All we have to fear is fear itself
You will recall from your study of history that the author Thomas Paine famously stated, “These are the times that try men’s souls.” That dates back to 1776 as Paine mustered support and boosted morale for the Revolutionary War in order to gain independence from British rule.* The Ukrainians can certainly make a case for that sentiment today. However, in terms of your financial well-being, you are a long way from a dire circumstance of that nature. This leads me to thoughts of what most investors in our country actually do need these days.
A “professional hand holder”. Some more dignified circles refer to a person with that skill set as a Relationship Manager. One who hopefully guides you through times of increased chaos. Often their primary talent is that of being a good listener. They spend time hearing out your concerns. Sometimes times simply to convince you to stay the course! It might include reminding you of the goals and objectives you stated were important to all involved at your most recent planning session. Frequently the biggest problem is the emotional repercussions of the fear you feel rather than some apocalyptic macroeconomic disaster. If one could be led to feel more at peace, the odds of making positive rational decisions should skyrocket. Of course, that psychological concept applies to most everything we confront in this life. Often the problem is not “the problem”- it is the way one feels about it that causes them to make adverse decisions. While on my emotional soapbox, I would be remiss not to quote the immortal words of Franklin D. Roosevelt, “All we have to fear is fear itself.” That just about sums it up don’t you think?
So, having made the point about what I believe is the bigger problem, who is this elusive Hand Holder, Relationship Manager, and Trusted Advisor. The person who will hear out your concerns when the financial media has whipped you into a frenzy? You can find a number of them in our area. The most important characteristic they must possess is your belief that they have your best interest at heart. A high level of trust in their credibility is required. And if this person bears the “scars” from being battle tested in 1987, 2000-2002, 2008/2009, and perhaps March of 2020, then even better. Advisors who successfully held hands with anxious clients during those dark days most likely learned some very valuable lessons.
Though I’ve stated the following before, it bears repeating. The Certified Financial Planner designation is a good indicator of a person’s worthiness to be considered credible. That individual has to have proven proficiency in the Financial Planning Process, Investments, Risk Management, Retirement Planning, Estate Planning, and Tax Management. One must have a college education, a minimum of three years practical industry experience, and must maintain a stringent regimen of Continuing Education requirements. That doesn’t mean all CFPs are capable of leading you through the chaos, but a professional with that background is more likely to have the required skills.
Full disclosure, I am a Certified Financial Planner. Therefore, I maintain an innate bias. So let me be clear- a lot of what compiles my knowledge base comes from people like you. Individuals who have no formal role in the financial advice industry. However, you do have proven track records as entrepreneurs, managing businesses, meeting payrolls, and/or providing professional services (Doctors, Lawyers, Clergy, Chief Bottle Washers, etc., etc.). That is a particular group of individuals who have lived and breathed “in the arena”. I do experience a curious challenge with them. It seems the more successful they are (and useful their input might be) the less is their tendency to talk about it! You may have to persistently earn the benefit of that wisdom. Let me close by stating that I think you would be well served to stay close to some “wise old souls” who fit that eloquent description put forth by Theodore Roosevelt in his Man in Arena Speech.** That is where I choose to cast my lot. I suggest you do the same.
The opinions, forecasts, and views expressed here are those of Tommy Williams and do not necessarily represent those of Williams Financial Advisors, Private Client Services, RFG Advisory, their employees, or their clients.
This material is for educational and informational purposes only. It is not legal, tax, or investment advice, nor a recommendation to buy, sell, or hold any specific security, nor an endorsement of any specific trading strategy. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Securities offered by Registered Representatives through Private Client Services, member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through RFG Advisory, a Registered Investment Advisor. RFG Advisory, Williams Financial Advisors, LLC, and Private Client Services are unaffiliated entities. No advisory services may be rendered by RFG Advisory unless a client agreement is in place.
*en.wikipedia.org/wiki/The_American_Crisis
**goodreads.com/quotes/7-it-is-not-the -critic-who-counts-not- the-man
This article originally appeared on Shreveport Times: All we have to fear is fear itself
