Don't Let Your Politics Affect Your Planning

One of the things about being an old, retired, former financial advisor is that I carry the scars from wounds long-ago healed as evidence of decades of turmoil and uncertainty. 

Sure, mistakes were made. Nevertheless, I survived the Darwinism of roll-up your sleeves capital markets to emerge on the other side not just a survivor - but a winner. Tell me what the rules are and I can play the game successfully.

I now belong to the ranks of grizzled, cantankerous, Silver Backs – with long hair – and who only occasionally wear socks. And I would like to share some wisdom that comes from experience that has to do with a topic everyone seems to be tiptoeing around nowadays – namely politics. Now that I'm retired I can speak freely about such things.  

When clients bring up politics it can be useful to be prepared to speak about it in a thoughtful, sensitive, and productive fashion. Let’s face it – it is pervasive – like an old-school miasma. And there are many very good reasons to discuss politics including connecting with a client to know what is on their mind – to ascertain what makes them anxious, to demonstrate empathy and be an active listener. The consummate financial professional knows to listen, to respond rationally, address uncertainties, sort fact from fiction and never allow irrational thinking to impact important planning decisions. 

The risk is that much of this is done with some measure of professional peril.  If it is sloppy and ill-conceived clients may feel embarrassed, disconnected, confused and lose confidence. The very best of advisors always make a point to leave personal politics at the day job door. They are masters of political agnosticism. They listen with the intent to understand and not to debate. And they know at all times to separate planning from politics. 

The takeaway? It’s OK to talk about what’s on your mind with your trusted financial advisor. The relationship will be all the more stronger as a consequence.  

Alas, when you see a financial services individual getting their undies in a snit with a bout of Feigned Face Book Outrage – that’s just unprofessional.   Social media outrage is for amateurs.  Introducing political bias to the planning process is done at great peril for both client and advisor.

The Mother of all Admonitions - never let politics cloud your planning judgement.  It is just fine to talk about it as long as it does not cloud sound, rational judgement.  The truth of the matter is that partisan politics does not impart one side with a winning strategy versus the flip side of the political card.  

It makes little - if any - difference.  

That is a fact. 

Smart people can profit readily under the rules advanced by inept and even unsavory political leaders.  Knowing what the rules are is the key to winning the game.  Policy should take precedence over personality.

And if you want to spout-off about politics - there is plenty of time for that in retirement.