I started my career as an advisor the old-fashioned way: With a telephone and a list of numbers. Cold calling was the way to find clients for decades on Wall Street. But in the ‘Do Not Call’ days of 2006, the path to success was not the same. Still, each day I had a piece of paper with numbers 1-200 written on it. Each time I dialed; I crossed off one of the numbers until I reached 200.
On occasion, someone would answer. I would try to find some common ground on the topic of personal finance to get the conversation going. I remember one call in particular when a gentleman answered. He let me introduce myself before asking me with a taunting tone in his voice: “Are you retired? Do you have millions of dollars? Why would I take advice from someone who isn’t rich?”
Ouch. I didn’t have millions of dollars. I didn’t even have tens of clients. However, I knew that a bigger bank account would not make me a better advisor. What would make me successful and allow me to impact my clients’ lives would be how I used my INFLUENCE.
Rick Rubin is a Grammy-Award-winning record executive and music producer who co-founded Def Jam Recordings and American Recordings, and is the former co-president of Columbia Records. He also can’t play an instrument and self-admittedly would be lost trying to operate a soundboard in a recording studio. Despite that deficit, or maybe because of it, some of the most influential records of the last 40 years were produced by him. Run DMC, Johnny Cash, Red Hot Chili Peppers, and Adele all entrusted their songs to Rick Rubin.
Why would Johnny Cash listen to advice from a non-musician? He listened because Rubin has built a career out of understanding what the artist is trying to create. No matter the genre of music, he is searching for the essence of a set of songs that could be very different from the last time the artist recorded an album. Then he creates ideal conditions for the musicians, the songs, and the production to be at their best. He is arguably the best in the world at influencing popular musicians to record their music.
Rick Rubin wrote a book this year titled, “The Creative Act: A Way of Being.” I expected to find anecdotes about the Beastie Boys. Instead, he writes about a creative collaborative process that consistently creates excellent if often unpredictable results. Surprisingly, I found parallels to the work that I do as an advisor.
Here are some insights that apply to the influential relationship between advisors and clients:
“Success occurs in the privacy of the soul. Success has nothing to do with variables outside yourself.” – Rick Rubin
On measuring success: Regarding the gentleman who was not going to take advice from someone less rich than him: I think he was using the wrong measuring stick. The most successful investors I have encountered are the ones who have an internal sense of “enough” and keep away from the enemies of comparison and the variables outside themselves.
“The recognition of abundance fills us with hope that our brightest ideas still await us, and our greatest work is yet to come.” – Rick Rubin
An abundant mindset: In the summer of 2022, many people were miserable. The University of Michigan’s Consumer Confidence Survey hit its lowest point ever (over 50 years!). We heard it in the news and from clients that everything is terrible: markets, inflation, politics, all of it. Frankly, by the end of 2022, we were fed up. Nothing is ever perfect, but all is not lost either.
That is why we made INFLUENCE one of our words for 2023. We wanted to influence our clients to think optimistically about the possibilities for their finances, their work, and their families. If we think our best days are behind us, then our plans are stuck in the mud. Just as doubt can stop an artist’s creative act, pessimism can paralyze a financial plan.
“To be self-aware is to have the ability to tune into what we think, how we feel and how much we feel it without interference. To notice how we notice the outside world.” – Rick Rubin
On self-awareness: Tuning out the noise is hard. If you were recording a rock album in 1992, it was tempting to make it sound like Pearl Jam or Nirvana. As an investor in 2021, it may have been tempting to chase after crypto or SPACs. There is nothing wrong with letting the outside world influence us, but having self-awareness means knowing who we are before we act.
I do not have a television in my office. I read most of my news at the end of the day. If we don’t consciously tune out the noise, we can be convinced that not only is there always a crisis, but it is always OUR crisis. That’s not true. Notice what you are noticing and choose what to tune out.
It would be tempting for a music producer to look for a hit or have a heavy hand in the studio (“I need more cowbell!”). Similarly, advisors could choose to use their influence to apply pressure to buy, sell, or chase trends. I believe there is a better way to influence.
These are the ways I can have a positive influence on the families I serve:
- Each family’s plan is a work in progress. I can help families to think creatively at every stage of life.
- My job is to look closely and notice things in their financial lives that the family may not see.
- Just like “Good habits create good art”, reinforcing good financial habits can build confidence.
If you are looking for this kind of influence on your family’s financial plan, I welcome you to reach out. Use this link to find a time that works best for you.
Aggressive Balance is a biweekly e-newsletter authored by Dennis Morton, Co-Founder and Principal of Morton Brown Family Wealth.
A gifted storyteller and financial advisor by trade, Dennis explores topics of leadership, finance, and the human condition in his writing as they relate to curating a life worth living.
Get additional exclusive content delivered straight to your inbox by subscribing today.