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)
Wednesday, November 11, 2009
Monday, November 9, 2009
The Biggest Obstacle for Investors
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)
Monday, November 2, 2009
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)
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)
Friday, September 4, 2009
It all good- until Money enters the picture....
IF you look back to the 1970's and 1980's, you will find instances of Anti-Nuclear protests. Not against nuclear arms (Yes, there were plenty of those), but against nuclear power plants. I was in Nuclear Engineering training when Three Mile Island decided to melt and have a steam explosion due to numerous errors at the plant. If you were in such wnderful places like Saratoga NY, Charleston SC, Groton CT, Dunoon Scotland, or any of a hundred other cities around the world at any given time and asked where the nearest nuclear reactor- you would likely hear about the nearest COMMERCIAL reactor. At any given time, there could be several reactors operating in Norfolk Va, Groton, Charleston, or land based reactors outside of Saratoga- none of which were usually noticed by the public at large.
For the countless years of operation of NAVAL reactors- nobody really talks about them because of their high standard of operation relative to commercial plants (Yes- I know all have had their problems- nobody is perfect).
When I left the Navy, I was deluded into the belief that commercial power was just like Navy Nuclear Power. Strict attention to detail and safety first at any cost. WOW- was I in for a rude awakening! Commercial plants are expensive, and they want to keep them up and running at any cost. I saw the effect of a plant operated for profit rather than mission- and the much higher level of acceptable risk regarding their maintenance and operation. I am not saying they are unsafe, but rather not up to the same level that I was used to. When you put profit (money) into the picture, there becomes an immediate conflict of interests with regard to risk, safety, and other "overhead" items.
For the countless years of operation of NAVAL reactors- nobody really talks about them because of their high standard of operation relative to commercial plants (Yes- I know all have had their problems- nobody is perfect).
When I left the Navy, I was deluded into the belief that commercial power was just like Navy Nuclear Power. Strict attention to detail and safety first at any cost. WOW- was I in for a rude awakening! Commercial plants are expensive, and they want to keep them up and running at any cost. I saw the effect of a plant operated for profit rather than mission- and the much higher level of acceptable risk regarding their maintenance and operation. I am not saying they are unsafe, but rather not up to the same level that I was used to. When you put profit (money) into the picture, there becomes an immediate conflict of interests with regard to risk, safety, and other "overhead" items.
Perspective- From a much different angle...
When people learn that I served aboard submarines (and after the usual comments about claustrophobia and how did I fit in a submarine), they ask WHY I picked submarines. My answer may surprise you, but it certainly lays a unique foundation that would impact my chosen career greatly.
During the Vietnam war, I remember watching the daily death toll given to us by Walter Cronkite in the nightly news. I remember my mother saying that she prayed that I would never have to endure such an event. As a young man, I pondered what I would really want to do if drafted when I became of age. I knew one thing for sure- that men of high rank make decisions that place men of much lower rank in harms way (Like my father who served on LST-360 in WWII at Anzio, Normady, and many places I would not have wanted to be). These high ranking (professional) people made recommendations and choices that assigned RISK to those people they made the choices for. IF they made the wrong choice, however, the penalty for that wrong recommendation was paid for with wounds and fatalities of those brave men and women while they remained insulated and safe in their headquarters.
On a submarine, the Captain makes many recommendations and decisions. Those items are carried out by many people of many different ranks and specialities. The big difference is that the risk is shared equally by all shipmates- regardless of rank. A poor recommendation can mean peril not only for the lower ranking sailors, but for the Captain and fellow officers as well.
In the movie Pearl Harbor, Jon Voight plays the part of President Franklin Delano Roosevelt. The original idea for the Tokyo raid came to him from a former Submarine Commander- Admiral Francis S. Low. After hearing the idea for the bold move against Japan, he comments in the movie, "I like sub commanders- they don't have time for bullshit and neither do I!"
My point is simple- submariners have a much different perspective on many things than do other people. I place a much greater value on risk that the average person as a result of my Sub experience. Risk is quite a different thing when it effects not only the end user of an idea- but also the originator.
During the Vietnam war, I remember watching the daily death toll given to us by Walter Cronkite in the nightly news. I remember my mother saying that she prayed that I would never have to endure such an event. As a young man, I pondered what I would really want to do if drafted when I became of age. I knew one thing for sure- that men of high rank make decisions that place men of much lower rank in harms way (Like my father who served on LST-360 in WWII at Anzio, Normady, and many places I would not have wanted to be). These high ranking (professional) people made recommendations and choices that assigned RISK to those people they made the choices for. IF they made the wrong choice, however, the penalty for that wrong recommendation was paid for with wounds and fatalities of those brave men and women while they remained insulated and safe in their headquarters.
On a submarine, the Captain makes many recommendations and decisions. Those items are carried out by many people of many different ranks and specialities. The big difference is that the risk is shared equally by all shipmates- regardless of rank. A poor recommendation can mean peril not only for the lower ranking sailors, but for the Captain and fellow officers as well.
In the movie Pearl Harbor, Jon Voight plays the part of President Franklin Delano Roosevelt. The original idea for the Tokyo raid came to him from a former Submarine Commander- Admiral Francis S. Low. After hearing the idea for the bold move against Japan, he comments in the movie, "I like sub commanders- they don't have time for bullshit and neither do I!"
My point is simple- submariners have a much different perspective on many things than do other people. I place a much greater value on risk that the average person as a result of my Sub experience. Risk is quite a different thing when it effects not only the end user of an idea- but also the originator.
My Story- Why should this blog mean something to you...
I know that I am an investor. What I didn't know was that I am an investing consumer. The same qualities that apply to the purchase of an automobile, a house, or even a loaf of bread apply to buying an investment. Regardless of where you are using the investment, someone-somewhere has sold it to you, and numerous people (many of whom you have NEVER met) profited from that sale- period!
Other than fiction writers (which are allowed to make stuff up), I have always asked why I should read, listen to, understand, or act on the writings or teachings of others. Simply put- what makes them so special? It seems that everyone has a book, a YouTube video, or a blog. Mine deals with investments, and we know there are thousands of those items out there. What makes mine different?
The answer is two words- PERSPECTIVE and EXPERIENCE! From the first day that I began my career in financial services, I have done so with one goal in mind- find a better way to invest my own money, and to share those lessons with others so that they might benefit. A disclaimer is in order here- please understand that I will share actual and factual events that have occurred over the last 25 years. I have the pleasure of knowing many wonderful, professional financial advisors and none of this is directed at them. I have also, however, known many advisors who were motivated for their own selfish gain with little regard for the finances with which they were entrusted. Unfortunately, it is almost impossible to tell them apart from the consumer position.
I will try to keep these postings at reasonable length to help you digest the benefits learned from a quarter century of full-time service in an industry that (for the most part) has their interests placed first, that of their representatives second, and those of the consumer-you- last. Have a good read.....
Other than fiction writers (which are allowed to make stuff up), I have always asked why I should read, listen to, understand, or act on the writings or teachings of others. Simply put- what makes them so special? It seems that everyone has a book, a YouTube video, or a blog. Mine deals with investments, and we know there are thousands of those items out there. What makes mine different?
The answer is two words- PERSPECTIVE and EXPERIENCE! From the first day that I began my career in financial services, I have done so with one goal in mind- find a better way to invest my own money, and to share those lessons with others so that they might benefit. A disclaimer is in order here- please understand that I will share actual and factual events that have occurred over the last 25 years. I have the pleasure of knowing many wonderful, professional financial advisors and none of this is directed at them. I have also, however, known many advisors who were motivated for their own selfish gain with little regard for the finances with which they were entrusted. Unfortunately, it is almost impossible to tell them apart from the consumer position.
I will try to keep these postings at reasonable length to help you digest the benefits learned from a quarter century of full-time service in an industry that (for the most part) has their interests placed first, that of their representatives second, and those of the consumer-you- last. Have a good read.....
Thursday, August 20, 2009
A different way to learn about money...
Anyone who knows me is aware of my philosophy that I am a lifelong student (And that I love to cook...). I always keep an open mind, and seek to further my knowledge in all things. Fortunately, a byproduct of the many facets of education I have received has given me opportunities to be a teacher. In addition to educating people about their finances, I have taught classes on the operation of airplanes, operating nuclear reactors and nuclear chemistry, and many math related disciplines.
One of the fastest ways to gain knowledge about any particular topic is to find a totally different topic that most people understand and correlate it to our desired knowledge. At Smart Money Recipes, we use cooking as our analogy.
Cooking, you see, is relatively simple but can be made very complex. Many of the key terms and principles of cooking can be related to many of the key terms and principles of finance. Let me give you a few examples:
Recipes compared to financial plans - a recipe is a set of instructions on how to prepare or make something. A financial plan is a set of instructions on how to prepare for your financial future or make certain goals a reality. I think you see the similarities.
Ingredients compared to components in a financial plan - ingredients are individual substances which are combined to create a specific mixture within a recipe process. Different investment vehicles, whether they be stocks, bonds, Mutual funds, real estate, or other components are combined to create a specific portfolio within a financial plan.
Nutritional value compared to suitability- nutritional value identifies those foods which are wholesome and provide the most favorable balance of essential nutrients based on a person's biological needs. Correct financial stability identifies those investment vehicles which provide the most favorable potential outcome based on investors needs, risk tolerance, age and other critical factors.
Recipe cost versus financial cost- recipe costs are evaluated to determine if it is economical to prepare the recipe with ingredients of specified cost. This evaluation may show that the benefits from the recipe are not warranted by extreme cost. Financial cost, while not being a singular determinant factor, is evaluated to determine whether financial recommendations are economical for the benefit of the consumer.
As you can see, it's fairly easy to see similarities between recipe cookbooks and financial cookbooks. Our goal is very simple - to create an educational platform is easy to understand and allow you to further your knowledge about your personal finances. We look forward to making the journey with you.
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