Tag Archives: charles kochel wealth advisor

The Seven Roles of an Advisor

authorMay 6, 2015
Jim Parker, Vice President
Dimensional Fund Advisors
“Outside the Flags”
What is a financial advisor for? One view is that advisors have unique insights into market direction that give their clients an advantage. But of the many roles a professional advisor should play, soothsayer is not one of them.

The truth is that no one knows what will happen next in investment markets. And if anyone really did have a working crystal ball, it is unlikely they would be plying their trade as an advisor, broker, analyst, or financial journalist.

Some folks may still think an advisor’s role is to deliver market-beating returns year after year. Generally, those are the same people who believe good advice equates to making accurate forecasts.

But in reality, the value a professional advisor brings is not dependent on the state of markets. Indeed, their value can be even more evident when volatility and emotions are running high.

The best of this new breed play multiple and nuanced roles with their clients, beginning with the needs, risk appetites, and circumstances of each individual and irrespective of what is going on in the world.

None of these roles involve making forecasts about markets or economies. Instead, the roles combine technical expertise with an understanding of how money issues intersect with the rest of people’s complex lives.

Indeed, there are at least seven hats an advisor can wear to help clients without ever once having to look into a crystal ball:

  1. The Expert: Now, more than ever, investors need advisors who can provide client-centered expertise in assessing the state of their finances and developing risk-aware strategies to help them meet their goals.
  2. The Independent Voice: The global financial turmoil of recent years demonstrated the value of an independent and objective voice in a world full of product pushers and salespeople.
  3. The Listener: The emotions triggered by financial uncertainty are real. A good advisor will listen to clients’ fears, tease out the issues driving those feelings, and provide practical, long-term answers.
  4. The Teacher: Getting beyond the fear-and-flight phase often is just a matter of teaching investors about risk and return, diversification, the role of asset allocation, and the virtue of discipline.
  5. The Architect: Once these lessons are understood, the advisor becomes an architect, building a long-term wealth management strategy that matches each person’s risk appetites and lifetime goals.
  6. The Coach: Even when the strategy is in place, doubts and fears inevitably arise. At this point, the advisor becomes a coach, reinforcing first principles and keeping the client on track.
  7. The Guardian: Beyond these experiences is a long-term role for the advisor as a kind of lighthouse keeper, scanning the horizon for issues that may affect the client and keeping them informed.

These are just seven valuable roles an advisor can play in understanding and responding to clients’ whole-of-life needs, which are a world away from the old notions of selling product off the shelf or making forecasts.

For instance, a person may first seek out an advisor purely because of their role as an expert. But once those credentials are established, the main value of the advisor, in the client’s eyes, may be as an independent voice.

Knowing the advisor is independent—and not plugging product—can lead the client to trust the advisor as a listener or sounding board, someone to whom they can share their greatest hopes and fears.

From this point, the listener can become the teacher, architect, coach, and, ultimately, the guardian. Just as people’s needs and circumstances change over time, the nature of the advice service evolves.

These are all valuable roles in their own right and are not dependent on outside forces such as the state of the investment markets or the point of the economic cycle.

However you characterize these various roles, good financial advice ultimately is defined by the patient building of a long-term relationship founded on the values of trust and independence and knowledge of each individual.

Now, how can you put a price on that?

saute image ckCharles Kochel founded Yield Wealth Management to help people and foundations invest and do good. To learn more about Yield Wealth or set a time to visit email info@yieldwealth.com.

This blog is not to be used for investment advice.

GENERATE TO CHANGE THE WORLD

Above the Earth’s core is rock, containing silicon, oxygen, iron, magnesium and aluminum. We live on this rock, with only one external source of energy – The Sun.

Less than 1% of all energy comes from this source. Every other source has limits or bounds…it is finite. Our world continues to expand, and at this rate world-wide energy demand will double by 2050, and again by 2100.

BUSINESS AS USUAL CANNOT CONTINUE

We believe significant wealth is created by investors that own companies that generate, and not consume, that respect human rights and respect natures limitations, and that create the most benefit for stakeholders, not just shareholders.

make a difference motivational phrase handwritten with white chalk on blackboard

Evolution of impact investing has given us the opportunity to invest and do good. The times of high cost and higher risk are dead and gone. Our team at Yield Wealth is the leader in impact investing in the south. We help foundations, endowments, and people identify their most important values and desired outcomes and allocate their financial resources towards those outcomes.

pass the goat

Our partners scour the ever-changing landscape of impact investments to find the options in each asset category that best match your personal values and goals. We do not sell products, nor manage our own stock and bond portfolios. Our team objectively evaluates both the social and financial merits of separate managed account, mutual fund, private equity fund, exchange traded fund and real estate investment rather than trying to push our own ideas.

Imagine a world that invest for profit to do good. We will not continue to do business as usual, times are changing and we are leading the charge. To learn more about how we help you align your financial resources to what matters most, email info@yieldwealth.com.

cropped-ck-photo.jpgCharles Kochel is the founder of Yield Wealth Management. Yield is the one of the first benefit corporations in Arkansas and a leading impact investment firm in the south.

To learn more about Yield Wealth or schedule a time to visit, email info@yieldwealth.com or visit http://www.yieldwealth.com. Do not consider this blog investment advice.

Beliefs & Capabilities

My Work: My financial advice business opened in February 1999, managing a successful practice with some of the largest firms on Wall Street. After the global financial crisis in 2008, I made a conscious decision to immerse in the study of human nature and our relationship to money. The difference is now I’m having conversations about what matters most to the people I serve and help them focus on what they can control, like low fees, tax management, risk control, saving and spending. Now, my business solely exists to help client’s do more of what they love.

Quality of Life: What is most important to you?  What we hope to do is help you find more time to do what you love and spend less time worrying about sustained financial independence for you and future generations. Quality of Life refers to all aspects of your life experience. Each person is unique and anything that is important to you needs to be included. This does not have to be how things are now, but how you wish them to be. What are you willing to work toward? How do you want to feel and how do you want to be?

Balance: A healthy, peaceful relationship with money requires balance. If any one behavior becomes too dominant – spending, saving, giving, risk, or lack thereof – the whole system is at risk.

Simplicity: All the hype coming out of Wall Street and corporate America understandably confuse most people. I believe in strategies that people can understand and follow. This requires tuning out much of the news and emotion surrounding finances and following a disciplined, evidence-based investment program. This may sound simple, but it’s not always easy.

Learn more about our investment philosophy.

In summary, I help people do more of what they love by helping clients prioritize, organize and simplify.

To learn more or schedule an appointment, click here. My team at Abacus Wealth is available to discuss your unique situation and learn if we are able to benefit you and your loved ones.