Speeding Up & Slowing Down in Financial Decision Making

It is still close enough to the start of the year to step back and be intentional about how to approach:

1. 1. a new year — and beyond — of sound financial decision-making
   2. portfolio management
   3. broader financial and investment strategy.

It starts with slowing down. There are a handful of truly wise books written on the topic. Two come to mind:

• • Thinking Fast and Slow in 2011 by Daniel Kahneman (Nobel Prize winning psychologist and economist — his Nobel Prize was for economics)
  • Slowing Down To The Speed Of Joy in 2025 by best-selling author Matthew Kelly

Both outline the immense benefits of moderating — or altogether slowing down — pace in decision-making. Of course there are times and places for speed in decision-making– healthcare decisions come to mind. But personal financial decisions are different and tend to be best made gradually and with a well-developed plan in place. This can take time.

The problem is that there often seems to be nowhere near enough time available to slow down in order to design and articulate both simple and more complex plans. However time is similar to investments, in that time spent upfront — a decent chunk of time — can yield meaningful benefits and relieve a great deal of pain.

By no means is the entire process meant to be a slow crawl. Rather, thoughtful conversations, follow-up questions and more thoughtful conversations allow the process to develop. Decisions are ultimately made and then can be more swiftly acted upon. Here is an introductory list of initial considerations that can take the most time:

• • Finding a trusted adviser
  • Identifying the time frame for achieving certain objectives
  • Prioritizing objectives:
    • tax, income, investing, costs, diversifying, taking risk, lifestyle spending and more
  • Coordination with a CPA
  • Relationship with Trust and estate professionals
  • Developing a comfort with the decision-making process
  • Evaluating the success or shortfalls of the plan
  • Deciding on a cadence for review and new idea generation.

The alternative is that NO financial decisions are made — which can be catastrophic both emotionally and financially.

What a great time of the year — before tax season kicks into gear — to pause, get intentional and put a well-crafted plan in place. I’d welcome the opportunity to talk through any of these ideas and explore what makes the most sense for your situation.

*Consult with a tax professional on ALL tax matters and tax planning. 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.