Skip to main content

McKinley Carter Receives '2023 Best Places to Work' Award from InvestmentNews

Rock climbing 403487 1920

Should You 'Free Solo' Your Financial Plan?

Photo of author, John Binz, JD.
John Binz, JD
Financial Strategist and Chief Compliance Officer

Last year’s Oscar-winning documentary, Free Solo, was a breathtaking portrait of an athlete at the top of his game. For those who haven’t seen it, the film follows climber Alex Honnold as he attempts to climb one of the most challenging rock walls on the planet, El Capitan in Yosemite National Park (see pic below), without any ropes or safety equipment.

El CapitanI won’t spoil the ending, but one line from the film has stood out to me ever since I heard it. Honnold is speaking to a crowd at a book signing and says, “I like to differentiate between risk and consequence… I like to think that the risk, the chance of me falling off, is quite low even though the consequence is extremely high.” Essentially, anyone can see the consequence of falling 3,000 feet from the rock’s summit, but no one can see and appreciate all the steps Honnold took to reduce the risk of that ever happening.

This stuck with me as a financial advisor because it’s exactly what I try to explain to clients — It is impossible to put together any kind of financial plan without first understanding the potential consequences involved. It is quite common to see people so anxious about their financial situation that they either ignore it altogether (“I can’t deal with it right now”) or they completely succumb to their anxiety to the point where it keeps them up at night.

So what’s the solution? While it is true that technology has made investing more accessible to everyone, you should ask yourself if you have the necessary tools to successfully “free solo” your financial plan. You may be better served working with a professional who has all the tools that may reduce your risk: time, desire, and resources.

TIME: Putting together a financial plan is quite literally a full-time job…my full-time job. Keeping up with market trends, putting together an investment strategy, and consistently monitoring to make sure you are on track is a daily task for a financial advisor. In all probability, you already have a job that takes up a lot of your time. For many, limited free time is better spent in pursuit of education, their career, hobbies, or simply spending time with family. If it doesn’t feel like you can work financial planning into your daily routine, it may be time to speak with an advisor.

DESIRE: Bears, bulls, dead cats, and doves; the terminology alone is enough to make your head spin. If it all sounds like a foreign language, you are not alone. Regularly, our clients simply do not have the desire to research and monitor their financial plan. A passionate advisor can demystify the process and direct your attention where it should be, all while taking care of the details.

RESOURCES: The ability to utilize the appropriate resources is probably the biggest hurdle for the free soloing investor. Professional financial advisors use state-of-the-art planning software, coordinate with other experts, and take advantage of technical insights from reputable analysts. It would cost hundreds or even thousands of dollars for an individual investor to use the tools I use almost every day, and this doesn’t even account for the thousands of hours and dollars spent on education learning how to interpret the information those tools provide.

If you look at any wealth management firm’s website, you will see an entire alphabet worth of professional designations after their advisors’ names. This signals a deep bench of expertise among a firm’s staff that ultimately leads to a wide range of available solutions for its clients -- and most likely a better outcome than any individual could find alone.

Remember, you don’t need billions of dollars or an ultra-complex financial situation to benefit from hiring a financial advisor. Most often we meet clients when they have relatively simple questions like, “Am I on track to retire when I want?” or “What do I do now that I have sold my business?” The most important quality I look for in a client is a desire to achieve financial autonomy. It is that simple. If your goal is to create a healthy financial plan for you and your family, but you lack the necessary tools to accomplish it yourself, reach out to the McKinley Carter advisory team, or any professional financial advisor.

Related Insights
I Stock 1223929743 negotiations CJB USE for blog

Negotiation Skills: The Key to Unlocking Better Salaries, Contracts, Prices

Negotiation skills are essential in many aspects of life, from job interviews and salary negotiations to purchasing a car or negotiating contracts with vendors. By learning how to negotiate effectively, you can increase your income and savings, as well as improve your overall confidence and communication skills. Learn more.

Read More
I Stock 1305360183 CMP B Log copy 3in

Attention Skeptics: Unclaimed Property Notices May Be Worth Looking Into

We’ve all heard the statement that If it’s too good to be true, it probably is. Unfortunately, we’ve become so conditioned to ignoring items that fall into this “free found money” category that we cross the line from skeptical to cynical. Skepticism is healthy, cynicism is not. Even the statement itself contains the word “probably.”

What I’m referring to here is the unclaimed property accounts all states have. You may have seen articles or ads telling you there might be money in your name, and all you must do is fill out a form to get it. It definitely sounds like one of those too good to be true proclamations. However, in this case it isn’t. Here's why it may be worth your while to look into it.

Read More
I Stock 1342418985 copy women USE

Introducing The SAVVY: Financial Education Just for Women 

At McKinley Carter, we recognize we are uniquely situated to help women “do better” with their money. We are so proud to announce the launch of The Savvy – A Society of Women Pursuing Their Ideal Life. The Savvy will bring real world financial tips, insights, and education directly to the women we serve through digital communications, in-person events, and one-on-one conversations. Learn what's coming in 2023 and beyond to help women better embrace their relationship with money.

Read More
Play