Not As Simple As You Think

Read Time / 4 Minutes

Theme / Financial Planning

You think it would be simple, easy to do. I mean really, how hard could it be? All you have to do is look in the trees, look in the water, or look in the sky. You’ll see one, and then you won’t. You’ll hear one, and then you won’t. You’ll see one a long way off but it is difficult to identify.

What am I talking about? Birding! It is the challenge of finding and identifying birds, whether they are in the trees, in the water, or in the sky. Starting the hobby of birding is easy. Get a pair of binoculars, walk outside, and look and listen. Soon enough you see one bird, then another. Then the fun starts. What kind of bird was it? Snapping a picture with your cell phone and searching on the internet is helpful for identifying.

But as you look for more birds, you want to start keeping a list. In birding terminology, it’s called a Life List. Smartphone apps like Merlin Bird ID and eBird simplify keeping a Life List, but then the real fun starts. There are birds you regularly see, then you learn about other birds that you’d like to see, but they aren’t easy to find. You then go birding specifically to find a particular bird.

In birding terminology, it is called Target Species. To shorten the search, you look on-line where and when you might see the bird, or you connect with an experienced birder who may give you some hints or personally lead you to the most likely places. Then, success! You see the bird and you add a new bird to your Life List. Then it’s time to find the next bird!

I went looking for a Northern Yellow Warbler recently. I know they are in Idaho now as I hear them but have yet to see one. What is frustrating is they are a ubiquitous bird in the spring and summer in Idaho, so why haven’t I seen one? Part of the challenge is they favor brush habitats near water, often foraging in shrubs low to the ground. And that is when I hear them, when there is a forest of bushes in front of me. You would think that a yellow bird would be easy to find in the greenery of bushes, but alas, the Northern Yellow Warbler is small. To add salt to the wound, the internet says the Northern Yellow Warbler is conspicuous, which is an adjective that describes something that is very easy to see. Argh!

As a financial advisor, and new birder, I see similarities between investing and birding. most obvious is why. Why are you investing? What are you hoping to accomplish? The What are you investing in? Finding Target Species and building a Life List requires a goal and a strategy, and you should approach investing the same way.

One consideration is your goals. Are you saving for retirement? If so, are you using a traditional IRA or a Roth? What’s the difference, and what is the best strategy? A second consideration is your values. Are you happy to invest in any company that makes money? Do you want to profit from pornography, abortion, or gambling? Biblically Responsible Investing is the term used to screen investments before investing, to make sure you are investing according to your values.

Hopefully, by the time you read this I will have seen a Northern Yellow Warbler. But if not, my search will continue. It is my current Target Species and I’m refining my strategy to find one. Finding a little yellow bird is one level of importance, but investing for your future is a much higher level. Make sure you know your goals for investing. Make sure you follow a strategy – especially one that matches your values – to reach your goals.

Excuse me now, I need to go find that little yellow bird

Doug Hanson, MBA

Wealth Advisor

(208) 697-3699

doug@christianwm.com