It’s a Wonderful Life-Lesson
Do you remember in the movie “It’s a Wonderful Life” when things got bad and there was a run on the banks?
George and Mary were about to go on their honeymoon. But it was clear that something bad was going on in Bedford Falls.
Mary didn’t want George to go check it out. But George felt like he had to see what was going on and potentially help with the situation.
It became pretty clear that people were losing it. They were panicking.
And they honestly weren’t even sure why — most were just joining in with everyone else because that seemed like the thing to do.
Do you recall what the wealthiest man in town was doing at that moment?
Watching what wealthy people are doing isn’t always the answer. But it’s also true that the rich seem to get richer. Some of them may have stumbled upon something the rest of the world doesn’t know 🤔
Old man Potter was the wealthiest man in town. And he wasn’t panicking and pulling his money out of the banks like everyone else. He was buying up investments for pennies on the dollar.
You know why? He was disciplined and patient. He understood the cyclical nature of things. He understood markets and the economy.
And instead of panicking, he looked at the situation as if there were a big sale going on…because there was.
Am I saying you should be like old man Potter? Not really—you can if you want to be. But in my opinion it would be better to be more like George Bailey.
George recognized the situation for what it was as well. He was also a smart businessman and investor — only with better ethics.
He saw what Potter was doing, and he didn’t want Potter to win. He didn’t want the rich to build their riches off the backs of the poor.
George wanted the people of Bedford Falls to build their own wealth.
He even put his (honeymoon) money where his mouth was. By doing that, he kept things from totally imploding on the people of Bedford Falls.
He helped them realize that selling out for pennies on the dollar was the worst thing they could do in that moment.
He kept it together for his family. He didn’t panic. He bet on his community.
And so it is with your retirement income plan.
Many times, the worst thing you can do is join in when people around you are panicking (and when people are euphoric about the next hot investment).
Most of the time you just need to be a bit more like George: don’t join in on the hysteria.
Work towards a retirement income plan that allows you to avoid the worry and panic of the news media. Know what you’re going to do ahead of time when (not if) things get bumpy.
Because the truth is, things WILL get bumpy at some point over a 20-30 year retirement.
Stick to the plan. Stay patient. Don’t be a follower.
But most of all, if this story made you think about your plan, then DO SOMETHING to start implementing the principles. Don’t just read, DO.
Otherwise you’ll prove Derek Sivers to be exactly right when he said, “If more information were the answer, then we’d all be billionaires with perfect abs.”
And if you need someone to help you implement a retirement income plan, we may be able to help. We strive to help our clients save time, energy, and stress in their financial lives.
You can also text 469-200-2593 if you have a particular question about retirement income, wealth preservation strategies, or anything else.
Merry Christmas! I hope you enjoy “It’s a Wonderful Life” this holiday season and that it helps you when things get noisy.
Best,
Ben
Benjamin Earls, CFP®
CERTIFIED FINANCIAL PLANNER® PROFESSIONAL
