In every aspect of life, we’re constantly making trade-offs—decisions that shape our future based on what we choose to give up today. Whether it’s opting not to spend money now to save for future needs or sacrificing time with loved ones in the hopes of enjoying more of it later, every choice carries weight. But how do we know if we’re making the right trade-offs? This question is particularly relevant when we think about the decisions we make at work and in our personal lives.
Recently, our team has been reflecting on the trade-offs we’ve made as a firm. Every quarter, key members of our team step away from the daily grind to spend a day immersed in strategy—analyzing numbers, setting goals, and planning for the future. This year, we added an extra layer to our discussions by diving into a 2023 investment benchmark study, which highlighted trends in advisory compensation, staffing, pricing, and profitability across the industry.
As we reviewed the report, I found myself feeling a mix of frustration and disappointment. Our profitability, it turned out, wasn’t as high as it could be. But why? The answer quickly became clear: the trade-offs we’ve made to prioritize education, client interaction, and long-term impact.
Education is our third largest expense as a firm. We could cut costs by opting for cheaper education options, or by only fulfilling the bare minimum required by regulatory authorities. We could save even more by reducing client interactions or scaling back on services. These changes would undoubtedly boost our bottom line.
But as we looked deeper into what we’re trying to build and who we want to become, we realized that the trade-offs we’ve made are intentional. We’re not just in this for profitability—we’re here to make a meaningful impact. We’re committed to enriching the lives of our clients through comprehensive education and dedicated service.
So, we decided not to change a thing. It’s okay if other firms are more profitable. If we were to cut corners just to increase our profits, we wouldn’t be staying true to our mission.
If you’re thinking about the trade-offs in your own life—whether financial or otherwise—and how they might impact your future, perhaps it’s time to have a conversation with us. We can help you navigate the delicate balance between profitability and impact within your life and finances.
Ready to explore the trade-offs in your financial life? Schedule your Financialoscopy® today.
