Money Management Does Not Need to Be Complex

With an open mind, some common sense, and advice that puts your interests ahead of everyone else's, managing your money does not have to be difficult.

Unfortunately, finding advice that puts YOU first is often the hardest ingredient to find. There is so much information available to you, but most of it is either speculative opinions or slanted toward someone else's goals and not yours!

You can call up one of the big firms like Fidelity or Charles Schwab (we see their commercials so much today) and ask for advice. They are often seen as an alternative to paying for advice from an expensive broker. Their recommendations maximize benefits to their company and oftentimes are mediocre at best. YOU are still making a final decision based on their professional but biased advice.

Vanguard, popularized because of their low fees, is another common company we see investors use. However, certain categories of their funds do not perform well. You are taking the risk of a category and paying lower fees, but the net return may be better in a fund with higher fees with the same risk.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Choosing Investments

When we talk to people about the universe of investments that are available (over 25,000 mutual funds alone!), they often ask we go about choosing specific investments for our clients. Like Coke, KFC, and Bush's Baked beans, we aren't going to tell you the whole formula, but we do like to give a little bit of insight into our process.

If we are looking to fulfill a growth portion of your portfolio, we filter the 25,000 available funds down to the 7,200 that are suitable for that. Next, we get rid of any fund that is less than 3 years old. We found this timeline gives us enough data to evaluate the fund. Now, we are down to roughly 2,000 funds that are suitable for growth. We continue this filtering process over 26 different points of data, totaling over 3 million pieces, and finally boil the list from 25,000 funds to around 150 choices.

This search allows us to identify funds that do well in both up markets and down markets. They CONSISTENTLY earn respectable returns in up markets and minimize losses in down markets. They have the highest quality of management in their category.

None of these funds are exclusive to our clients, but you typically cannot get some of them from a broker. They have minimums ranging from $25 to $5 million, but in many cases the minimum is waived for a private wealth manager.

Since we do not get paid a commission, a mutual fund with a sales charge is useless to us. However, we do not throw funds with a sale charge out during our filtering process. We are searching for funds with the highest net performance for our clients. The high charge funds typically eliminate themselves with lower net performances.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

I Need Help!!!

Many factors can lead you to the decision that you need help with your investments. You may not have enough time. You may lack certain necessary skills. Maybe you can't filter out what really applies to you. Or, like many of our clients, you want to focus on other parts of your life.

First, notice we said help. Management must be a team effort and you still need to be involved in your investments to find the best fit.

How do you find an advisor or manager to help you? Well, it's a lot like looking for a doctor who specializes in your particular ailment. My wife had a back problem and needed surgery. All of our friends (and clients) recommended their doctor that did their back surgery. They told us how much they liked their doctor. So we interviewed several before we decided on would do her surgery.

Financial professionals, like doctors, have many different paths to choose form for treatment of a problem. You want the doctor who can produce the expected results, not the doctor who is most popular.

The first person you talk to may not be the best, but they get chosen just so you can get it out of the way. Then, you may never revisit that choice even if you have suffered significant losses or mediocre returns.

If you had a serious illness, you would take a genuine interest in finding the best choice to treat you. WealthKare is as important as your healthcare. You need to choose a person or group that give you simple, clear, and solid solutions.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

Crystal Balls, Market Timing, and Predicting the Future

As the markets continue their cycle, we are hearing two questions over and over again from you. They are "is it time to get back into the market" or "are we near another crash". While they may seem like similar questions, they are actually very different with different answers.

The first question relates to an investment strategy those in the business refer to as market timing. The belief is that you should be in the market during good times and get out of the market before the market begins a down cycle. What's more is the average investor expects their financial broker to make these moves for them. Many brokers believe you never need to make moves because your investments are long-term!

Market timing sounds great and looks good in theory. Who wouldn't want to enjoy the market going up and get out before it goes down? In reality, it just doesn't happen. If these programs and systems worked, we would see trillionaires instead of the billionaires we have in our society. When these programs and systems don't work, it's YOUR money that is lost, not theirs.

The second question, 'are we near another crash', ties into that, but the underlying question goes deeper. People want to know if we are near a crash or what do we think the market is going to do going forward. The talking heads of TV debate whether we are in a bull market (going up) or a bear market (going down). You will hear them going back and forth about previous market events and use that to prove what will happen going forward.

The true answer to the question is NO ONE has a crystal ball, so how can they predict the future. Don't worry about a crash or a raging bull market. You need to be sure that your portfolio properly reflects how much risk you can tolerate.

To hear the Smart Money Radio Show segment focused on this topic, Please Click Here! (about 7 minutes long)




To hear the full Smart Money Radio Show where Bruce discusses this topic and more, Please Click Here! (about 25 minutes long)

The Television, Internet, and Your Money

With the satellite companies and cable companies, and more people accessing the internet, the TV and the world wide web are the frontiers of valuable information sources. Right?

Wrong. When it comes to wealth management, most of these provide little to no valuable information. As a manager, it is very important to monitor the investments and make decision based on new information. By the time it is REPORTED on the internet or TV, it is old news that has already affected your investments.

The primary function of television is advertising, not information or entertainment. Without sufficient advertising, any channel will go off the air. Their job is to draw you to their channel so you see the advertisements (that companies have spent millions on to get you to see their product).

The information, especially in today's turbulent markets, is creating an emotional response about investing, and financial decisions should never be based on emotion!

To hear the Smart Money Radio Show segment where Bruce discusses the influence of media on investors in today's market, Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

What is Your Biggest Problem Inside Your Portfolio?

You are taking on too much risk. Most of the losses in people's accounts over the last few years can be attributed to risk. If your losses upset you, then there is a good chance that the risks in your account are much greater than your tolerance. Too many brokers overlook the significance of risk in designing your portfolio.

You are placing your trust in someone to choose investments that are suited correctly for you. If they make the wrong choices, it is your money that will be lost—not theirs. If you are unhappy with results, then YOU have to take actions to correct the matters.

One of the limitations of brokers or planners is the lack of flexibility in the investments they sell you. If the choice was not a good fit, it requires you to sell out of one investment and purchase another. Truth be told, it is almost impossible to assess someone's risk tolerance and make the best possible recommendation from one or two office visits.

As a private wealth manager, we assume from the beginning of our relationship with a client that we are going to have to make adjustments. We learn more about them, they will learn more about us. It is our job to manage the assets and allow for a better fit as a time goes on. We use the same principles that wealthy people demand—flexibility. When you have investments that have no sales charges, you can move within a universe of literally thousands of choices without any additional cost to you. It's like having a tailor made suit or dress that comes with free unlimited alterations!

To hear the Smart Money Radio Show segment where Bruce discusses possible pitfalls inside your portfolio, Click Here! (about 7 minutes long



To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

Is There Ever a Free Lunch?

Sadly, the answer is no! When times are good, people will overlook the possible downsides of a situation. Investors are no different. People ignore risks and pitfalls that can be easily seen if you just use some common sense. When things get bad, people try to absorb an overload of information to understand how and why they got there.

Whether you are buying a house, a car, or an investment, a salesperson points out all of the strengths and benefits of your impending purchase. They will not point out the weaknesses or drawbacks, which will jeopardize their chance of a sale.

The only way to make a smart investment decision that will affect your financial future is to have both the benefits and drawbacks laid out in front of you, equally.

Get the facts, use common sense, and remember there is no free lunch before making a decision that can decide whether your retirement will be a success of a failure!

To hear the Smart Money Radio Show segment where Bruce discusses paying fees for private wealth management, Click Here! (about 7 minutes long)



To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

The True Cost of Fees

One of the biggest objections we hear is that you don’t want to pay a fee for private wealth management service. You’ve already lost enough money in this market and you don’t really want to lose more money to fees.

But the fact is that unless you have your money under your mattress or in a jar, you are paying fees and the amount you are paying would surprise you! There are hidden fees inside your insurance contracts, management fees inside all of your mutual funds, account fees inside your 401(k) or pension plan, and sometimes 2,3, or 4 sets of fees inside your retirement account.

Instead of being billed directly, these fees are taken from your account values, and you get a NET return. In a down market, you are actually using your principle to pay these fees since the account is not making any money.

There is no such thing as a free lunch. Whether you are working with a financial advisor, a broker, or a private wealth manager, YOU are paying fees. The real question is how much are those fees and what are YOU getting in return.

To hear the Smart Money Radio Show segment where Bruce discusses paying fees for private wealth management, Click Here! (about 7 minutes long)


To hear the full Smart Money Recipes Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

Is Your Portfolio One Size Fits All? Should It Be?

The simple truth is there is no such thing as a perfect investment. If one existed, everyone would own it. Every program or product is a compromise. You have to understand your goals, take an inventory of the strengths and weaknesses inside your portfolio, and see if there is a reasonable match.

Many times, we see people that have a ‘one size fits all’ portfolio. In private wealth management, the portfolio is much more tailored to the specific needs of the client, yet flexible enough to make future changes without any great expense.

Is it possible for you to have a ‘tailored’ managed account for the same or less money than the ‘one size fits all’? In many cases, it is!!!

To hear the Smart Money Radio Show segment where Bruce discusses finding the right portfolio through private wealth management, Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

How Good Are Answers if They Fail to Address Your Issues

You, the financial consumer, should expect good communication from any professional regardless if they are a planner, broker, or private wealth manager. We don’t believe that any planner or broker would want to give less either.

However, there are times when many communications and answers given to a client fail to address the issues at hand. This may seem counter-intuitive, so let us give you some examples.

Given the shaky market we’ve seen over the last decade, you were probably told at some point that “You have to realize your investments are long-term”, especially when discussing significant losses.

We fail to see how this answers your concern about losing money. Your investment strategy or philosophy should be long-term, but buying and holding a bad investment will rarely have a positive outcome for the client. Management involves routine evaluation of the investments and removing those that are counterproductive to the goals of the investor

Another common response we hear in response to a poor performing investment is “That’s only a paper loss unless you actually sell it”. An investment worth exactly what its value is on a given day when the market closes. If you invest $50,000 in something three years ago that is worth $30,000, you have lost $20,000. There is no crystal ball to tell us if it will ever come back.

There are many reasons why you may hear these universal answers to your questions. Pride-not wanting to admit failure-could be one. People not liking bad news or sharing bad news is another. Finally, people have a wrong assessment of their own ability when it comes to finances.

Money is NOT that complicated if you use common sense and we use easy to understand terms. If something doesn’t seem right or add up to you, there is probably something wrong!

To hear the Smart Money Radio Show segment where Bruce discusses dissecting the information out there for your benefit, Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

Wealthy Individuals Use Private Wealth Management, So How Can You Use It?

Most firms require assets of 20 Million dollars before you can gain access into their Private Wealth Management services. But it shouldn’t have to be this way!

You need to understand that sound financial principles are the same whether you are a widow with $50,000 or Bill Gates with his billions. The tax codes, retirement guidelines, and investment strategies do NOT have minimum account size restrictions, BUT YOUR financial planning firm and broker do!

Everyone can benefit from Private Wealth Management. The biggest difference is revenue for the brokerage or broker. It does not pay as well as selling products, so you see it less often.

Using today’s technologies, we are able to give YOU access to smarter and safer strategies for YOUR finances.

Why shouldn’t you be enjoying better services, lower fees, NO sales charges, and safer products?? It is YOUR money, shouldn’t you be getting the most out of it??

To hear the Smart Money Recipes Show segment where Bruce discusses why you haven’t heard of private wealth management, Click Here! (about 7 minutes long)


To hear the full Smart Money Recipes Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

A Second Opinion on Your Portfolio

In healthcare, patients look for a second opinion from another medical professional. The key factor is that it is usually not the patient’s diagnosis that is in question, but the recommended treatment for the particular infliction.

Through the years, we have reviewed hundreds of accounts where the people are working with a broker or planner who does take into account many different variables, and our second opinion agrees with the steps taken. Let me repeat that, we don’t always find significant problems in our portfolio reviews.

Most investors can sense when there is something wrong with their portfolio. The problem is that they either ignore these ‘symptoms’ hoping the problem will go away (it doesn’t), or they have no idea where to go to get a second opinion.

By using a balanced approach, we can talk about the strengths and weaknesses of your total portfolio to give you a clear picture of where you are today. By avoiding a sales pitch, you won’t have your portfolio “problems” blown out of proportion. Don’t think it can happen, let us give you a real world example.

Have you ever looked to a buy a new car? Think of the sales process. The salesperson, once he knows what you are looking for, will begin to make comparisons to what you drove onto the car lot. The more benefits of the new car they point out, the more problems you see with your old car. That same thing can happen with a review of your finances.

Remember, your second opinion needs to be objective and avoid a sales pitch to be effective for you and your financial future!


To hear the Smart Money Radio Show segment where Bruce discusses paying fees for private wealth management, Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

The Biggest Obstacle for Investors

In these unpredictable markets and the current economy, we see the biggest obstacle for investors, surprisingly, is information.

There is such a large volume of information today from many sources. It is becoming harder and harder to separate the small parcels of valuable information from the mountains of useless propaganda. Good information has become a needle in a haystack. In order for you to make smart, informed decisions, you need concise, accurate information without all the noise.

There are two very important points about our communications we relay to everyone who interviews us as a manager:

1. You may not like what we have to tell you, but you will know that it’s the truth.
2. There is no such thing as a free lunch- for any product or program to offer you a benefit, there must also be a drawback.



To hear the Smart Money Radio Show segment where Bruce discusses paying fees for private wealth management, Click Here! (about 7 minutes long)


To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)

Private Wealth Management and You

If you’ve never heard of Private Wealth Management or didn’t think it applied to you, there’s probably a good reason. Private Wealth Management is a customized investment management and financial planning service. Traditionally, it was reserved only for very wealthy individuals, trusts, and businesses. These wealthy clients received a higher level of service and they were granted special access to financial programs not available to the average investor. In addition, many of the fees and charges that are paid by most investors are eliminated for these wealthy entities.

You may ask, “Isn’t this the same thing as having a financial planner or broker?”

The answer is No! Most financial planners and brokers actually sell financial products to solve their clients’ retirement, investment, or insurance needs. Private Wealth Management is quite different. It is how most wealthy people handle their financial affairs. In most cases, they have access to choices that are NOT available to the average financial consumers.

So why have you never heard about it?

Private Wealth Management is NOT a new idea. It has been around for as long as the markets have existed.

There are 3 primary reasons you may have never heard of it.

First, in Pennsylvania, there are about 300 people licensed to sell investment products to you for every 1 private wealth manager. They could be your accountant, your lawyer, banker, realtor, financial planner, or broker.

Second, many wealth managers typically require a minimum account size (sometimes of $2 million or more) of their clients, pricing them out of the range of the average investor.

Finally, some wealth managers have built up a big enough client portfolio that they no longer take on new clients.

To hear the Smart Money Recipes segment where Bruce discusses Private Wealth Management, Please Click the Play button (about 7 minutes in length)


To hear the full Smart Money Radio Show where Bruce discusses Private Wealth Management, Click Here! (about 25 minutes long)