In addition to our regular STAT newsletter we thought it might be instructive, from time to time, to highlight some of the issues we see with clients and our approach to forming solutions.

What We Do and Don't Do 

The Probable is what usually happens

- Aristotle

Our vastly different approach to wealth management might best be summed up from looking at what we don't do and why. Most firms that offer some form of wealth management, from stock brokers to insurance companies to big banks do these things ...but we don't.  

We Don't Pick Stocks (because there is no wizard behind the curtain)

Financial science tells us (and history proves) that over the long term, outcomes from investing in the markets depend mostly on diversification and structure, not the particular stocks/funds/managers. The Myth of Wall Street is that somehow they can "out-select" or "out-time" the market because of their brilliant analysts/managers/etc. Absent chance (luck), it is indeed a myth.

We Don't Sell Products (because to do so compromises our motivation and changes "clients" into "customers")

We have devoted three decades to protecting our clients in our role as a pure advisor. We don't sell products nor do we receive compensation from product providers. Of course, when we started out, we were in the extreme minority and after all this time perhaps we are just a simple minority now. The financial services industry is quite skilled at obfuscating their primary motivation so consumers must always be aware (e.g. -calling someone a "consultant" or "advisor" means nothing if they are still selling products).

We Don't Custody Assets (because it provides peace of mind to clients)

Most firms do take possession of investment assets but we instead utilize the services of a national brokerage firm (TD Ameritrade) that provides these services. This adds a layer of protection and security to clients that is sometimes missing in other firms.

What We Do is to liberate clients from the day to day burden of trying to be unemotional and objective about their financial decisions. We provide the "dispassionate discipline" so often missing in the typical urgency filled, sales driven financial services firm. We sometimes are more behavior managers than wealth managers as staying on course and focused is the most important aspect of successful investing. In the end, we deliver what clients need more than what they say they want.