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.
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..
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.
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.