We all have a history and carry some baggage. I am talking about money baggage. Many things helped shape our baggage: our parents, our parents’ jobs, their parents’ history with money, our first jobs, our economic condition, etc. Face it, we all look at money in different ways.
So what if you, or your spouse, agonize and stress over your money and the markets? Do you know anyone like that? There is a couple that we work with that has this issue. He is the worrier. Every morning the first thing he pulls up is his portfolio. After coffee he digs into his financial plan. Then he comes the latest market news. Repeat this 5-10 times a day. For years, his wife has not understood his obsessive behavior. She sees it as unneeded stress that carries over into their relationship…until they both figured out what kind of money baggage they had.
You see, if you break things down to the simplest level, we typically have a dominant Money Mind®. At our firm we have every client take a short quiz to help us determine what their Money Mind® is. The three different ways we think about money are:
So, back to the couple with a Fear based husband. I was visiting with his wife after they had completed the quiz that determined that he was Fear dominant and she was Commitment. She shared with me that for the first time in her life she now understood his obsession. He was wired that way and it was not really a fault of his but a need and desire to take care of the two of them in the best way possible. She now saw the good that a fear based person can bring to the stability of a home. She still gets a little annoyed when the morning coffee conversation steers toward stocks and bonds, but she has an easier time giggling at that fear based person drinking coffee with her and admits to having a little comfort level that he is actually looking out for her future.
United Capital Financial Advisers, LLC (“United Capital”) is an affiliate of Goldman Sachs & Co. LLC and subsidiary of The Goldman Sachs Group, Inc., a worldwide, full-service investment banking, broker-dealer, asset management, and financial services organization. United Capital does not provide legal, tax, or accounting advice. Clients should obtain their own independent legal, tax, or accounting advice based on their particular circumstances.
Goldman Sachs does not provide accounting, tax, or legal advice unless explicitly agreed in writing between you and Goldman Sachs. Nothing communicated to you, including within this document, should be considered tax advice. We have made no representations with respect to the tax consequences of the transactions contemplated herein. We understand that you have obtained, or will obtain, independent tax advice with respect to the transactions contemplated herein. Notwithstanding anything in this document to the contrary, and except as required to enable compliance with applicable securities law, you (and each of your employees, representatives, and other agents) may disclose to any and all persons the U.S. federal income and state tax treatment and tax structure of the transaction and all materials of any kind (including tax opinions and other tax analyses) that are provided to you relating to such tax treatment and tax structure, without Goldman Sachs imposing any limitation of any kind.