In our modern world, we overcomplicate most things in our lives. The complexity has a way of taking on a life of its own, and it doesn’t take long before we are seemingly unable to remember our original intentions.
This usually leads to confusion and poor decision-making that moves us no closer to where we want to be. It’s no coincidence that Simon Sinek’s TED Talk explaining the concept of the Golden Circle (starting with “why”) has become the cult classic it has.
Walk into any office in the country, and it’s likely the person working furiously has no idea why they’re doing what they’re doing.
Back To Basics
Every industry has its examples of overcomplicating the simple. With its remarkable collection of jargon and abbreviations, the financial services industry does this like no other.
A person starts off wanting to save for life after work (retirement). Before long, this goal has morphed into “accumulate a diversified portfolio providing risk-adjusted returns to enable a sustainable withdrawal for life“. Unfortunately, this is usually done by a well-meaning financial adviser.
This affects how progress towards the goal is measured over time and, worse, results in the person being unable to relate to the plan in a way that inspires action and discipline.
We see this in all areas of the financial planning process, and we’re all worse off for it. The truth is that the issues that financial planning aims to solve are always starkly simple. They’re also profoundly human, so we should return to basics (and simple words).
Your True Aspirations
We all have a few deeply human aspirations that we would do well to remember and prioritise. The best way to design a sensible plan to achieve these is to state them in human terms, not those of the financial industry.
Through our work with families similar to yours, we’ve found that the below are near universal goals, stated in the first person:
1. I do not want to die tomorrow and leave my family destitute.
2. I do not want to become seriously ill and leave my family destitute.
3. I do not want to run out of money in retirement and become dependent on the state or my children.
4. I do not want to become a financial burden on others if I need long-term care.
5. I want to leave a legacy to my children without it causing strife or almost half of it being taxed.
You may relate to some or all of the above. You’ll likely have other aspirations that can be expressed just as simply. The financial planning process should meet you where you are, not have you twist yourself into its industry language.
Insist on this as if your goals depend on it, which they might.
Eye on The Prize
Wisdom is never hidden deep in the weeds but in simplicity, which according to Leonardo da Vinci is the ultimate sophistication.
Your aspirations are sufficient as they’re formed in your mind, and we encourage you to keep things simple whenever possible.
We’re confident that this will reduce confusion, improve decision-making, and increase your probability of realising your most cherished family goals.
Someone else can take care of the details and complications, but only if they’re willing to meet you where you are. Small actions taken regularly can compound into something extraordinary. We’re here to help you.
Charles Riches
Director
One Response
Very helpful Charles, thank you. I like simplicity and clarity.
On that note: see you Tuesday.