Having the Right Fit
Financial professionals do basically two things: 1) they Gather money to work with and 2) they Manage the money they've gathered. But while we all do both, one will be the focus and what we spend the majority of our time doing.
Most of my peers are primarily focused on Gathering money. Then they send that money to others to manage. They may review what's going on periodically, but they really aren't involved with managing your money.
Another way of looking at this: most advisors are constantly looking for their next client and not really focusing on the clients they already have.
It's possible when financial professionals are primarily focused on Gathering assets, it may seem like they're only concerned about one thing: how much money can they make off of you. They might spend a lot of time with you during what I call the "courtship" process. But once you've become a client, their focus turns to finding the next client.
While I'm still taking new clients, my focus is on Managing the money I've been given. That's an important distinction.
At Parker Wealth, since I'm only looking to work with about 150 families, my focus is on making sure we have the right "fit". For you. And for me.
The Four Elements of "FIT":
• Relationship -- Certainly, it takes time to develop a great relationship, but it's important to enjoy working with each other. It's the first, and the most important of the four elements. Do we like each other? Do we have the potential to work with each other for a long time? If the answer is yes, we move on to the next element.
• Money to manage –- My focus is to work with folks who have investable assets between $500,000 – 5,000,000. While I don't have a minimum requirement, this is the target amount. Why? I believe these folks are underserved. They don't have enough to qualify for the fancy wealth services some broker/dealers provide, and they are too big for many of my colleagues. The amount of $500,000 – 5,000,000 is a guideline. As our practice continues to grow, we'll work with people above and below that guideline if the "fit" is right.
• Teamwork / Trust -- By being a member of your team, my focus is to help you accomplish your dreams and goals. Good teamwork develops trust. And a key element of teamwork is transparency. That's why in most cases I don't like to be paid via commissions. By using a "fee-based" structure, I make a small percentage of the account value every year. As account values increase, I get paid more. As account values decrease, I get paid less. This way you know the goal for both of us is the same: grow your account value and help you accomplish your dreams and goals.
• Investment philosophy -- My investment strategy is to grow money safely. While no one can guarantee growth, my strategy hasn't changed over the years. But my tactics have. I believe tactics must adapt to what the Market is doing. I'm not trying to be a "market-timer". I'm a "trend-follower". I don't create the wave the Market is producing, I simply ride it. If a buy-and-hold tactic will work, so be it. If a more active approach is required, so be it. While many in the financial industry are still preaching the same old buy-and hold philosophy (regardless of the results), I adapt my tactics to the wave the Market is giving us. When we get together I'll explain how I do this.