I hear often, in one way or another, that life Is less certain than ever. And I really wonder if this is true. Most of you know I crave understanding things – especially complex things. I’m not saying I’m great at it, but I really do want to understand. So, my first question is: Are things less certain or do we just feel that way?
Of course both could be true to some degree. I do love a little complexity! But I think it is helpful to allow ourselves to be discerningly curious about how much of this is real and how much is noise. Predicting the future is a tough business. If you have been around long enough to need a financial advisor, you know this to be true.
I think it is always helpful to be reminded that most of the good planning done in life is based more on previous experience than knowledge of future outcomes. We look back at the types of things we have experienced – both good and bad – to find the reasonable guardrails of what we might experience and prepare for going forward. The more we experience the wiser we can become. Occasionally, life throws a big surprise – good or bad – and we adjust our guardrails accordingly.
But worrying about future big surprises is a difficult game to win. It is very costly to our emotional resources. Worry is much like experiencing real disappointment and loss over something that hasn’t - or may never - happen. It steals our focus and our energy. It prevents us from making progress on the things in life that we can control and want to enjoy.
So, what should we do when we feel these moments of uncertainty creep into our minds? Where fear, dread and even panic can grow? I can tell you what I do – since this has basically been my job for over 30 years. I look back.
- Looking back reminds you what you have already survived.
- Looking back informs you what kind of reserves you might need.
- Looking back tempers your expectations.
- Looking back keeps you humble.
- Looking back can help you be grateful.
Understanding your past – and learning from how you reacted and overcame real challenges, is far more helpful than worrying about a future that we can’t possibly discern. It is also from the lessons of the past that we build resilient plans for your future. Reviewing your liquidity, the risk structure in your portfolios, and insurance are great ways to check that you are ready and prepared for surprises.
But once you’ve done these things – the rational checkups on your readiness – do your best to turn your attention to the things you can actually impact. If we are honest, most of the things we feel most uncertain about are things we have no actual control over. And the things we can accomplish are ignored due to our fear of what might happen.
If you are feeling stuck or would just appreciate a check-up on your financial readiness, let us help. It might just be what you need to free yourself to enjoy life and make your little corner of it that much better!