In the high-stakes world of personal finance, the focus is almost exclusively on portfolios, compound interest, and retirement accounts. However, Dr. Jordan Grumet, a hospice physician and author of Taking Stock, argues that we are missing the most critical half of the equation. Having spent his career in the presence of death, Grumet has gleaned a set of "investing" principles that have nothing to do with the stock market and everything to do with the quality of a life well-lived.
"When the undertaker speaks, you should really listen," Grumet writes. Through his work, he has discovered that while money is a tool for security, it is rarely the source of meaning. True wealth, he suggests, is found in the deliberate, non-monetary investments we make long before our final days.
The Intersection of Mortality and Finance
The journey to these insights was not born from studying the ultra-wealthy, nor from deciphering the secrets of hedge fund managers. Instead, it emerged from the quiet, often painful, and profoundly honest conversations held in the rooms of patients facing the end of their lives.
For the dying, the priorities shift. The focus moves away from the ticker symbol of a stock and toward the legacy of a life. Grumet observed a recurring theme: people often arrive at the end of their lives realizing that while they spent decades managing their money, they failed to manage their actual existence. By synthesizing these experiences, Grumet has outlined a framework for "investing" that prioritizes long-term fulfillment over mere liquidity.
Invest in Yourself: The Power of Self-Forgiveness and Growth
The most foundational investment, according to Grumet, is in the self. However, this is not about vanity; it is about clearing the internal wreckage that prevents us from moving forward.
The Cost of Remorse
Remorse is a universal human experience, but it is also a destructive one. Grumet points to the story of a patient named Gerald, whose descent into alcoholism and subsequent estrangement from his family were rooted in an inability to forgive himself for a professional failure decades earlier. Had Gerald invested in the emotional work of self-forgiveness sooner, he might have preserved his health and his relationships. Grumet emphasizes that while introspection is valuable, dwelling on the past is a tax on your future happiness.
The Compound Interest of Experience
Grumet draws a parallel between financial compounding and personal growth. Just as money grows exponentially over time, so do experiences and skills. By "slowing down" and focusing on incremental 1% improvements—whether in a skill, a habit, or a relationship—individuals can achieve outsized results. He advocates for a life of curiosity, urging readers to treat every experience as a building block for the next phase of their personal development.
The Role of Education as an Emergency Fund
In a rapidly changing world, knowledge is the only currency that cannot be devalued. Grumet challenges the notion that education is confined to formal degrees. Instead, he views knowledge as the ultimate emergency fund.
"When all other resources are exhausted, your knowledge will help you secure a job, build a shelter, or make the right decisions," he writes. He encourages a proactive stance toward learning, suggesting that we should never stop being students. Even when faced with complex or intimidating subjects like finance, the willingness to commit a few hours a month to study can drastically alter one’s trajectory. Being an inquisitive person, Grumet notes, is a trait that lasts until one’s final breath.
Investing in Others: The Ultimate Legacy
If the goal of a life is to leave a mark, the evidence of our success is found in the people we leave behind. Grumet describes his ability to identify "successful" people simply by walking into their hospital rooms. Those who have invested in others are rarely alone; their rooms are filled with cards, photos, and a steady stream of visitors.
This form of investment requires time and vulnerability. It means showing up, listening, and fostering deep connections. For Grumet, it was only after he stepped into the worlds of writing and podcasting that he found his own community—a move that fundamentally redefined his identity and purpose. He posits that the dividends of this investment—love, memory, and influence—are the only assets that truly survive the end of our lives.
The Generational Ripple: Investing in Children
For parents, the most significant investment is in their progeny. This goes beyond setting up a trust fund; it involves modeling values, demonstrating humility, and teaching the practicalities of money. Grumet’s own life is a testament to this, as he recounts being called by his father’s name by colleagues—a living reminder that the legacy of a parent persists long after they are gone. By investing time and love in our children, we ensure that our influence ripples through generations.
Physical and Mental Health as the Framework
Financial planning is a task of forethought, which is impossible to execute if one is physically or mentally compromised. Grumet stresses that health is the framework upon which all other success is built.
- Mental Health: He advocates for practices like meditation and, crucially, seeking professional help when the internal narrative becomes overwhelming.
- Physical Health: He warns against the "perfect is the enemy of good" mentality. One does not need to be an athlete; thirty minutes of walking a day is sufficient to maintain the vitality required to pursue one’s goals.
He maintains that if one has to question whether a substance like alcohol is becoming a problem, it almost certainly is. The goal is clarity, not escape.
The Role of the Market
Grumet does not suggest abandoning the financial markets. On the contrary, he acknowledges that having your "money right" is a necessary baseline. By automating savings, investing in low-cost index funds, and maintaining a long-term perspective, individuals can provide themselves with the stability needed to pursue their non-monetary passions. The money is not the end goal; it is the fuel for the life you actually want to lead.
Implications for the Future
The implications of Grumet’s philosophy are profound. We are encouraged to stop viewing "investing" as a purely financial activity and start viewing it as a holistic approach to our time, energy, and relationships.
The "Non-Monetary Investment Inventory" exercise proposed by Grumet is a vital tool for this shift. By auditing where we spend our time and with whom we build our connections, we gain a clear picture of our true wealth. Many who find themselves "rich" on paper but "poor" in time and connection may realize they have been misallocating their resources.
A Call to Action
The urgency of Grumet’s message is clear: the time to invest is now. Do not wait for a diagnosis or a crisis to prioritize what matters. Building a life of meaning requires effort, strain, and sacrifice, but as the patients he has cared for would likely attest, it is the only investment that provides a return worth having at the end of the journey.
"Be as prepared for life as you would be for death," Grumet concludes. By balancing our financial portfolio with an equal commitment to our character, our health, and our connections, we ensure that when our time comes, we have left nothing on the table.
Summary of Key Principles:
- Self-Forgiveness: Release the weight of past mistakes to free up energy for the present.
- Slow Growth: Prioritize the 1% incremental gains that lead to exponential long-term success.
- Knowledge as Security: View self-improvement and education as an emergency fund for the soul.
- Relational Capital: Measure success by the quality and depth of the relationships you foster.
- Generational Legacy: Invest time in children to ensure your values and impact persist.
- Holistic Health: Maintain the body and mind as the essential vessels for all other achievements.
- Financial Basics: Get the money right so you can afford the freedom to focus on what actually matters.
