Welcome to the second quarter of 2018. In the first quarter, we reviewed “default buttons” and how important they can be in our lives. We can decide which ones to accept and which ones you need to adjust. “Default buttons” and “nudges” are important for keeping us on track in pursuing our goals.
Last year I suggested you read the book, “Start with Why” by Simon Sinek. Sinek has said many times people spend too much time explaining what they do or how they do it, and not telling us why they do what they do. I hope you spent some time on the book and some time formalizing your “why.” Remember, your “why” is your Dream. Every great “why” needs an equally great “how.”
Picture your Dream like a large mountain in front of you that you must climb. It can and will seem overwhelming at times. Which is the best route to take? What if we meet unforeseen circumstances? Even the foreseen can be overwhelming. Now think of your Wealth Advisor as your "Sherpa" – your guide. They will help you navigate the peaks, valleys, and crevices of the mountain. As you travel, you must trust your Sherpa.
In his book “Hit Refresh,” Satya Nadella (CEO of Microsoft) describes an equation for trust. I will adjust it to fit your Wealth Advisor. E + SV +ET = Tt. Empathy + Shared Values + Established Tolerance = Trust over Time. It is the Investment Policy Statement established between the client and the Wealth Advisor.
Let’s break down the other variables in this equation . . .
Empathy = Understanding each other’s feelings
Shared Values = Understanding the appropriate process
Established Tolerance = What you can emotionally handle
Understanding this equation, the Sherpa can take you through the climb, maximizing your Dream at the peak.
In the next two blogs, we will look at Foreseen and Unforeseen “obstructions.”