Many of us remember the classic Star Trek mantra ‘live long and prosper,’ which may be worth reflection as we enter the leisurely summer months. The keys to a longer and more prosperous life are often rooted in fundamentals that include both health and wealth.
Better Health, Better Wealth
Not surprisingly, physical, mental and financial well-being are interconnected. Perhaps one of the simplest associations between health and wealth is the cost of maintaining unhealthy habits. Consider that kicking a $5 per day smoking habit would save $1,825 annually, which could accumulate to over $150,000 in 30 years at an annual rate of return of 6 percent. While we are fortunate in Canada to have a social system that supports healthcare costs, unlike the U.S., tax payers still bear the burden. The latest reports suggest that chronic diseases, many preventable, account for more than $80 billion in annual healthcare costs in Canada.1
However, the connections extend beyond the financial burden of unhealthy habits. Studies continue to show a strong correlation between physical fitness and financial fitness.2 To some extent, this is because greater income and wealth provide resources to protect and improve health. Yet, it may go deeper than just resources. Accumulating wealth and improving health are guided by similar principles — both require consistency and discipline. Whether it’s saving and investing to grow a future nest egg or reshaping healthy habits through physical activity or better eating, consistency can pay dividends down the road. The benefits of these investments can compound over time. Often , people fail in their health and wealth goals because they succumb to immediate temptations rather than stay focused on longer-term objectives. As one expert noted, when it comes to health, “dollar-cost average your energy into healthful activities and the returns might surprise you.” The same can be said about investing.
The 100-Year-Old Marathoner: It’s Never Too Late to Start
Many of us spend the first 20 to 30 years of our working lives prioritizing wealth accumulation, often directing less of our attention to our health. However, the good news is that it’s never too late to shift focus. While starting to save for retirement at age 70 is never idea , playing more attention to our health can begin at any age. There are inspiring examples: Richard Morgan, a 93-year-old, four-time rowing champion with the fitness level of a 40-year-old, didn’t begin exercise training until age 73. Feeling “somewhat at loose ends” in retirement, he started training after attending a rowing practice with his grandson.3 Similarly, the world’s oldest marathoner ran his last marathon at age 100 in Toronto, having taken up running at the ripe age of 89 to overcome grie.4f Better lifestyle choices are also linked to greater longevity. With the rising prevalence of diseases like obesity, Alzheimer’s and early on set cancer, many studies suggest that basic lifestyle changes including exercise, healthy diet and adequate sleep may be keys to addressing their disproportional growth.
Indeed, adopting consistent and disciplined approaches — in both health and wealth management — can yield profound and far reaching returns. It’s all good food for thought in the pursuit of living long and prospering.
1. https://www150.statcan.gc.ca/n1/pub/82-003-x/82-003-x2020010-eng.htm;
2. https://internationalservices.hsbc.com/content/dam/hsbc/hsbcis/docs/reports/asia-wealth/hsbc-life-factor-study.pdf;
3. https://www.washingtonpost.com/wellness/2024/01/16/fitness-aging-richard-morgan/;
4. https://olympics.com/en/news/who-is-fauja-singh-oldest-indian-origin-british-marathon-runner
Health, Wealth & Investing — The Ozempic Effect
The healthcare industry is experiencing a remarkable period of innovation and growth. One area garnering significant attention is the development of weight loss drugs that mimic the hormone GLP-1. These drugs help regulate hunger to combat obesity, which affects around 30 percent of Canadian and 40 percent of U.S. adults. This advancement has not only attracted considerable interest from celebrities and the media, but has also led to substantial increases in the share prices of pharmaceutical companies producing these drugs. Some equity values have risen by double digits over the past year, reflecting the market’s confidence in this burgeoning field. Goldman Sachs, a leading investment banking firm, projects that the global market for obesity drugs could reach $100 billion by 2030.5
Some suggest we are at a pivotal moment, marking the early stages of what could be a revolutionary period in the development and commercialization of new drugs. This is being fueled by significant advances in biotechnology, artificial intelligence (AI) and information technology, and is expected to support the treatment of a wide range of conditions, including obesity, diabetes, Alzheimer’s and more. It’s an exciting time for innovation and disruption in this space and, for investors, the potential transformation may provide opportunities.
5. https://www.goldmansachs.com/intelligence/pages/anti-obesity-drug-arket.html
The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
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