For the fourth year in a row Janiczek Wealth Management has been named to Barron’s Top Financial Advisor list*, now for 2017, 2016, 2015 and 2014!
Mr. Janiczek was named one of America’s top financial advisors* in the March 4th, 2017 Barron’s issue. The prestigious list of top investment advisors was also published in The Wall Street Journal by Dow Jones & Company, a division of News Corp on March 9, 2017.
The rankings are based on data provided by over 4,000 of the nation’s most productive advisors. Barron’s draws from all 50 states, plus the District of Columbia. It includes a cross-section of private-wealth advisors—from independents who own and operate their own practices to advisors from the large Wall Street firms. Barron’s states, “This special report lists the top advisors in each state, with the number of ranking spots determined by each state’s population and wealth.
The rankings are based on assets under management, revenues generated by advisors for their firms, and the quality of the advisors’ practices. In evaluating advisors, we examine regulatory records, internal company documents, and 100-plus points of data provided by the advisors themselves.”
As we have watched the 2016 Olympics in Rio, it’s truly impressive to see the athletes from all over the world compete at such a high level and demonstrate their true dedication to their chosen sport. The athletes and their families have spent years devoted to hard work, incredible amounts of focused energy to training, exhibit world class discipline and dedication in order to be the very best in the world. Their ascension to the Olympics of course has not been linear, as each of the athlete’s had to overcome many obstacles and adversity in their paths to reach the pinnacle of their respective sport. The Olympian athletes’ training efforts, focus, and discipline are primarily behind the scenes with many hours working with their coach and trainers, with never a promise to compete or let alone win an Olympic medal. Their hard work and tireless effort’s provides them the best chance to execute their lifetime goals.
When it comes to financial planning, I have found that a systematic approach is needed to make important decisions, focus on what matters most, and evaluate options. In previous posts I introduced the guiding principles of wealth management:
- Make your balance sheet, cash flow, and portfolio your friend
- Compare your finances to standards of excellence
- Stress-test your financial plan
- Know what is holding you back and spurring you forward
- Be specific and proactive to make permanent changes
In my previous four posts I introduced my guiding principles of wealth management, along with the first four principles (links to one, two, three and four). Today I will discuss the fifth and last guiding principle:
Be specific and proactive by identifying and implementing the actions that will result in the best permanent changes
Over the years, I have had the privilege of observing how clients meet challenges and tackle opportunities. Some have a knack for succeeding in any task they take on, while others seem to struggle more than they need to. Eventually, I saw a key distinction between these two groups: Successful people are usually very specific and proactive, while those who struggle tend to be vague and reactive. They set goals, but they do not follow through with a plan of specific actions aimed at meeting those goals. Consequently, instead of controlling events, they wind up responding to events. Getting stuck in reactive mode is another example of the 85% Trap.
By contrast, when successful people see a need or set a goal for themselves, they develop a specific plan of action. In keeping with the concept of the Essential 15%, they strive to find a permanent solution to every challenge, as opposed to a solution that requires ongoing effort.
In my last few posts I have discussed my first few guiding principles for wealth management: make your balance sheet your friend and compare your financial plan to standards of excellence. Today I will discuss the third principle:
Back-test and stress-test your financial plan under various scenarios to further reveal strengths, weaknesses, and possibilities.
The “Elastic Limit” is a term I’ve borrowed from engineering because it has tremendous relevance in wealth management and financial planning. It refers to the amount of stress a material can withstand before undergoing permanent deformation. For example, if you stand on a wooden bench, the wood may sag a bit and bounce back when you jump off. However, if several NFL linemen stand on the same bench, the wood will probably warp, crack, or break.
Lessons in Financial Strength
“A financially strong investor is a superior investor.” This observation, distilled from my 25 years in the field of wealth management, is simple and yet so profoundly true, I decided to make it the motto of my company. All too many investors learned this truth the hard way during the recent financial crisis: You do not become financially strong by achieving superior results; you achieve superior results by becoming financially strong.
Early in life, my family drove home the importance of strength. My family didn’t buy the home we lived in, we built it. My brothers and I helped my father pound in the nails that held the frame of the house together, and you can bet we didn’t just walk away from boards or joists that still felt rickety. My father built nuclear power plants and oil refineries, structures that must be built to last and able to weather hurricanes and earthquakes. His duties gave him a “stronger is better” way of looking at life, which rubbed off on me.
Outside of Wall Street, many folks may not know who Larry Fink is. Fink is the Chairman & CEO of BlackRock, Inc., the world’s largest money management firm with $4.6 trillion in asset under management. He has led the firm since its inception three decades ago, and like many successful money managers, he’s known for speaking his mind regardless of what the consensus thinking may be.
When successful business owners start the planning process of selling their business, in many cases the largest asset that person owns, many are looking at things such as; what multiple of my EBITDA is reasonable, what business broker or investment banker should I be using, etc.? The first step in the process really starts with the question “how much do I need to realize from the sale of the business to fund my family’s lifestyle for the remainder of our lives? I like to equate this process to building a home, if your foundation (or in this case accumulation needed), is not thoughtfully and carefully calculated and executed the rest of the process is built on shaky ground.
“When it comes to your wealth, you are the newly appointed CEO of My Wealth, Inc.”
When working with business owners who have experienced a liquidity event, we often see the most success when these high net worth individuals manage their wealth the way they managed their business. Let me explain why.