Our daily struggles might have more going for them than we first think. Imagine tripping on the coffee table and thinking, “Gee, it sure is nice to have toes to stub!” A little perspective goes a long way. So “rock bottom” may sound like a terrible place to find oneself, but it also could make a solid place to push off from. This week’s video: a serious lesson from a funny show.
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Friends, some of us became acquainted with each other when one (or both) of us was in a moment of crisis. Loss can come in many forms, at any period of life. Some are thrown for a loop after being laid off or taking retirement earlier than they’d imagined. Sometimes a death or illness shifts everything in a family. Maybe debt or other baggage from an earlier chapter catches up with us in this one.
A new low is not a fun place to find ourselves. It can feel sad, and overwhelming. There are lots of ways to think about this place, like being “up the creek without a paddle.”
This idea is also the premise for the Canadian hit comedy Schitt’s Creek. The show takes it to the extreme: the Roses, an ultrawealthy family, suddenly lose everything when the government discovers their business manager has run off with all the money. It’s all gone—their business, their home, everything. And they must make do with their one remaining asset: “The kids,” the self-involved mother Moira says, referring to their adult offspring.
“The children are dependents, Moira,” their lawyer corrects her. The government allows them to retain Schitt’s Creek: a small, rural town they once purchased as a joke.
Hilarity ensues as the pampered adult children and their out-of-touch parents must face the shock of their change in status, the loss of their network and friends, a crumbling reputation… and a pressing need to learn to do things for themselves!
No one we know in real life has faced anything quite like this, but being able to laugh at and with the Rose family can help us shore up our own inner assets. When it seems like things couldn’t possibly get any worse, we may have an opportunity: things can only get better!
So whether you’re starting your investment journey or starting over in some way, any day is a great day to begin. We can give ourselves a new Day 1 at any time.
The Roses eventually saw things this way. Each family member gradually took new risks and learned new things. Both children find themselves jobs and then start new businesses; the father finds partners to start a local franchise. After a few stutter-steps, even Moira manages to relaunch her acting career.
And, wouldn’t you know it, the children even learn to ride a bike for the first time.
In the end, each becomes more self-reliant. They find ways to take their experiences and talents and transform them into something they can offer others. Can you think back to a time when you had to learn to do something different for yourself? Or when you had to change or rebuild a habit?
Each of us has done it, over and over again, throughout our lives. It happens in our school days, at each new job, with each change in our families and households. If you’ve done it before, you can do it again.
And, honestly, if the Rose family can do it… anyone can. We’re ready to help you begin (or begin again), anytime.
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Play the audio version of this post below:
You’ve heard us talk before about the long run. We are all about the long run at 228 Main! Goals with their longest reasonable time horizon benefit from the space to flourish, in our opinion.
The way we and our families weather challenges might say something about our resilience—the capacity for “getting back up again.”
In fact, some research suggests that approaches to parenting may be related to future financial benefits for families and communities. It seems life costs more later for children who don’t have a chance to learn resilience.
How can parents help? The research suggests that the factors that matter most are how parents respond to their children and how parents set expectations and make demands. Together, these two forces help people learn and grow in a safe way.
Consider relationships you’ve witnessed in your life. Maybe you’ve met folks who “had every advantage” but were never challenged as children, or maybe people who had demands put on them as children but didn’t receive the feedback to feel safe enough to stretch themselves.
It turns out “sensitivity”—that is, responsiveness—in relationships can contribute to a person’s sense of stability. No matter one’s financial standing, a sense of stability can have impacts on our financial success: we may make very different decisions when we feel less confident about the future.
We don’t choose our first families, but I have a feeling we can help each other develop resilience at any point. Clear feedback and meaningful expectations? They may be tools to stronger relationships—and more resilient wallets.
Clients, we’re here for the long haul. Thank you for joining us.
Call or write, any time.
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Play the audio version of this post below:
Psychologist Shawn Achor wrote about crisis and adversity, recurring features in both the markets and life. Stuff happens, as they say.
Achor says there are three alternate mental paths in the aftermath of crisis.
The first one leads nowhere. We simply expect the crisis conditions to continue. The second one leads downward to more trouble, a continuation of the trend. We humans do tend to believe current conditions or trends will continue.
Finding the third path is difficult when times are tough. Many people do not see it because they do not believe it exists. The third path leads from the challenging conditions to greater strength, capabilities, opportunities and success. Think of it as falling forward.
Studies show those who conceive of failure as an opportunity for growth are more likely to find the third path, and experience that growth. Others have talked about the same concept with words like resilience and grit, or more vividly, post-traumatic growth.
We see this pattern in the investment markets. Although historically the stock market has recovered sooner or later from every downturn, some investors do not recover. Those who can only see the first two paths have a hard time staying invested. If they sell out at low points, believing the crisis conditions will continue or worsen, what might have been a temporary loss becomes permanent.
By the time they see the third path, the market may have already recovered. Their diminished pool of capital can only get reinvested at higher prices, perhaps to repeat the cycle of crisis and loss.
Fortunately, here at 228 Main you clients tend to have productive attitudes toward investing. You can see the third path, which is a big advantage. If you would like to talk about this or anything else, please email us or call.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
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