The Wealth Consigliere

After a tumultuous week I find it is helpful to ask what did I learn?  The weekend financial press is full of anecdotes to instruct us on what to do next.  I’ve found that either I forget their advice or find that it is not effective.  While listening to Brene Brown on a recent Armchair Expert podcast I gleaned some wisdom that I will share.  Her wisdom was to focus on our own pain before we create pain by criticising others.  This week I will focus on the pain in the wealth advisory business above and beyond the recent market swoon. The fiduciary mantra of putting the client’s interest ahead of our own can be tested during times like last week.  We will look at what got tested and how we can address the three main challenges from the same side of the table as our clients. Bundling We offer clients numerous services that are all bundled into the fee we charge.  The services include financial planni...

The recent swoon in the global financial markets has shifted the focus of business consultants to a soft subject  that they can control. Established thinkers like Mark Tibergian , Seth Godin, Mike Blackman and Sarah Kay have started to talk about experiences. This week’s blog will expand on their ideas and hopefully create a positive experience for our readers. What are my favorite consiglieres talking about?  None of them is talking about the financial markets or ETFs.  They are writing and talking about big issues that impact our lives. Celebrities Most of us believe that the grass of someone else’s life is greaner than ours.  Social media has stoked this belief and the tweets of celebrities create an unrealistic view that their life is perfect.  I will never forget an interview with Debra Winger when she was at the pinicle of her fame after the success of   An Officer and a Gentleman . ...

We are all concerned that robots are scheming to take our jobs.  Inefficiencies in all industries stoke the robot concerns and fuel the Silicon Valley investors' belief that they can optimize every issue.  Our blog this week will look at the main fintech solutions from both sides and hopefully allay any concerns that robots will take all of our jobs. Inefficiencies Potentially successful fintech  solutions can be identified with an honest business model evaluation that will show procedures that are consistently experiencing issues.  Optimizing procedural performance should also increase profit margins that are being squeezed by fee compression.  This reality alone is a good reason to consider fintech solutions for your business.  A recent research report from Aite Group is a good place to start. Their Digital Advisory Matrix of nine solutions identifies several solutions that should be investigated. Ou...

The senate confirmation process of a potential Supreme Court justice and the recent FBI investigation was at times painful but necessary.  The extensive two-sided nature seems merited since a court appointment has no term limit.  This week’s blog will examine how we make other decisions that could have a lengthy term.  Are we diligent or partisan?  Let’s investigate. Effectively choosing a wealth advisor should be as comprehensive as our senate confirmation process.  Thankfully we have numerous tools that we can use to make this important decision.  Let’s take a look. Broker Check Many advisors either work at a regulated brokerage firm or they did at one time in their career. The broker check system archives any complaints that have been filed against the registered professional. It will allow you to be the FBI and ask the advisor about alleged customer complaints that happened over the last ten years...

Tiger Woods' Tour Championship victory has been deemed the greatest comeback story in golf history.   The record TV ratings prove we agree and our love hate meter with Tiger is now firmly in the love camp .   Tiger had not won a professional golf tournament since 2013.   Investors have a love hate relationship with hedge funds that has remained on the hate side since 2009.   This week’s blog will examine what Tiger can teach hedge fund managers and their investors. Don’t read the press The press and blogs have a large case of schadenfreude.   Most of their stories have a failure bias not just a political bias.   Athletes and money managers make a lot more money than reporters and the average American.    Our jealous dark side would like to see them come down to our zip code.   Athletes and hedge fund managers need to focus on their successes and not be brought down by the naysayers.   Comebacks are 90% mental. ...

The litany of departing White House officials and their tell - all books made me ask why do people leak secrets?   This week we will examine that question and see that it is not just politicians who leak.    The term is different in the private and business domain but it still packs an emotional punch. Friends and Family I vividly remember the first lie I told my parents.   I was terrified that they would find out, but as time passed my anxiety declined.   Eventually my parents caught me and lectured me on telling the truth and I would nod and say I’m sorry. Lesson learned – lie/leak and just apologize.   Life goes on. Secrets Secrets are a euphemism for little white lies.   We kid ourselves that broken secrets are not as bad as lies.   I would ask the people that trusted us with their secrets if they agree.   Listen to how people rationalize telling secrets.   They usually start their statement with d...

We love to read chronologies about traumatic events.   This last week was overloaded with two such events – 9/11 and the closure of Lehman Brothers, both traumatic events that we continue to revisit.   This blog will examine the power of traumatic events and how they can be like a light to moths.   Don’t misunderstand me, we need to continue to remember like   Cats and Barbara  so we won’t forget and repeat past mistakes.   Tragedy Tragedy has a stronger lasting impact than success.   We need to be aware of this reality and do our best to remember our successes and try to learn from our failures.   Unfortunately businesses promote success and fire failures.   This reality causes us to promote the top salesperson into a management position so they can teach strategies that are out dated and ineffective in today’s environment.   Clients and shareholders should demand proof of recent success rather than listen...