November 2020
Backward Looking Optimists
“If you mix politics with your investment decisions, you’re making a big mistake.” —Warren Buffett
As your clients will be reminded at the moment, there is a ____ election in progress. At the time of writing, it looks like it could still go either way. The media, as always, are using this moment of hightened uncertainty to instill fear about what might happen to investment markets if ______ somehow ends up winning.
What we do know is that the outcome is irrelevant to the long term returns of the investment markets, and therefore what it will do to your (and your clients') investment portfolios, life savings, and financial situation. The mainstream media are hell bent on making every problem your problem.
We look to history as our guide and see decades of evidence that being owners of the great companies of the world is the best way to benefit from human ingenuity, regardless of who currently wields political power. Long term the great businesses are agnostic to the colour of the flag that blows at the top of the castle.
However, the above truth is not well-understood by our clients. Whenever there is a major world event that creates uncertainty, we see the same outcome: due to a lack of historical perspectives, our clients default to a negative outlook. Our clients are forward looking pessimists.
Our historical perspective allows us to be backward-looking optimists, which gives us the ability to instill wisdom and positivity into our clients. This is the role we play, and the responsibility we have. Onwards to the next (fill-in-the-blank) event.
🏆 Main Feature
21 Questions For Financial Advisors To Connect With Clients [25 minutes].
We're always being told that to be a better behavioural adviser, we need to listen more and ask better questions. This detailed article provides concrete examples of how we might do this.
📰 Articles & Blogs
When the Siren Song of Market Timing is the Loudest [4 minutes]. We see our clients tempted by market timing all the time.
Investor Willingness To Pay For Advice Is On The Rise [2 minutes]. When we provide value, clients are happy to pay.
What Clients (Actually) Value Most In A Financial Advisor [35 minutes]. It's a delicate balance between what clients want and what they need.
Growing an advice business is hard. Avoiding these four mistakes will make it easier [5 minutes]. Solid advice for those looking to grow.
The Power of Nudges in Financial Advice [4 minutes]. How can we nudge clients towards better client outcomes?
🎧 Podcasts
Starting Over After A Non-Compete To (Re-)Build The Advisory Business You Really Want [112 minutes]. Being clear about the business you want makes everything else easier.
Stand Out from the Advisor Crowd [33 minutes]. How are you different?
7 Pillars Of Running An Advisory Firm Like A Real Business [107 minutes]. These form the foundations of your business' own strategic plan.
📚 Book Recommendations
Ask (How to Relate to Anyone) by Dan Solin. Based on studies in the fields of psychology and neuroscience, Dan Solin shows you exactly how to make deeper connections with anyone.
👏 Encore
Some of The Very Best Advice, Boiled Down into One-Liners [5 minutes]
The Best Investing Books for Every Kind of Investor [14 minutes]
What If The 4% Rule For Retirement Withdrawals is Now the 5% Rule? [4 minutes]
Some Thoughts For Young People in the Financial Services Industry [4 minutes]
