So a buddy walks in and says, “My friend’s financial advisor just rolled out some new software which claims to actively predict future swings in the market! You guys invest in passive funds and don’t try to market-time– what exactly do you get paid for?” We’re glad our buddy asked, as this gives us an opportunity to explain what we believe good advice looks like.
Our advice typically fits into two categories: “Do Nothing!” and “Get Busy!” Likewise, those two pieces of advice belong in two respective areas: Investment Consulting and Transition Consulting. Please permit us to explain:
The first area, Investment Consulting, deals with your investment in the global capital markets. We believe in giving you prudent advice which includes: determining your investment goals, consulting with you to discover how much risk should be present in your portfolio, and rebalancing your portfolio annually to take advantage of gains and maintain the target allocation. Once your money is invested properly into broadly-diversified instruments that attempt to capture market returns, we believe that the best thing you can do is: ignore the media hype! Let your money work for you…and don’t interrupt it! In short, do nothing.
A friend of our firm—and fellow financial securities professional— said it this way: “There are a lot of advisors out there who are busy spinning their wheels trying to get you into the next hot stock. Stay away from them. They will cost you dearly. It’s very counter intuitive, but a good advisor should help you do nothing. When you get restless, he should have a way of saying to you: Don’t just do something! Stay there!”
The second area, Transition Consulting, encompasses the many changes which may occur in our clients’ lives: The birth of a child or grandchild, retirement, sudden health concerns, or the sale of a business are just a few such examples. Here our role is watchful assessment, planning, engaging expert teams of professionals, providing guidance, clarifying your needs and, in short “Getting Busy!” In fact, we can more carefully focus (and help you focus) on doing these activities precisely because we are not preoccupied with chasing the next hot stock in the capital markets.
Unlike many financial advisors, our firm engages clients in both areas: Investment Consulting and Transition Consulting. So, what do we get paid for? We’re paid to provide prudent advice. Sometimes that advice is “Do Nothing!” Sometimes that advice is “Get Busy!”
Standing ready to provide prudent advice, should you ever need it, we remain,