Why Investors Should Pay Attention to Words

March 28, 2025

As an avid reader and an amateur writer, I appreciate the precision of words. When I stumble upon a phrase or word that captures a feeling just right, there's a particular satisfaction in that. Sometimes the perfect word or phrase can only be found in other languages and cultures. For example, on a recent ski trip, my friend introduced me to "hygge" (pronounced "hoo-gah"), a Danish word that roughly translates to coziness, but is so much more expansive, with tones of comfort, warmth and contentment. If cozy is putting on a soft fleece sweater, hygge is putting on a soft sweater and curling up in your favorite spot with a warm cup of tea and a good book on a cold day. Similarly, the Japanese have the phrase "mono no aware" ( の れ) or in English "fleeting beauty," which captures the bittersweet appreciation of a beauty that is temporary, such as the fleeting beauty of cherry blossoms. Living in Vermont, I believe "mono no aware" is exactly the feeling I get in the fall when the leaves have reached that almost unearthly richness of color, but you know the end is near.

So what does this have to do with financial advising? Well, in the financial advising industry we find a lot of words, but not a lot of precision. If you go to an Edward Jones website, they write about "quality" investments.¹ What does that mean? Funds that have strong historic performance over a long period of time? Funds that are low cost and diversified?

On Morgan Stanley's website it says, "Clients come first."² What does that look like? Is Morgan Stanley committed to the fiduciary standard on 100% of their accounts and only recommends investments that they believe are in the best interest of their clients?

TIAA Cref promises "a more secure retirement."³ Can we assume then that the vast majority of the company's investment profits get into the hands of their clients by keeping their fees and overhead low?

After years of reviewing hundreds of statements from other firms, I think it's important for investors to assume nothing and to ask precise questions. For this reason, One Day In July has developed a helpful pamphlet called, "Questions We Would Ask."⁴ If you are shopping for an advisor, these questions will guide your conversation with other firms, as well as One Day In July. Consider scheduling a consultation with us this winter - not only is it free, but now you know exactly what to say.

- Carrie McDonnell

1. https://www.edwardjones.com/us-en/why-edward-jones/investing-approach/investment-philosophy. "Edward Jones is a registered trademark of Edward Jones Investments.
2. https://www.morganstanley.com/. "Morgan Stanley" is a registered trademark of Morgan Stanley.
3. https://www.tiaa.org/public. "TIAA Cref" is a registered trademark of TIAA-CREF Life Insurance Company.
4. https://media.onedayinjuly.com/media/pdf/Questions.pdf