assorted-color clothes by Priscilla Du Preez 🇨🇦 courtesy of Unsplash.

What Can the Seinfeld Puffy Shirt Episode Teach You About Financial Planning

David Larson |

Recently, I was reminded of one of my favorite Seinfeld episodes: The Puffy Shirt. This one even started a mini-fashion trend, and 30 years later, the term “puffy shirt” is still recognized by die-hard and (some) casual fans alike. 

 

If you are unfamiliar with the episode, you can check it out by going to Netflix: Season 5, Episode 2. Hopefully, you have seen it multiple times like me, so it does not need to be summarized!

 

Jerry made a poor decision when he decided to dress like a pirate on national television. Why did Jerry make this mistake?

 

  • He was uniformed and did not take the time to fully understand what he agreed to do.
  • He was cajoled into doing something he did not want to do by someone pushing a product.
  • He regretted the decision and the fact that he did not do more “research” on the front end before committing.

 

You don’t have to look too far to see the parallels between Jerry’s “puffy shirt” decision and the financial planning choices in front of you. Don’t make the same mistakes Jerry did!

 

  • The next time someone comes up to you with a “can’t miss” financial proposal, take time to do the research. Don’t let a “low-talker” (or a fast-talker) rush you into a decision.
  • Know what you are buying before committing. What are the downsides? Are the fees high? Is the investment illiquid? Do you fully understand how it works?
  • Don’t commit to an investment or a planning relationship because you feel obligated. Don’t buy a “puffy” investment just because your best friend from high school is offering it to you!
  • Consider the source of the advice. Jerry took all of the risk by wearing the shirt. His friend benefited from his choice, while taking none of the risk. Make sure your investment advisor or financial planner’s goals are aligned with your goals.

 

I hope you enjoyed this short blog. It was actually written by me and not by ChatGPT or any other AI. For more original content, please visit our blog page on our website for similar articles or videos to help you plan. We have also created a couple of guides you may find helpful: Retiring from a Large Corporation, and How Much Should You Pay for Financial Advice?