The horror stories are endless, but the main plot is nearly identical in all cases. It usually goes something like this: A newly widowed wife receives the consolation of family and friends after the death of her husband of 40 years. He had worked hard his whole life and loved his wife and children with all his heart.
I love the fall. Always have. I guess it stems from my roots in a very small farming community in the cornfields of rural Illinois. I learned early in life that the labor of a farmer is a volatile mix of faith and stubbornness. Some of my fondest emotional connections are tied to the many hours I would spend on my grandfather’s knee as we pulled the disc and plow through the soil preparing for the planting. Any farmer or gardener will tell you that a seed was never sown that did not have the harvest in mind. You see, common sense and the law of the harvest tells us that we reap what we sow. In truth, our expectation is to reap more than we sow. In any circumstance, it is understood that whatever abundance is given in the growing season will be celebrated as a harvest when the crop is ready. This is the joy of the farmer. This is the reward and blessing for the hard work, patience and stubborn faith when the risk is high. This is the reason for the sowing in the first place.
While this tongue-in-cheek prayer is most typically related to placing a wager, it has come to be the silent prayer of many investors over the last decade as they struggle for growth in retirement and brokerage accounts.
Financial Planning has gotten far too predictable. It has lost its heart. Every good marketer knows that we as people make decisions with our emotions and not with our logic. Think about how you spend your own money. We like to think that we spend our money on what we NEED, but the reality of most bank or credit card statements tells me that we spend money on what we WANT.
Have you ever noticed that there are some containers that are great at holding something valuable, but are a horrible conduit for the receipt of that asset. Take for example, a water balloon. Great for holding water, but a lousy way to receive it. Maybe a better example is a bee hive. This is a great way for the original owners (the bees) to use the asset, but a terrible and painful way for the beneficiaries (us) to receive it. The financial world is no different. Some accounts are great for saving and investing, but can be incredibly messy and costly for your heirs to receive.
It was a play call that will go down in infamy. The New England Patriots had the ball at their own 28 yard line. After a fourth quarter Colts touchdown, they still led by six points with only 2:08 left on the clock. Wisdom would say, “Protect your lead and let your defense win the game.” And although Patriots coach, Bill Belichick is famous for edgy, and some would say arrogant fourth down calls, no one expected he would take the risk in this situation. The reality was clear. The Patriots had control of the game in the final stages, but either the fear of Payton Manning or the comfort of Tom Brady caused the leader to make, what would later be seen by many, a season ending fourth down decision. With the game all but won, he made an irreversible decision based on fear or greed.
I meet with a growing number of people who have saved well and invested in a number of commonly suggested and highly marketed mutual funds only to wonder years later if the risk that was taken is worth the little to no gain received. They are looking at their big, fluffy portfolios and asking, “Where’s the beef?”
Dec. 25. As a child, I spent 364 days each year just dreaming of what this day would feel like. From Thanksgiving to Dec. 24, I would comb through the JCPenny and Sears Christmas catalogs fervently marking pages and meticulously planning what would eventually become my Master Wish List. I would end the ritual by strategically placing my carefully crafted list alongside a persuasive snack of milk and cookies. Then, with expectations set, I would close my eyes, dream a wonderful Christmas dream and awake to Christmas Day.