Life is the most difficult exam
Life is the most difficult exam
Life is the most difficult exam.
Many people fail because they try to copy others, not realising that everyone has a different question paper.
In financial planning, we see this all too often.
People coming in saying:
“My neighbour told me to buy these shares”
“My accountant told me to buy an investment property”
“Brad from the pub gave me a tip & said bitcoin was going to go through the roof”
“My husband is in a union at work, so an industry super fund is best for me”
“A term deposit on TV guaranteed a 10% per annum return”
“My friend lost money in their super fund during the GFC, so I don’t believe in super”
“My wife had an income protection policy with a 90 day waiting period. She was off work for 4 weeks with a broken leg & they didn’t pay out. Insurance companies are rip offs, I never hold any insurance”
People are wired to compare themselves to someone else.
This is difficult in most circumstances, as everyone has a situation that is unique to them. Everyone has a different “question paper”.
They may have different goals, different family situation, different financial situation, different things that make them happy, or even a different idea of retirement.
Never compare yourself to someone else, we all are at different stages in our own race.
In addition, we see many people make their financial decisions by applying their own personal filters.
Their filters include their personal values & beliefs, overlaid with their past experiences or evidence they have.
For example, those that lived through periods of economic depression, whether they have experienced it first-hand or witnessed wide-scale and economic dislocation, likely bring these memories into their attitude to money.
For instance, pre-retirees and retirees whose retirement savings were impacted by the Global Financial Crisis have strong experiences which they are likely to take into consideration when making financial decisions today.
For these investors, the losses incurred during those periods either forced them to prolong their retirement or adjust their lifestyle expectations accordingly. It also means their personal experiences may make them weary of the share market based on that experience.
You don’t arrive at your financial decisions by accident. Your personal values and life experiences in varying degrees influence how you arrive there.
But understanding the drivers behind your financial decisions, can shed some light & help you to rationalise future choices.
We support people with their exam.
At Newcastle Advisors we have an innate ability to solve problems.
So whatever your situation, we have the knowledge, experience & expertise to guide you through the “exam” and find the answers to your personal “question paper”.