(7 minute read)
I found myself the judge of a pickle making competition here in Kent one summer weekend in 2024, and to borrow a pun AND get it out of my system, I’m just “pickled” that it happened! There were twelve entries and five finalists of the competition, and my only reservation, which only required an open mind and exploration, was trying pickled animal products like eggs. I arrived to see many familiar faces from the Haymaker Farmers’ Market for their annual potluck. Stupid me, I had eaten cold, leftover pizza before arriving, but the spread of food was a sight to see.
I instantly put myself in Paul Hollywood’s shoes from the Great British Baking Show competition. Rating was simple: Crunch, taste, and presentation – each category rated 1 through 5, and a final score. I’m no connoisseur when it comes to pickled foods, nor do I seek them out on my own, but it was an eye-opening chance to explore different food preservation for a variety of pickles.
For instance, I don’t personally look for pickled eggs, and without trying them, detested them. It just sounded repugnant – until I tried one. There was a certain crisp to this sample that I didn’t expect, and the flavor was mild. I suppose I was picturing the worst – sulphury, spoiled, etc. Not at all! But it did take me out of my comfort zone, and while that particular pickle didn’t win, I could see myself eating pickled eggs in a sitting.
One entry that really surprised me that won the competition was the pickled okra. I’ve never been a fan of okra except to fry it. To me, okra was previously a one-trick-pony, and this comes from someone seeking raw vegetables for casual grazing. The brine was complete, not overwhelming, and the repugnant slime was tamed by the vinegar. Other entries that made it in were a mojito peach, a rosemary strawberry, and some other peach which would otherwise make wonderful jams or chutneys. They made a surprisingly amazing pickle – the flavor profile with balsamic vinegar and rosemary really complimented the strawberries, and the peppercorn added a mild, lingering kick that you got to experience some time after your first bite. Just amazing!
So why tell you this? Why go on and on about a pickling competition and how should it relate to financial anything? It’s all in compliment and the purpose it serves. Like a pickled fruit, vegetable, or even animal product, your plan should work in tandem with other elements of products to achieve a specific outcome. With a farmer, your wish may be to select a method of preservation to let your harvest last into the non-growing months. Bountiful produce can’t and shouldn’t be consumed in the same season, so we choose preservation techniques to prolong the harvest, like canning, freezing, salting, and pickling. There’s no one answer to how you do so, and complimenting the flavor profile to make the product more palatable makes it more likely that you’ll continue the same practice. Like preservation, your financial plan should be geared toward your assets and accumulation, as well as your intended use, desired outcome, and expected shelf-life, so to speak.
When we look at portfolio creation, we look at several things like a rainy-day fund, protecting assets from market risk, and investing assets to derive income or appreciation. There’s money that you may not need now, but you’ll need to grow for the future for retirement. These are the assets you invest in the market to grow over time so that you can retire, along with any pension and social security. There are those that you keep in the short-term for unemployment, home repairs, or something else unexpected. Then there are those whose value you intend to protect and preserve. All of these strategies serve their own purpose and constitute your portfolio – some short-term, mid-term, and others long-term.
Some investments we think we don’t like because of what we hear about them. This is my pickled egg example. Sometimes, it’s worth having an open mind about trying something new. In my personal life, I’ve had the pleasure of trying pickled chicken feet. Now that I’ve tried them, I can confidently say I don’t see a need for this in my pantry. Investment vehicles can be like that too. When I first started out as an advisor, I was none too keen on annuities of any kind, but that came from a place of ignorance and stories I’ve heard in the past. But there’s a time and a place for everything. Like pickled eggs, they became something I’d try after a positive experience. I’ve come to see annuities as a vehicle to protect investments, unless you were willing to take on market risk and the benefit of added guarantees for an additional cost. Some may not like eating pickled eggs by themselves, but maybe they’re great to preserve if you wanted a more flavorful addition to tuna salad. You don’t have to get the annuity for annuity’s sake, but you can get one to compliment your overall investment strategy.
I’m now going to liken the balsamic basil strawberries to Health Savings Accounts (HSAs), because they’re peculiarly different from the traditional pickle and they have a nice, unique use in later months. Sweet, while still preserving the flavor of a strawberry, this particularly stands out as a near-term and mid-term treat to extend beyond the summer months. Like this pickle, HSAs can be used now or later to accommodate medical expenses. Of course, you have other options to choose from in your portfolio to cover medical expenses without incurring a penalty, for those 59 ½ and younger, but the HSA is specifically suited for this task and is tax deferred, tax deductible, and the earnings come out tax free to cover medical needs. It’s an asset for every stage of your life, not unlike the strawberry pickle for anytime of the year.
And then of course you have the tried-and-true pickle – your standard bread and butter or dill gherkin. These are classics that most are familiar with, whether it’s a burger on a hot summer day or it’s straight out of the jar. The usual pickles are more like your traditional and ROTH IRA accounts, and they vary on attributes of your investment in similar ways that someone might like a crisp ASMR-like click they get from a cucumber pickle, or the flavor profile, or simply the appearance. You choose what you like most out of this combination and you integrate it with your favorite dishes.
There are always those who say they don’t like pickles. It’s understandable, but maybe you haven’t found the right one!
I haven’t had much experience with pickles outside of cucumbers before this competition, but I was pleasantly surprised at the breadth and depth of the contenders. And like many of you, stepping outside of that comfort zone feels uncomfortable, especially if you don’t have a historical point of comparison. Investments can be that way. One starting point is to have a conversation about it with a friend familiar with something you haven’t tried before. Maybe you dip your toe in the water to be a little cautious about trying something new. Not everybody comes to the same decision at the same level of comfort, but the more information you’re armed with, the lower that barrier becomes. Knowing whether it will harm you is the first place to start, but when the answer is “no,” what’s the harm in trying it out? Much like trying new foods, investing starts with information. Information about your likes and dislikes, information about your goals for living your life, and information on where you see yourself in retirement. And of course, the circumstances of your life could change in a given moment, but that’s where you strategize to find a new technique.
It's wise to talk to a financial advisor to help suss these things out. Conversations help to build your knowledge base and inform the decisions you ultimately make, because without adequate guidance, you could easily find yourself in a pickle.
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The views and opinions expressed herein are those of the author(s) noted and may or may not represent the views of Capital Analysts or Lincoln Investment. The material presented is provided for informational purposes only.