informed decisions

It’s All About the Numbers and Feelings but Also Numbers and Don’t Forget Feelings

photo shows a journal page with "I want..." written on it

“We figure out what we want with our feelings. We learn everything we can learn from the numbers.” — Me 

Sometimes new clients are surprised when most of our work together is conversation. There’s very little button-clicking on a computer that will do us any good while we’re meeting. And there’s no chart or binder just sitting in my office—or anywhere!—that can tell us what we need to know: 

  • What does money mean in your life? 
  • What are your goals? 
  • What’s working? What could be better? 

There are choices to make that do involve some math, of course. That’s a big part of our role. But your job? Figuring out what you want and how you feel about how to get there. 

In their book No Hard Feelings, Liz Fosslien and Mollie West Duffy explain, “When people talk about decision making, they tend to assume that feeling something and doing something with those feelings are the same thing.” Some folks notice a feeling swell up in the process and try to shoo it away, thinking it will only gum things up. Surely, if we “open the floodgates, we’ll be bowled over by the crush of our emotions.” 

But that’s not giving ourselves much credit, is it? Gut feelings aren’t random signals. They can be clues to our self-knowledge. Ever bought a house, juggled job offers, or gone on a first date? 

Our feelings can help us figure out what we can live with and what we cannot. And as we’re fond of saying, “your money, your life.” No matter what happens in our conversations, clients, you’re still the one that has to live with your life—not us. 

We’re here as partners, collaborators, coconspirators… you get the idea. Reach out when you’re ready.


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It's All About the Numbers and Feelings but Also Numbers and Don't Forget Feelings 228Main.com Presents: The Best of Leibman Financial Services

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A 100% Chance of Weather

photo shows a misty landscape, partly in light rain, partly in blue sky

Understanding the risks involved is an important part of decision-making. Most would agree, I think, because how can we make informed decisions without weighing the consequences?

What makes it tough, however, is that a lot of financial planning literature uses the word “risk” when they’re actually talking about volatility. It’s about as helpful as the local news personality letting us know that weather is ahead: “There’s a risk of weather today! Heads up, everyone.”

How would that possibly help us make informed decisions?

Instead of railing against the presence of weather—or gravity, or any other to-be-expected force!—we like to spend our energy paying attention to risks that can actually affect our long-term goals.

Recall that in our shop, risk assessment takes place with a long time horizon in mind. We believe that you should have the money you’ll require for the next 3–5 years invested outside of the market. (Short-term volatility is a risk during the short term.) If you’re parking your money with us for a longer time horizon (3+ years), here are some risks you can expect we will factor into our strategy:

  • Concentration risk. Too many eggs in one basket could spell trouble if the basket upsets.
  • Inflation risk. Over time, what’s the likelihood this investment can outpace inflation? Put another way, what’s the risk of losing purchasing power over time?
  • Investment risk. What’s the likelihood that this investment will substantially change for the worse as time goes on or that the players could go out of business?

How much risk a portfolio might endure depends on a number of factors—your investing time horizon being just about the biggest one. There are other types of course, but these are some of the main examples of the risks we’re attuned to.

Volatility isn’t one of them. We don’t “mitigate” weather by hiding in a burrow forever; we don’t react to short-term swings by pulling out. As if we could spell it out any plainer, here’s our periodic reminder: we live with volatility in the pursuit of long-term gains.

Clients, when you want to talk risks, time horizons, and goals, email or call.


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