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The Importance of Training (and Planning)

The Importance of Training (and Planning)

Author: Chris Steward, CFP®, CFA®, RICP®, M.A. (CANTAB) | Director of Investments at Impact Advisors Group

Wilbur Wright said:“Carelessness and overconfidence are usually more dangerous than deliberately accepted risk.” Although this was certainly meant with aviation in mind, it also applies to a variety of endeavors.

I fly a Cirrus. Like any high-performance airplane, it rewards disciplined flying and punishes complacency. The aircraft itself flies much like any other, but it has its own idiosyncrasies, and proper airspeeds and procedures must be followed closely to land it properly.

In 2017 Cirrus Aircraft introduced the Embark Program, which offers up to three days of free transition training with Cirrus Standardized Instructor Pilots (CSIPs) for anyone purchasing a used Cirrus airplane. I remember being impressed that Cirrus would invest so much time and money in improving the safety of its fleet when the only direct benefit to the company was an enhanced reputation.

I was reminded of all of this recently when I read a disturbing accident report. The report began with a seemingly small decision: the pilot had declined the free Embark transition training offered for his newly purchased (or “new-to-him”) airplane.

Unfortunately, that was only the first link in what aviation safety experts call an “accident chain.” Accidents rarely result from a single mistake. Instead, they happen when a series of poor decisions and small errors stack up until there is no longer a way out.

Early in the flight, the pilot radioed that he was experiencing electrical problems: 

“My radio’s going in and out. Not sure what’s going on, but we seem to have some sort of electrical problem.”

At that moment there were at least four airports within fifteen miles, including one with a Cirrus Service Center less than thirty minutes away. Any one of those airports would have been a sensible place to land and troubleshoot the issue.

Instead, the pilot chose to continue toward his destination—more than 400 miles away and several states distant. Without an operating electrical system, the engine will run, but other things, such as radios, won’t. Although it may not be advisable, it is legal to fly without radios.

The next-to-last link in the accident chain occurred just a few miles from their destination when the engine quit—most likely due to fuel exhaustion.

I dislike second-guessing the decisions of other pilots. There is a saying that “good judgement comes from experience; but, unfortunately, experience comes from bad judgement.” Every pilot who has flown long enough has made mistakes at some point, and hopefully learned from the experience. It is because the founders of Cirrus felt that mistakes in the cockpit shouldn’t be fatal that they insisted that every plane leaving the factory have a whole-plane parachute.

The Cirrus Airframe Parachute System (CAPS) is one of the great safety innovations in modern general aviation. It allows the entire aircraft to descend safely under a parachute in certain emergency situations. Since its introduction, CAPS has been deployed 145 times and has saved 291 lives.

Now to the final link in this pilot’s chain of poor decisions, one which I find particularly difficult to understand.

In the wreckage investigators found the safety pin still installed in the handle for the Cirrus Airframe Parachute System (CAPS). The pilot never attempted to deploy it.

Yet this pilot not only declined the free transition training offered by Cirrus, he also apparently did not follow the checklist procedures for the airplane. One of the required items on that checklist is removing the safety pin from the parachute handle before flight.

This pilot’s chain of poor decisions ended tragically—not only for him, but for his wife and two children who were on board.

What a terrible and unnecessary loss.

Although aviation accidents are dramatic examples of Wilbur’s warning about “carelessness and overconfidence,” similar patterns of poor judgment shows up in other areas of life—including financial planning.

In my day job as a Certified Financial Planner®, I often meet prospective clients who question the value of working with a professional when planning for retirement. Many believe they already know enough to manage things themselves.

The evidence suggests otherwise.

Multiple studies have shown that people consistently overestimate their financial knowledge, particularly when it comes to retirement income planning.

One example comes from the Retirement Income Literacy Quiz developed by The American College of Financial Services. In that study, 61% of respondents said they were very or extremely knowledgeable about retirement income planning.

However, only 33% of that group actually passed the quiz, and their average score was just 52%.

Just as pilots rely on training, procedures, and checklists, investors benefit from thoughtful planning and experienced guidance. Training helps pilots avoid mistakes before they happen. A sound financial plan serves the same purpose for your retirement.

Fortunately, the consequences of poor financial planning are rarely as immediate or tragic as an aviation accident. But they can still affect the well-being of you and your family for years—sometimes decades—to come.

So please don’t let ego take the place of preparation.

Good pilots respect training and follow their checklists.

Good retirement planning works much the same way.

Let us know if we can help you construct a financial plan to ensure a robust retirement no matter what challenges might arise over the next 10, 20, or even 30 years.

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