Broker Check

Decisions in Advance

February 16, 2022

If you watched the super bowl this past weekend you probably saw both coaches holding big white sheets of paper with their game plan written on it.  These coaches spend unbelievably long hours every week putting together their unique approach to each game.  Most can recite their game plan by heart before kickoff if required. So why write their plan down rather than just relying on memory? No matter how well prepared or how many times a coach has been through a big game, when 80,000 fans are screaming at them in the 4th quarter of the Super Bowl, human nature has a way of taking over, clouding the mind and making correct decisions difficult to produce. 

The solution that keeps most of these coaches looking calm and collected even in the most pressure packed environments?  They write down their favorite plays for certain situations far before players take the field.  When the game is on the line, and pressure is at its peak, coaches don't have to conceive their best idea amidst a sea of chaos - they simply look at a box on their sheet titled '3rd&Short' and pick from a curated list of plays.  The decision of what play to call was made days before the game in the comfort of their quiet office.  No adrenaline.  No time pressure.  No screaming fans. 

Our insurance partner has been asking their renewing clients "Are you nervous about your portfolio?"  Given the market performance to start the year, they're seeing far more people answering "Yes" than in months prior and referring them to Wise Wealth to help ease some of that anxiety.

Like that football coach, the reason Wise Wealth Management clients don't experience similar trepidation over near term market performance is because they've made the bulk of their financial decisions years in advance, far before any near term pressures impact their ability think clearly and rationally.  They've chosen a risk level for their long term investments they can maintain and know that near term performance is just 'noise' surrounding money they won't need for a decade or more.  For near term goals, theoretically more sensitive to the market's short term whims, we've decided how much capital is needed for each goal, where that capital will come from, and ultimately invest that capital conservatively giving them confidence that their purchasing power will be there when they need it. 

Planning allows for comfortable decision making in chaotic environments and helps alleviate anxiety around short term goals. That's why the Wise Advice planning framework  will forever be at the center of how we serve our clients allowing them to make confident decisions about their financial future regardless of the current market environment.