Tag Archives: client-first

ALL ABOUT IMPACT

Charles KochelThe night of Sunday, September 14, 2008, I sat, legs swinging over the Hudson River on the Jersey side, staring across the river at the space where the twin towers once stood. Just to the right, employees of Lehman Brothers were walking into a tall building empty-handed, only a few minutes later to reappear with a small box of personal belongings. At this moment, I realized there was more to life than money.”

Most foundations and charitable families have a mission guiding their grant giving, but not their investing. As a result, many are shocked to learn that they own companies and bonds that are actually working at cross-purposes to the stated mission.

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INVEST AND DO GOOD

Impact Investing – Investments made in companies, organizations, and funds with the intention to generate measurable social and environmental impact and a financial return.

Impact Investing, summed up in four words…Invest and Do Good. Ultimately, impact investing is a tool for generating financial return by connecting investors to issues they care most about.

For many years, philanthropy and investing were separate disciplines—one championing social change, the other financial gain. The idea that the two approaches could be integrated in the same deals—in essence, delivering a financial return while doing good—struck most philanthropists and most investors as far-fetched. Not anymore. Impact investing, which seeks to generate social and environmental benefits while delivering a financial return, is growing in popularity.

We believe, a mindset to invest and do good will create significant wealth and enjoyed by investors in organizations that generate rather than consume, that respect human rights and nature’s limitations, and that aim to create benefit for the greatest number of stakeholders, not just shareholders. We want to help foundations and charitable families identify what matters most to them, and align their financial resources toward those outcomes.
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Yield Wealth Management helps foundations and charitable families align their financial resources with what matters most, their mission in life.

This blog represents opinions. Do not take as investment advice. For more information about Yield Wealth or to schedule a conversation, email info@yieldwealth.com

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WALL STREET’S FAST AND FURIOUS

A Force for Good

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13. Year 1999: The Glass-Steagall Act, repealed.

My financial advice practice started in February 1999 at Salomon Smith Barney. Soon after, I was the in the midst of the biggest financial fiasco since the great depression…the U.S. economy paid the price a decade later. Over the years, legislators and regulators chipped away at Glass-Steagall leading to its repeal in 1999. The law prevents Insurance, Investment Banking, Brokerages, and Banking from commingling their services. Soon after, my beloved Salamon Smith Barney, became Citigroup – A collaboration of Salamon Smith Barney (investments and investment banking), Citibank (banking) and Travelers (insurance) become the 1st giant, too big to fail, under the leadership of a wise man, Sandy Weil. This was the beginning of the end…

Lesson learned – Bigger is seldom Better. Greed is bad.

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12. Year 2000: Bursting of the dot.com, or technology, bubble
The Internet was hip. Entrepreneurs’ potential in online business made…

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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.