Making Money Matter More: The Power Of A “Massively Transformative Purpose”
Net worth is easy to measure. But what makes it worthwhile?
What justifies the effort, investment, or sacrifice required to pursue financial success?
And how is that—financial success—even defined in the first place?
And then, once you’ve reached whatever definition of financial success you’ve determined, what gives your wealth meaning?
We seek to answer those questions this week, while introducing you to an intentionally hyperbolic term from authors, Peter Diamandis and Salim Ismail: Massively Transformative Purpose (MTP).
And while our resident market commentator, Tony Welch, is enjoying a baseball-oriented vacation with his family this week in Cooperstown, Nick Amat fills the void with a timely update on the market moves of the week.
Thanks for joining us!
Tim
Tim Maurer, CFP®, RLP®
Chief Advisory Officer
In this Net Worthwhile® Weekly you'll find:
Financial LIFE Planning:
Making Money Matter More
Quote O' The Week:
Mark Twain
Weekly Market Update:
The Compound Interest Of Good Habits
Financial LIFE Planning
We’ve long been taught to measure financial success with numbers: net worth, portfolio returns, retirement dates, income generated, gifts granted, taxes paid and avoided, inheritance left behind.
Yet one could check every box—and still feel unfulfilled.
In fact, many people go to great lengths to achieve supposed financial success—but at the expense of their time, influence, health, and relationships. This all-too-common phenomenon begs the question: What’s it really worth?
This nagging question is one that has plagued my firm since its inception, nearly 30 years ago. And it’s why we coined our own term—Net Worthwhile®—designed to remind us and our clients that our pursuit is not solely numerical…that a mountain of wealth can be worthless without purpose while bringing meaning to money can empower families, both personally and financially.
Behavioral Science Meets Financial Planning
Here, we’re taking concepts rooted in behavioral science, like Self-Determination Theory (SDT)—which suggests that identifying with a purpose enhances intrinsic motivation, boosting persistence, engagement, and performance when tasks align with personal values—and extrapolating it to wealth management.
Others have done the same in other fields. For example, building on Jim Collins’ BHAG concept (Big Hairy Audacious Goal), Peter Diamandis and Salim Ismail introduced us to the concept of the Massively Transformative Purpose (MTP) in their ode to entrepreneurs in their book, Exponential Organizations.
What’s A Massively Transformative Purpose?
Hyperbolic by design, a Massively Transformative Purpose for a business is a clear, aspirational statement that articulates an organization’s deeply held purpose to create meaningful, large-scale impact. “It establishes a long-term goal for the company so sweeping and profound that it is always within reach yet always unreachable,” Ismail suggests. “It inspires employees and customers. And it galvanizes employee morale and retention.”
For example, at my company, we review our version of an MTP with the entire firm every quarter: “We are going to impact the lives of 10,000 families by 2030 because financially healthy families and individuals change the world.”
This infuses our collective efforts with a purpose well beyond profit, while providing a standard against which all of our individual initiatives and decisions can be gauged.
What’s Your Net Worthwhile®?
The concept of Net Worthwhile®, therefore, can be used to help those families we impact with a similar plumbline for their financial planning. Net Worthwhile® helps bring money to life (and life to money) in three key ways:
It transforms money into meaning. Most financial plans focus on What and How, but Net Worthwhile starts with Why. That Why turns money from a neutral resource into a reflection of deeply held values and aspirations.
It aligns decisions with purpose. When families are clear on what matters most, their cash flow, investment, and giving strategies don’t just perform—they align. Purpose becomes the connective tissue between goals and action.
It bridges emotion and logic. As Daniel Kahneman’s research shows, we make financial decisions using both fast, intuitive (System 1) and slow, rational (System 2) thinking. A clear purpose satisfies both: it feels right and makes sense—fueling motivation and follow-through.
At its simplest, your Net Worthwhile® is the completion of this sentence:
“The purpose of my wealth is … [fill in the blank].”
For the relationally oriented, Net Worthwhile® serves as a family financial mission statement. For the practically minded, it becomes a clear set of marching orders from client to advisor. For the analytical, it provides the standard by which goals and next actions in the plan are evaluated. And for the experimental, it may serve as a catalyst to expand what’s typically considered possible in financial planning.
For some, Net Worthwhile® serves as a phrase or sentence. For others, a paragraph or bullet points or even pictures. Its effectiveness is judged not by its articulation but by its power to activate and motivate.
So, what’s yours? What’s the Massively Transformative Purpose that gets you up in the morning, that inspires you to push through when you face resistance, that gives you clarity in the midst of confusion, that brings meaning to money?
In other words, what’s your Net Worthwhile®?
This post was originally published for Forbes.com.
Quote O' The Week
Although this quote may still fit in the unverified category, it has oft been attributed to the great American writer who probably deserves credit anyway!
Mark Twain
“The two most important days in your life are the day you are born and the day you find out why.”
Weekly Market Update
Markets were mixed this week, with international stocks skittish over the threat of a broadening conflict in the Middle East:
- 0.15% .SPX (500 U.S. large companies)
- 0.22% IWD (U.S. large value companies)
+ 0.15% IWM (U.S. small companies)
- 0.18% IWN (U.S. small value companies)
- 3.43% EFV (International value companies)
- 2.33% SCZ (International small companies)
+ 0.30% VGIT (U.S. intermediate-term Treasury bonds
The Compound Interest Of Good Habits
Contributed by Nick Amat, CFA®, CAIA®, Senior Portfolio Designer, SignatureFD
In investing, compound interest is often praised for its quiet power; the way small gains, stacked over time, can lead to outsized results. But what’s often overlooked is how that same compounding dynamic applies to behavior. The habits we build around our finances, consistent saving, thoughtful rebalancing, disciplined decision-making can have a similarly transformative effect on long-term outcomes.
These small, repeated actions may not make headlines, but they create structure and momentum. Over time, they reinforce a strategy, reduce emotional decision-making, and turn intention into results.
For consistent investors, success isn’t usually the product of bold moves or perfect timing. It’s the outcome of steady, intentional choices that align with long-term goals. The systems you build, and the habits you commit to, compound just like capital.
“Habits are the compound interest of self-improvement.” – James Clear
The Message from Our Indicators
Despite the short week, there was no shortage of news for investors to digest. The Federal Reserve held rates steady, but the tone of the meeting surprised markets. The updated projections now show just two cuts expected in 2025, down from prior estimates, and inflation forecasts were revised higher. Chair Powell cited persistent inflation pressures and uncertainty around trade policy, particularly tariff impacts, as key reasons for the shift. Markets responded by pushing the 10-year Treasury yield up to 4.41%.
On the economic front, the data was mixed. Consumer sentiment improved meaningfully, rising 16% in June, and small business confidence also ticked higher. That rebound suggests some optimism is returning, especially as tariff policy stabilizes. However, retail sales declined sharply, down 0.9% in May, with broad-based weakness across categories. Job growth came in modestly at 139,000, showing continued softening in the labor market.
Inflation data remained contained. Core CPI rose just 0.1% last month, and producer prices showed similarly mild increases. Still, the Cleveland Fed’s nowcast for June CPI sits at 2.62%, which suggests some underlying pressures remain. With oil prices jumping over 20% this month on rising Middle East tensions, we could see another inflation bump if energy prices stay elevated.
Speaking of geopolitics, the Israel-Iran conflict escalated significantly. Israel carried out strikes on Iranian nuclear targets, and President Trump suggested a decision on potential U.S. involvement is coming soon. Safe-haven flows boosted the dollar, while emerging markets took a hit. The impact on global markets may be more sustained if tensions continue to rise.
Meanwhile, corporate earnings expectations continue to drift lower. S&P 500 earnings growth for Q2 is now expected to be just 4.9%, down from 9.3% at the start of the quarter. At the same time, valuations have expanded, with the forward P/E now at 21.6, well above historical averages. That disconnect between prices and fundamentals gives us some pause.
So, while sentiment is improving and technical indicators remain strong, we think the risk/reward picture is a bit more balanced. With earnings revisions trending lower, valuations stretched, and inflation still lurking in the background, we maintain a neutral stance between stocks and bonds. We still expect stocks to rise this year, but likely in the mid-to-high single digits, not another blockbuster. The weight of the evidence leans bullish, but we think the prudent move is to stay grounded until the fundamentals catch up.
Have a great rest of your weekend!
Tim