Others : The industry is extremely bullishly biased. Some have only experienced fundamental bull markets and believe that because markets go up over the very long term, then client portfolios should always be positioned in a bullish manner. Any losses that occur during “corrections” will eventually be made up for when markets turn around and eventually hit new highs. They simply invest with a market dependency mindset and disregard the adverse impacts that the timing of market declines can have on your retirement future.
Navigo : Our belief that long term market and economic cycles repeat themselves without exception convinces us there is a better way. These cycles clearly show that there are long term bull markets during which investors should be more aggressively invested and long term bear markets during which investors should aggressively protect. Our research has shown that if investors take this approach and dramatically reduce market exposure during severe market draw downs, then they can more easily beat the market over the long term. We’ve even shown that we can generate solid, positive returns during the bear markets with our unique investment discipline. This philosophy lessens our clients’ stress and exposure to market volatility and increases their likelihood of having a dependable retirement plan that is not a moving target.
Others : Some commonly invest with a shot gun approach, absent of any set methodology. After assessing the type of investor you are, they shoot at a virtual investment board and let the pellets spray on a specific investment mix. The problem is that almost every client is different and has a different set of investments, and advisors can’t realistically be expected to proactively “manage” so many different accounts appropriately without a specific discipline. As a result, portfolio adjustments are oftentimes made randomly driven by emotions, which can lead to bad decisions. In other instances, the portfolios are left alone to fend for themselves, even during uncertain market periods.
Navigo : Many of the great investment legends attribute their success to having a well-defined, executed investment discipline and not being emotional. Investing without a specific methodology is an invitation for disaster, especially in the current climate. Having well defined investment models clearly keeps emotions from invading our objectives and keeps us and our clients on the straight and narrow path to success. With multiple, time tested investment models, we are able to effectively and efficiently manage our clients’ portfolios during any type of market environment.
Others : Many brokerage firms view their Advisors as the driving force behind their sales growth. Public brokerages associated with broker dealers are concerned foremost about meeting sales growth targets and increasing their stock prices. These sales force Advisors work foremost for their firms, who push specific products for various reasons and who provide incentives to Advisors to grow assets, fees and accounts. They are also strongly “encouraged” to lock clients into other firm products and services that are not needed and only self-serve to make the clients more “sticky”. Much more emphasis is placed on growing their books of business and increasing the firm’s overall revenue and market share with new business rather than taking care of the clients they already have and providing clients with only what they need.
Navigo : As fiduciaries, we work for our clients, period. We feel strongly about acting only in the BEST interests of our clients and we have set policies and procedures in place that reinforce that foundational belief. We receive no extra fees or bonuses for selling specific products or for bringing in “x” number of new clients and “x” amount of new assets. We get paid only on the assets we manage regardless of what investments make up those assets. Our incentive is to consistently grow our client’s portfolios, so we in turn grow our fees. A flat percentage of an increasing value (your portfolio) is an increasing amount (our fees). Conversely, should assets under management decline, so too will our fees. As a result, our incentives are aligned with those of our clients. We do not answer to our firm; we answer only to our clients.
Others : Advisors that work directly for broker dealers are often limited in their access to specific investments and investment strategies. For example, because of the way the industry is structured, broker dealer advisors oftentimes only have access to load fee mutual funds. They have no ability to invest their client’s assets in no-load fee mutual funds. As a result, they can only consider and choose from half of the mutual fund universe. Advisors are also generally restricted to only buying equities for which their firm has an in-house analyst following. As a result, only about 15-25% of all stocks are available to choose from for portfolio inclusion within a managed portfolio. Broker dealers also restrict their Advisors from using various ETF’s and funds that they consider too complex or counter intuitive to the bullish market narrative. As a result, they eliminate the very investment vehicles that could complement their clients’ overall portfolios and provide hedges during more turbulent periods.
Navigo : Because we are independent, we have access to virtually every fund in the mutual fund universe including no-load mutual funds. Because of our custodial relationship with Fidelity, all load fee funds are stripped of their up-front fees. We also have no limitation on the equities from which we can choose.
Others : Some advisors are not committed to the process of actually providing ongoing comprehensive wealth management services. We hear from many new clients that advisors they previously used never performed or offered a retirement plan to better understand how they are tracking during or leading up to retirement. There was never an assessment or discussion about any estate planning issues.
Navigo : We are committed to the wealth management process and proactively provide services and resources via our expertise, technology tools and our strategic network of partners that reflect that commitment. We never want clients to sense they are feeling their way in the dark when it comes to their retirement planning or portfolio performance. We proactively provide and offer complementary retirement plans and estate planning resources if needed as well as updated returns for specific portfolio accounts and/or all personal financial assets.
Others : Some non-fiduciary advisors assess fees for managed accounts along with high rate commission products such as annuities, structured products and A class mutual fund shares.
Navigo : We are a fee only firm with no commission products. Our fees increase as your assets increase. Our fees are generally set at 1% of assets, which is on the low end for advisors that provide comprehensive wealth management and active portfolio management that is protection focused.