The Narrative and the Noise
The noise is everywhere: Politics, the markets, 24-hour news channels and social media.
The noise is exponential and it’s on steroids and it drives our behavior, our emotions and our decision
making whether we like it or not.
This past year, as we have battled a global pandemic, clients would call us and attempt to allow the
noise to dictate their behavior which would ultimately alter the amount of risk they could handle, their
savings rate, and their financial decisions.
For a large percentage of Americans, the noise is like your pushy GPS that is trying to direct you even
when you have turned into your neighborhood. Intuitively, you know which direction to head, the best
streets to take to avoid lights, and why driving through the town square and past the train station at this
time of day is a nightmare. But it can still be hard to ignore the blaring voice in your dashboard.
Sometimes, the best thing an advisor can do is help to quiet that noise by leaning forward, turning off
the GPS, and assuring you that together, we’ve got this.
Our job is to create a process to defray the noise and the angst that clients feel when the volume rises
so that they don’t instinctively pivot every time news breaks or the Dow is flashing red on their
smartphone.
There is a massive disconnect between noise and outcomes. The truth is, we waste a lot of time as
consumers. We waste time looking at the wrong scoreboard. Investments, the Dow, the S&P are all on
the wrong scoreboard. As advisors, we need to create a better indicator and keep our clients focused on
it.
The best scoreboard is your savings rate. More savings and less spending will allow clients to stretch
their nest egg for a longer period. This means advisors and clients together must address those difficult
conversations about cash flow and lifestyle head on.
So, what’s the solution? Develop a process now to create positive behaviors for the future.
Yes, there will still be uncomfortable conversations, and our process will be tested as the noise
increases, but together we can strive to influence better outcomes.
Together we can quiet the noise
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.