The Financial Advising and Money Management business has not changed in 50 years.
What advisors were telling their clients to do in 1972 is exactly the same thing they are telling them to do today.
Fees and investment vehicles have slightly changed. However, the story, the framing, and the advising in the Big-Box Advisor world are exactly the same. And yet almost everything has changed in the world in the last 50 years…
Central Banks' behavior has changed.
Demographics have changed.
The Internet was invented.
Everyone carries a supercomputer in their pocket.
There are hundreds of millions more people investing.
Markets move in milliseconds.
What happens in China or Europe is immediately known in the US or vice versa.
And yet, the financial advising and money management industry is talking, planning, and investing your money as if it's still 1972. And we believe that is a problem.
FEARLESS WEALTH WAS FOUNDED IN 1998 Fearless Wealth started as a financial education and training company. Due to demand from our clients, we added money management 15 years ago. We are regulated by both the State of Washington and The State of California. We are what is called a Registered Investment Advisor or RIA. Our clients' money is custodialized at Schwab, one of the largest custodians in the United States. We are regulated the same way all RIAs are regulated in the United States.
WE TRULY ARE DIFFERENT
Almost all advisors will ask you the same arbitrary five to ten questions to identify your risk tolerance, what the industry calls your “self-identified risk tolerance number.” They will then assign you to one of three categories, conservative (more bonds, fewer stocks), moderate (slightly fewer bonds and more stocks), or aggressive (all stocks).
They will then keep you in that assigned portfolio structure by, what is called, rebalancing your portfolio every six to twelve months.
Finally, your conservative/moderate/aggressive money management approach will most likely then be outsourced (read: disconnected) to a third-party division or even a company you have never met. You are now a number. And then your advisor's money management role is basically done.
This approach is like setting a flight plan without ever looking at the weather or checking your instruments. We think there is a better way. A far better way.
The approach above is both passive, reactive, and arbitrary AND not preemptive or proactive or based on anything that is happening in the markets, economy, or quite honestly the real world today. It’s as if the approach the Big-Box Advisors have you in and the market/economy itself have nothing to do with each other.
What then takes place is a rebalancing approach with your life savings that is just an exercise in math – and lacks any real management and ignores all market or economic conditions. We think that is really weird [at best]. And then they rinse and repeat this approach with your life savings each year.
THERE’S A BETTER WAY
We take a market-based approach to protecting, managing, and growing your life savings. We follow the market on a daily, weekly, monthly, quarterly, and yearly basis to determine what assets are best for your stability, growth, and lifestyle while eliminating market anxiety.
This approach includes understanding your maximum loss, your desired return, and what if any income is needed from your money and when.
This approach aligns your portfolio and what is most important to you with what is actually happening in the markets, economy and world. They work together.
REAL-LIFE FINANCIAL PLANNING
One of the secrets of the money management business is that most ‘financial advisors’ do not do real financial planning. Most just provide a beautiful looking 20 to 50 page ‘Financial Analysis Report’ produced by financial software which simply gives a projection of the probability of whether your portfolio will last throughout your lifetime based on your stated income needs (this is called a Monte Carlo analysis in our industry) and it is designed to make you feel safe.
But if you really look at the report closely, you will see that they use a fictional future tax rate, they count on your full Social Security payments with assumed inflation increases, and then they disclaim the accuracy and reliability of the report by telling you to consult a professional tax and/or financial advisor… but isn’t that supposed to be them? It’s all a very sterile and cookie-cutter experience.
We are very different.
We follow a three-step process:
TRACKING We implement our proprietary Wealth Dashboard™ System so you always know where your money is, how it's doing and whether or not you are on track. And if the growth of your total net worth is off track, you/we know exactly what to adjust. The Wealth Dashboard™ is a real-life / real-time adjusting approach to what is actually going on right now. And this approach shows us real-time how to adjust if your financial boat gets a couple degrees off from its approach. We are the only ones that use this real-time tracking approach.
PLANNING We provide a weekly touch point so anytime you have a concern about your personal money or what is happening in the markets, there is a place to counter the daily and weekly headlines. Engagement with our team on a regular basis helps eliminate investment anxiety. Again, having clear, available touch points allows people to know we are always there.
COACHING We coach our clients on how to talk to loved ones about spending, saving, enjoying and working together around your wealth. As we know money can often be a source of conflict. Our clients often relay to us how much easier it is for them to talk to their loved ones about money and investing because of our “coaching” approach.
And of course, you can just pick up the phone and talk with us.
Because our Firm’s principal, RC Peck, is a Certified Financial Planner®, we leverage our Firm’s ability to provide fiduciary-based financial planning and money management, which means we put what’s best for you and your money first.
If you’d like to see how your money management experience would be different with us, the next step is always the easiest.
LEGAL DISCLAIMER (PUBLISHED BY FEARLESS WEALTH, INC.)
If you have a question about your account or you want to speak to customer service, call 650.257.0207 Monday-Friday, 9 AM to 5 PM Pacific time. Fearless Wealth, Inc., FearlessWealth.com, and all communications from FearlessWealth are not an offering for any investment. Fearless Wealth is a stock research company only. Fearless Wealth does not provide financial advice and is not a registered investment adviser. Fearless Wealth publishes investment information, ideas, and opinions based on technical investing and what we've learned as financial observers. Any views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with, RC Peck’s investment advisory firm. Any index referenced for comparison is unmanaged and cannot be invested in directly. This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document. Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each email and page. Note: Joining the Fearless Wealth email or community is not an offering for any investment. Investors should discuss any investment with their personal investment counsel. RC Peck is not your personal investment counsel unless you have a current signed agreement with him directly. Before seeking any advisor's services or making an investment in a fund, investors must read and examine thoroughly the respective disclosure document or offering memorandum.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS A RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING. WHEN CONSIDERING ALTERNATIVE INVESTMENTS, INCLUDING GOLD AND LEVERAGED FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, AND ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND OFTEN CHARGE HIGH FEES.
Access to Peck Wealth Management, LLC (PWM) is only available to PWM clients pursuant to an investment advisory agreement and acceptance of our Client Relationship Summary and Brochure (Form ADV, Parts 2A, and 2B). You are encouraged to read these documents carefully. All investments involve risk and may lose money. PWM does not guarantee the results of any of its advice or account management. Clients should be aware that their individual account results may not exactly match the performance of the Model Portfolios. Past performance is no guarantee of future results. Each Personal Portfolio is subject to an account minimum, which varies based on the strategies included in the portfolio. PWM retains the right to revise or modify portfolios or strategies if it believes that such modifications would be in the best interest of its clients.