As a thought leader, financial educator, and founder and CEO of Matson Money, Mark Matson is proud to say he has achieved his American Dream. But after coaching thousands of others on the value of hard work and his patient, “passive management,” investment philosophy, he also knows that many now see its core tenants as a pipe dream.
In his new book Experiencing The American Dream: How to Invest Your Time, Energy, and Money to Create an Extraordinary Life, Matson offers a rebuttal to that idea. Through his personal story and some practical advice, the founder of Matson Money seeks to inspire another generation to keep chasing the dream and building their own future—which, in the process, makes the world a better place.
Speaking with SUCCESS.com from the Ritz Carlton in New York City, Matson explained what he thinks the American Dream represents these days, why it matters and what people can do to keep theirs alive.
Mark Matson: I think it captures the imagination because there’s so much pain and suffering in the world. There’s so much poverty on a global scale. People are always wanting to come to America. Nobody’s getting a rickety raft at Miami… [and] crossing over into Mexico from here. It’s still a great land of opportunity—where, if you work hard and you have personal responsibility and you create value for other people, you can literally still come from abject poverty to create a great quality of life for your family. And I think we have freedoms here in the United States that are largely missing in the world, and I think human beings are naturally drawn to freedom.
One of the things I like to tell people is [that] the American Dream isn’t just good for America. It should really be a global phenomenon, and the more countries that have free markets and entrepreneurism, innovation, creativity… it makes for a higher standard of life.
I Found It Alarming To Read That The Majority Of People Feel The Dream Is No Longer Attainable. Did You Know That Going Into The Book? What’s Your Reaction To That Stat?
Matson: It’s a sad figure. I always tell people … the American Dream is only one generation [away] from dying, because the American Dream has to be taught and instilled as values into the next generation. You’re not born with the DNA of the American Dream, and that’s one of the reasons I wrote the book—is for families to sit down and start passing down the values that are so critical to success in this world.
If Families Are Going To Sit Down And Teach Those Values, What Would You Say The American Dream Is These Days?
Matson: It’s definitely not dead—under attack, but not dead, for sure. One of the things I talk about in the book is developing the “screen” of the American Dream, to see the world through the values and the principles my dad built into me. We came from really abject poverty in the hills of West Virginia, [near] Charleston, and it was just shacks and garbage on the road and in the streams. They had rats that came into their house, and you’d take the tops of Instant Carnation milk cans and literally nail it to the baseboards so the rats couldn’t get in…
I saw a lot of terrible, terrible poverty, and I saw the difference in the mindsets in my grandpa, who thought that money was evil. He thought that he was a victim and that he could never escape that. And then my dad took on a whole different “screen” of seeing the world from some mentors and teachers that he had…. The focus has to be as an entrepreneur and an innovator… how do I create value for other people?.… If I do that, then I’m entitled to some wealth and prosperity for myself, but never the other way around. And I never am entitled to something that I didn’t earn.
The Economic Landscape Changes Over Time… Do You Think Society’s Values Today And Our Views On Finance Have Impacted What People Think Is Possible?
Matson: The thing I write about in the book is that money can’t make you happy. No amount of money. [If] you win the lottery today for $100 million, it will not make you more passionate. It won’t make you have more energy. It won’t make you have more empathy for other people. It won’t increase your relationships. Money can be very disempowering, actually. It can create a lot of pain and suffering, jealousy, animosity. You look at people like Elvis or Marilyn Monroe or Howard Hughes, it doesn’t take long to see that…
For me, what makes the American Dream so beautiful is that it’s actually a form of self-expression. I get to build up a business, or I get to work for someone that has a great business, and I get to express my creativity. I get to express my voice. I get to express who I am as a human being. And that to me is more of an American Dream than a portfolio value or a dollar that I get to or a financial goal that I achieve.
The Average American Family Feels Overwhelmed By The Looming Fear They Won’t Have Enough For Retirement. Do You Think It’s Possible To Do Well With Your Money, Even If You’re A Few Decades Into Working And Haven’t Gotten Very Far Saving?
Matson: I do. Some practical stuff that my dad gave me way back when I first started is you want to pay yourself first. You want to put about 10% of all your money in your 401k. And then, after that, you want to put any extra money in some personal accounts and you want to build that up and you want to use equities. You want to own funds that are in US markets—large stocks, small stocks, value stocks. Equities are the greatest wealth creation tool on the planet. They create all the jobs, they create quality of life, they create amazing returns. Large stocks have historically done 10% a year. Your money doubles every seven years. Small stocks, 12%. Small value stocks, 14%.
For most people, they got to hook into equity markets and do it in a way where they’re not speculating and gambling by owning asset-class funds and then staying disciplined over 30 years. And that’s the tough part about it. Once you know how to build a portfolio, then you have to ignore your instincts, your emotions and your biases, and then stay committed to that.
I definitely think starting early is important. Having a certain percentage is important. Owning equities long-term is important. But another little side thing I tell people [is that] maybe the idea of retirement itself is outdated.
Really?
Matson: When I look at the people in my life that are the most happy in their 60s, 70s, and even 80s, they might [have] left their main job, but they’re still out there doing stuff. They’re consulting or they’re keeping busy doing work that they enjoy. And so they never really fully retired. A lot of times when people retire, they lose their meaning and their energy and their passion and they die. So, I’m not sure it makes sense.
Look, if you were making cars and you were on the line for 30 years and your body’s beat down…. But if you’re a consultant or a writer or an artist or a manager, there [are] a lot of jobs you can do well into your 60s and 70s and 80s, and we don’t want to lose the wisdom those people have. I think they have a lot to add to society.
Thank You So Much For The Time Today. I’ll Leave You With The Big Picture: What Do You Hope People Take Away From This Book?
Matson: That money can’t make you happy. But purpose can.
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