Imagine. Just imagine for a moment that your view of the financial advice industry were different. In fact, imagine if it really were different. Now, open your eyes and let me introduce you to Wealthcare. While Wealthcare is the name of a company, it's much, much more than that. Wealthcare is a process focused entirely on you, and what's important to you. No more discussion of all the stuff that doesn't really matter or the stuff that we can't really control anyway. Instead, let's dig really deep into your "why" and focus less on the "how" and the "what". First, we need to figure out, in your mind and in your words, what's the money for. Why save, spend, and/or invest in the first place? Without a goal or goals, you'll never know if you're making progress, or even going in the right direction. Once we determine the "why" we need to focus on the things you can control. Things like how much you save or how much you spend, the timing of your goals and dreams, the level of investment risk you're exposing your hard-earned savings and investments to, how much, if any, you'd like to leave behind to people or causes, as well as your costs, including taxes. It's a really empowering experience when you realize you have much more control over your future - financial and otherwise - and aren't subject to the whims of Wall Street or the "market." Now this next part is as important, if not more so that the above. You've got to tune out all the noise. In this context noise includes everything the Wall Street marketing machines spits out on a moment by moment basis in the news, via your well-meaning friends and family, on TV, in newspapers and magazines and all the crap online. It's just information, nothing more. It's rarely knowledge, and it most certainly isn't wisdom. It's a well-designed marketing message for the masses. For example, how can a magazine cover that says "The 5 Stocks To Buy Now!" really be the right advice for you at this moment in your life when the editor of the magazine and the author of the article don't even know who you are? And they certainly have no clue what's important to you or what your goals are or if you even need to buy stocks. In this instance, it good to be a healthy skeptic of everything you watch, hear or read. This includes being skeptical of anything I'm telling you as well as being skeptical of anything another financial advisor tells you, no matter how compelling the "pitch" sounds. Let's quickly review what we've covered so far, and then we'll jump right into the fun part: First, you need to start with your own personal "why." Why are you investing? Why are you saving? What's the money and the investing for? What's really important to you? And are your finances aligned with the important stuff or do they simply reflect the last best idea you had or heard? Second, you need to focus on the things you can control. Wall Street and the media spends a lot of time and money talking about things that no one has any control over. While they're talking about the market or this stock or this investment manager or the Oracle of Omaha or interest rates or the price of oil or the situation in Europe, you can instead focus on the things in your control. This includes how much you save or spend, the timing of your goals, investment risk and more. You're not a helpless pawn in some Machiavellian game being played out by Wall Street. No, you can confidently take control of your situation by pushing or pulling the multiple levers that will directly impact your life both now and into the future. After you've got your focus where it needs to be -- on the things you can control -- you need to tune out the noise. This is easier said than done because noise is everywhere and it's getting louder and louder everyday. And the noise is coming at you from all directions including friends and family, the internet, the television, the radio and in print media. Fortunately, you can ignore it and proceed directly to the fourth step that I described earlier as being where the fun really begins. Now you get to focus on living your best life. No more deferred life plans where you work hard for 40 years and then can spend the time and money pursuing the things that are really important to you and your family. No more living a life that you may well regret down the road. Remember, life isn't a dress rehearsal and we all only get one shot. And please don't misunderstand, I'm not giving you permission or license to be irresponsible with your time or your money. But given the personalization and power of the Wealthcare process, you can strike a wonderful balance between living your best life today and being comfortably and confidently prepared for an uncertain future, no matter what it brings. Earlier, I asked you to close your eyes and imagine what this might be like. Well, stop imagining. Open your eyes. Maybe you or someone you know is a good fit and can join my small group of existing clients and begin to take control of your finances and tune out the noise today. Just give me a call or send me an email and let's talk more about it. This e-mail does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Past performance does not guarantee future results. Wealthcare Capital Management's disclosure document ADV Part 2A can be found here. Collecting vs Investing 02/01/2012
Most people I meet have what I call a "last good idea" portfolio. They have a collection - usually built over many years - of random investments that were the "last good idea" they (or their broker/advisor) had heard or read about at the time. This is closer to collecting than investing and is a recipe for trouble with regard to portfolio management and planning for future goals. And on top of all this, included in these "collections" are often investment products that are riddled with fees and/or illiquid and/or unnecessarily complex. Are you investing or collecting? This e-mail does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Past performance does not guarantee future results. Wealthcare Capital Management's disclosure document ADV Part 2A can be found here. It's no small step. Many people I know simply don't get around to financial planning. These are smart people who manage their household finances efficiently, spend responsibly, and contribute regularly to their savings. But ask them where they want to be in 15 years, and whether their current savings and investments are on track to achieve those goals, and they draw a blank. Why is it, when we have a huge financial services industry centered around helping people answer these very questions, that planning for our financial future is so problematic? the dark side of financial planningIf you think about it, financial planning and wealth management should be a very positive, empowering experience. In essence, we're taking what you have (assets), and what you are creating through your own ingenuity and effort (income), and intelligently putting that to work (investment) to achieve your financial goals. Yet, the traditional approach of financial planning can leave you feeling anything but empowered. driven by fearUnderlying the whole process is the fear that whatever you're doing now, it won't be enough to take care of you and your family in the future. So you'll have to scrimp, and squirrel away every dollar, to have enough when you retire. Then, despite all this effort, it seems your success or failure is ultimately out of your hands. It relies on having a hot-shot investment advisor who can play (and beat) the market. And if Wall Street goes down then so do you. It'd be no surprise if you decided to avoid financial planning and financial advisors altogether. Is Wealth Management Really A Game Of Chance? It certainly seems that way when most of the financial services industry focuses exclusively on investment returns as the key indicator of expertise and success. If the only thing your financial advisor feels they can effectively influence is your investment returns (when in fact the market is the one thing they cannot control), then what is wealth management but a game of chance - albeit a complicated game of chance? If So, Who Holds All The Cards? The wolves of Wall Street would have you believe it is them, and that you are merely a passive bystander to their hot-shot wheeling and dealing. When you try to talk to them, it seems like they're speaking another language. They'll tell you about funds with an alpha of 1.2%, a beta of 0.95 and a positive delta relative to the market for risk adjusted return... And when the game's been played, performance reports are presented with their own bewildering array of jargon and statistics. If you won it was because of their skill, and if you lost it was because of the market. So do you put your trust in these wolves of Wall Street? You might feel you have to, because it seems they hold all the secrets to this impenetrable game of chance - all the secrets to your financial success. What a load of bull! The Real Secret Of Successful Wealth Management The real secret of successful wealth management is that your financial future is truly in your hands. In this 5-part series I'm going to share the principles I use in my own wealth management practice, to put my clients in control of their financial future. You can take control of your wealth management in a way that's not driven by fear, that's not complicated and confusing, and that does not leave you completely vulnerable to an unpredictable market. Financial planning can be a positive process that empowers you to make important financial decisions with ease and confidence. And I want to show you how. Please post any questions or comments below. This e-mail does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Past performance does not guarantee future results. Wealthcare Capital Management's disclosure document ADV Part 2A can be found here. Questions 09/15/2011
 Photo by Michael Sauers Much of my work as a financial advisor revolves around questions. I often find myself either answering or asking questions when I work with clients. Today, I'd like to encourage you to answer the following questions about your situation. While these are only a small sample of the questions that need to be explored in the creation of a financial plan, my hope is that they will give you an indication of the types of conversations I have with people. And more importantly, I hope they will motivate you to discuss these with your financial advisor. Let's get started:
I hope the above questions have you thinking about your financial planning and investment decisions from a different perspective. After all, we're talking about your one and only life, and this certainly isn't a dress rehearsal. Many advisors spend their time talking about the market and how to invest, but you need to always be clear about why you're investing in the first place. It's about you and your life. If you'd like to discuss any of these questions or explore any other areas of your family's finances, please feel welcome to give me a call. And if you have any thought provoking questions of your own, please share them in the comments section below. This e-mail does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Past performance does not guarantee future results. Wealthcare Capital Management's disclosure document ADV Part 2A can be found here. Unfocus To See More Clearly 09/12/2011
 Photo by Dani Ihtatho Whether implicit or explicit, there is a lot of ink and TV time dedicated to the various things you should focus on in your financial planning and investment decisions. The result? A multi-billion dollar financial services industry and a increasingly complex labyrinth of information and decisions facing you and your family. However, I have some great news. It can be refreshingly simple to create and implement a financial plan that is aligned with your goals and values. Here's the secret: Focus on the things you can control and ignore everything else. Think about that for a moment. Go ahead, I'll wait . . . If you really consider the impact of this idea, it can liberate you from most of the bullsh*t that is presented as financial news & information. Besides, what happens when you spend your time and energy worrying about something you can't control? How about stress, poor decisions, and anxiety for starters. Instead, let it go. Seriously. Take a deep breath and let it go. Price of oil going up? Interest rates falling? Gold as a hedge against inflation? Who cares? I don't. And neither should you. Because even if you know where oil or interest rates are going, it doesn't matter. Unless you know how the millions of other investors and market participants will react to a piece of news or an event, you're just making life miserable for yourself worrying about it. I plan to write more about this idea. Maybe even record a couple of videos, too. For now, just remember that you don't have to play by Wall Street's rules. You can tune out the financial noise, create a great financial plan for your family and sleep better at night. Oh, and you can typically save money and take less risk doing it this way, too. Stay tuned for more. In fact, why don't you sign up for email updates so you don't miss anything: And if you have any questions about this or suggestions for future articles, please leave a comment below. Thanks. This e-mail does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Past performance does not guarantee future results. Wealthcare Capital Management's disclosure document ADV Part 2A can be found here. |
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