Picking a topic for this week’s edition of TGIF 2 Minutes was both mind-blowing and challenging. Choices ranged from:
- the sentencing of Sam Bankman-Fried to 25 years in prison for fraud tied to his crypto exchange,
- the tragedy and enormity of the awful Francis Scott Key Bridge destruction in Baltimore,
- the exposing of betting scandals in college and professional sports, namely the recent scandal around LA Dodgers superstar, Shohei Ohtani and his interpreter (an overall financial greed concept gone beyond awry),
- a March 20th update from the US Congressional Budget Office on the long-term effects of the Federal Deficits (all young, yes young, people under the age of 35-40, please pay attention to this issue).
Wow, lots of JOY going into Easter weekend.
Without going too deeply into the weeds of the above situations, from a philosophical level they each may have aspects in common including greed and out-of-control financial decisions. Individuals, committees, and designated officials far smarter than I will work to deal with the consequences.
Each of the above situations involves both enormity and individual people who made financial, and other, decisions at a basic level. (With respect to the Francis Scott Key Bridge, I share in immense grief for the precious lives lost and am merely being philosophical.) Removing the bridge example, there is the basic common concept of greed, an emotion involved in too many (but not all) financial decisions. Fear – of the present and future – is another critical factor in decision making.
As a Certified Financial Planner™ a key part of my job is to maximize returns for clients. My job is also to attempt to moderate my clients’ emotions when it comes to elation, fear, and greed in order to increase the likelihood that financial goals and dreams be realized. This exact thought came to mind this week in a conversation with a friend about the DJT offering, the Trump Truth Social public stock debut, but that is another story.
Back on the earthly, individual investor and business owner level, attempting to moderate (or eliminate) greed in both mine and my clients’ lives is not easy! The trade-off of minimizing or eliminating greed can be slightly lower portfolio returns or company valuations but also gaining peace of mind and the ability to sleep at night – in one’s own home sweet home.
What is the point? Attention needs to be paid – in the present – to each financial decision a person makes (even to the number of – if any – March Madness brackets to be entered) and the “how”, or thinking, behind the ultimate decisions made and potential consequences. Asking for advice and taking extra time with large personal, portfolio or business decisions can make a lifetime of difference.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.