One of the most difficult challenges we face is choice. Generally, it’s not what we choose that causes problems, it’s what we choose to do without. Let’s face it, simply having choices is an amazing gift because much of the world struggles to simply survive. They’re not haunted by the choice of whether to suffer with the old iPad or get the new model. Thus, choice is a by-product of affluence.
When we’re faced with career choices or financial decisions, we are limited by our individual filter: our past experiences, our education, prejudices. We do our best to make un-biased decisions, but we’re handicapped by lots of baggage.
Let me offer one simple suggestion. Consider that most products are amoral. In other words, they are neither good nor bad. Rather, how we choose to use the product determines its ultimate “goodness.” In financial-speak, consider the age old debate of term life insurance versus permanent life insurance. Which is better, which is good and which is bad?
Flawed argument.
How do you intend to use either product? What is your objective? Most importantly, what questions are you asking to determine if you even need life insurance? It turns out that life insurance just sits lifeless on a proverbial shelf until someone puts it to use. Thus, the product is amoral.
Rather than blindly enter into a decision about the merits of a product or service, ask yourself “do I even know the right questions to ask to evaluate the information I’m about to receive?”
We are now in the habit of teaching our clients to ask some critical questions before making financial decisions. We are teaching them a process to break free of some of their misgivings and misconceptions that may have plagued their decisions of the past. This empowers them and frees us to make choices without bias. It’s liberating.