Note: This is my 4th post of the @projectdomino writer's challenge.This a challenge for bloggers and writers to post for 30 consecutive days, beginning on May 31. I will receive a prompt, or idea, from them each day, which may be the basis for that day's post. For more information on this, see my post on May 31, 2011.
Today's prompt: Identify one of your biggest challenges at the moment and turn it into a question... After 48 hours, journal what answers came up...and evaluate them.
As I want to post each day, I'm going to do an initial post for this question and then review it in 48 hours.
My challenge and question: How can I begin to exercise on a regular basis and stick to it?
This may not be my "biggest" challenge at the moment, but starting and continuing to exercise regularly has been a significant challenge for me for a very long time.
Like many things in life, the answer to this is quite simple: to just do it, and be disciplined about it.
How to stick to it? As people who know me know, I read a lot. Most advice I've read recommends that to get important things done, do them first thing in the morning. So, to be successful with an exercise routine, it would be best for me to exercise first thing in the morning, at least most of the time.
To set and accomplish goals, tracking and recording progress is important, so I should do this. I will use a monthly calendar.
One of my favorite books is The Compound Effect by Darren Hardy, publisher of Success Magazine. He writes about the effects of taking small, incremental steps toward any goal, which, over time, results in larger, long term benefits. This definitely applies to adopting an exercise routine.
Being disciplined applies to success in so many aspects of life, in order to accomplish goals. Being disciplined is also a critical factor in my business, as for our clients to be successful financially, they must be disciplined to stick with the financial plans that we develop for them. If they sell at the market bottom, they will not reap the reward of the inevitable market rebound. If I am not disciplined to make the time to exercise regularly, it won't happen.
I also want to exercise as a regular practice, as part of being a good role model for my children. This would benefit me, as well as them, and nothing could be better than that!
Other ways to accomplish a regular exercise routine:
Tell others about this goal. I've certainly done this with this post. I've shared it with my family members.
In making changes, in many situations, it is recommended to try not to take on too much change at once. I've just started doing this 30 day blogger project, and now I'm challenging myself to exercise more. However, writing these posts has created a sense of discipline and accomplishment, which is actually creating the motivation for me to start this exercise goal. Success in one area is leading to motivation in another area.
Another favorite book, which was part of the influence for participating in this blogger challenge, is Poke the Box, by Seth Godin. The key thesis of the book is "getting started" and taking the initiative to begin things. To challenge yourself and not be satisfied with the status quo. That is what this is all about.
Set goals. Do it. Stay disciplined. Repeat.
Friday, June 3, 2011
Thursday, June 2, 2011
One Strong Belief: Day 3 of Blogger Challenge
Note: This is my 3rd post of the @projectdomino writer's challenge.This a challenge for bloggers and writers to post for 30 consecutive days, beginning on May 31. I will receive a prompt, or idea, from them each day, which may be the basis for that day's post. For more information on this, see my post on May 31, 2011.
Today's prompt: the world is powered by passionate people, powerful ideas, and fearless action. What's one strong belief you possess that isn't shared by your closest friends or family? What inspires this belief, and what have you done to actively live it?
On a personal level, I'm not sure what my answer to this question is.
For my firm, this answer is quite clear.
Most people, in terms of their investing and wealth management, select mutual funds, money managers or brokers based on their past performance, or how they think these professionals will perform in the future. Or they pick the stocks they think will be winners. Most people believe that they can identify some firm or stock that has the ability to consistently outperform the stock market, or a specific asset class. This is called active money management.
One of our core beliefs is just the opposite. We are believers in passive investment management. Passive management means that we purchase a mutual fund that owns all the stocks in a given asset class. For example, instead of trying to choose the 30-50 largest US stocks that may do the best, and then sell them and buy others in a short while, we would own the S & P 500 for the US large growth asset class. As most money managers underperform this "index" or benchmark, we are providing better advice for our clients. We believe this will provide the best long-term investment experience for our clients, as well as ourselves, because of the experiences we have witnessed, as well as the extensive academic research which supports this strategy of investing.
Before I started this firm, I spent time with my CPA clients and saw firsthand how they moved from broker to broker, and mutual fund to mutual fund, as they became disappointed again and again with their advisor's "strategy" and would go looking for the next strategy that would work. This cycle repeated itself over and over, with many clients. I became determined to find a better way to assist my clients.
The prompt above asked "what have I done to actively live this?"
I started a wealth management firm based on this core philosophy. I affiliated with a national organization, BAM Advisor Services, based in St. Louis, which now manages $14 billion as a network of firms. We generally utilize Dimensional Fund Advisors (DFA) mutual funds,which strictly adheres to the same philosophy, and because of firms like ours, DFA has grown to become the ninth largest mutual fund company in the United States.
We have our core beliefs. It is not the view of Wall Street or of most of the financial media, but we feel more strongly every day that this is the proper way to invest and manage money for the long-term. This philosophy has been successful in all types of financial markets, both in the US and globally.
So in this regard, we have taken some powerful ideas, we are passionate about this strategy and we have been fearless in building a business based on these concepts.
Today's prompt: the world is powered by passionate people, powerful ideas, and fearless action. What's one strong belief you possess that isn't shared by your closest friends or family? What inspires this belief, and what have you done to actively live it?
On a personal level, I'm not sure what my answer to this question is.
For my firm, this answer is quite clear.
Most people, in terms of their investing and wealth management, select mutual funds, money managers or brokers based on their past performance, or how they think these professionals will perform in the future. Or they pick the stocks they think will be winners. Most people believe that they can identify some firm or stock that has the ability to consistently outperform the stock market, or a specific asset class. This is called active money management.
One of our core beliefs is just the opposite. We are believers in passive investment management. Passive management means that we purchase a mutual fund that owns all the stocks in a given asset class. For example, instead of trying to choose the 30-50 largest US stocks that may do the best, and then sell them and buy others in a short while, we would own the S & P 500 for the US large growth asset class. As most money managers underperform this "index" or benchmark, we are providing better advice for our clients. We believe this will provide the best long-term investment experience for our clients, as well as ourselves, because of the experiences we have witnessed, as well as the extensive academic research which supports this strategy of investing.
Before I started this firm, I spent time with my CPA clients and saw firsthand how they moved from broker to broker, and mutual fund to mutual fund, as they became disappointed again and again with their advisor's "strategy" and would go looking for the next strategy that would work. This cycle repeated itself over and over, with many clients. I became determined to find a better way to assist my clients.
The prompt above asked "what have I done to actively live this?"
I started a wealth management firm based on this core philosophy. I affiliated with a national organization, BAM Advisor Services, based in St. Louis, which now manages $14 billion as a network of firms. We generally utilize Dimensional Fund Advisors (DFA) mutual funds,which strictly adheres to the same philosophy, and because of firms like ours, DFA has grown to become the ninth largest mutual fund company in the United States.
We have our core beliefs. It is not the view of Wall Street or of most of the financial media, but we feel more strongly every day that this is the proper way to invest and manage money for the long-term. This philosophy has been successful in all types of financial markets, both in the US and globally.
So in this regard, we have taken some powerful ideas, we are passionate about this strategy and we have been fearless in building a business based on these concepts.
Wednesday, June 1, 2011
Financial Planning in One Sentence (Day 2)
Note: This is my 2nd post of the @projectdomino writer's challenge.This a challenge for bloggers and writers to post for 30 consecutive days, beginning on May 31. I will receive a prompt, or idea, from them each day, which may be the basis for that day's post. For more information on this, see my post on May 31, 2011.
Today's blog post prompt: describe today in only one sentence.
Do the right thing.
This is written on my firm's business card. It represents our values as a firm, our values with our clients and the decisions we make on their behalf. It is part of the professionals we choose to affiliate and collaborate with, and my personal values.
While I try to do the right thing, I also recognize that I have made mistakes, both personally and professionally. We all have. I have apologized when appropriate. I have taken ownership and moved forward, as that is the only way we can all exist and progress.
In term's of my client relationships, "doing the right thing" is a core principle. I was recently given a wonderful book, which I highly recommend, about the life lessons of Nelson Mandela (Mandela's Way, Fifteen Lessons on Life, Love, and Courage by Richard Stengel). One of these lessons is to have one or a few core principles, which should always be adhered to. There may be other strategies or aspects that may be modified, but we must each choose some core beliefs which are unwavering.
For my firm, this concept translates to how we make decisions and provide our advice. The client's interest always comes first. Legally, we have a fiduciary responsibility to our clients. Traditional stock brokers do not adhere to this standard.
We believe (and academic research strongly supports) that active money managers do not add value and they cannot be identified, in advance, consistently, over a long period of time. We believe in global diversification. We believe in diversification for both stocks as well as bonds and CDs. We recognize that we cannot predict the future and we do not have a crystal ball.
I also want to emphasize the word "do." We are doing. We are growing, personally and professionally. We are active in our community. We are learning. We are reading. We are attending seminars and conferences. We are interacting with others through social media. We are planning. We are meeting with current and new client prospects.
And we are thankful that "doing the right thing" results in good things.
#Trust30
Today's blog post prompt: describe today in only one sentence.
Do the right thing.
This is written on my firm's business card. It represents our values as a firm, our values with our clients and the decisions we make on their behalf. It is part of the professionals we choose to affiliate and collaborate with, and my personal values.
While I try to do the right thing, I also recognize that I have made mistakes, both personally and professionally. We all have. I have apologized when appropriate. I have taken ownership and moved forward, as that is the only way we can all exist and progress.
In term's of my client relationships, "doing the right thing" is a core principle. I was recently given a wonderful book, which I highly recommend, about the life lessons of Nelson Mandela (Mandela's Way, Fifteen Lessons on Life, Love, and Courage by Richard Stengel). One of these lessons is to have one or a few core principles, which should always be adhered to. There may be other strategies or aspects that may be modified, but we must each choose some core beliefs which are unwavering.
For my firm, this concept translates to how we make decisions and provide our advice. The client's interest always comes first. Legally, we have a fiduciary responsibility to our clients. Traditional stock brokers do not adhere to this standard.
We believe (and academic research strongly supports) that active money managers do not add value and they cannot be identified, in advance, consistently, over a long period of time. We believe in global diversification. We believe in diversification for both stocks as well as bonds and CDs. We recognize that we cannot predict the future and we do not have a crystal ball.
I also want to emphasize the word "do." We are doing. We are growing, personally and professionally. We are active in our community. We are learning. We are reading. We are attending seminars and conferences. We are interacting with others through social media. We are planning. We are meeting with current and new client prospects.
And we are thankful that "doing the right thing" results in good things.
#Trust30
Financial planning: 15 Minutes to Live (Day 1)
This is my first post of the @projectdomino writer's challenge.This a challenge for bloggers and writers to post for 30 consecutive days, beginning on May 31. I will receive a prompt, or idea, from them each day, which may be the basis for that day's post. For more information on this, see my first post on May 31, 2011.
The prompt: I just discovered I have 15 minutes to live. (and 15 minutes to write)
Fortunately, this is purely hypothetical.
Obviously, my first thought is of my family, relatives and friends. I am secure knowing that my children will be well taken care of. I am comforted that I have planned properly, I have adequate life insurance and estate planning documents which are in place, so they will be OK financially. I'm glad that I have practiced what I have preached to my clients.
I have left my children with a legacy of good values and have been privileged to have shared with them many wonderful life experiences. I have been very actively involved in many charitable organizations, and those institutions will benefit in the future from both the time that I have spent being a leader, as well as the legacy gifts that are part of my estate plan.
In terms of my business, I am again comforted to know that my clients will be well taken care of by my wonderful partner, Keith Rybak, as well as our collaborative partners, BAM Advisor Services and DFA mutual funds. As Keith and I meet with clients together, he knows them well. My clients will benefit from that consistent practice that we have adhered to.
As importantly, all of our clients have written Investment Policy Statements, so their goals and investment allocations are clearly documented, and not just in my head. There should be no need for any sudden changes due to this hypothetical event.
I am further comforted by knowing that I have provided good, long term investment planning for my clients, and they will be financially secure if they continue to adhere to the philosophies we have in place.
If this was real, and fortunately it is not, I would feel that I have been very fortunate to have had a wonderful family, I have left my children with a better life than I started with, that I was able to travel and grow a business. I have regrets. We all would at a time like this. I have made mistakes. I am very human. And I didn't get to see Michigan in the Rose Bowl. I will now get to discuss with Bo the concept of "Those Who Stay Will Be Champions."
As this is not real, I will continue to pursue my goals, and continue to champion my values and pursuits.
#trust30
The prompt: I just discovered I have 15 minutes to live. (and 15 minutes to write)
Fortunately, this is purely hypothetical.
Obviously, my first thought is of my family, relatives and friends. I am secure knowing that my children will be well taken care of. I am comforted that I have planned properly, I have adequate life insurance and estate planning documents which are in place, so they will be OK financially. I'm glad that I have practiced what I have preached to my clients.
I have left my children with a legacy of good values and have been privileged to have shared with them many wonderful life experiences. I have been very actively involved in many charitable organizations, and those institutions will benefit in the future from both the time that I have spent being a leader, as well as the legacy gifts that are part of my estate plan.
In terms of my business, I am again comforted to know that my clients will be well taken care of by my wonderful partner, Keith Rybak, as well as our collaborative partners, BAM Advisor Services and DFA mutual funds. As Keith and I meet with clients together, he knows them well. My clients will benefit from that consistent practice that we have adhered to.
As importantly, all of our clients have written Investment Policy Statements, so their goals and investment allocations are clearly documented, and not just in my head. There should be no need for any sudden changes due to this hypothetical event.
I am further comforted by knowing that I have provided good, long term investment planning for my clients, and they will be financially secure if they continue to adhere to the philosophies we have in place.
If this was real, and fortunately it is not, I would feel that I have been very fortunate to have had a wonderful family, I have left my children with a better life than I started with, that I was able to travel and grow a business. I have regrets. We all would at a time like this. I have made mistakes. I am very human. And I didn't get to see Michigan in the Rose Bowl. I will now get to discuss with Bo the concept of "Those Who Stay Will Be Champions."
As this is not real, I will continue to pursue my goals, and continue to champion my values and pursuits.
#trust30
Tuesday, May 31, 2011
Financial Blog Writing Challenge: The Beginning
My goal with this blog has been to write, with the purpose of educating and sharing information which would be relevant to clients and prospective clients. Up to now, I have written occasionally, but not with any specific quantitative goals.
Today, I'm committing to a new challenge, or opportunity, based on one of the people I read and respect the most, Seth Godin. His organization, @ProjectDomino, is starting a 30 day challenge for bloggers and other writers to create content for each of the next 30 days. I'm going to give it a shot!
Each day, I'll be receiving a prompt from @ProjectDomino, which will provide a guide on this "writing journey." It is to create "an opportunity to reflect on your now, and to create direction for your future."
So, these posts may be business or financial related, or they may be more personal. I am probably going to try to tie in their prompts with wealth management and financial planning, but I'm not really sure.
When you start a journey, or try a new experiment, you don't know where it leads. But new opportunities are the key to so many things.....I am willing to try this.
#trust30 For those of you not on Twitter, that is the hashtag, or way that others on Twitter can follow the posts of people who are participating in this project. My twitter name is @wassermanwealth
Today, I'm committing to a new challenge, or opportunity, based on one of the people I read and respect the most, Seth Godin. His organization, @ProjectDomino, is starting a 30 day challenge for bloggers and other writers to create content for each of the next 30 days. I'm going to give it a shot!
Each day, I'll be receiving a prompt from @ProjectDomino, which will provide a guide on this "writing journey." It is to create "an opportunity to reflect on your now, and to create direction for your future."
So, these posts may be business or financial related, or they may be more personal. I am probably going to try to tie in their prompts with wealth management and financial planning, but I'm not really sure.
When you start a journey, or try a new experiment, you don't know where it leads. But new opportunities are the key to so many things.....I am willing to try this.
#trust30 For those of you not on Twitter, that is the hashtag, or way that others on Twitter can follow the posts of people who are participating in this project. My twitter name is @wassermanwealth
Monday, May 16, 2011
What You Can Control
You can only control what you can control.
We incorporate this concept as a core part of our wealth management and investment philosophy.
You can control the costs and investment expenses that you incur. This is why we utilize some of the least cost mutual funds, yet they still have excellent performance over the long term.
You can control how globally diversified your investments are, which reduces your investment risk. We actively do this for our clients.
There are some things that you cannot control. You cannot control whether gas prices go up or down. You cannot control interest rates. You cannot control the success or stock price of any one company.
As we provide advice to you, we recognize what we can and what we cannot control, and discuss this with you.
A few weeks ago, Oprah Winfrey taped an interview with President and Mrs. Obama, which was to air on a Monday. Even Oprah could not control that the US would capture Osama bin Laden on the day before this interview was to air. She was very upset that the show aired, which was now seemingly irrelevant. Even for Oprah, there are things she could not control.
As you consider your important financial decisions, you will be most successful if you recognize what you can control, and focus on those items. This will provide you and your family with greater financial security and peace of mind.
We incorporate this concept as a core part of our wealth management and investment philosophy.
You can control the costs and investment expenses that you incur. This is why we utilize some of the least cost mutual funds, yet they still have excellent performance over the long term.
You can control how globally diversified your investments are, which reduces your investment risk. We actively do this for our clients.
There are some things that you cannot control. You cannot control whether gas prices go up or down. You cannot control interest rates. You cannot control the success or stock price of any one company.
As we provide advice to you, we recognize what we can and what we cannot control, and discuss this with you.
A few weeks ago, Oprah Winfrey taped an interview with President and Mrs. Obama, which was to air on a Monday. Even Oprah could not control that the US would capture Osama bin Laden on the day before this interview was to air. She was very upset that the show aired, which was now seemingly irrelevant. Even for Oprah, there are things she could not control.
As you consider your important financial decisions, you will be most successful if you recognize what you can control, and focus on those items. This will provide you and your family with greater financial security and peace of mind.
Monday, April 18, 2011
Top Ten Financial Tips for Tax Day
1. Your investments should be globally diversified. And that means the entire world, not just the US, Europe and Asia. Small and large companies. Value and growth companies.
2. Track your investment performance against worldwide benchmarks. Annually.
3. Consider the impact of an eventual increase in interest rates, especially if you own bond funds.
4. Have a written, long term investment strategy. It doesn’t need to be complicated.
5. Be disciplined and stick to your written investment strategy, regardless of how the stock markets are doing in the short term.
6. Understand the fees you are paying for all of your investments, whether you see them or not. Stock and bond mutual funds. Alternative investments. Individual bonds. Your advisor. You may be surprised by what you find.
7. Understand how your advisor is really compensated. The financial interests of you and your advisor should be aligned (on the same side of the table). Like a fee-only advisor.
8. You can only control things that you can affect, like most of the above. You cannot control the direction of financial markets or any company.
9. Be prepared and plan for the unexpected. And talk to your advisor about what that means.
10. Reduce your taxes by putting certain investments in retirement accounts and others in taxable accounts. Make sure that you and your advisor understand these concepts.
2. Track your investment performance against worldwide benchmarks. Annually.
3. Consider the impact of an eventual increase in interest rates, especially if you own bond funds.
4. Have a written, long term investment strategy. It doesn’t need to be complicated.
5. Be disciplined and stick to your written investment strategy, regardless of how the stock markets are doing in the short term.
6. Understand the fees you are paying for all of your investments, whether you see them or not. Stock and bond mutual funds. Alternative investments. Individual bonds. Your advisor. You may be surprised by what you find.
7. Understand how your advisor is really compensated. The financial interests of you and your advisor should be aligned (on the same side of the table). Like a fee-only advisor.
8. You can only control things that you can affect, like most of the above. You cannot control the direction of financial markets or any company.
9. Be prepared and plan for the unexpected. And talk to your advisor about what that means.
10. Reduce your taxes by putting certain investments in retirement accounts and others in taxable accounts. Make sure that you and your advisor understand these concepts.
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