How Committed Are You?

How Committed Are You To Fixing Your Problems?

                                                          By: Brendan Magee

I met with a very nice husband and wife who discussed a variety of financial issues they were dealing with. They had been trying to sell a piece of real estate for a view years without success. It was costing them money and added stress. They had almost a half a million dollars in a portfolio that like a lot of people’s investments in the last few years that had taken its share of lumps. They had been working with a stock broker who wasn’t giving them the service or advice they were looking for. They had options on the table but weren’t confident in choosing any of them.

These were the problems they were aware of. Our conversation revealed several more serious problems they hadn’t even considered. There was no written plan to guide any of their decisions. Their decisions were more akin to grasping at straws. They had a portfolio, but didn’t’ no how much risk they were really exposed to. Like a lot of people they were using broad ambiguous answers that really told them nothing in terms of how much risk they were really taking. They had no way of knowing whether or not they were properly diversified nor did they know what true diversification really looked like.

They had no idea of whether or not their portfolio was delivering the returns it should. With nothing to measure success or failure by, it was any one’s guess as to whether or not it was working. Cost was also something they hadn’t gotten their arms around. They really didn’t know how much their brokers were charging them to manage their money. Thus they had no way to gauge value.  So many serious aspects of their finances were being left to chance and it’s one of the reasons they described their experience of their finances as if they were just floating.  They had nothing to anchor themselves to in order to feel more secure.  They had so much on their plate and had no idea of where to begin. In their opinion they were lost. The impact of their problems was affecting their finances, stress level, etc.

 As we wound down our conversation, I asked them the most important question I could ask, “On a scale from one to ten, with one being the least and 10 being the most, How committed were they towards fixing their problems?”

For whatever reason, they both said they were a six. I am not judging them one way or another, but their answers told how much of an impact any coaching was going to have on them. The answer was zero. Their problems didn’t bother them enough for coaching to make a difference in their lives at all. I told them that yes between the real estate sale, the poor service of their brokers and all the things they didn’t know about their investments, yes they had some very serious problems.

However, they had an even bigger problem. They didn’t have enough motivation to fix their problems.  All the problems were going to continue because of not being committed enough.  A coach can provide all the tools and instruction, but if there isn’t enough motivation within the investor to fully participate, absorb, and implement the coaching it would be a waste of time, energy, and money. Let’s face it most of the times coaches are trying to get us to do the things we don’t want to do. Without the drive, how long are we going to put up with the b.s.? Why would we even bother?

In my opinion if you are anything less than a nine you do not have enough motivation to benefit in any way from coaching. Again, these were very nice, hospitable people. I am not condemning them in any way. It’s their right to decide how committed they are about fixing their problems.

This example does lend credence to just how important the investor is in determining how successful they are going to be. So in closing our meeting, I told the couple It would be better to not engage in any kind of coaching relationship at this point. They agreed and unfortunately the same problems they woke up with that day will be the same ones they wake up with tomorrow. Nothing changes until you first say, “enough!”

Brendan Magee is and investor Coach located in Drexel Hill, Pa. 19026. With questions, comments, or suggestions call 610-446-4322 or email, Brendan@coachgee.com. Tune into his Investor Coach’s Show on am1340what radio every Saturday at 11am. You can also follow him on Facebook at Brendan Magee-Investor Coach.