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Be Careful of the Continuous Stream of Money Narratives

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Be Careful of the Continuous Stream of Money Narratives

Thousands of images, words, and messages stream across our devices every day. These are mostly just background noise but some of it inevitably sticks. What’s got your attention right now?

We often start client meetings with this question as a way of uncovering dormant anxieties and fears. Despite our constant reminders about the lack of evidence for predicting markets, politics, or interest rates, sometimes clients succumb to the sheer volume of noise. We try to provide guidance about what is actually meaningful and controllable while re-affirming our strong belief in the power of the markets.

Don’t Waste Mental Energy

Worrying about unimportant things takes badly needed mental bandwidth away from being able to totally zero in on your long-term planning aspirations. For the main, in my opinion, many individuals prefer to spend mental energy on pointless news and happenings because it allows them to NOT THINK about how far off track they might be financially.

There are more than 40 million Americans between ages 50 and 65. The grand majority of these individuals have no realistic plan for accumulating the financial resources needed to maintain their lifestyle after retirement. Thinking and worrying about ANYTHING else except how to get back on track financially is foolhardy but terribly common.

Building Your Future

Essentially, in the years prior to retirement you should be focused on building for the future. In order to have hope for the future and avoid despair, a shift in thinking is usually required. You need to be open to change in order to change your condition.

“If you always do what you’ve always done, you’ll always get what you’ve always got.”  Henry Ford

Money Narratives

More often than not, the range of immediate concerns expressed by clients follow popular narratives. Money narratives are just oversimplified stories that ‘explain’ something going on in the economy or the markets. Many times, these narratives become so widespread that they take on the mantle of ‘truth’ when in reality they may be the opposite.

Disengaging from popular narratives can be an excellent initial step toward thinking differently about your financial future. Your desired destination won’t change, just your approach to getting there. One of our most important roles is helping clients close the gap between where they are today and where they want to be tomorrow. This can only begin once clients understand that the path forward is rooted in market science not popular narratives. Start there. Ready for a real conversation?

Related: The Cure for the Financial Dread Disease

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