Identifying Strengths For Wealth

What would you say are your greatest strengths? Weaknesses? Think back on the last few job interviews you had for a moment. How many of them included these generic, broad questions? They’ve been handed down through generations of well-meaning hiring managers, but because they don’t relate to specific requirements for the job (other than if the job requires narcissism or self-deprecation) and they’re not tied to a specific aspect of a job (i.e., strength for[…]

Thankful

Starting a business, as many of you know, is a task that requires a great amount of fortitude, but it also requires the support many others. This year, we are particularly grateful for our clients, who have embraced the use of behavioral science in their practices to help their clients succeed. The advisors who work with us demonstrate a focus on the future of financial planning – thank you for allowing us to be a part[…]

Advisor’s Alpha: 3% Is Good. 143% Is Better

We’ve written before about the often-cited Vanguard “Advisor’s Alpha” study. That research documents the data showing that a good financial advisor can add on average a full 3% in incremental return to a client’s investment portfolio annually. The study then breaks that 3% down into its component parts, showing that the biggest gains–a full 150 basis points–come from effective behavioral coaching that serves to prevent clients from engaging in detrimental investing behaviors (think buying high and[…]

Inter-generational Wealth Transfer Woes

A hot topic in the financial advisory space—or maybe more accurately a sore subject—is the high rate of attrition of heirs when clients die and leave their managed wealth to beneficiaries. We have discussed this topic before, noting that a host of factors are at play including critical features like communication with the family-economic unit, relationship building, and personal differences resulting from a generational divide between the heirs and the advisor. But at the end of[…]