Missing the point of money is at the top of the financial faux pas list.
A recent client experience brought this to light. Years ago, a young teacher sought us out for advice. His portfolio was locked in a predatory 403(b) containing a 3% plus expense ratio. After consulting with him regarding these egregious fees, he transferred his funds to our low-cost program.
The reaction of the salesperson to the exchange was priceless. “Please don’t tell anyone about this; they’ll all move their money!”
Welcome to the world of financial services, young man.
He became a loyal client and diligently increased his annual contributions. Removing the albatross of unnecessary fees does wonders for wealth creation.
All was going as planned until tragedy struck. Chaperoning a school trip almost met with deadly consequences. The driver disregarded warnings of low overhead and drove onto the Southern State Parkway. The top of the bus hit a tunnel. Many serious injuries resulted. By the grace of God, our client wasn’t decapitated. Being over six feet tall, this easily could’ve occurred. Luckily, he was positioned on the right part of the bus, avoiding fatal but not serious injuries.
After extensive rehab, a settlement check arrived. Since we were the only people willing to speak to him honestly in his younger days, the funds were wired to our firm.
We were prepared to let compounding do its thing.
Until a dream RV appeared on the scene. Imagine exploring different parts of the country during summers and school breaks. Our client and his dog had the potential to form lasting connections and experience nature as it should be in all its glory.
Custom RVs don’t come cheap. Being the responsible person as always, he asked, “Can I do this, or will this be the equivalent of financial suicide?”
After entering the new goal into his plan, the answer was unequivocally YES! The answer didn’t waver when he returned for a few more shekels for special accommodations for his loyal German Shepard.
Watching so many people wither away with seven-figure portfolios and unfulfilled aspirations isn’t fun. Money’s just a ticket; if you don’t cash it in, somebody else will.
I wish I could bottle what our client said and send it to everyone, afraid to take a chance and live their life. Money isn’t for worrisome hoarding unless journeying to a fool’s paradise is your destination of choice. Cashing it in for connections, irreplaceable experiences, and memories that last a lifetime is never a bad hand to play.
For me, this wasn’t some materialistic purchase but rather an opportunity to experience the beautiful parts of the country and connect with nature in a way you generally don’t get by flying to a destination for a week (not that there’s anything wrong with that either). But I had been dreaming about this for a long time, and the more I thought about it, the more I felt that this would be a good time. I look forward to the day I’m done working, but I also want to get out there while I’m still physically active, capable, and healthy. That crazy accident I was in helped drive that point home. Who knows how long we have, so I felt now was as good a time as any to try ‘to make this happen.
This story is just beginning, and we are overjoyed to play a role.
What about you?
How many songs out there are left unsung?
Injecting his words into some of our client’s veins would do more for their financial plans than a raging bull market.
Don’t miss the point regarding wealth creation.
Napoleon once stated: To Cannon, All men are equal.
The same goes for the Grim Reaper.
Is deferring your dreams a gamble you’re willing to take?