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“I FLY JETS.  WHY DO I NEED A FINANCIAL PLANNER?!” Thumbnail

“I FLY JETS. WHY DO I NEED A FINANCIAL PLANNER?!”

             Maybe you don’t. But here are three reasons why you might entertain the thought. 

             No self-respecting pilot I’ve ever met appreciates anyone else flying their airplane for them (i.e.- ATC, passengers, an overbearing Instructor Pilot, etc.)  However, sometimes it’s nice to get some assistance from those who have a piece of knowledge not currently on your radar (literally, and figuratively shown below).

             Most experienced instrument (and unfortunately non-instrument rated pilots) have encountered weather phenomenon enroute.  Deviations for cumulus build-ups and thunderstorms are commonplace in the late summer months across the country. Pilots that have an on-board weather radar available can increase situational awareness dramatically when their course takes them into the weather.  This works great…with limitations.  Many aviators have experienced a phenomenon know as “radar shadowing”, where some nasty weather is hidden behind what the onboard radar is showing.   And…BAM!...around one build-up into another, potentially more dangerous one.  (It sure would be nice if there was someone else looking out for us in that situation!)

             Now to get super nerdy into psychology theory.  There’s an idea that conceptualizes how individuals perceive the world called The Johari Window  It basically states that our perception of information fits into four different quadrants, based on who knows what. If you buy into the theory, then you’ll agree that we all have “Blind Spots”.  There are just some things that others know that we don’t (yet).  Sometimes it simply takes an outside perspective, a new lens on the matter, to move information from the Blind Spot quadrant into the Arena.   (Ideally, this article does just that!)

            The third scenario gets to the crux of the matter.   In his book: The One-Page Financial Plan, Carl Richards talks about “Strategies for Avoiding the Big Mistake” …either buying high or selling low.  One is to retain the services of a “Real Financial Advisor”.  We, as humans, are emotional beings.  And regardless of what the pundits on the financial channels say, financial planning is not about the numbers, it’s about behavior.  Too often, we, as fallible as we are, sometimes succumb to feelings of anxiety, greed, or fear. (Remember the recession of 2008?).  People saw 401(k)s lose significant “value”.  Some sold shares at this low price, locking in a loss (in real terms).  Others, many of whom had trusted financial advisors, saw the events as temporary, and recoverable over time.  Who was right?

            You fly jets! (Which, by the way, is pretty cool!).   That means you’re intelligent, analytical, and decisive.  So, you CAN do your financial planning on your own, but you don’t have to.