This is my 3rd article on why Dr Suess was an unwitting financial planning genius. You can find the two previous articles here and here.

Let me tell you a story. On a regular basis I attend networking events. My intention when I go to these events is to catch up with people I know, meet new interesting people and start (or continue) to build relationships which may mean we work together in the future.

The other day I was at an event like this at a bar in the shadow of Canary Wharf (in the center of London’s ‘new’ financial district). A smart looking chap came up to me and after we’d exchanged some pleasantries he wen’t into his obviously well rehearsed ‘sales speil’.

“Well Chris” he started (I’ve highlighted parts of our conversation in bold text where he vocally and physically emphasised the point) “I work for a company promoting a new Swiss Trust. This trust provides it’s clients with a 9.6% annual return (paid as a bonus) with no risk. It’s fully insured and protected by (insert name of a large financial institution here)…….”

After about 5 minutes he paused for breath.

I decided to ask a few questions about this ‘amazing investment opportunity’ (the other chap’s words not mine) to understand a bit more about the mechanics of how this particular product worked and whilst he used superficially impressive phrases like “Fiduciary responsibility” and “Counterparty risks” were used I still wasn’t any clearer at the end of a 15 – 20 minute conversation how this particular opportunity worked.

The most dangerous thing was that neither did the individual marketing the product!

So, what’s this story got to do with “Oh! The places you’ll go”? Do you remember this phrase in the book:-

Dr Suess (is yet again) absolutely accurate. You are too smart to go down any “not-so-good street” (or put your hard earned money in some ‘not-so-good’ investment) but only if you’ve taken the time to look over the streets you go down with care! This phrase also highlights the fact that what you invest in is your choice.

You can choose to invest. You can choose not to invest. Whatever you decide….it’s you choice.

Now Dr Seuss is (in my opinion) obviously a genius. However the issue with some of the financial decisions we make is we don’t use our  “Head full of brains”.

We all make gut reaction decisions and actually as humans it’s really tough to live our lives without doing this.  The issue with this is that making decisions using your ‘gut’ is that when it comes to making really important decisions we continue to do the same.

I’d suggest that investing a proportion of your life savings and potentially impacting when and how you’re going to be able to live the life you want is a decision you want to be thoughtful about.

Dr Seuss was right…

“You’ll look up and down streets. Look ’em over with care.”

This means using the logical and reasoning part of your brain. Taking the time to make decisions based on the facts not on superficially impressive language, or offers of guarantees, or anything else which might sway your impression.

If you think you make sensible logical decisions all the time….You’re wrong.

None of us do…and that’s not a bad thing! As I’ve already said we couldn’t live our lives if we just made logical decisions.

The key shift is to understand that sometimes we are wrong (avoiding ‘overconfidence bias’) and taking the time to ensure we take the time to fully understand a decision and ask the right questions before making a choice (or as Dr Seuss would put it – “Look ’em over with Care”).

This will ensure….and let’s go back to Dr Seuss to finish this entry off….

“You’re too smart to go down any ‘not-so-good’ street.”