Seth Godin recently reminded us that while we put in the effort with the goal of creating value, the two are not the same. It is a distinction that matters – especially in financial planning.

It is easy to lose sight of what truly gets rewarded. Do not confuse activity with achievement. Activity can feel productive, yet it does not always translate into meaningful outcomes. In other words, doing more does not necessarily mean achieving more.

In financial planning, this confusion often shows up as unnecessary complexity. We assume that more detail, more projections, or more jargon adds value. But real value lies in simplicity. The kind that drives understanding, action and progress.

The most effective planning conversations are grounded in what investors can control. Not market movements. Not economic forecasts. Just the basics. This approach requires humility.

Often the most honest thing an adviser can say is “I don’t know.”

As Howard Marks has pointed out, those may be the least spoken words in our industry. Yet everyone knows the future is uncertain. And yet we are often tempted to create a narrative, to fill the gap with predictions to soothe our own discomfort with uncertainty.

Value is destroyed when we fall into the trap of the illusion of control. Predictions about the future are largely a loser’s game.

Value is created when investors have a plan they understand, a process they trust and the confidence to stay the course.

It’s not about doing more. It’s about doing what matters.

 

The above article was written by Marius Kilian.

 

Source

 *“Effort and Value”, Seth Godin, “Seth’s Blog”, 14 May 2025.