A Successful Relationship with Your Advisor
We read with interest Brett Arends' recent column in the
Wall Street Journal,
"Should You Fire Your Financial Advisor?" We concur with Mr. Arends
when he suggests you consider your alternatives if your advisor has
been rude, whined, or generally failed to communicate with you.
Certainly the market downturn has been challenging for all investors,
regardless of who manages their money. There may have been moments when
you've questioned your faith in Truepoint's ability to assist you with
achieving your long-term financial objectives. Please know that we
appreciate your continued confidence and believe you will be rewarded
for your perseverance.
As we reflect on Mr. Arends' article, we believe a successful,
longstanding relationship with an investment advisor must maintain the
following five elements:
Communication
- Beginning with our Annual Meeting in September 2008 and continuing
today, our professional advisory group remains accessible to clients
who have questions regarding their portfolios and financial plans.
Rather than hunker down in our offices, we've increased our client
contact over the past six months in an attempt to assuage fears and
provide further education regarding our process. And, in early 2009 we
introduced
TruepointInvestor.com, an online journal dedicated to providing insightful and educational investment commentary.
Understanding
- We're definitely in this together. Like our clients, we have
experienced a great deal of stress through the past year. We strive to
act professionally and courteously at all times. We listen to the
concerns of our clients and, where appropriate, have made changes to
portfolio allocations and adjustments according to their instructions.
Common Sense
- There is no crystal ball . . . and you don't need one! At the root of
all forms of active management is some sort of forecast. However, the
future is, by definition, unknowable. You don't need to predict the
future to have a successful investment experience.
Discipline
- We remain true believers in asset allocation. First, diversification
is not a short-term investment strategy. It should not be discarded
because it did not shield investors from serious declines over the past
twelve months. Over the past ten years, diversified portfolios have
risen 39% - more than any individual component asset. Four of the five
components showed increases - the leader was commercial real estate
with an 11.5% return. Only commodities posted a cumulative decline,
down 5%. The return of the diversified whole was greater than the sum
of its individual parts. Of course, in any given period, specific asset
classes may outperform even on a risk-adjusted basis, but you cannot
know in advance which it will be.
Independence -
Perhaps the most important element to a successful advisory
relationship is the confidence you gain by knowing your advisor is
acting in your best interest at all times. Truepoint is recognized as
one of the leading independent wealth management firms in the nation.
As fiduciaries, our company culture and compensation has always been
aligned with the interests of our clients.
If you'd like to
discuss your relationship with Truepoint, please don't hesitate to
contact us. If you're not currently a client but would like to schedule
an appointment, please contact Lisa Reynolds at (513) 792-6648 or
l.reynolds@truepointcapital.com.
Truepoint
Capital is an independent wealth management and multi-family office
firm based in Cincinnati. Our specialists provide integrated
broad-based services to high net worth individuals and families across
the country.
We take great care to thoroughly research the information provided
in our Viewpoints to ensure accuracy. However, these columns provide general
commentary and are not intended to provide specific tax, legal, accounting,
financial or professional advice. Readers are advised to seek qualified
professional advice on these issues for their specific circumstances. Truepoint
Inc. shall not have any liability with for any damages alleged to be caused,
directly or indirectly, by the information contained in our Viewpoints.
Additionally, none of the material included on our website constitutes a tax
opinion and is not intended to be used, and cannot be used, for the purposes of
avoiding any tax penalties imposed by the IRS.
