Be a Good Son or Daughter
Mother’s Day 2016 has just past. Almost time for a mid-year check-in on progress. Would Mom be pleased with your performance? No one wants to disappoint their mother, ever. But we know that is a tall task. Mom always has high expectations for us and knows we can meet them and accomplish even more. Let’s think about how we can make her proud.
Mom always wants what is best for us. This can be viewed through many lenses. I’m going to focus on the financial one. What is best for us? Pick 3 topics for starters. Any three that are important to you. I gave you my three goals for all clients in a previous blog posted on January 14, 2016. Simply pick your 3 and get started with some good decisions.
Making Good Decisions
- Know what you want and when you want it and estimate how much it will cost
- Be SMART — Specific, Measurable, Attainable, Reasonable, With a Timeframe
- Seek help where you need it — investments, insurance, taxes, budgeting, goal setting, whatever
- Be a RA — Responsible Adult; start early, stay committed, adjust as necessary, keep the big picture in mind
If you can use those bullet points to your benefit you will be one of the few in your circle who earn success. Most people “let life get in the way.” Often the goals are honorable, but the unforeseen events — which we all experience — derail our efforts.
What is Most Important?
NOTHING is more important than clarity of purpose and the willingness to get after it. Start early, regardless the pursuit. Many hands make light work. Applying that to finances means invest a little early on and let the power of compounding (Einstein described it as the “eighth wonder of the world”) work in your favor. Examples abound of the financial benefit from investing, say $2000 per year at age 25 for TEN years and then no more, versus waiting until age 35 and investing $2000 per year for TWENTY years. By age 65 the early investor will have accumulated approximately 50% more money.
Mom the Fiduciary
Much of the discussion about advisors owing a fiduciary duty to their clients should be unnecessary. There is the legal significance of whether you are bound — as an attorney, CPA, CFP would be — and there is the moral/ethical requirement to do the right thing. I have been a fiduciary for more than 20 years, but I cared just as much for my clients’ welfare the 5 years before I became a Certified Financial Planner.
It strikes me that our mom is the ultimate fiduciary. That person who acts solely in our best interest and cannot profit from our relationship unless we consent. And yes, ALL financial advisors should gladly accept that responsibility without having it be legislated.
My final thought — whether your Mom is alive or not — be a fiduciary unto yourself! Do the right thing; preserve, protect, and share, that which you have and will have, acting in the best interest of yourself and those you care most about.