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Enter the Age of Bionic Financial Planning

bionic financial planningA recent study conducted by the Financial Planning Association and Investopedia revealed today’s investors require both high-tech and high-touch forms of advice to satisfy their increasingly complex financial needs. While investors are happy using “robo-advisors,” they’re more satisfied when using both a human advisor and an automated investing platform. In other words, bionic financial planning.

Enter the Age of Bionic Financial Planning

“The debate about whether robos or human advisors will win is moot. The future of financial advice is bionic – a powerful combination of both,” said David Siegel, CEO of Investopedia.

When asked about specific financial issues – such as estate planning, elder care and tax planning – roughly 50 percent preferred working with a financial planner/advisor and about 30 percent preferred utilizing both a personal advisor and an automated investing platform.

At Perspective Financial Services we’re proud to offer the best of both worlds, by building personal long-term relationships with our clients and providing access to a variety of automated and online tools.

Image courtesy of alex_ugalek at FreeDigitalPhotos.net

The Psychology of Technology

Sherry Turkle researches the psychology of technology. photo credit: peter-urbanSherry Turkle directs the Massachusetts Institute of Technology (MIT) Initiative on Technology and Self, and has spent the past 30 years researching the psychology of technology. Her research raises critical questions about people’s relationships with technology, as well as technology’s role in productivity, including whether our always-connected state affects our ability to think, be creative and innovate.

Turkle was one of the headline speakers at Schwab IMPACT 2016, which Mike McCann and Shannon Curkendoll attended. The annual conference provides news, insights and industry updates relevant to independent investment advisory firms like Perspective Financial. In addition to numerous educational and professional development sessions, the event featured inspirational and insightful headline speakers like Turkle.

“An impactful moment for me was when Sherry Turkle referred to how we have raised a generation of people who are so used to constant and continuous interaction through technology that they now struggle with working independently,” said Curkendoll, Perspective’s operations manager and a mother of two.

“She also talked about the benefits of letting people, especially children, be bored. In boredom we develop skills for self-reflection, creativity and deep thought,” Curkendoll added. “By not letting ourselves be bored we’re losing the ability to develop these necessary life and work skills.”

Turkle’s New York Times best-seller, Reclaiming Conversation: The Power of Talk in a Digital Age, focuses on the importance of conversation in digital cultures.

“My argument is not anti-technology. It’s pro-conversation,” said Turkle, who has been described as a skeptic who was once a believer. “We miss out on necessary conversations when we divide our attention between the people we’re with and the world on our screens.”

You can learn more about Turkle’s research and writing at her website, www.reclaimingconversationbook.com

By |December 12th, 2016|Company News, Current Affairs|

Next Generation RIAs

A handful of local Registered Investment Advisory (RIA) firms are invited to participate in a Charles Schwab summer intern education program. We’re proud to say Perspective Financial Services is among those selected to help educate next generation RIAs in this program.

next generation RIAs

Mike McCann (right) reviews office operations with the Schwab RIA interns. (Summer 2016)

The Schwab Advisor Services RIA Internship Program is a hands-on eight-week rotational internship designed to prepare undergraduate students for employment within RIA firms. Students apply and come to Phoenix from across the United States to learn about the investment industry, the advisory profession, and how advisors and Schwab work together to accomplish the goals of risk management and client asset protection.

About midway through the program, the group of interns disperses for their “on-site experience” at RIA firms across the Valley. They gain corporate work experience and are introduced to fundamental areas of the RIA business, such as client service, trading support, portfolio construction and financial planning.

Kelsey from Ohio and Andrew from Texas spent several days at Perspective Financial in 2016. Colin from Utah and Davis from Florida were our interns for 2017. We shared an overview of our service philosophy, business model, office operations and strategic marketing to help these next generation RIAs understand the wide range of expertise our firm encompasses.

We’ve been impressed with the enthusiasm and professionalism of all the interns we have hosted, and we wish them well on their educational and career journey.

next generation RIAs

Mike McCann (left) reviews portfolio rebalancing protocol with the Schwab RIA interns. (Summer 2017)

 

 

 

 

 

 

 

 

Article updated July 14, 2017
By |July 8th, 2016|Advisors, Company News|

Results Matter More Than Performance

Eng-webOn a recent due diligence trip to Los Angeles, Mike McCann and I had the opportunity to engage with the Capital Group, the investment manager for American Funds. I walked away from that visit with three strong impressions that I believe benefit our clients:

1. Unique corporate culture

2. Process + Consistency = Results

3. Results vs. Performance

The Capital Group was founded in 1931 and has distinguished itself as one of the few actively-managed mutual-fund companies that has consistently provided above-average results. Their unique corporate culture has enabled them to do things differently than many of their competitors. For example, they’ve been able to recruit and retain top talent. This is evidenced by the long average tenure of their investment professionals, which is more than twice that of the industry average (11.6 years vs. 5 years). An experienced investment team ensures there are professionals who have managed through many different market cycles, especially the difficult ones.

Another important aspect of the culture – borne out of this longevity – is the consistency of their process. The Capital Group emphasizes rigorous fundamental research, long-term decision-making, low fees and independent thinking, all of which have helped produce favorable long-term results for their clients. Such results, in turn, provide reassurance for current investors as well as future investors of their products.

The final distinction I realized during our time with Capital Group was the difference between performance and results. They made it clear that within their organization they do not focus on performance. Performance is something that may sound good in an advertisement. Yet, it is the results that are important, because the results are the money in the bank, the resources that clients can live on.

Knowing the investment professionals at American Funds view results in this way, and knowing they are not “chasing performance” to publish in their next brochure, gives me peace of mind.

This part of the Capital Group process enables me to feel comfortable and confident that we at Perspective Financial are investing our clients’ hard-earned money with a company that is also putting their clients’ interests before their own.

By |July 20th, 2015|Advisors, Company News, Investing|