Halloween may be my favorite holiday. If the weather is nice, I bring a portable fire pit to the front yard and camp out in a chair with a few buckets of candy bars. I love interacting with the kids, but I would be lying if I said that I feel the same about every group that comes to the door. It's a bit like financial planning.
Needing guidance
The first group are the youngest kids, not fully aware of what is happening, but trustingly holding on to their parents' hands as they look in wonder at those around them. They may get scared if I don't carefully engage them. For anyone starting a financial planning relationship, this may be what they experience. Some people need hand holding, and may be taken aback if their adviser is too forceful and doesn't carefully guide them.
Trusting outcome
The second group are the children who are as excited about their costumes as they are about their candy. They speed to and from each door, not paying as much attention to the loot, but more excited about the night itself. In financial planning, these are the people who may not be committed to all the rules of planning. They trust that things are going to work out fine as long as they fully participate in the process.
Shy and wary
The third group are those who warily descend on our house, a little gun-shy, as if my campfire is too hot for their liking. In financial planning, these people may feel they were burned by a former adviser and wonder how to safely proceed. If they skip the experience, they miss out on the treats, so they approach things warily.
Challenged, but successful
The fourth group are those whose parents drive them in from other neighborhoods. The children are excited and their parents also want a candy bar if offered. For this group, the treats of Halloween last far beyond the holiday. In financial planning, these are the people who may have difficulty mastering their financial situations, but at least come up with creative strategies to deal with their issues, rather than pretend they will just go away.
Enjoying the fruits
Then there is a wide range of slightly older children who come out, maybe not in full regalia, but still adhere to the spirit of the holiday. They are polite and appreciative for what they get in their bursting pillow cases. In financial planning, these people may have a successful plan, have followed it and are enjoying the benefits.
Taking it all
The final group tend to be the kids who don't dress up and almost seem to demand their candy. They may come back more than once if the candy is good. In financial planning, this is the cheat who doesn't want to do the hard work of understanding why things matter, and only wants more.
The way to get the most out of a financial planning relationship is to fully participate, be open to discussing things that may seem scary, and to dole out the decisions over time rather than trying to gobble everything up all at once.
Spend your life wisely.
Ross Levin is the founding principal of Accredited Investors Inc. in Edina. His Gains & Losses column appears on the last Sunday of the month. His e-mail is ross@accredited.com.