Lots of people are interested in your money. The bank likes your deposit. The waiter appreciates your tip. The carpenter values your payment. But who really cares about your money, besides you and your family? When you get to that point of engaging professionals with your money, what should you look for and how can you tell how much they care?
Along the way, many know, few care
Today, you can go a fair distance in life before people know about your money. Early on your financial identity exists mostly through web sites and data entry. It starts with your checking accounts, then credit cards. There may be an online savings account or 401k. The first people who know about your money may be a CPA as you pay more in taxes, and perhaps a mortgage broker as you borrow money to buy a home. Still, not much human contact and very little care.
Money attracts attention
At some point you accumulate enough financial assets that they attract attention. You may have spent less than you earned for years, contributed faithfully to your 401(k) for years, or own a stake in a private company about to monetize. As the dollar figures grow, it’s time to engage more professionals, carefully.
Because you care about your financial future, you are right to raise questions and make statements like these:
- How can my investments be as successful as I am?
- I want to exceed with my investments, not just keep up.
- I have worked once for our money, I don’t want to work twice for it.
Some paths to investment success are clearly more effective than others. Using care as a filter is a great way to identify them. A fiduciary (registered investment advisor) has to care, it comes with the job. Some investments show care through low fees and transparency. For instance, the passive power of index ETFs often puts you in the top tier immediately simply because you keep more of what you make. How much more? The amount of the fees you don’t pay for active management and the taxes they generate.
Be skeptical and verify
Care is not a hard thing to measure or demonstrate when it comes to your money. You can ask your investment advisor or broker for proof. Ask questions. Who is managing my money? How? Show me in writing. How is this portfolio unique to me? How do you get paid and by whom? And so on. Challenge answers that sound like marketing hype.
We suggest you add one more question — Why aren’t you indexing for me? — if you really want a good and caring discussion.
John Osbon – email@example.com
This communication may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.”
“Historical performance is not indicative of future results. The investment return will fluctuate with market conditions.
Past performance is not indicative of any specific investment or future results. Views regarding the economy, securities markets or other specialized areas, like all predictors of future events, cannot be guaranteed to be accurate and may result in economic loss to the investor.
Investment strategies, philosophies, allocations and holdings are subject to change without prior notice.
This communication is intended to provide general information only and should not be construed as an offer of specifically tailored individualized advice.
While the Adviser believes the outside data sources cited to be credible, it has not independently verified the correctness of any of their inputs or calculations and, therefore, does not warranty the accuracy of any third-party sources or information.
Adviser does not endorse the statements, services or performance of any third-party vendor.
Unless stated otherwise, any mention of specific securities or investments is for hypothetical and illustrative purposes only. Adviser’s clients may or may not hold the securities discussed in their portfolios. Adviser makes no representations that any of the securities discussed have been or will be profitable.
Any IPO alerts are purely informational and should not be construed as recommendations to invest.
Adviser is not licensed to provide and does not provide legal, tax or accounting advice to clients. Advice of qualified counsel or accountant should be sought to address any specific situation requiring assistance from such licensed individuals.
Any case studies or hypothetical client profiles are for demonstration purposes only. They illustrate the breadth and depth of the many clients we represent at various life stages. Any similarities to actual Adviser’s clients past or present are strictly coincidental. Individual advice and results will vary based on each client’s circumstances, objectives and prevailing economic conditions.