Logbook

You may be among the readers who think this topic was a bit silly, but I bet you have your own “chef’s knife” in your life. It may be a reliable hammer, a classic automobile, or a piece of heirloom furniture.  I’m hoping for some of you, your financial plan is an example of a well-crafted composition that will serve you and your family well for generations to come.

I confess that I own more business suits than most people do. I even like some of them and for years would wear one every day to work. You might still see me in one today if we attend the same wedding, or if I am speaking to an institution where this level of formality is customary. Putting such occasions aside, I mostly choose to leave my neck ties in my closet and save my jackets for chilly days. I occasionally will receive a comment on how my day-to-day work attire isn’t quite as flashy as it once was. This choice is a product of an evolution that I will share.

While dependability and commitment to one’s family are admirable traits, several recent studies show the negative consequences of such good intentions. The most troubling direct result of this support is on the parents, 60% of whom (according to Merrill Lynch research) would be willing to work longer in order to support their adult children. Over one third of the respondents to the Ameriprise study even admitted that helping their adult children has slowed down their own retirement savings.

It is true that actions speak louder than words, and if our actions are truly what defines us as individuals then the quality of our decisions must be of great importance. After all, what we do is often a product of what we have decided to do. Following this logic, a critical step to improving oneself would be to focus on making better decisions.

Having been born into a wealthy family is certainly not indicative of a superior ability to manage money. By studying the family histories of over 250 U.S. money managers, Chuprinin and Sosyura found that managers from poor families tend to deliver measurably higher risk-adjusted returns than managers from rich families. It seems that an inherited advantage may have developed into a handicap of sorts.

While I don’t begrudge anyone their chance at stardom or their pursuit of “the impossible dream”, I worry about how many people don’t truly understand their statistical improbability of being one of the lucky few.  I wonder how many people want to be the famous performer but would never stomp their feet in just one coffee shop in order to get there. 

Irrespective of your religious affiliation (or lack thereof), you have likely had a person at your front door who is espousing a view of life that is different from your own.  We’ve all been there.  More often than not, I am not at all interested in buying what they’re selling and wish I had just quietly let the bell ring until they moved on to the next house.  This is my reaction until I consider why this person is at my door.

What are we to do as a culture when exposure to some necessary traits such as honesty, charisma, and leadership come at a societal cost?  To be bold is not inherently bad, but what about when someone becomes boldly prejudiced?  How can we encourage the nobly defiant, while discouraging the ruthlessly inhumane?

While it may be rare for any of us to see a young student approach a Zen Master for advice today, it is not hard to find a person of any age engage in well-intentioned behaviors that impede their own success.  Like an adventurer struggling to escape quicksand, anxiety and over activity can sometimes make our desired outcome move further and further out of our reach.

The fact remains, that we must plan for the misfortune that life can occasionally bring.  We must also plan for the range of outcomes where things turn out just wonderfully!  One simple process for decision-making is to ask yourself two questions:  “What if I am right?” and “What if I am wrong?”  The pessimist has to ask themselves, “Would I rather be happy or right?”  The optimist can be both.

In my professional realm, we go to great lengths to ensure that your hard-earned legacy can serve your families and causes for generations to come. This can involve a wide array of estate planning tools, as well as the services of a good attorney. Today, I am addressing a different approach to protecting your legacy.

It was bad enough when grocery store tabloids and Robin Leach provided occasional looks into the lifestyles of the rich and famous.  Today we have 24 hour reality TV networks and Facebook showing a nonstop, touched-up, fantasy version of your closest friends’ day-to-day lives.  It has gotten easier and easier to fall into the trap of feeling like everyone you know is doing better than you are.