Don’t Waste This Crisis


During the Financial Crisis Rahm Emanuel shared his opinion that is now legend. We are in another crisis that our blog this week will chronicle how we can draft off of Mr. Emanuel’s statement. We know that every crisis is different but as Mark Twain said it often rhymes. Let’s look at ways we can use our time to not waste this unfortunate crisis. 

Social Media

Social Media is this generation’s cocktail party. While we never want to miss a party we know who to avoid. Successful Social Media accepts that most of the opinions are fake, BUT just like a cocktail party there are people who you need to seek out. This exercise starts with what platform we want to visit and who is going to be at “The Party” ?  Your partner doesn’t need to answer who will be at the party. A good platform lists their guests. Since we have time to look, look!  Bill Gurley shares that he uses Twitter to evaluate potential firms he is considering. Our recommendation is to create a Social Media account for your firm and honestly share your thoughts. It is free and we have nothing but time on our hands. 

Rebalancing 

When markets dramatically move a good advisor will rebalance your portfolio back to your original allocation. This process has been proven to take the emotions out of our decisions. The allocation is referenced in your IPS. If you don’t have an IPS, and most clients don’t,
use this time to get one.  The other area that we can rebalance is what metric we are using to evaluate our success. Market Indexes can be rebalanced to metrics that are more personal. Wealth Advisors need to provide us with better reporting tools that are Beyond Markowitz. Our vote is more than how the market performs. 

Improvements

I started in the Wealth Advisory Business during a crisis in 1987.  My experience has been filled with more mistakes than successes. One item I have learned is to seek out the thoughts of people who have gone before me as well as people who are new to The Arena.  The internet has made this easier especially during the COVID-19 crisis.  One study I recommend is written by one of the surviving accounting firms Deloitte.  



Never say never, because you will miss how enjoyable a Zoom call with the people you love can be❤️

Our Twitter handle is @Burford84

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