Color-Coded Dashboards are Game Changers

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Color-Coded Dashboards are Game Changers
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Color-Coded Dashboards are Game Changers

02 Oct 2018 By There are no tags

Brady Siegrist, CFP, Managing Director of Wealth Management at Janiczek Wealth Management explains how the color-coded Wealth Optimization Dashboard, a key exclusive feature of Janiczek’s patented system, can help all clients, regardless of their net worth, business knowledge, age or investment savvy.

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BEFORE

AFTER

We monitor and measure things everyday. We glance at our speedometer to confirm we are not exceeding the speed limit. Thermometers tell us if we are running a fever or if our outside plants are in danger of freezing. A scale lets us know if an envelope requires extra postage. Think of all the diagnostic tests that report plusses and minuses of our physical well-being. How, then, do we measure our financial well-being? Why does financial strength matter?

Strength = Durability

Contrary to what some may assume, the number of digits it takes to record a person’s net worth is not an indicator of his or her financial strength. Size does not determine financial strength. Rather, durability is the measure of strength.

Financial Strength = Financial Durability

We find that people either have a true sense of financial security or a false sense of security (or insecurity). Our aim is to help clients have clarity and CONFIDENCE by knowing exactly where they are strong, weak and vulnerable and what to do to improve. We can measure a person’s financial durability. In so doing, we can assess how a person’s financial health will fare in the event of expected and unexpected (and unwanted!) stressors. We do this by establishing strength ratings in specific categories.

A Dashboard of 35 Essential Strengths®

We delve into thirty-five wealth-related categories—balance sheet, cash flow, portfolio, insurance, wills and trusts, liquidity, non-liquid assets, personal property, portfolio, distribution rate and many more. These 35 Essential Strengths®, part of Janiczek’s patented system are then rated. We isolate and then rank or measure all thirty-five against standards of excellence. The results are objective green, yellow, or red ratings, which we illustrate on a one-page dashboard. Certainly, a huge benefit of the dashboard is that our clients can intuitively understand the state of their financial health at a glance. Furthermore, this is true regardless of a client’s education, life experience or professional background. With the color-coded dashboard, novice and sophisticated investors alike engage in the conversation.

Green-Yellow-Red Ratings

A category scores green if it complies with the corresponding “excellent” standard. A completely green dashboard, the ultimate goal, means you are strong across all aspects of your finances we believe are most essential to optimal financial strength, agility, flexibility and endurance. If a category receives a yellow rating, some tweaking is required to convert it to a green strength. Our services pinpoint the right action to achieve this outcome or at least make good progress toward it. A red rating indicates a vulnerability that needs to be considered and addressed. Like the yellow issues, we identify action(s) within your reach to mitigate or eliminate the vulnerability as much as possible. This is what Strength‑Based Wealth Management is all about.

What’s the score?

On average, a high or ultra-high net worth new client scores 8 to 12 green strengths out of 35 the first time we do this analysis. High- and ultra-high net worth individuals typically rank in the world’s top 1% when considering net worth and income. Clearly, net worth does not necessarily correlate to financial strength. This explains why we think many wealthy individuals have a false sense of security.

In contrast, we also meet people who come in thinking they are weak, but learn many of their strength categories are already green! They experience a wonderful confidence boost when they see so many green areas and we explain they are quite strong and can do more of what they love.  We have witnessed numerous “wow!” moments. For some clients, their score is a welcome surprise. For others, who may be overlooking one or more wealth stressors, it is a wake-up call. The dashboard provides an objective reality check for all clients.

Next steps

The next step is to construct a comprehensive plan, tailored to a client’s unique situation and personal goals. The plan includes a target score, usually three years out.

We update a client’s dashboard periodically so they stay on track. Often times, we see an improvement to a whopping 20 or 25 green strengths within a year’s time. The dashboard system can also serve as an early warning system. We address green (excellent) items turning to yellow (issue) with corrective action. Moreover, this dashboard system serves clients throughout their lives, thanks to a simple, three-color coding system and a design that updates easily as life happens and circumstances change.

If you are a Janiczek client and you’d like to update your Wealth Optimization Plan (including the color-coded Wealth Optimization Dashboard), just let us know. Call us at 303-721-7000.

If you are not yet a Janiczek client, and our system sounds interesting, call Cathy Wegner, Director of New Client Engagements at 303-339-8842 to begin the conversation. It’s very likely we can help you and, as a result, bring you greater peace of mind.

R. Brady Siegrist, CFP®

Brady Siegrist, CFP® is Managing Director of Wealth Management of Janiczek® Wealth Management, which exclusively serves high net worth investors (individuals with $2 to $20 million portfolios) and ultra-high net worth investors (individuals with $20 million+ portfolios) across the country.

With his Bachelor’s degree in Finance from the University of Colorado, his CERTIFIED FINANCIAL PLANNER™ professional designation and 15+ years experience in the financial services and wealth management industries, Brady brings superb technical expertise and experience to Janiczek®’s disciplined Evidence-Based Investing (EBI) and Strength-Based Wealth Management™ (SBWM) platform. Mr. Siegrist is a Partner of the firm and a member of its executive Leadership Team.

bsiegrist@janiczek.com
(303) 339-4484

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