One of the most significant developments to come out of the pandemic, if not the greatest, was the shift to remote work for millions of employees. Beginning in March 2020, businesses quickly adapted out of necessity, keeping their operations afloat with employees working in pajamas from their living rooms.
However, this golden era of remote work was short-lived. By the first quarter of 2022, investment banks and other old-school employers began calling employees back to the office, starting with a few days a week. As the pandemic faded, the demand for office presence grew, and today, corporate giants like Amazon are requiring employees to return five days a week.
The reason? It’s clear: when left to their own devices, many employees naturally slack off. At a minimum, without direct supervision, productivity tends to decline.
As a 12+-year shareholder of Amazon, I was pleased to hear the news as Amazon’s share price surge higher after the announcement.
A Unique Perspective on Remote Work as a Retiree
Since retiring from investment banking in 2012, I’ve had complete freedom to design my days. Before the pandemic, I could easily play tennis at any park or club during the late morning or after a nap without hassle. But once lockdowns lifted around July 2020, my once-empty courts were suddenly packed.
Curious, I began talking to the players, expecting them to be retirees like myself. To my surprise, none of them were—almost all were “working from home” with a wink and a nod.
Many were out there for hours, with little concern about their managers tracking their day-to-day activity. Armed with a phone and a noise-canceling headset, they made the most of their freedom.
I’ll admit, I was envious. Imagine getting paid to not really work! Many of the 20- and 30-somethings I played pickleball with daily were all enjoying the same luxury. It made me consider coming out of retirement just to experience that level of flexibility!
As an on-the-ground researcher of employees who work from home, it’s clear to me that many tend to take advantage of the lack of supervision. It’s a rational response to the environment
If you ever visit Larsen Playground on the west side of San Francisco on a weekday, you’ll find the courts packed with young professionals under 40. They are taking advantage of the lingering work-from-home privileges that remain in the tech industry.
Work-from-Home Is a Dream for Employees
It’s no surprise that employees overwhelmingly prefer remote work. For many, the worst part of their job was the commute. In my own experience, crammed buses and delayed rides were a daily annoyance.
The flexibility that comes with working from home—being able to pick up and drop off kids or fit in a midday workout—is a huge benefit for many, especially parents. It’s a setup that employees and managers alike want to preserve.
Everybody rationally wants to get paid to work the least amount possible. Let’s accept this fact. Anybody who says otherwise is being dishonest or just virtue signaling.
However, for those early in their careers or looking to climb the corporate ladder, working from home is a career-limiting move. The reality is that the people who are seen, who interact directly with decision-makers, tend to get promoted. Being out of sight too often means missing out on key opportunities that could secure your financial future.
The law of entropy applies here too: when left unchecked, things tend toward disorder. Do you think your room naturally gets cleaner or messier? Over time, working remotely can lead to less focus and diminished output, which explains why terms like “quiet quitting” have emerged as employees resist being pulled back into the office.
While most of us view the work-from-home debate from the perspective of employees, consider it through the eyes of investors—especially if you’re working toward building passive income for financial freedom.
Would you prefer to invest in a company that allows employees to work from home five days a week? Or one that requires in-office collaboration and longer hours five days a week?
As a rational investor, the answer is clear: you’d likely choose the latter. More face-to-face interaction and structured hours generally lead to greater productivity, which in turn drives profitability and, ultimately, higher stock prices.
Investing is not an act of charity. You’re taking on risk in the hope of growing your money. And goodness knows investors have lost plenty of money before!
Therefore, as a shareholder, it’s reasonable to expect a company to push its employees to be as productive as possible. If a company isn’t focused on maximizing output, you have the right to sell your shares and invest in one that is.
Solution: Work for a Chill Company, Invest in a Hard-Charging One
So, what’s the ideal approach for balancing lifestyle and wealth creation? It depends on where you are in your financial independence journey.
- Early stages of FI: Work for an ambitious company that requires in-office attendance, and invest in similarly driven companies.
- Middle stages of FI: Look for a more laid-back employer that offers a remote work option, but continue investing in high-growth, ambitious firms.
- Late stages of FI: Stick to a relaxed job while maintaining investments in hard-charging companies.
For example, at 28, you might want to work at a fast-growing startup and invest heavily in other promising startups through a venture capital fund. After consulting for various startups, I can assure you that startup employees work harder than most employees at established companies. And this is coming from me working 13 years in banking.
By the time you’re 50 and a multimillionaire, you may want to transition to a more relaxed role at a large company or even your local city government, where the pressure to perform is much lower. Meanwhile, you can invest in promising private AI companies that demand their employees work in the office and put in 60+ hours a week. Investing in smart, driven people is the best combination for success!
Act Rationally With Work From Home Policies
Nobody wants to grind forever. Once you’ve achieved a certain level of financial security, it’s wise to transition into a new role with fewer responsibilities and less pressure. You can still collect a paycheck while playing tennis at 3 p.m. if you want—because by then, you’ve already made it.
However, if you haven’t reached that point yet, don’t be fooled into thinking you can coast your way to a corner office. Many eager employees saw their managers and C-level executives enjoying life from Aspen or Hawaii during the pandemic and may have assumed that’s the norm. But the truth is, those executives put in their time to get there.
Ideally, balance your mental and physical well-being by working for a company that offers a flexible lifestyle, while still fueling your financial growth by investing in ambitious, high-performing firms. This approach lets you enjoy the best of both worlds: a peaceful work life and strong financial returns.
Reader Questions
As a shareholder, would you prefer to invest in a company that requires its employees to work in the office or one that allows them to work from home five days a week? Do you have the ideal setup where you enjoy a cushy job with plenty of flexibility while investing your capital in hard-charging companies?
Invest In Private Growth Companies
Consider diversifying into private growth companies through an open venture capital fund. Companies are staying private for longer, as a result, more gains are accruing to private company investors. Finding the next Google or Apple before going public can be a life-changing investment.
Check out the Fundrise venture capital product, which invests in the following five sectors:
- Artificial Intelligence & Machine Learning
- Modern Data Infrastructure
- Development Operations (DevOps)
- Financial Technology (FinTech)
- Real Estate & Property Technology (PropTech)
Roughly 60% of the Fundrise venture product is invests in artificial intelligence, which I’m bullish about. In 20 years, I don’t want my kids wondering why I didn’t invest in AI or work in AI! The investment minimum is also only $10 and I’ve invested $143,000 in Fundrise venture so far and Fundrise is a long-time sponsor of Financial Samurai.
