Coffee, Wine, and Children: Choose Experience and Expertise

By Dan Danford, MBA, CFP®

Founder and CEO of Family Investment Center

It’s the toughest hurdle we face.  People just assume that all investment people and firms are alike.  That’s a bit like assuming that all coffee is alike, or all wine is alike, or all children are alike.  The idea makes me laugh. 

It’s simply not true.  I lead a local team that manages nearly $100 million for clients.  Actually manages it; follow it daily, analyze the investments, and make changes as necessary.  Every single day, and we’ve been doing it for almost fifteen years.  It’s an awesome responsibility, and we take it very seriously. 

Few of your acquaintances have this kind of expertise or experience.  In fact, few people in this region have this kind of expertise.  You may know others who sell investments or insurance or mutual funds, but they probably don’t manage portfolios.  Selling is very different from managing, and it’s very dangerous to confuse the two.

You may know a lot about investing, but it’s likely a very limited view.  Even if you’ve been doing it for a long time, you’ve only observed one set of circumstances.  You know only the investments that you’ve owned since you started.  That’s a very small sample size.

Plus, how would you know that something else didn’t work better?  Every decision has an opportunity cost, and few do-it-yourselfers (even fewer investment salespeople) carefully review all options.  Financial success is always about choosing pathways to a particular objective, but different paths may be safer, or faster, or easier. 

Seriously, I get it.  You want convenience, simplicity, and value for your family.  And you know that finance and investing is important for accomplishing your dreams.  Here’s the key: ask someone who really knows the answers.  Seek out genuine expertise and experience.

Advisors – like coffee, wine, and children – aren’t all the same.

 

Press Announcement

FOR IMMEDIATE RELEASE

FAMILY INVESTMENT CENTER'S DAN DANFORD NAMED ONE OF AMERICA'S TOP FINANCIAL ADVISORS OF 2012

ST. JOSEPH, MO. February 6, 2012 - Dan Danford, CFP®, Principal/CEO of Family Investment Center, an independent commission-free investment firm that provides financial and portfolio services, has been named one of America's Top Financial Advisors for 2012 by Conquest Press.

An elite group of financial advisors received this recognition. Each advisor will be included in the new book, 2012 America's Top Financial Advisors -The Titans of Wealth Management.

Criteria for inclusion was rigorous and thorough, and includes rankings on industry-recognized lists, number of clients served/client retention, educational background and professional designations, assets under management, professional longevity, regulatory review, and impact his or her services have made on clients.

"Dan deserves this recognition," said Jason White, Ph.D., Principal/Director of Investments for Family Investment Center, and Danford's colleague. "Dan has made a tremendous impact on his clients since he began his investment career back in 1984. So many clients have been with him since the very beginning, and we're very proud of him."

Danford founded Family Investment Center in 1998 to help successful families, individuals, corporations, and foundations manage finances and grow portfolios. The firm uses proven academic techniques to deliberately balance investment risks and rewards. This process has benefitted clients even during the last decade's tumultuous market situations.

Danford started Family Investment Center after success in the trust industry. He envisioned a new type of advisory firm after realizing that clients could prosper when advisors consider a wide universe of investments, and if the process was free from sales commissions and biased research. Industry consultant Marie Swift once cited Danford's "genius business plan" as key to the firm's early success. Clients often mention custodial safety, friendliness, service, and convenience.

Danford and his wife Chris live in St. Joseph. He is a graduate of Missouri Western State University and holds an MBA from Northwest Missouri State University in Maryville. He is a third-year graduate student at Kansas State University where he is pursuing a Ph.D. in Personal Finance. He holds the CFP® designation, belongs to the Financial Planning Association (FPA), and the National Association of Personal Financial Advisors (NAPFA). He writes frequently for both consumer and industry publications.

Family Investment Center is a Registered Investment Advisory firm serving several hundred key clients throughout the region. The firm manages or advises almost $100 million for families, individuals, corporations, and foundations.

# # #

Media Contact:

Laura Price, Investment Advisor

Family Investment Center
3805 Beck Road
St. Joseph, MO 64506
Phone: (816) 233-4100
Fax: (816) 233-3533

lprice@familyinvestmentcenter.com
http://www.familyinvestmentcenter.com/

How fear can ruin your retirement

Commentary on MSN Money article
By Laura Price, Investment Advisor at Family Investment Center

Click here to read MSN's original article.

Uncertainty about the future, fear of poverty, lack of confidence in their investing abilities and distrust of the financial services industry were four of the most common feelings expressed…

A common mentality is that after years of hard work and diligent saving, retirement is the time to “live it up” and spend the money you’ve worked so hard to preserve. And while this is true to a point, the sad fact is: budgeting is still hugely important in retirement. I’m friends with a couple who bought a new RV and boat and began traveling as soon as they hit retirement. They had saved up a nice nest egg and wanted to start spending it immediately. Four years into retirement, their IRAs had been sucked dry. They never feared poverty. They never even saw it coming.

Few people are fully confident in their investing abilities. And of those few, only some are actually competent investors. The do-it-yourself model has produced undesirable results for many. But if you hire someone to help, who do you hire? A broker? An independent advisor? A friend or relative that claims to know all about investing? Then once you hire them, what’s a fair amount of compensation? Will they trade excessively? Will your portfolio receive individual attention?

You know the old saying, “No one knows what the future holds.” It’s true. And whether you’re starting your first job or already in retirement, it’s critical that we take the right steps now to protect ourselves from what may happen in the future.

One 66-year-old retiree quoted in the report said he is "having night sweats now. I'm really concerned about having enough. You never know how long you'll live and how much you'll need."

I’m only 25, but from time to time (admittedly more often than I should), I get panicky over money. My dad, bless him, is often the one I go to for sympathy, and he is always quick to remind me that “it’s only money.” Easy for us to say as we’re years from retirement, huh? But let’s be honest: no matter what our age and employment circumstances are, it’s not worth getting sick over. After all, getting sick is expensive, too! Luckily there are folks available to help in the meantime. You still need to stay informed and aware of your investments and overall financial health, but hiring the right team of professionals removes a huge burden, which will help you sleep at night.

Said one 60-year-old about his investing uncertainty: "Trying to shift stuff around at our age is scary. . . . If you make a mistake, we're in a cardboard box eating dog food. I don't have 20 years anymore."

A good investment advisor will regularly review your portfolio and, in most cases, make only gradual changes toward a more conservative portfolio over time. Drastic changes to a portfolio can have drastic consequences. For example, when the economy tanked in the late 2000s, many investors made the mistake of liquidating their portfolios when the Dow was at its lowest, worried that they would lose everything if they held tight. When the market had jumped back up enough that they felt comfortable to reenter, they obviously paid much higher prices. Though still recovering, those who rode the wave through the recession are way ahead of their counterparts who had bailed out of fear and uncertainty. Emotions are powerful things, and when it comes to investing, it can be dangerous to let emotions get the best of you.

One 63-year-old said, "If I trusted an adviser, then I'm always wary because I know that they are out to make money. . . . I don't trust them handling my money."

This is where Family Investment Center is different. We actually DO care about our clients. We’re often called “nerds” because we’re genuinely interested in economics, investments, and finance and want to share that knowledge and expertise to help people. If we weren’t helping people, it would all be a waste.

“Yes,” you say, “but you’re a business.” That’s true. But with our fee-only structure, we have direct incentive to help you grow your accounts. So when you’re paying us a small percentage of your portfolio every year, that means that when YOU make more money, WE make more money. Plain and simple.

In a world where we’re constantly bombarded with news of scams in the securities industry, it’s important to stay cautious. There are various safety mechanisms available to investors, such as third-party account statements, custodial insurance, and so on. Bernie Madoff operated outside the rules and got away with it for a while. Ponzi schemes thrive when investors don’t keep their eye on these types of things. For goodness sake, if you don’t trust your advisor, switch. You need to feel comfortable with the person you’ve hired to look after your money.

Financial Advisors

In this week's Money Made Easy Dan Danford answers this question from a viewer:

"In your previous episodes you have mentioned Dave Ramsey a couple of times. I was wondering who are other financial advisers you really respect and why do you think they are better than the rest of the field?"

Danford MBA CRSP of Family Investment Center shares several of his favorite advisers and what financial advice you can get from each one.