Thanksgiving Day is almost upon us, and hopefully we will be spending this day and a meal with our family, friends, and loved ones. It’s wonderful to be able to reminisce about great memories from years gone by, and to make new memories for future generations to come.
Many of us don’t get together nearly as frequently as we want with our loved ones, sometimes just once or twice a year, and mainly around the holidays. Due to the fact we only see these loved ones a couple of times a year, we may be more alert and notice subtle changes in people’s demeanor; maybe someone is slightly more forgetful asking you to repeat things a bit more often, or maybe they’re not as steady on their feet as they were last time you saw them. That’s just human nature as we all get older, and probably they know it just as well as you do.
In my career in Wealth Management, it’s part of our process to always ask, “So what does your estate plan look like?” This question takes a different light as your family and clients get a bit older, and having parents in their early 80’s makes me look at things through a different lens.
Thanksgiving approaches, and with it comes the annual shopping event known as Black Friday. Retailers slash prices the Friday after Thanksgiving, spurring demand that, in some cases, goes beyond insanity.
Anyone with a basic understanding of economics knows that when prices decline while supply stays fixed, demand increases. But when this concept gets applied to investments, the laws of
economics (much like diets during the holidays) go right out the window.
Imagine you’re in a department store, and you’re looking at that beautiful designer dress or that latest hi-tech gadget that you’d just die to have. You wrestle with your inner voice, debating whether the big price tag is too steep, or whether you can actually justify paying it.
We are all touched by terror. Our response can be to give into it (live in fear, live in hate, etc.) or lever off of it with unquenchable courage and love. Here is a link to a beautiful tribute by Antoine Leiris to his wife Helene, one of the victims in the Bataclan theatre attack in Paris:
As we approach Thanksgiving and Christmas, our heart and prayers are that we all can respond to any setbacks or evil in such a loving and courageous way.
Janiczek® is excited to announce that Brian O’Neil has joined the firm’s Wealth Optimization Team to heighten Janiczek®’s disciplined Evidence Based Investing (EBI) and Strength Based Wealth Management™ (SBWM) platform.
Brian graduated from the State University of New York, College at Brockport in 1994 with a Bachelor of Science Degree in Political Science, and in 2004 from Regis University with a Master of Business Administration degree. Prior to working at Janiczek® Brian served as a Senior Advisor for Karsten Advisors from September 2014-October 2015, and with TIAA-CREF Individual Advisory Services (IAS) as a Wealth Management Advisor and Senior Manager from January 1995-September 2014.
Spending two days in New York City with Jim Collins (author of Good to Great), Sir Richard Branson (Virgin Group), Oscar Farinetti (founder of Eataly), Stephen Ritz and many other business and civic leaders was absolutely amazing. The event took place at the Lincoln Center and the theme was all about Story Makers – people who face shocks – both personal and organizational – and who use those shocks to achieve the extraordinary.
I believe one of the best ways to learn huge life lessons is to encounter other human beings and listen intently to their stories. Lessons are learned from great successes, great failures and great challenges that were overcome.
I have a learning approach I call the iMethod™ I use to maximize learning. It consists of four steps:
Compliance. According to Merriam-Webster dictionary it means: the act or process of complying to a desire, demand, proposal, or regimen…; conformity in fulfilling official requirements. It’s one of the most important words in the world of Registered Investment Advisers (RIAs). It’s one of the most important fiduciary responsibilities for an RIA.
Our ability as a firm to adhere to laws, regulations, guidelines and specifics as dictated by the Security and Exchange Commission (SEC) is a big contributor to the success of our company. We pride ourselves on having the proper tools and disciplines in place such as a Chief Compliance Officer and support team who review, edit and update various mandatory tasks throughout the calendar year. We use a sophisticated compliance software program that keeps us organized and on track to enact and document our compliance.
When we determine the appropriate asset allocation for an individual investor, the amount of risk the person can be exposed to not only depends on the amount of risk they can tolerate, but also on the total financial situation of the investor. Earnings exclusive of the investment portfolio are a critical component of determining the capacity for risky assets. Investors with high earnings potential are able to stomach more risk because they can easily recoup negative movements in the financial market.
We have all been told younger investors should take a more aggressive stance with their investment portfolio. This advice is a direct application of the human capital concept. Human capital is the present value of one’s future earnings potential. Although human capital is illiquid and not readily tradable, it is often the largest asset an investor has.