

Virtual Event [Client-only]: The Health 401k

Join us for the final Wellth Webinar of 2023 hosted by certified wellness coach, exercise physiologist, and founder of Grow Wellthy, Stevyn Gunnip.

You will learn:

  1. Why a 401k mindset toward your health is a smart financial move.
  2. Four contributions you can make to maximize your health 401k.
  3. How to automate “deposits” so they happen like clockwork.

SIGN UP USING CODE “WHEALTH”: Webinar Registration – Zoom

Disclaimer: The information provided in this newsletter is for educational purposes only and should not be considered as medical advice. Always consult with your healthcare provider before making any decisions or changes to your healthcare plan.