One example is a couple who are in their early 50s, saved $250K, wants to retire in five years and travel significantly through their 60s. After running the calculations, I explained their most realistic plan would be to work until 65, reduce their lifestyle by 40% and increase savings by $15K-$20K a year. After a couple of months of discussions, they are both still absorbing the change in their retirement expectations, but are beginning to come around. Many don't even get to the stage of taking action."
Yet, perhaps there is some truth to The Secret. It's certainly better to be of positive mind and to visualize your goals than to not do these things. "I have a business owner client who, using The Secret's message, began to look more positively at his business," says Timothy Maurer, director of financial planning for The Financial Consulate Inc. of Lutherville, Md. "He stopped looking at it solely for himself and began to think about how he could benefit others around him. His business is now expanding and the future looks bright. His is a case where the parts of The Secret that sank into his consciousness have had a visibly positive impact on his life, his business and even his bottom line."
Arthur Cooper of Cooper McManus in Irvine, Calif. credits The Secret as a way "... for those who see it for what it is, to look at life in a positive, focused, balanced and purposeful way. It will help people recognize opportunities and solutions to help them achieve their goals and objectives. Why do some people, no matter how great the opportunities, always seem to be in the wrong place at the wrong time, and 'things' just keep happening to them, while others, no matter how bad the obstacles and challenges life presents them, seem to come out on top and achieve success? I believe that the difference is in the mind."
R obert Horowitz of Robert V. Horowitz LLC in Corte Madera, Calif., agrees there are positive aspects to The Secret: "With one particularly fretful client who read the book, I bring it up often, saying, 'Remember what you told me about The Secret? If you focus on what can go wrong, you will attract that into your life. Start putting your attention on what is going right in your life.' It's almost magical how that simple statement can transform an entire conversation with this client."
Yet Maurer is still troubled by The Secret. "The movie views like an infomercial for a get-rich-quick scheme." he says. Indeed. In one segment of the DVD, Jack Canfield ("America's Success Coach" and the founder and CEO of Chicken Soup for the Soul Enterprises Inc.) says, "Since I learned The Secret and started applying it to my life, my life has truly become magical-the kind of life everybody dreams of: I live in a $4.5 million mansion, I have a wife to die for, I get to vacation in all the fabulous spots of the world and all of this happened and continues to happen because of knowing how to apply The Secret."
Maybe it's necessary to hype The Secret in this manner to get the word out to a greater audience. But it almost makes you wary of criticizing The Secret because if you don't believe any of this and you say to the universe, "This stuff doesn't work," then it won't, say people like Canfield-an argument that conveniently disposes of all critics.
Aside from its presentation, most critics have trouble with the simplicity of The Secret's message. "I fear that the promise of a positive outcome could lead to some very difficult circumstances down the road," Maurer adds. "When the boomer who throws caution to the wind-along with his dedication to fiscal discipline-gets to retirement with one-third of what he needs to actually retire, it's going to take something more than positive thought to triple his life savings."
Precisely, agree most of the advisors who opined to me on The Secret. "When I encounter a client who wants to base a financial plan purely on aspirational concepts, such as 'Ask, believe, receive,'" says Monohan, "I ask them if such an approach ever got their kids to pick up after themselves or got their spouse to remember their anniversary? After such questions are asked and answered-with laughs most of the time-clients realize our daily actions are what accomplish our daily goals, not aspirational concepts or beliefs."
Monohan doesn't deny that aspirational beliefs have a purpose. Such beliefs can help people when they are going through tough times or just having a bad day, he acknowledges. "The overriding point is that aspirational concepts need to be tied to a daily action plan. Such conceptual thoughts or beliefs are only as good as our daily actions," he concludes.
Is this what's missing from The Secret? It depends on how you define "action." You and I might define it as setting goals, developing a plan to reach those goals, and then executing the plan. This is, after all, what we do for our clients. By contrast, the Rhonda Byrnes of the world would seem to believe that all the action steps you need are already included in their "Ask, believe, receive" philosophy. And the danger is that clients will take it to heart.
"I believe The Secret oversimplifies the concept of the Law of Attraction and offers no concrete guidance as to how to truly achieve your goals," says Molly Balunek with Spero-Smith Investment Advisers Inc. in Cleveland. "It's a well-marketed moneymaker for the authors and publishers because it effectively promises something for nothing. This promise, I think, is a large part of its attractiveness to baby boomers."
Balunek notes clients' investment portfolios won't increase in value simply because they ask, think or believe it will happen. "We have to roll up our sleeves and develop an investment plan, research and select securities, make the investments, monitor the portfolio, evaluate its progress, measure our clients' success and execute a discipline around all of this to keep the plan, the portfolio and the client healthy and thriving."