Billly spent his first 20-years letting life happen to him. Then he (very slowly at first) started to take control and responsibility for his actions and what came of them. Today, most all of his daily efforts are on purpose with the goal to make at least one other person's quality of life better every day.

With which person would you rather spend time? The young Billy or the Billy of today?

Which person ARE you? The young Billy or the Billy of today ... or a work in progress?

Growing Up

Billy was raised in an middle-class household in the 1950's and 60's. There was plenty of money for all the things that Billy's parents (who grew up in the Great Depression) felt were important including a nice home and a good education.

Even though he didn't need the money, he worked paper routes and (later) summer jobs. He worked because that was what people did - exchange time for money - just as he did his homework for no other reason than that it was expected.

That was all the meaning these efforts had to him.

The Shift

In his early college years Billy studied hard, but also "played" hard, too. Time and energy were expended ... but with no motivating purpose or meaning. He had friends and they certainly enjoyed "experiences" (including stories they'd rather not have their children hear), but essentially, the student travelled in whatever direction the winds of life blew him.

Part way through college, a shift began for Billy. He volunteered for some outside activities that fed one of his inner passions. Rather than doing work because "it needs to be done" or "that's what people do," he began expending time and energy on projects that let him share something that was deeply important in his life ... something that fed his soul.

All of a sudden ... his efforts had purpose and meaning ... and that has made all the difference.

And Today ...

Billy works through every day with purpose and meaning. He does his best to spend all his time, money and energy on everything for a reason and not to do it just because "that's what people do." Does he slip up? Sure, but he is working every day at getting better.

Why?

He slips up because he's human. We all are.

He works at it because doing so makes life better, richer and more fulfilling. It will improve your outlook and make you happier. It naturally tends to offer more intense relationships and bigger opportunities.

A Universal Story

I've seen this story unfold countless times. If this is you, please share and let me know (private email or public comment).

I've also lived this story. When I was a kid, I had no clue WHY I did all the things I was supposed to do ... I just did them because I was supposed to. I went through many rudderless years in high school and college ... and I'm still working on it (although I'm much better now).

When I worked in radio broadcasting (1980-1994) I had one goal in mind each day - "to make net one person's day more enjoyable because of something I said or a song that I played."

More recently as a Wealth Coach, I still get up each day with a singular purpose - "to help at least one person enjoy a better quality of life." The tools I use today are different. I don't play songs or crack jokes. I help people make better choices with their money, time and energy through proprietary financial management tools, frameworks and exercises.

In the end, I want to help them take action on purpose and with meaning as often as possible.

It sure beats letting life hit you in the face.

John

Interested in a different approach to helping you with your personal finances? 
Call me for more information on our Wealth Health Snap-Shot™ ($150 value - available for just $47) - a 30 minute review of your personal financial situation with a CERTIFIED FINANCIAL PLANNER™ Professional.

In a recent blog (Unhappy Investment Clients) I commented on the following statistic from a new survey.

60% of investment advisor clients are expecting to change advisors in the next year.

In that blog post, I suggested four problem areas for most investment advisors: Independence, Experience, Depth of Knowledge and Accessibility. I also mentioned Ethics as being critical (which it is).

But there is one HUGE piece to this puzzle that I missed - probably the most important part of the work I do as a Wealth Coach and CERTIFIED FINANCIAL PLANNER™ professional that most investment advisors (regardless of whether they call themselves "investment advisor" "stock broker" or "financial advisor") don't do ...

The Investment Management Process

Investment management is a pretty linear process:

• You start with a sum of money.
• The investment advisor develops an investment strategy.
• The strategy is implemented (either by you or the money manager).
• Every once in a while the portfolio is rebalanced and/or the strategy is modified.

Whether you employ an active or passive strategy, the basics are the same - and there isn't a whole lot to this process. It is logical and linear. The steps have to be executed in order and that order cannot be changed.

The Traditional Value Proposition

What do you get in return for your fee (on average, well over 1%)? Most of the money pays for Step #2 - the development of the investment strategy where the five factors I cited (independent, experienced, wise, accessible and ethical) come in to play.

The greatest added value comes from the fact that someone else is there to keep the investment strategy in place rather than letting the cycle of emotion take over and commit you to buying and selling at all the wrong times. Dalbar and Morningstar have done studies that show that independent investors (working on their own) on average see portfolio performance about 6% below the market average.

Paying 1% to improve results 6% is a good value proposition - a net 500% return on your money.

A Monkey Could Do This

Dan Ariely is a well-known behavioral finance and psychology expert. He got into a lot of hot water recently when he wrote in the Harvard Business Review, “Highly trained monkeys could do the same basic job” as an investment advisor ...

... and he's right. Not only monkees can be trained to do it, computer programs ARE doing it.

More and more web-based programs are coming online where you can have a portfolio constructed for you by a computer using the same sophisticated software and tools that I use to construct a portfolio - all for a fraction of that 1% fee. Wealthfont is just one such example and there are many more.

Missing Context

But there is something important missing here ... and frankly it is missing from what most investment advisors offer. That missing component is "context."

Investing your money is an admittedly linear process.

Managing your personal finances is NOT.

You don't live your life in a vacuum. Jobs change. Relationships change. The economy changes. You get married, have kids or get divorced. People get sick. Some of them die before their time. This is all stuff (often emotionally charged) that is going on around you and it all affects the choices you make with your money.

Why They're Unhappy

I would bet that 60% of financial advisor clients are unhappy because their financial advisor is addressing the completely non-linear, fuzzy and emotional process of managing personal finances with a simple and linear investment advisor approach.

This is like trying to put out a fire with liquid air. At first, it may cool down the heat of the fire (which would be good), but in the end you are just giving it more of the fuel it needs to burn out of control.

What most people need is something far more artistic and creative - a framework through which they can see the world a little more clearly and make better choices with their money. They need a guide who can help them navigate the waterways of their financial life and design their voyage to avoid the rocks while getting to wherever it is they want to go.

A monkey can't do that ... nor can a computer program.

That is the work of Real Financial Planner.

John

Interested in a different approach to helping you with your personal finances? 
Call me for more information on our Wealth Health Snap-Shot™ ($150 value - available for just $47) - a 30 minute review of your personal financial situation with a CERTIFIED FINANCIAL PLANNER™ Professional and Wealth Coach.