As we send our kids back to school for another year, we're reminded of those elementary golden rules: "reading and 'riting and 'rithmetic." Similarly, we believe investors are best served with just a few financial essentials upon which to build their family wealth.
Except the classic "hick'ry stick" is no way to get our message across! Neither are dense lectures about all the academic evidence supporting our practical approach. Instead, an effective conversation usually begins with a simple, but challenging question: What's the point of investing to begin with?
To us, the general goal is to make sure your money lasts longer than you do, while also enabling you to enjoy as much of it as possible along the way. For that, it stands to reason any financial advice you receive should be in your best interest, so you can make informed choices that are right for you and your family.
In other words, you don't need a sales pitch. You need to know the true costs involved. You need to resolve important questions – including those you may not have even known to ask. You need a fee-only, fiduciary advisor, so you are your advisor's sole source of compensation and highest business interest.
These same principles also point to evidence-based investing. What's that? Most of Wall Street relies on gut feel and emotional appeal to tempt you into playing their financial game instead of your own. Evidence-based investing helps you steam past the distractions, onward to your true financial goals.
If there's a downside to our substantive strategy, it's that it can be harder to digest than pleasing platitudes. That's why we're pleased to release a nifty new infographic, sharing six "golden rules" of evidence-based investing. Check out our handiwork here.
How else can we assist with your financial "higher education"? Let us know!