58 | The Wizard Behind the Curtain

In a conversation with a close friend, we arrived at a crossroads.

He asked/said, "The way I understand our investments is that we send money 'behind the curtain to the Wizard of Oz' and he messes with it trying to grow it to be as large as possible so we can retire, pass some along to our kids, and maybe help pay for college. Isn't this all that is happening?"

My only response was, "No, that is not right."

I wasn't abrupt because he made a mistake or because I was frustrated.

I was abrupt because he articulated a modern-day perspective towards investing so clearly and I had to be sure we didn't get further into the spin cycle that flashy marketing and a deluge of information have created.

The "grow as large as possible" and "isn't this all that is happening?" are topics for another day.

The concept of the curtain and the Wizard of Oz is what I want to lean into here.

A couple of decades ago, there was a curtain and there were keepers of secrets that could provide access or information that was important.

In what has been a positive trend for a couple of decades, the "curtain" has been removed and we have shifted into a world where everyone has access to all the information (and investments!) they could ever need.

At times, I think this trend is hard to recognize because the industry that is dedicated to improving "financial well-being" is not organized in a manner that can embrace this new reality.

The industry continues to cling to managing investments when they aren't what matters most, presenting information as if it's a secret, and promising certainty that doesn't exist.

This failure to re-organize has created one set of problems, but the attempts at "financial advice post-curtain" have only compounded the issue.

As the curtain has fallen, the industry's response has been a deluge of information in the form of tips, tactics, and products that are more redundant and inapplicable than ever before.

We've traded the curtain for confusion.

For as much confusion and anxiety as the curtain caused, I think the deluge of information post-curtain has had the same effect - maybe more.

If we're picking tools to navigate the post-curtain world, a leaf blower that can push away the cheap info is much more useful than the pre-curtain vacuum that could suck up every particle of available info.

You have all the access you need, there is no Wizard of Oz behind the curtain, and a leaf blower is more useful than a vacuum.

If we can acknowledge these realities then we can get onto the things that actually allow us to take the reins on our relationship with money. Sustainable income. Content spending. Accessible savings. Patient investing.