Planning, Pilots & Profits
The last few years have nothing short of amazing. So much had changed right before our eyes. The hubris that so often accompanied financial “experts” has finally lost some of its synthetic shine.
The template financial approach is gone for good. The best advisors help you understand how to deal with uncertainty. An honest conversation about uncertainty brings up questions not found on pie charts or in the academic comfort of diversification theory. To do the best job, your advisor must be committed to helping you conduct a training exercise.
I say “training” because the best decision-makers simulate various scenarios in their minds prior to implementation. Testing the impact of bad events is a critical part of the exercise. Think about this; when you take an airline flight from point A to point B, you feel comfortable with trained pilots not because they are trained to handle smooth flying, but because they are trained to handle turbulence.
Theoretically, anybody can hold the stick steady as the plane travels along uneventful skies. The value is this: when a storm arises, only those with solid planning (training) can safely pilot you to the ground. Their value is they have been tested in the stressful environments prior to the stressful event (mental simulation), thus giving you a better chance at survival.
So who’s piloting your financial future? Who’s drawing your plans? Who’s protecting you? Have they positioned you to reduce the chance of catastrophe or have they increased it likelihood?
The days, moths, and years ahead will reward those who have developed thorough mental simulations. Now’s the time to revisit your advisor, revisit your plans, and make changes before the next storm.