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Author: PJ McDaniel
In my role, I meet with prospective families searching for a new financial planner. Many people we meet have a specific issue they are trying to solve, but some just have a general sense they could do better.
Recently I asked a potential new family how much they were paying their current financial advisor; they said, “Nothing.” Nothing? In reviewing their statements, we knew they were getting charged 1.00% on the value of the managed assets plus additional fees on the underlying holdings, but I wanted to ensure they knew the answer. After an awkward silence, I asked them if they knew their asset allocation or long-term performance. They didn’t have a good answer for either question.
As a client of Hill Investment Group, we take pride in the clarity and simplicity of our communications and reporting. We always want you to know your asset allocation, portfolio performance, and fees. While many in our industry hide from these vital signs, we lean into ensuring you know them. Awareness brings several benefits to our relationships. If this message seems obvious, we agree, and yet it is rare that we meet with folks who have a clear sense of these three vital answers.
If you have a friend or family member that doesn’t know or can’t get the answers to these “vital signs,” there’s good news. We can help.
Click here to schedule a Discovery meeting with PJ.
Time for a Check-Up?
If you are a Hill Investment Group client, you’re used to our team managing and reviewing your investments and allocation regularly. If you don’t work with us yet, let me ask you when the last time you had a fresh set of eyes review your investment portfolio was? If it’s been more than 5 years, then it’s time for an objective check-up.
Why? Too many investors are overpaying for underperforming investments. Or people are heavily concentrated in just a few companies. Or they’ve never rebalanced and are taking on more risk than they originally intended.
Recently, we talked to one family paying over 2.5% annually on a mutual fund. By repositioning to a less expensive and more globally diversified ETF, we lowered their fees by 2%. That means they save $20,000 a year in fees for every $1 million invested!
The best part of a check-up? It’s complimentary. And you get the eyes and attention of our 3X engineer, Harvard MBA, former Dimensional portfolio manager, CIO Matt Zenz analyzing your holdings and providing transparency into your investments. What’s stopping you? Click here to find a time to chat.
Going the Distance
Do you know what percentage of Americans have run a marathon? About 0.5%, or one in about 200 Americans (according to a Runners World study). Why such a small group? Because it’s hard!
After my wife Jen completed the Boston Marathon last month, I shared that stat with our three sons. The Boston Marathon is like the Super Bowl for runners. For those who aren’t familiar with the running world, runners have to qualify based on race time. It’s an elite group. To participate, you have to train not for just one marathon but at least two (one or more to qualify and one for Boston).
My boys and I watched as thousands of dedicated runners sped by competing in their own Super Bowl. We even saw a blind runner being led by a trained guide which reminded me of our podcast guest, Caroline Gaynor, who guides blind Ironman triathletes.
If you’ve talked to anyone that has run a marathon, many will say the most challenging part is the training which typically lasts about 20 weeks and includes between 35 and 80 miles of running per week. That is a lot of time and hard work dedicated to a big goal – very similar to our theme of taking the long view.
Jen had setbacks in her training, including a strained calf and shin splints (among others). She worked with experts, such as a physical therapist and a chiropractor, to overcome her ailments and get back on track. Jen set a goal, and she had the fastest race in her running career (3:39), all while raising three kids and running a nutrition business.
How did she do it? She took the long view! I saw many parallels between her journey and the one we take alongside our clients. Our clients have specific goals they want to hit. With thoughtful planning, including experts that help work through challenges, and a massive dose of patience, we work to help clients increase the odds of hitting their goals. So, while running a marathon may not be one of your goals, let us help you plan for your financial Super Bowl. Set up a time to talk or meet now.