The Investment of Fatherhood: The Ultimate Long-Term Investment

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Welcome to Insights. This is Paul Ellis, managing director of Ellis Wealth Management, where we encourage you to invest in what you love.

Ellis Wealth Management is an independent financial services firm focused on planning, advice, coaching and investment management. We are dedicated to the families we serve and we encourage you to invest in what you love.

Within Insights, we look at ways to make our world richer through focusing on sharing and developing human capital. Welcome back to Insights, where we encourage you to invest in what you love.

This is Paul Ellis, managing director of Ellis Wealth Management and your host. And today, well, this one's personal. Now, I know a lot of people like to talk about markets and a lot of people like to talk about money.

And a lot of people love to talk about strategy. But today we're talking about the most overlooked, underrated, under allocated investment of them all. Fatherhood. That's right.

Not a stock, not a bond, not some exotic fund cooked up in a Wall street boardroom. We're talking about the high return, high stakes, long term investment of being a father. Because here's the truth.

You can build a billion dollar portfolio, but if you're absent from your child's life, what have you really built? This is a beloved replay of one of our most meaningful episodes.

Heartfelt, deep dive into the legacy that money can't buy, but your presence can build. So enjoy this special replay. To all the fathers, happy Father's Day.

And in the end, the investment of fatherhood just may be the wisest allocation you'll ever make. I had written a piece that was in the Lynwood Times last year entitled the Investment of Fatherhood.

And I'd like to read it again this year and share with you my thoughts on fatherhood from an investment standpoint. So in honor of all of the fathers and grandfathers, this is an investment in fatherhood.

Everywhere you can see advertisements designed to sell you something. A luxury vehicle, vacation timepiece, or the latest technology. Perhaps it's a professional service or a perfect smile.

Very few of these items would I consider investments. Why? Because a vehicle, as beautiful as it may be, is to ride in. The more you drive it, the lower its blue book value becomes.

Technology is surpassed every year by newer and more powerful and relatively cheaper technology. Who still uses a PalmPilot or 412K Mac on a daily basis? A few people perhaps. But these devices are not considered investments.

An investment that grows in value or reproduces over time is seen as a good investment. An investment that declines or deteriorates is seen as a bad investment.

he last economic downturn and: 2007

and since: 2012

Prices had plummeted more than 30% during that downturn and some much more than 40% in a short time. Those who lived through that downturn learned a very powerful lesson. Real estate can go down as well as up.

It has also been said that a house does not equal a home. I would argue that a real investment is not the roof in the yard, but rather what is under the roof.

Life, Family and the Investment of Fatherhood an investment of time or money is an investment of yourself, your effort. It comes from your labor, your wisdom, your creativity. It's part of your life.

Children are that and more I once heard hall of Fame football star Michael Irvin lament that in the black community, and particularly for black professional athletes, that the next generation were perpetually needing to start over after previous successes. They weren't building on the wealth and the knowledge of that success, he said.

That was partly due to poor financial investments and partly because fathers were not being active in the lives of their children.

Michael Irvin went on to say that his dream was for his own successful ceiling to become his children's floor so that they could build that success as a family, not merely wanting to make it and leave the family for selfish pursuits.

Now older and more mature, Michael wanted to purposefully be involved in the lives of his children and grandchildren and to pass on the knowledge that he had gained. He escaped the hood and had no plans for either himself or his family to return to that old address.

That is the dream of many Americans, a better life for themselves and their children. That dream is achieved by actively investing in your children and your family life, not merely pursuing more things.

In a recent Wall Street Journal article entitled the Rise of Baseball, Second Generation Players, discussing the rise in second and even third generation athletes, it's noted that some of the children of professional athletes who have been around their parents during their careers have, outside of their DNA, another advantage in the athletic and life pursuits. The article affirms it stands to reason that youngsters who grew up around pro athletes pick up cues on how they behave.

They the children of professional athletes do get vivid up close views of their dad's and their dad's teammates, the best in the world at a particular set of skills. Of course, you and I can watch the same guys on TV or video, but the effect is not the same, says Dr. Marco Lucaboni.

For reasons we don't fully understand, watching a screen doesn't activate your minds the same way. It's the difference between a face to face meeting and a zoom call. Our brains are built for direct experience.

Of course, this is not limited to professional sports. You don't have to be wealthy or a professional athlete to be a positive role model for children.

But exposure to professionals can provide a unique vision for children and strengthen their confidence for their own future pursuits. A father's involvement can make the difference between success and frustration or failure In a study regarding higher education, the U.S.

education Department's National center for Educational Statistics states that students of college educated parents are more likely to pursue and complete a college degree than their peers whose parents did not attend college.

According to Grace Byrd's article the Impact of Parents Education Levels, 1/3 of first generation students dropped out of college after three years compared to 14% of their peers whose parents had earned a degree.

About two thirds of the children of college graduates were set to graduate on time three years after enrolling, compared to 48% of first generation students. Attending college is important. Finishing is the point.

The support of a parent who has gone before can make the difference, especially if that support coming from a father. Don't believe me? Ask a group of graduating college students. No doubt mom will be there at the graduation ceremony. But will dad?

The desire to have the father secure presence at the time one has received and achieved one milestone and is launching onto the next worth more than gold? It is a jewel that you cannot buy. The calm, quiet nod of a father's approval and trust says, you've got this and that's priceless.

Trust me, I've lived it. I know what I'm talking about. A father's involvement can make the difference between success, frustration or failure.

Children with a father's investment of his personal involvement 39% more likely to earn mostly A's in school 45% less likely to repeat a grade 60% less likely to be suspended or expelled.

They're two times as likely to go to college and find stable employment after high school 75% less likely to have a teen birth 80% less likely to Spend time in jail. In simple terms, that's an increase of up to 200% upside while dramatically reducing the downside. No program has that level of success.

Ask any financial professional. That's an investment worth making.

Regarding accepting the responsibility of manhood, Malcolm X once said, husband means you're taking care of your wife. Father means you're taking care of your children. You are accepting the responsibilities of manhood.

The responsibility of manhood creates an unshakable confidence and success. The pride of watching children grow, become wise and strong, that's well deserved. It takes a lifetime and can last for generations.

It's a legacy that will live on. It's the best of you. And that is real wealth.

Now, while not glorified on television, behind the scenes, real investors are taking care of their holdings. The farmer waters and takes care of his crops. The timepiece collector takes care of his clocks.

The landlord takes of care, takes care of his property. And fathers have the opportunity to take care of and bless their children. Teach them tote the bag, tell them you love them, literally.

Pronounce a blessing over them and let them hear you share your wisdom and coach them through the challenges that they face now and later. We often hear it said that we stand on the shoulders of those who went before. There are no bigger shoulders than that of a dad and a granddad.

We are in many ways, the answered invested prayers of our great grandparents. Let's keep that investment going. Best of all, you don't have to be rich. You just have to be present. The investment of fatherhood.

It's a legacy worthy of our soul. Thank you for listening to this special Father's Day edition of Insights as we continue to encourage you to invest in what you love.

Well, ladies and gentlemen, that's going to do it for today's edition of EWM Insights. And I hope what you've heard landed right where it needed to be. Because the truth is, being a father isn't just a role, it's a calling.

It's not about perfection. It's about showing up, being there, guiding, listening, leading and loving. You want to talk long term value, legacy? This is it.

In a world obsessed with fast gains and fleeting headlines, fatherhood is the slow, steady compounding of character. Its dividends in dignity. Its return on investment is in real life. And that is the investment that never stops paying out.

So until next time, my friends, stand firm. Live intentionally. Don't just build wealth. Build something that lasts. And that is why we encourage you to always invest in what you love. It.