If I Had a Hammer

Prospective clients will often ask specific questions about specific products. They may ask "What do you think of annuities?", or "What is the best type of Life Insurance?"  Sometimes the client is looking for clarification, and other times the client is testing to see if my opinion matches theirs.

Answering the questions of a client who is looking for a clearer understanding about a product is straightforward. A large part of my role is to take complex situations and tools and presenting them in a way the client understands. I always wonder what answer the client who is testing me wants to hear. Are they philosophically opposed to that product? Have they heard conflicting viewpoints? Are they testing my product knowledge?

My answer is almost always the same, regardless of the product at issue. The products we use are simply tools, and tools are neither good nor bad. I have no bias for or against any tool... as long as it is used properly. For example, a butter knife would be a lousy tool to cut down large trees, but a chainsaw at your dinner table is equally inappropriate. Each tool has its place. Used in the proper manner and with the proper safety measures it can make a tough job much easier. Used improperly it can be downright dangerous.

What would you think if you went into a hardware store and their answer was always the same?

What tool should I use to drive this nail?     A hammer.

Turn this screw?      The same hammer.

Tighten this bolt?     I'd use my hammer.

Fix my plumbing?     You have got to love hammers.

Sounds pretty silly. That is one of the reasons I can not understand why some pundits make blanket statements such as "Always buy term life insurance" or "Never buy load funds." The only absolute is there are no absolutes.

Of course if all you have is a hammer, then everything starts to look like a nail!

Boys and Power Tools... photo on Flickr by TMJR

stop! hammer time! photo on Flickr by Rakka