Why Choose Us?
We can and do help our clients with their investments.
However, our real asset is helping those clients plan for their future. As a result, for those clients that qualify, we make certain that everything we do begins with a comprehensive financial, investment, and estate plan. In short, financial planning. Without it, we are just hoping and hope is not a plan.
Our approach has three Principles and three Practices. They all apply to both our financial planning clients and our investment clients.
Faith
Everything begins with Faith. The future is bright and our nation and the world will continue to improve the goods and services we have been blessed with. We have faith in the future.
“I tell you the truth, if you have faith as small as a mustard seed, you can say to this mountain, ‘Move from here to there,’ and it will move. Nothing will be impossible for you.” Matthew 17:20
Patience
As investors, we must be patient. We know that life will not always deal the hand we want dealt. So, in those times of uncertainty, we must exercise patience.
Discipline
A patient investor must have discipline. We stay with the allocations we have set in place and resist the temptations to make revisions just for the sake of making changes or because of what we heard on the news today.
Three Practices
Asset Allocation
The large majority of an investors return is driven by the percentage allocated to equities or debt. Our portfolios are setup to have an equity/debt allocation that has some potential of producing the returns our clients need.
(Asset allocation does not ensure a profit or protect against a loss and past performance is no guarantee of future results.)
Diversification
We spread out among enough different investments to avoid major investment repercussions. One example of how our portfolios are diversified is that if we are investing in equities, we will not just own large companies in the United States. Instead we will probably own large, medium, and small companies in the United States as well as large, medium, and small companies that are based in foreign countries. (There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not ensure against market risk .)
Re-balancing
There will be times when market conditions will skew our portfolios away from our original intended allocations. So, one time each year our assets are re-balanced back to the original intended allocation. This allows us to sell the securities that have gone up and buy back the securities that have gone down. We are not timing the market, but simply re-balancing to our original portfolio goals. Thus, we are selling high and buying low. (Re-balancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.)
What Should I Look for When Choosing a Financial Advisor?
When it comes to finances, many people want to do it themselves.
When it comes to finances, many people want to do it themselves. Some people think that they can do the work as well as an advisor, or think they cannot justify paying a fee for the services provided by that financial professional. In other words, they don’t think the value they would receive is worth the cost.
Do you handle your own finances? Have you wondered what you could gain by working with a financial professional?
Many people consider working with an advisor when their finances have reached a certain point of complexity – they want someone else to step in to evaluate their situation and weigh in on what’s next. Maybe you started your 401(k) through work, then started investing on your own, outside of your employer-sponsored plan. Now you’re thinking about preparing for your next big steps – retirement, paying for your children’s education, a major purchase.
You have saved your hard-earned money, you have invested it, and now it is time to pursue your dreams with the help of a professional. Many people do not have a clue how to start this process or what questions they should be asking when it comes time to sitting down with an advisor/planner.
There are thousands of different financial institutions across the country that work with individuals, families and businesses. Each firm has multiple advisors/planners within those offices. Do you see where I am going? There are a ton of options out there. The process can be overwhelming, especially if this is the first time you are seeking financial advice.
This blog is designed to help you understand what you should be looking for when finding the right fit for you and your individual situation. What should you be asking an advisor when you establish the relationship?
1. Are you a Fiduciary?
A fiduciary is anyone who has a legal responsibility to put the client’s interest ahead of their own. In layman’s terms: The advisor has to do what is best for the client, rather than what is best for themselves. So, for example, the advisor cannot put you in the most expensive product to generate a higher commission for themselves.
An important note: Not all financial advisors are fiduciaries. This does not mean that advisors who do not have a fiduciary responsibility are not acting in your best interest, but rather that those who are fiduciaries are held to the highest standards.
2. What are your fees?
This seems to be a pretty straightforward question, but some people will forget to ask it before they start working with someone. You wouldn’t buy a car without knowing the price, so why do that with your investments? There are a variety of prices associated with a vehicle that depend on the model, class size, condition, etc. The same goes with investment products and services. A smart consumer is an informed consumer!
3. What services are provided within your fee?
Everyone wants to get more “bang for their buck.” So make sure you understand what is included with the fee you’re quoted. After speaking with an advisor, you should know the answer to these four fee-based questions:
- Is that strictly asset management?
- Does that include a comprehensive financial plan?
- Does this give me access to tax services?
- Will I be able to speak to a trust service representative?
Many firms include these offerings within their fee structure; if so, make sure you take advantage of them. Other firms offer an a la carte menu – you will pay for any additional services on top of your asset management fee.
4. Who are my contacts within your firm?
I know this seems like an odd question, but it is an important one to ask. Why? Because as I just mentioned, the firm might provide a variety of services, and it is good to know who to reach when you have a question regarding different topics. Most advisors/planners have a team of individuals surrounding them to help accomplish the tasks at hand. Having access to multiple individuals may get you the answer you are looking for more quickly.
5. How will we communicate?
Much like you want to know who to reach out to when you have a question regarding separate topics, it is also important to know who is going to contact you through the planning process. It’s also important to know how long each process is going to take, when you will receive follow-up information and how the firm communicates. People receive hundreds of junk emails a day and random phone calls. To maintain the most effective relationship, it is good to know how exactly we should be communicating.
Helping individuals, families, and businesses is one of the many things that we do here at Carson Wealth. If you are thinking about getting help from a financial professional or just want a second set of eyes on your existing portfolio, please reach out to schedule a complimentary informative meeting. For more information or to see how we work to process your investment strategy please take a look at this free guide.
Investment Process
As investors, we would all like to effortlessly beat the markets, buying and selling investments based on brilliant timing, instinct and a little luck. But most of us realize it’s not that easy.