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The Art and Science of Getting and Staying “On a Roll”

 I love adapting engineering and physics concepts to solve common financial problems many people, even financially savvy people, encounter all the time. That’s why I’m so excited about my latest invention, the Wealth Allocation Wheel.

Illustration 1

The challenge, in simple terms, is “staying on a roll.” There is an art and science to staying on a roll with your wealth. This means having enough inertia with your wealth to successfully navigate the Stages of Financial Freedom (see Illustration 1). The clear aim I have written about extensively is how to achieve controlled growth while avoiding short or long periods of stagnation or depletion.

If you read the Wall Street Journal or Barron’s Magazine this last week, you will see that Barron’s listed Joseph J. Janiczek of Janiczek Wealth Management in its 2018 listing of top advisors in the nation.

This represents the fifth year in a row we made this prestigious list, adding to our tradition of making many top investment and wealth management lists and/or rankings going all the way back to 2001.

 

This latest award adds to top advisor lists published in or by:

  • The Wall Street Journal
  • Barron’s Magazine
  • Financial Times
  • AdvisoryHQ
  • Worth Magazine
  • Mutual Funds Magazine
  • NAPFA

Janiczek® Wealth Management is pleased to announce we have once again been named among the TOP RANKED WEALTH MANAGERS IN DENVER COLORADO by AdvisoryHQ. This ranking adds to a long list accolades going as far back as 2001 and as recent as 2018, including:

  • Barron’s
  • Financial Times
  • AdvisoryHQ
  • Worth Magazine
  • Mutual Funds Magazine
  • NAPFA
  • CIPA (best Business/Finance Book of the Year)

 

What separates the ordinary from the extraordinary? I believe consistently doing the best with what you have with daily choices and actions. In a word: habits!

When you use the power of choice and habit, outside forces play a secondary role. It doesn’t matter how educated you are, what occupation you choose, how much you earn or who you know. What does matter is what you do with what you have today.

Habits Make the Difference

For instance, take Gladys Holm who, as a secretary, earned no more than $15,000 a year throughout her life. Yet she left $18 million dollars to a hospital for heart disease research when she passed away! Gladys had the opportunity to invest in her employers’ stock over her career and she did. She also had the opportunity to invest in other stocks (like all of us do) and she did. She had the opportunity to participate in her employer’s stock option plan and did. Notice the trend… she had many opportunities and took advantage of each one to the degree she could with her modest salary. She became known for driving her fire-engine red Cadillac and delivering teddy bears to children at a local hospital in her Chicago neighborhood.

You might need to evaluate your comfort zone to see if it is holding you back!

As a practicing financial advisors who conduct hundreds of financial review meetings a year, we can say with authority that financial stagnation in some form hinders most people.

Financial stagnation is a state of impaired action – when you are stuck in an inactive state due to some fear, conflict, or mental block. A classic example is avoiding participating in the stock market for fear of losing money while simultaneously feeling stressed about dismal bond or money market returns. Another classic example is delaying to create or update your estate plan, even though you are exposed to more taxation than necessary or have family members who would suffer the consequences of an unoptimized or incomplete plan.  Financial stagnation may be isolated to one financial domain, such as investments or estate planning, or may be present across many financial domains.

I have witnessed how exciting it can be when people plagued by inaction for 10 years or more make more progress in one year than they did in the previous decade by confronting the root cause(s) of their stagnation. You will feel tremendous relief and personal satisfaction by identifying and confronting the causes of any financial stagnation you are experiencing.

Are you making up your plan as you go along?

Powerful changes in today’s world are empowering individuals and consumers like no other time in history. But as our employment, political and social circles rapidly change, we seek ways to cope, survive and thrive under these new circumstances. While providing tremendous opportunities on one end, they challenge our beliefs and security blankets on the other. These changes can at first seem alarming because they not only allow us to be our best but actually demand us to be our best. How do we handle all of this change? What do we do?

The turbulence of our times demands strong finances and habits that can be effective in all economic climates. With the breakdown of employment security, it is a dangerous moment in history not to have our finances in tip-top shape. To face the future with poor financial flexibility and stamina creates a severe disadvantage. Therefore, the economic and job stability we cannot find in the outside world must be created within our own personal finances.

What Are Your Own Possibilities?

You can't take it with youSometimes, the pursuit of wealth can leave a void in our lives—a place left empty because we lacked the energy or time to pursue a dream. There is a saying: “Wealth is not an end, it is a means to an end.” The problem is that the complexity of creating wealth and the subsequent financial planning often gets in the way of seeing and pursuing an end truly aligned with your highest purpose in life.

My life’s work has been focused on this critical unmet need. I hope to help people see the possibilities that open up once you escape from the chaos and confusion that characterize so much of the wealth management field today. I absolutely know it is possible to put a large portion of wealth management on automatic; I have built the system, structure, support and discipline to achieve this; and I’ve seen how using these benefits helps people define and achieve their highest ambitions. This approach is both effective and rewarding.

Clients are surprised sometimes when I ask them about their higher purpose and possibilities. It is not that they feel I’m prying; they just don’t expect an advisor to be concerned with such matters. I tell them that these are the most important questions for them to consider when it comes to financial planning.

Does intelligence equate with investment management success?

Intelligence does not necessarily lead to expertise in every area- especially when it comes to investing.

What might it take to succeed in investing? Intelligence alone? You have to be intelligent to get into Mensa. They only accept applicants with IQs that place them in the top 2 percent of the population. One might expect that if Mensa members formed an investment club, their returns would exceed market averages, or at least match them. In actuality, between 1986 and 2001, while the S&P 500 was returning a robust 15.3% annually, the Mensa Investment Club had average returns of 2.5% per year.

How did these geniuses and near geniuses manage such poor results in such a strong market? Their basic problem was a lack of discipline. Instead of using their intellects to determine a sound investment approach and sticking with it, they got sidetracked into exploring trendy new tools and theories of how to predict market trends. When one strategy didn’t work they tried another. They made frequent trades, thus increasing their transaction costs. In short, they provided a perfect example of Warren Buffett’s comment: “Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ.” Common sense and discipline will beat erratic genius every time.

At this point in your journey toward financial strength, you already may have great momentum. All you need to reach the goal line is to exercise self-control in a few vital areas. I call these personal finance disciplines the High Five because they are the key to achieving your highest potential in life. They are:

  • Saving Awareness and Control
  • Spending Awareness and Control
  • Work Ethic
  • Goal-Setting
  • Learning

 

By automating or delegating a huge share of the discipline needed to master wealth, you can reserve your energy for situations when it is needed most. This is one of the secrets of the successful people with whom I have the privilege to work. They devote their best to challenges associated with their greatest ambitions, rather than squandering valuable energy on secondary pursuits.

Janiczek Wealth Management has once again been named one of the Top 12 Financial Advisors in Denver, Colorado Springs, and Boulder Best-Financial-Advisors-in-Colorado-minColorado by AdvisoryHQ. To read the full article/review “Janiczek Wealth Management – A Beacon of Light for High Net Worth Individuals.”

Now in its 27th year serving high net worth investors (those with investment portfolios of $2 million to $20 million) and ultra-high net worth investors (those with investment portfolios of $20 million+) in Denver, Colorado Springs, Boulder, Aspen, Vail, Beaver Creek, Summit County, Snowmass areas of Colorado and in approximately 24 other States in U.S.A., we are proud our Evidence Based Investing (EBI) and patented Strength Based Wealth Management® (SBWM) system and services helps to “unleash” our clients from the complexities of wealth so they can flourish with their good fortune.


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