Financial Plans

I have been fascinated by the Golden State Warriors and their meteoric rise to the top of the basketball world in one season. Without making major changes they have secured the best record in basketball, led the league in both offense and defense, and set many franchise “bests” in a whole range of categories (Wins, consecutive wins, point differential, three point shooting, etc…..). The way they play has brought me back to enjoying NBA basketball for the first time in years.

For years, I have been hearing folks refer to “my Financial Advisor”. When I ask them what that person does for them, they usually say something to the effect: “they take care of my investments”. I will then ask if they provide any other services and the usual answer is no. I would not call these folks financial advisors, but Investment Advisors or Wealth Managers.

Growing up in Chicago, every year Ernie Banks would open spring training with a slogan; “the Cubs will be great in ‘68” or “the Cubs will be fine in ‘69” to name a few. Over the last few years I have been creating a Theme for myself each year. It has great value toward accomplishing things and being a great stress reliever.

Their season and playoff success has been one of the great sports stories of recent memory. I have been a baseball fan my entire life, and this year’s Giants team is one of the least likely champions that I have ever seen. When I watch them play, I am struck by how unusually “normal” they are. There are no real obvious “all-stars.” Nobody is going to hit 50 home runs for this team and they only have one pitcher who even comes close to being an all-star. Most championship teams these days have at least 2 or 3 of those guys on their pitching staff and 2 or 3 in their everyday lineup. While talking with a friend of mine the other day, and trying to figure out their key to success, it occurred to me that the same things that make them successful work for my clients and their success as well.

Our industry spends a lot of time producing spreadsheets and other numerical financial reports that are presented in a very somber manner. It is almost as if the numbers are some sort of religious text filled with great meaning. I understand the numbers are important, but the spreadsheet approach to producing them ignores the real world. The next time someone in financial services presents you with a spreadsheet, listen to the words they use when showing you the numbers.