Dorothy in Ozgrownland: A Financial Fairy Tale
Dorothy in Ozgrownland: A Financial Fairy Tale
by T. Claire Kest, CFP®, CAP®
"Aunt Em and Uncle Henry" are a couple in their late 40s. Their niece, Dorothy (age 22), has been living with them for the past few years. Recently, Dorothy started her first full-time job and has questions about her 401(k) at work, as well as setting financial priorities like paying off student loans and saving to buy a house, and whether she needs to file taxes. Aunt Em and Uncle Henry have a financial advisor who referred them to their attorney, and they use the same accountant that Henry's father used. Should Aunt Em and Uncle Henry introduce them to their own advisors, or help them find their own? At what point do they need their own team? Aunt Em and Uncle Henry recognize that young people who acquire financial literacy early on are more likely to steer clear of common pitfalls and mistakes, ultimately reaching their financial goals, compared to those who navigate these challenges independently. If you have a young adult in your family, here is a story you can share.
Dorothy Lost In Ozgrownland
Once upon a time, Dorothy Gale woke up in a strange place called Ozgrownland. She felt distracted and scared by the flying monkeys and witches, and confused about the direction she wanted to take in life. The cheerful Munchkins told her that following the yellow brick road—a symbol of wealth—would ultimately help her reach her goals.
The Scarecrow: Your First Financial Advisor
As Dorothy walked along the winding yellow brick road, she came upon the Scarecrow. He called to her from a Northwestern corner of the path. With an air of confidence, he encouraged Dorothy to buy into his ideas for the journey ahead.
"Start by filling my pockets and shirt with straw (money)," he suggested. "In return, I promise to assist you in making the best decisions for our adventure."
Despite his lack of a brain, the Scarecrow exuded a sense of direction and purpose that made Dorothy feel hopeful. As they walked together and their conversation unfolded, he introduced Dorothy to the Tin Man.
The Tin Man: Your First Insurance Agent
Although Dorothy was unaware, the Tin Man and the Scarecrow worked together, forming a secret alliance. In exchange for a regular supply of oil (insurance premiums), the Tin Man promised to take care of Dorothy's puppy Toto if Dorothy got in trouble. In return for the introduction to Dorothy, the Tin Man stuffed more straw into the Scarecrow.
The Lion: Your First Attorney
The caring Scarecrow encouraged Dorothy to prepare important documents to give to the Wizard in case she couldn't get to Ozgrownland herself. After all, who would take Toto back to Kansas if she could not? So she met with the Lion, who helped Dorothy craft her will and powers of attorney, ensuring her wishes would be honored, no matter what challenges lay ahead.
The Wizard: Your First Accountant
When Dorothy arrived at the gates of Ozgrownland, the Wizard was just a computer (tax preparation) software. However, the longer she stayed in Ozgrownland, the more complicated her financial picture grew. She was hired to teach in the Ozgrownland school and paid to travel and speak about her experiences fighting the Wicked Witch of the West. So, she pulled back the curtain and met with the real Wizard, a professional accountant who became invaluable in calculating her way back to Kansas.
There's No Place Like Home (Financial Security)
As Dorothy began working with the real Wizard of Ozgrownland, the Wizard helped her see that her team had helped her along the way to getting to Ozgrownland, but if she wanted to go home, she had to decide whether to bring the Scarecrow, Tin Man, and Lion with her. Did they have the expertise to help her on the next phase of her life journey?
Refer Your Advisors
"Aunt Em and Uncle Henry" knew their financial advisor, John Hurlow and his team offered to help their niece, Dorothy, avoid going to Ozgrownland and find her own team. That way, she could start down a path to financial security without the uncertainty of who to trust. The advisors at the Hurlow Wealth Management Group are always happy to assist the children (or beneficiaries) of clients because they know the non-fiduciary alternatives can lead young investors down a winding path. If you feel uncertain whether your Scarecrow advisor from your youth is acting in your best interest, please reach out to Hurlow for a second opinion. For over two decades, the advisors at Hurlow Wealth Management Group have helped Midwest Millionaires™ find clarity, make decisions with confidence, and feel comfort in retirement. Click here or call 812-333-4726 to schedule a complimentary introductory call.
