October. One of the best months in Texas, when thankfully, the summer officially ends, and fall is officially in. This year more, than ever, it’s a welcomed relief with many of us spending more time outdoors to counter our COVID related restrictions and maintain some normalcy in our lives. This theory, that I have witnessed and labeled the “Cold Front Theory” is still alive and well. It’s not a scientific theory of detailed charts and graphs, but rather an observation I have made over the last 25 years while helping people with their personal finances.
The “Cold Front Theory” came about, after my first few years in the industry, when I noticed how extremely busy we were in January, and then again in the fall when the weather began to change. The “January Effect” was easy to understand with everyone making their New Year’s Resolutions and getting their financial affairs in order, but the fall trend was a little more difficult to explain because it wasn’t linked to anything in particular, except the weather.
As many of us in Texas are painfully aware how hot and miserable summers are and how everyone anxiously awaits the first cold front of the season. It’s always been fascinating to me how this change affects us by rejuvenating our mental outlook, emotional well-being and our relationships with others. I’ve noticed clients tend to be happier, are more willing to make decisions and are forward focused on their future. Part of this ability to look forward is a change in the season which is a vivid reminder of another year passing and often brings to mind questions about retirement, college, and caring for parents. Cooler temperatures and approaching holidays both provide another tic on the clock of our own lives and tend to make us reflect and think about what life will look like the next year and in the future.
As you experience the “Cold Front Theory,” my hope for you is to capture this opportunity to plan and make decisions that help improve your future in 2021 and beyond.