Key Takeaways
Asking for help with your finances is a sign of strength, not weakness.
It’s important to seek guidance for your retirement and your family’s financial security.
Even if you excel in your profession, consulting a financial specialist can be greatly beneficial.
“Ask for help not because you're weak, but because you want to remain strong.” -- Motivational Speaker, Les Brown
At Home Depot, I witnessed an interesting scenario. A customer was receiving assistance with selecting paint for their house. The attendant was ready to mix the colors chosen when the customer’s companion arrived and insisted on a different paint based on a website recommendation. The attendant patiently explained that the suggested paint wasn’t suitable for the project. The individual’s professional success made them confident they could manage the painting without expert advice.
I mention this because many of our clients are successful professionals and business owners. They’re highly skilled and are surrounded by people who look up to them. But that skill set doesn’t necessarily translate to the financial planning of their households.
Many individuals may feel uncertain when seeking advice from someone with more financial expertise. This might explain the reaction observed at Home Depot. The individual may have felt uncomfortable with a suggestion that contradicted their research. To resolve the situation, they might have gone to another store, bought the wrong paint, and had to redo the job the following year, possibly incurring additional costs for a professional to correct it.
For something as important as your money, your retirement, and your family’s financial security it’s okay to ask the right professionals for advice.
In this age of YouTube, eHow, and round-the-clock financial shows on cable TV, many people think managing their money is just another do-it-yourself project like fixing a leaky pipe or changing the oil in your car. Some individuals, particularly the primary income earners in families-- think it’s a sign of weakness to admit they can’t manage their money without help. When couples first come to us for a discovery meeting, I often feel like the Home Depot consultant, explaining the best approach to their retirement or financial planning "project" while respecting their sense of competence.
Are You Afraid To Ask For Directions?
It reminds me of my family car trips in the pre-GPS days. No matter how lost we were, my dad always refused to ask for directions. I never quite understood his refusal to get us back on track, but I get it now. Meanwhile, the stress level in the car increased very quickly and we spent countless hours lost on the road instead of enjoying our family time together.
The key is to shift the mentality around financial planning. If everyone could manage it effectively, the need for our services would diminish. Our clients are confident and self-aware individuals, business owners, doctors, attorneys, professors, and executives. They recognize their expertise in their fields but understand they need help managing their complex financial situations. A skilled professional can also help you overcome your biases before they derail your plan.
Ninety-nine percent of drivers consider themselves “above average,” and most do-it-yourself investors think they can consistently pick winners and outperform the market. Research shows it’s difficult to accomplish this. I recently met with a couple who were both engineers. They’re intelligent and good with numbers. They make good incomes and have some assets and real estate properties. Unfortunately, their portfolio was overconcentrated in Tesla, Microsoft, and Apple – highly volatile tech stocks. They were assuming too much risk considering how close they were to retiring.
Tesla is currently facing some challenges, and if it or another tech stock in their portfolio declines, it could significantly impact their retirement savings. Being good at math is great but it doesn't translate into investment management, insurance planning, tax planning, or overall financial planning skills. Unless you do financial planning for a living, it can be challenging to see how all the pieces fit together, especially in a tax-efficient manner.
One of our clients, a successful executive, was initially hesitant to seek our advice despite his wife's encouragement over the past three years. While he excelled in his field, he had accumulated a substantial amount of cash that was not generating significant returns and was falling short of keeping pace with inflation.
One day, our firm's Managing Partner, Bob Dunn, posed a thought-provoking question: how would he respond if a patient with a serious arterial blockage chose to rely on vitamins and water instead of the necessary bypass surgery, based on online advice? This question helped him understand our point.
If you use Morningstar ratings and online research to complement our efforts, that’s great. Being well-informed about your finances can help you feel more in control.
Just as a professional can help you choose the right paint for your home improvement project, consulting a trusted financial expert can save you from future headaches and expenses, and potentially provide greater security. Seeking help with your finances isn’t a sign of weakness; it’s a sign of wisdom. It’s like asking for directions when you're lost— it can save you time, and money, and offer peace of mind.
Conclusion
If you or someone close to you has concerns about finances but isn’t sure where to turn, reach out any time. I’m happy to assist.
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