Focus


I was surprised that only 35% of adults have 20/20 vision.  This reality made me think how many investors have 20/20 wealth vision and what can we do to increase their score?  Our blog this week will examine what we should do.  I admit the content has been improved by my new colleagues at Burford Brothers.  I still retain my three subject focus but their conclusions have real world client experience.  Hope you agree.

DIY

 Our examination begins with a common human bias of D.I.Y. (Do it yourself).  How hard can it be to build a portfolio and insure it meets my family's needs?  As it turns out the disclaimer of "don't try this at home" applies to wealth management too!  The internet and CNBC make it seem easy.  DIY success is exciting but it can be ephemeral.  DIY failure is painful and embarrassing.  We need to find a partner that we can share in our success and blame them when we fail. DIY has lower fees but we get what we pay for..


Tools


Clients and advisors have numerous tools to enhance your performance. The industry term for these tools is Fintech.  Some of the tools we consider are:
Moneyguide Pro, iRebal, Schwab Intelligent Portfolios, Adzyzon and iiTechnology.  These great tools can help, but we wouldn't choose an Optometrist just because they have an eye exam machine.  We need more guidance than an Owl TV commercial, a low price and Fintech tools to succeed.

Process



The proliferation of tools demands that our advisors have a well defined process to describe why they recommend their approach.  Burford Brothers' approach is a 20/20 Process. Most of us require glasses to have 20/20 vision.  We believe that portfolios require some enhancement to see.  Working with a wealth advisory firm with a defined process can help.

Almost all states require 20/40 vision or better to obtain a drivers license.  Seems like we need a Wealth Vision minimum to drive our family's investment portfolio.

Comments

Post a Comment

Popular posts from this blog

Inorganic

Image
Our industry has always looked down on Wall Street’s recruiting checks.  Last week there were numerous announcements that independent firms were offering advisors money to purchase their practice.  The term for these transactions is inorganic growth.  This week we will look at why these transactions are the new rage and examine if they are better than the old Wall Street checks. Wempy Popeye and financial advisors fall for the “I’ll gladly pay pay you tomorrow for a Hamburger today” pitch.  Unfortunately Popeye and and most financial advisors provide their hamburger but seldomly get paid what the firms and Wimpy promise .  Why?  The advisors need the cash and Popeye is gullible.  On Wall Street the deals adjusted when the advisors changed firms looking for a new deal every five to eight years.  The recent Luminous departure shows that the advisory contracts need to be adjusted.  The new contracts are written by experienced firm...
Read more

Career Hacks

Image
We are in constant pursuit to be the best we can be in our profession.  Is there a hack to help us?  Some days it feels like others have found one.  The Baby Boomer hack was to be a Doctor, a Lawyer or work for Goldman Sachs.  Millennials believe in the power of social media hacks and that a job at Google is on the Yellow Brick Road.  This week I’ll look at other experts and share my opinion that there isn’t an easy solution to professional success. Academia Those who  can’t do teach and those who can’t teach, teach gym .  Many of the established ideas that guide people in the wealth advisory business where researched in academia.  While their research is credible most academics remain as advisors not a practitioners.   William Sharpe  might be an exception to this rule.  He lost at Long Term Capital but was a recent  winner with Financial Engines .  Resilient and richer. Conferences and Media We...
Read more

Heigh Ho

Image
 It appears we are headed back to work. Our monthly podcast summary will give us items to put in our backpacks.  So Heigh Ho ! Business Consulting  Adam Grant teaches how to  not make work suck. Work Life These two industry icons share their different opinions for independent wealth advisors. Kices and Carl Reid Hoffman is one of the most successful entrepreneurs who believes in giving back. Masters of Scale Educational  This podcast will entertain and educate. Pivot The host is a law professor who shares insight on controversial issues. Deep Background  While I don’t prefer Houston, this podcast makes me want to visit and attend class. Unlocking Us Hope you all listen to the podcasts and get vaccinated. 
Read more