Family Investment Center Referrals

Our business is fueled by referrals. Various studies show that investment management services are chosen on the basis of friendship. Not necessarily friendship with the manager, but people generally choose managers recommended by friends and associates. Even among the wealthiest households, these informal referrals carry tremendous impact.

Referrals are even more important for me because I don’t like to sell. I’m at my best when someone approaches me to help solve a problem or organize investments. I don’t persuade people to buy our services; Instead, I show what we do and they decide whether I can help. If I can, great. If not, that’s okay, too.

Any referral is a nice compliment. It’s one person telling another that they know me, they like me, and – most importantly – they trust me. In a sense, it is a Stamp of Approval on my professional competence issued by the very best source: a trusted friend or respected colleague.
The ultimate compliment is a referral to someone’s parent. As adults, most of us worry about our parents. We want to help (if they need it) but we respect their independence and privacy. We are fairly protective and particularly cautious in recommending help, especially financial help. In brief, the standard of trust is exceedingly high.

Friends are always good to me and I help many parents and in-laws. But, this case was especially gratifying because the family genuinely needed assistance. We helped them identify assets, organize record keeping, plan their estate, and consolidate a variety of bank and investment accounts. They are such nice people and they were so grateful for my help.

It was touching. Their accountant son introduced us and I consider it the highest compliment I can get. It’s precisely why we started Family Investment Center.

Consolidating Family Investments

Look for ways to consolidate family investments. I know you’ve heard the conventional wisdom about avoiding one basket for all your “eggs.” Yet, it’s easier than ever to adequately diversify investments within one account or institution. We routinely diversify accounts – some with extremely high balances – in ways to protect our clients. As a safety measure, we select diverse portfolio managers, market sectors, and institutions (for bank deposits).

Consolidation pays another high dividend, too. You receive just one set of statements each month and one set of tax reports each January. Later this month, when you are deluged with statements (or waiting for a straggling 1099), think how nice it would be to have just one source for all these documents!

The last benefit of consolidation is most important. By combining accounts, you present a much fuller image of overall finances. Whether you hire a professional advisor or manage your own investments, it’s easier to devise, implement, and evaluate strategies when you look at the big picture. Which account types are best for taxable investments? Which are best for tax-free? Is there a good way to organize retirement distributions from IRA, annuity, or pension accounts?

Our goal for clients is fairly simple. We work with them to organize and supervise investments. In my experience, families do better financially when they simplify all investment processes. Consolidation is one good (and easy) way to accomplish this goal.