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| | See The Value Of Hiring A Behavioral Advisor |  | | THE BEHAVIORAL ADVISOR'S VALUE PROPOSITION | | A behavioral advisor will dramatically contribute to your family's financial and emotional well-being.
You need an advisor who can identify professional money managers with exceptional track records who have been in business for over 30 years. Not an advisor who tries to time the market or select securities which will outperform other securities over a period of time.
You need a Registered Investment Advisor who can work directly with superior money managers with proven asset allocation ability and a disciplined strategy of equity diversification.
DISCIPLINE makes a difference
Financial success is primarily driven by investor behavior. All equity investing is a battle of faith versus fear, and requires patience and discipline on your part. Due to equities' inherent volatility, however, most investors will find it impossible to realize the superior long-term returns of equities without the steady behavioral guidance of an empathetic advisor.
All financial advisory relationships - particularly at major market turning points - come down to the level of trust the client has in the advisor. I am a fee-based advisor and charge 1% of the assets under management. One advantage of being a fee-based advisor (as opposed to commission-based) is that I will also benefit from any growth in your account. Therefore, I will always sit on the same side of the table as you do because my interests are in line with yours. If I become your advisor, no one outside of your family will be more deeply committed to your financial success than I.
Does it seem probable to you that I will: (1) cause your long-term investment return to be at least 1% per year more than you might obtain on your own, and/or (2) save you at least 1% per year in the cost of mistakes I might be able to prevent you from making, and/or (3) save you at least the equivalent of 1% per year in time, energy, worry, and record-keeping?
ADDING 1%
If you are like most people, you are predominately invested in bonds and CDs. You have a fixed-income investment strategy in a rising-cost world. By placing your assets in an exceptionally managed long-term diversified portfolio, it is probable (approaching certainty) over time that your long-term investment return will increase by much more than 1% per year.
SAVING 1% in mistakes not made
If I am able to save you from panic in a bear market just once, is that not worth 1%?
How many people put all their eggs in the dot-com basket at the peak of the market in 1999? And more recently, how many people cashed in their equity portfolios and even used the proceeds of their home equity loan to buy real estate at the peak of that market in 2005? If I am able to prevent you from making the Big Mistake even once in an investing lifetime, how much is that worth?
How many people narrowed their portfolio to essentially one idea by betting the farm on Cisco Systems or Lucent Technologies during the tech mania in the late 1990s? And how many are currently overdiversified with 10 or more mutual funds - in effect owning a gargantuan, very expensive and inefficient index fund with tremendous gaps and duplications? How many people speculate instead of invest, without knowing the difference? And how many retirees are investing for current yield instead of for total return - the silent killer, slowly but surely destroying their family's real wealth?
If all the 1% buys your family is an insurance policy against making a series of Big Mistakes during the market cycle, it will be worth many times what you are paying.
SAVING 1% in time, energy, worry, and record-keeping
What is your time really worth? How much time are you spending keeping track of your accounts, and how much time do you waste watching the endless babble of market prognosticators and economic commentators on television? Wouldn't that time be much better spent with your family, or in your business or hobby?
Don't try to go it alone. The stakes are too high, the road is too long and often very dark. The cost of help is negligible compared to the benefits. The value of a qualified, caring and committed financial advisor to you and your family in incremental return, in mistakes not made, in time and worry you need not expend trying to do it yourself will greatly exceed the cost of the advice.
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| Investment advice provided by John Zarcaro, Inc., a Registered Investment Advisor.
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