I am now an Investment Advisor Representative!

Today, I am proud to announce that I have joined with an SEC registered investment advisory firm to offer institutional investment management services for my clients where life insurance and annuity wealth contracts are not (yet) appropriate! Now, what does that mean? It means that, for an ongoing portfolio management and relationship/planning fee, I can help clients manage portfolios towards the financial planning outcomes they want.


"But David... you've made fun of these "fiduciary securities advisors" in your blog. Does that mean you've joined them?" Yes... and no.


Yes, I now share the same fiduciary securities advisor licensing and registration requirements. However, this is primarily a means to an end, not just a marketing tool.


Many Fiduciary Securities Advisors are so enamored by their ability to market themselves as a "fiduciary" that they don't necessarily know how to help their clients. They believe that having a "moral duty against commissions" that is the best way to serve their clients.


In my opinion... It's bull****.


They simply don't know how to provide the value that life insurance and annuity wealth contracts can provide. They see them as just excuses for agents to make money and ignoring any potential for the good they can do for clients. Now, due to compliance concerns, I cannot just post how this firm (or rather the individual portfolio management firms) do what they do. However, I can talk in general terms. When I heard about tactical asset management strategies, I was very excited about the possibilities for clients. In general, tactical asset management is about preserving assets when the market goes down, but getting a decent upside as markets increase. This image is NOT from my firm, but it kind of explains how tactical asset management works. In short, you won't get the "highest highs"... but you avoid the lowest lows.

I've seen the returns from 2008 using tactical asset management. The worst tactical portfolio had a loss of less than -5%!!! (Note: that was INCLUDING the advisor fees!) That's at a time when the indexes lost -50%!!! If we can preserve assets and still get decent gains (but not chasing after highest returns)... how much better off would we be? Would that be worth the portfolio management fee? I believe so! What will make you different from other fiduciary advisors? I'm still very cognizant about ongoing fees. If you have 2% fees every year for 10 years... isn't that 20%? I don't want you to pay ongoing portfolio management fees throughout your entire retirement. It will only give you LESS INCOME! I believe strongly in life insurance and annuity wealth contracts. It's just that sometimes, it's not yet appropriate for those contracts. So I'd rather have the assets working for you in an intelligent manner (with me) than anywhere else. That's why I added this service. If you'd like a review of your financial planning and investment strategies, feel free to contact me.

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