I came across an article the other day that struck me.
Banks will collect more than $30 billion in overdraft fees in 2020
This headline brought me back to my first years in banking and investments and how this headline is an ongoing gap in the financial service industry, even now – almost 16 years later.
When we think of “coaches” we usually confine that concept to sports.
But in the last 5 years “coaches” have been coming about in more than just the context of sports.
There is this strange dichotomy about coaches.
In essence, the coach should appear to simply ‘nudge’ you in the right direction and very quickly make themselves – unneeded.
Until next time.
Something the masses typically categorize as an unnecessary “luxury expense”.
But then you look around and notice something peculiar.
If it’s simply a luxury, why do the greatest of the great in any field – have coaches?
The best sports athletes in the world, top corporate executives, top actors/actresses, etc.
They all have coaches, yet they are the best.
I think it’s because coaches are designed for one very specific thing.
To give you an edge.
To give you an edge, in an arena poised to defeat you.
I think the financial industry has become, unfortunately, that.
An arena ready to exploit any weaknesses in our human psychology.
It’s so obvious once you begin to pay attention. It’s not very complicated.
Just observe something as simple as your credit card bill the next time you see it.
Notice how the things in the largest font are things counter to your financial well being.
Perhaps the minimum down payment?
A classic example of “anchoring bias” – a cognitive bias that causes us to rely too heavily on the first piece of information we are given about a topic.
The list is endless and the article I came across simply reminded me of the challenges this industry poses.
In the world of investment management and financial coaching, even amongst my peers, there is a tremendous lure to simply aim for the “high net worth” individual.
“That’s where the money’s at”
Even in my previous life-times when I worked with Wells Fargo or when I was an advisor in the Global Wealth Management Division at Merrill Lynch (before they merged with Bank of America)