The Wealth Consigliere

Recently I made the decision to close my firm.  It was more emotional than I expected so I wrote this blog to address the demons in my head. As we grow older death enters our circle of family and friends.  Death is a traumatic experience however some people use their remaining time on earth to share honest and enduring advice.  Professor Randy Pausch and his Last Lecture resonated with millions.  The honest reflection of a person who knows they have a defined amount of time left on this earth cuts through the typical cocktail party or social media banter and addresses the elephant in all of our rooms.  We are scared of dying and when a dying person has the courage to share what the process is like we should listen.   A very distant second is our fear of losing our job.  Most of the time this is sudden and at best we have two weeks to clean up our desk and complete our exit interview. Your coworkers exchange pleasantries but they avoid ...

I have been escaping my work every Friday for 17 years.  2016 was a bad year for me and an average year at the movies.  While average, the 84 movies I saw in 2016 were a good way to disconnect from the real world in a dark, quite Movie Theater.  Choosing my Top 10 movies is more difficult in an average year than it is in a blockbuster year as the difference between movie 10 and movie 30  is a close call. For those of you looking for Moonlight and Manchester by the Sea they are 11 and 12. The envelope please: 10. Jackie - Get your gold statues ready! This film is amazingly acted by Natalie Portman and well directed by Pablo Larrain. It mixes three compelling story lines with historic footage that keep you engaged in a familiar story. 9.  Hacksaw Ridge - An inspiring story of a person who is guided by their faith but also has the courage and tenacity to be a great solder. 8.  The Innocents - There are so many items this film deals with I do...

Our president-elect rode this phrase to astounding heights.  Recent news reports indicate that he still wants to ride the wave by continuing as the Executive Producer.  Why are we so enamored by this gut wrenching statement?  Is it schadenfreude or a power play?  Rather than brush it off we have decided to examine how this mindset has manifested itself in four major areas of our personal and professional lives. Marriage Our wedding vow of “until death do us part” is proving to be too high of a bar.  Divorce statistics show that 50% of marriages end in divorce after less than 8 years.  Are we too quick to pull the divorce rip cord?   I propose that we supplement til death do us part with let’s bring in an experienced professional to help us work out our problems.  An experienced professional will help you understand that your struggles are not that unique and they will establish a detailed plan to get you out of your rut. Spor...

In chaotic times like these I revert to Disney movies and channel my inner child to visit “The Happiest Place on Earth”.  Come join me as the three main characters from Aladdin reveal a Whole New World.  In our story the characters will be played by Goldman Sachs (The Genie), President - Elect Trump (Aladdin) and you (Princess or Prince Jasmine) Goldman Love our hate them we all can agree that Goldman is smart and makes decisions based on where the puck is going not where it has been.  The firm’s recent decision to be middle men and offer many of their internal services to other firms is brave.  The new Goldman initiatives are named Marcus, Symphony, Simon and Kensho.  The “Old Goldman” would have never attempted these projects and wealth management firms should emulate not condemn these bold moves.  Goldman is also working on a robo investment banker that will automate the 146 steps involved in an IPO. It is a whole new world! Turbulence ...

As Tax Day approaches, we are reminded of the power of the calendar.  April 15 is a date all responsible citizens are required to respect.  However, all too often, wealth advisors become slaves to the calendar and allow vital elements of their business to be ruled by it. It’s a question worth examining because there’s no real reason for it. In truth, the calendar is a convenient organizing principle, but it is in no way the optimal one for taking care of wealth management clients in the 21 st century. Three Areas Where the Calendar Currently Rules Through their investment consulting, wealth advisors add value for clients in three ways. All of these have been under the thumb of the calendar. The first is rebalancing a client’s investment portfolio. Most wealth advisors wait until the end of the year. That’s the way it’s always been done. However, some do take up the task more frequently, usually at quarter-end.  With the recent volatility ...

My late grandfather, who was born in 1910, loved to reminisce about the good old days. “When I was your age,” he would say, “I used to walk to school with all of my brothers. Didn’t matter what the weather was.  While we were trudging along, in sometimes freezing conditions, we always had a good time horsing around.” We clearly got the point: The good old days seemed so much better. We all knew they were much harder, too. Today, people don’t walk anywhere. In fact, those fortunate enough to work in Silicon Valley ride in air-conditioned buses, with Wifi and lattes available for all. No three-mile walk in the snow for them. American Heros TV journalist Tom Brokaw defined my grandfather’s cohorts as The Greatest Generation . Their greatness was the result of their worth ethic, their thrift and humility, and the incredible bond they formed in their personal relationships. This generation survived the Great Depression and World War II; very few compl...

The recent news cycle has been dominated by two very different stories that fascinate us: Facebook’s eye-popping, $19 billion deal for WhatsApp and the Obama administration’s growing concern about income inequality. How can these seemingly disparate points-of-view reconcile each other? Through the Pareto Efficiency Criteria , a well-respected economic theory about optimal economic growth. A Rising Tide The Pareto Efficiency Criteria states that as long as economic growth happens without hurting others, it’s good for an economy. In the San Francisco Bay Area, in particular, this concept is a hot topic. The explosion of IPO-driven wealth largely from tech entrepreneurs is creating an economic boom in the region. Some, though, argue there’s a downside. Prices for everything are higher. No doubt, there’s some truth to that, but there’s also the undeniable fact that when money is flowing, people spend more – a lot more. That does help everyone. To cont...