Guiding Principles Series – Principle 3 – “We pursue the reduction of complexity in our clients’ financial lives.”

Welcome to the Ten Talents Guiding Principles series! This article dives into Guiding Principle #3, “We pursue the reduction of complexity in our clients’ financial lives.” If you haven’t read the Introduction to the Guiding Principle series, you can check it out here.

Complicated is better, right?

When it comes to handling money, sometimes we think complex solutions are more sophisticated. The more complex the financial solution, the smarter we must be, right? Certainly, there is a place for complexity within certain parts of your financial plan. But in most situations, the complex solution only serves to delay action and implementation. Remember, we relate to money primarily on an emotional and behavioral level. A more complex solution will likely take longer to implement and be harder to understand. Slow and confusing is not the recipe for winning with your finances.

Math, science and money

A good teacher should be able to take complex topics and explain them in a clear, relatable manner. In many ways, a good financial planner is like a good teacher. Subjects like math or science are typically not class favorites. But a good teacher can make these subjects accessible by reducing the complexity and providing a framework for problem solving. Similarly, money and personal finance can feel like math or science. But you won’t flourish by making your financial life more complicated, just like making math more complicated likely won’t help you get an ‘A’. This is why we make pursuing the reduction of complexity in our clients’ financial lives a Guiding Principle.

The ultimate sophistication

Leonardo da Vinci has been credited with the quote, “Simplicity is the ultimate sophistication.” It’s important to point out that simplicity doesn’t mean stupidity. Simplicity also doesn’t mean easy. Simplicity means, simply, less complicated. Wouldn’t it be great to have a less complicated financial life? To actually feel empowered making money decisions rather than intimidated? Making your financial life less complicated is a big deal at Ten Talents. When faced with a problem that could be solved with a complex solution or a simple solution, all things being equal, we pursue the simple solution. Does this make our advice appear less sophisticated? Perhaps. Unless of course you agree with Mr. da Vinci. 🙂

– Kaleb Paddock, CFP®

You can learn more about Ten Talents and Kaleb, a financial planner based in Parker, Colorado, here.

This is part 3 of 7 of the Ten Talents Guiding Principles series. To learn more about the Guiding Principles series, please check out the Introduction here.

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