What is a fiduciary?
A fiduciary has the highest ethical obligation to put your interests ahead of their compensation and any other considerations. We are a fiduciary firm – this is a fundamental value of ours and we wouldn’t have it any other way.
Why should I hire you instead of doing this myself?
As humans, we face many psychological biases that prevent us from achieving financial success. According to Bloomberg, from 1996-2015 the average investor returned a measly 2.11% while the S&P 500 averaged 8.19%. One of the primary reasons for this deficiency is the emotional aspect of managing your own money. Our goal is to build an investment portfolio that will maximize your returns given your comfort level with investment risk.
But beyond returns, there are many ways we add value that may not show up on your performance reports. For example, we can look at ways to help you reduce your expenses, reduce the risks you face in your life, and harness the power of compounding interest.
As a Fee-Only™, independent Registered Investment Advisory firm, we are set up to avoid many of the conflicts of interest inherent in the financial world. These conflicts normally wind up costing you time and money. Our hope is that our partnership will provide you peace of mind and reduce the financial stress you feel in your life.
Who is your typical client?
Our typical client is an individual or couple who is retired or nearing retirement and is focused on making the transition from accumulating capital to preserving and drawing income from it. Most of our clients could manage things on their own, but prefer to delegate this task to someone they trust so that they have more time to do the things they are passionate about.
What is your investment philosophy?
First of all, we know that we do not control your rate of return. The two things we believe we have control of are 1) How much risk are we willing to take? And 2) How much are the investment costs?
Therefore, our mission is to create a personal Investment Strategy to allocate your financial resources between growth and income investments. Based on your objective, we will build your investment portfolio utilizing a balanced approach to manage risk and volatility. Investment returns will consist of a combination of capital gains, dividends and interest.
Tactically, we will work to keep your investment fees as low as possible, harvesting losses for tax purposes when applicable, and rebalancing when appropriate. We believe that if we can accomplish these things, then we can allow the power of compounding to work for you.
Do I have to pay for the first meeting?
No, we believe that everyone should have access to a qualified, independent financial advisor. There is no cost or obligation during the first meeting as it provides an opportunity to get to know one another and make sure we may be a good fit for you.
What is the Certified Financial Planner™ (CFP)® designation?
Most consumers believe that all financial planners are "certified," but this isn't true. Anyone can call themselves a "financial planner". However, only those who have fulfilled the certification requirements of the CFP Board can display the CFP® certification marks, which represent a high level of competency, ethics and professionalism.
It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients. Please visit the CFP Board's website for more information.
How do you get paid?
We are an independent, Fee-Only™ Registered Investment Advisory firm, which means our only compensation comes directly from you. We do not get paid any commissions or compensation from a third-party. We are held to the fiduciary standard, which means we have an obligation to act in your best interest regardless of the compensation we receive. We believe this is the fairest form of compensation and aligns our interests with yours.
What does “Interest on Interest” mean?
Albert Einstein called the power of compounding the most powerful force in the universe and we agree. We believe our mission is to help you harness the power of compounding to help you achieve your financial goals. In other words, we invest to earn interest on your interest. We will work with you to develop a plan that takes your unique circumstances in to consideration when building your portfolio. When mapping out your financial plan and goals, our discussion will lead us to learn more about your investment objectives, time horizon and risk tolerance. This information will become the foundation of your personal investment strategy. We like to think of your investment strategy like the story of “The Tortoise and the Hare”. In most cases, we find that taking the slow and steady approach wins and that, like the tortoise, earning a consistent return over time beats an approach that has a series of volatile returns that may keep you from staying invested for the long term.
Is my money safe?
Your money is held at a custodian bank – typically Charles Schwab or TD Ameritrade, which is insured by the SIPC for up to $500,000 per account type and are protected against losses resulting from the failure of a broker-dealer. Please note, unlike FDIC insurance for banks, SIPC does not protect against losses due to normal swings in the market as all investments are subject to risk. An explanatory brochure is available at http://www.sipc.org.