Perspective
Throughout my life, I have recognized that I have a vision problem. While the vision in my right eye is fantastic, my left eye always seemed a little fuzzy. I also noticed that my right eye seemed to dominate my line of sight, and if I covered my right eye, my left would take a minute or two before focusing.
When I would take eye exams in school or in the few times that I've been to see an eye doctor since, I would receive varying test results. Some years I was told that my left eye was 20/20 and others 20/30 (or worse). I would explain how dominant I felt my right eye was, but I was told that everyone has a dominant eye. In the end, I had two optometrists suggest glasses. I gave glasses a try after the first recommendation only to feel dizzy the entire time I wore them. I declined the suggestion the second time around due to my previous experience.
Since my last exam over two years ago, I've been struggling with the idea of getting glasses. Maybe that comes with age, but I wasn't ready to admit that my eyesight had faded. I was also concerned that I'd have another prescription that made me feel uncomfortable.
In early February, I decided to give a new optometrist the chance to tell me my eyesight is perfect and not to worry about getting glasses (good luck, right?). It turned out that I was half right. He told me that the vision in my left eye is 20/20, but he also informed me that I was only using my right eye to see. Due to this, my vision has been limited to two dimensions!
I was shocked. Only seeing in 2-D didn't seem right. I can tell the distance between two objects, I explained. I told him that I can see in 3-D (while I was thinking that he was a quack). The optometrist refused to back down and stood by his diagnosis. He suggested that I wear a contact in my left eye to help strengthen my vision which should allow me to see properly. He added that glasses would make me feel as though I was pulling to one side because they stand out from my eyes, but that a contact should do the trick. He assured me that in a few days I'd be seeing in 3-D. I, of course, was speculative of the advice.
When I got home, I told my wife, Heidi, all about my appointment. She said that she had no idea that I could only see 2-D. I told her that I've spent my whole life seeing 2-D and didn't know either. How could she know? Because she can't see through my eyes, she doesn't know exactly how I see the world.
It's crucial that during difficult market and economic times, that financial advisors and clients recognize that not everyone sees the world through the same eyes. If an advisor has a client that has an account down 25% while the market is down over 45%, the advisor may be inclined to be thrilled with the relative performance. That same client, however, may be panicked because his accounts have lost 25%. As a financial advisor, you must put yourself in your clients' shoes and remember that what’s best for your client isn't always the black and white facts. Sometimes what's best for your client is the advice that allows her to sleep through the night.
Clients, however, also have an obligation to see the world from different vantage points. The media is often hungry for the story that scares the viewer because fear attracts attention. When the media gets your attention, they make more money. Additionally, seeing losses on your statements does not mean that your accounts are down as much as the S&P 500 or as much as the doomsdayers say "everyone" is down. Also, those people who provide "advice" on TV often make blanket recommendations that don't necessarily apply to your financial situation. Remember not to view the financial world through the eyes of the media, but to look at the entire picture. Consider your personal performance, goals, and risk tolerance.
If you're someone that is having a difficult time losing 20%, 30%, or more during a 12-18 month time span, then you may need to review your risk tolerance. If your measurement for success is beating an index while things are good, then you're likely to be taking enough risk to lose money when times aren't good. While being panicked about the market or the idea of losing your future investments is completely understandable, those who have been or are planning to take their money out of the market may want to consider a more conservative approach to their investing going forward. Talk with your financial advisor about developing an asset allocation strategy that provides you with the appropriate mix of downside protection and upside potential.
My perspective has changed greatly over the past month because I now see in 3-D. It was a strange experience seeing the world through new eyes. The change between 2- and 3-D is slight, but its impact on my life has been huge. I hope that by making a slight change in the way you view your investments helps to make a significant change in either the way you react to market conditions or to the way your investments are allocated going forward.
With all of the issues arising at banks and the major Wall Street firms, many are beginning to seek advice from local, independent advisors. Truly independent advisors are unbiased and objective. They will work with you as a partner to help you to formulate a financial strategy that incorporates both your short- and long-term goals; tailoring your plan specifically to your needs and concerns. Also, make sure to work with an advisor who specializes in your areas of concern (i.e. LGBT planning, eco/socially-friendly investing, pension strategies, etc.).
This article is for informational purposes only and is not intended to provide specific advice to any individual. Consult your legal, tax, and/or financial advisor to determine what is appropriate for your situation.
© 2008 Partnership Wealth Management, LLC. All rights reserved.
Securities offered through LPL Financial, Member FINRA/SIPC xxxxxx 03/09
Top
< What Happened To My Life Savings?
Heavenly >
