The Wealth Consigliere has reached a fork in the road after writing over a 100 blogs. Rather than pick it up we are taking a retrospective with one important final disclaimer. Writing this blog has been a therapeutic exercise for me but the blog was never intended to provide expert advice. I often wonder when I write each blog if Dr. Ruth's own sex life was all that great. My path down memory lane is going to use the road map that my friend Rev. Paul Trudeau used in a resent sermon that we are all looking for clarity, comfort and control in our lives.
Every parent remembers hearing those frightening words after your first child was born - “you can take your baby home now” My wife and I were scared to death that we would do something stupid and kill the baby when we left the hospital. Thankfully we didn’t, but how can we as parents go from scared and clueless to people who position themselves as experts and make decisions that our adult children will spend countless hours in therapy trying to reverse? Being a parent is difficult. Being a good financial advisor is difficult too with many striking similarities to being a good parent.
Comedian Pete Holmes uses a punchline that will make you laugh but will also stay with you and make you think. His observation is “we live in a planet and I’m tired of not talking about it!”
PLEASE PAUSE AND RE-READ.
The statement is a challenge for us all to have more meaningful conversations that go beyond “how about this weather?” or “I’m so mad at United Airlines”. It’s a difficult challenge but we all need to channel our inner Oprah and get started. I think it can help us in several different areas.
It is a magical time to be a sports fan in the Bay Area. The Sharks are in the Stanley Cup Finals, the Warriors won a record 73 regular season games and it is an even year for the World Champion Giants. While sports analogies can help wealth advisors make difficult strategic points, they are too binary and will set you up for disappointment. There is only one champion each year in each major team sport and the win or go home attitude creates more disappointment than euphoria for 29 of the 30 teams. The same can be said for wealth advisors who keep score versus the S&P 500 Index. We are not advocating a participation trophy but we do think that using a goal - based approach can increase your chances of success and satisfaction. What is Goal - Based Investing? There are several thought leaders who have embraced this approach and they have all arrived at a similar conclusion of organizing your portfolio into three categories (buckets).
Good timing is an essential component to most successful endeavors. While that is an enduring fact, technology has shortened the window to make good decisions. We will look at the importance of timing in our business and personal lives and suggest how we can increase our odds of success. I realize that good timing and luck can be considered kissing cousins but both are essential components of our success.
The financial services industry is engaging in a fierce debate regarding full adoption of the fiduciary standard. The friction to adopt this standard, which is very client friendly, is confusing. To help eliminate our confusion we look at other professions and the standards that they have adopted and the impact it has had on their business.
Professionals are our trusted source for expertise and advice in areas that we don’t possess the required knowledge or experience. While the internet has challenged some of the profession’s historic monopoly on advice we believe the Big Four Professions will survive if they hold themselves to the higher standards they proclaim. We examine each standard:
1.) Educational requirements 2.) Licenses 3.) Oaths
Have we reached a tipping point with the US citizens and US investors? It is difficult to watch the political campaigns with their populist mantras to win votes and not come to the conclusion that we have. The same can be said about money management firms when you watch their commercials and read their blogs that claim if you invested with them you would feel safe despite the vumultuous moves in the markets.
The Super Bowl is upon us, and the Oscars are just around with corner, so it’s natural to think about what it takes to be a top performer, whether it’s in professional football, the entertainment industry or the wealth management business.
We often find refuge and comfort in old and new media.
With that in mind, I wanted to share a few of my favorite secret hiding places in 2015, which turned out to be a challenging, if not disruptive year, for many in the wealth management business.
Reunions are always an interesting experience, whether it’s with your family, schoolmates or former colleagues.
The personal dynamics at play are at once fascinating and entertaining.
I was reminded of that on November 4, when I attended a reunion of Montgomery Securities that commemorated its acquisition by NationsBank 18 years ago.
I was looking forward to this epic gathering to see my colleagues, many of whom have gone on to achieve even greater accomplishments. It was going to be fun to relive the glory days – even momentarily – of when Montgomery was the big daddy investment bank in San Francisco.