Our Comment by J. David Lewis – When I read this tonight, I was struck by how timely it is. Late in 2011, we prepared a relatively complex Recommendations Report for a couple interested in retiring a few years from now. Less than six months later, we learn the retirement date may be very soon, due to changes by the employer. No one could have predicted this change of expectation when we were working on the project. I am convinced the decisions were sound when they were made. Now, we are deciding what needs to be reconsidered. In our world, this sort of thing is not exceptionally unusual.
By Carl Richards
“Whether we like it or not, life is not static. We don’t live in bubbles. And even though one day may look very much like another, life is rarely the exact same every week let alone from year to year. Perhaps the basics stay the same — work, school, relationships — but little things change, and we learn to adapt to those changes.
We need to think the same way about money. Even after we make smart decisions life will continue to happen.
The decision to save money each month may need to change if someone loses a job. The decision to have another child may mean that you need to buy a new car sooner than planned. The decision to retire early may be put on hold after a health emergency. In each example, no one did anything wrong; life happened.”
Read Carl Richard’s article via There Is No Perfect or Permanent Financial Plan – NYTimes.com.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 57375
January 23rd, 2012
Our Comment by J. David Lewis – If you believe you do not have enough to find a good fee-only, fiduciary financial advisor, this is the article for you. It gives good research tips.
by Mark Miller, Morningstar
“Resolved for the New Year: I will not make a financial plan for my future in 2012.
Thats the disturbing finding of a survey showing that 80% of Americans wont focus on financial planning this year–the highest percentage found since Allianz Life Insurance of North America started asking about this three years ago in an annual New Years resolution survey.
Why? The largest group of nonplanners–35%–said they “dont make enough to worry about it.”
Read the steps via 6 Crucial Steps To Take When Hiring A Financial Planner.
After you read this article and followed its advice, talk with us. We do not have minimum investment accounts for new clients. We do expect serious commitment to improving your financial strength. There is more to money than money®. With that commitment, we will quote fee arrangements that should make sense for your particular situation.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 57279
January 16th, 2012
We feel very fortunate Mary Davis has joined us to assume Kyries role. With East Tennessee roots, her 1986 entry into financial services was with brokerage firm operation departments, leading to a Charles Schwab & Company retail client service position in Birmingham, Alabama. Yes, for some reason she is an Alabama fan. Those brokerage firm positions required significant testing for several securities licenses. More recently, Mary was Chief Compliance Officer at Sovereign Wealth Management in Memphis. This means she was their liaison with the Securities and Exchange Commission for regulatory matters. To prepare for these responsibilities, Mary earned the IACCPsm designation, awarded by National Regulatory Services.
Now, Mary’s position is Client Services/Administrative Assistant with us at Resource Advisory Services. Much of her work at Sovereign was astonishingly similar to Kyrie’s at Resource Advisory Services. In a nutshell it involves three complex software and electronic communication systems, plus extensive direct communications with other financial institutions. These functions make our personally written Quarterly Reports feasible. When you are in contact with Mary, take a few minutes to get acquainted. Her father was an Air Force dentist, which had Mary living in Alaska for many years. She has also lived in a number of other interesting places.
Read more via Mary K. Davis Has Joined Resource Advisory Services.
January 13th, 2012
It was great to find my quote published this morning. —- J. David Lewis
How Financial Advisers Get Clients to Take Action – WSJ.com by Jaime Levy Pessin
“Writing It Down
David Lewis, president of Resource Advisory Services, a money-management firm in Knoxville, Tenn., has taken the opposite approach—he has eliminated regular meetings with clients.
Mr. Lewis says he initially built his practice by working with doctors, who “legitimately didnt have time to set aside for meetings unless we really had something significant to discuss.” Eventually, he realized that instead of quarterly meetings, he could write a “net-worth letter” explaining the changes in a clients account. Mr. Lewis staggers the reports, so he doesnt have to write to all his clients at once; when a clients report is coming up, his office emails the client to see if theres anything specific he or she would like addressed.”
I can be much more thoughtful, much more thorough [in writing] than if the issue comes up and I have to talk about it,” he says.
If clients have a question stemming from or unrelated to their quarterly letter, they are encouraged to call and either discuss it on the phone or come in for a meeting, Mr. Lewis says. Letting the clients come in on their own terms makes for more productive meetings, he says.
Mr. Lewis is a planner who has discretion over his clients……”
Read the article via How Financial Advisers Get Clients to Take Action – WSJ.com.
January 9th, 2012
by J. David Lewis
The time around each New Year has become very special for me. Of course, the news media fills its commentary with events of the last twelve months. We take a longer view; to consider events in each client relationship since we began our journeys together. I must say the letters we write with this season’s Quarterly Reports are among the most personally rewarding for me. Several of our clients have been with us more than twenty years. Even the much shorter relationships have personal stories. They all provide many memories I savor. There is more to money than money®. Life as an adventure is exciting. A new year is starting, with more in store for all of these relationships.
We use graphs, with annual columns to represent each client’s history of Total Assets – not just investment accounts. While increasing investments is important for future security, we also think it is important to have appropriate increases in those things that make life better now. Adjacent columns represent Total Liabilities. The distances between the tops of these columns graphically display net worth progress, which is the most comprehensive measure of financial strength. At a glance this measure of success – or lack thereof – is clear. These reports are not about how well we managed investments. They are about how well our clients managed their financial strength with our help.
The text of these reports (more…)
January 4th, 2012
Our Comment by J. David Lewis – This is a great article, which speaks to the importance of regular review of financial progress, or lack thereof. It is important to add up all asset and all liabilities regularly to take an objective look at your success.
Why ‘I Don’t Know’ Is Often Your Best Money Answer
By CARL RICHARDS
Accepting the fact that we just don’t know allows us to let go of any anxiety around the idea that we should be able to find someone who does know. And let me share a secret with you about that: There isn’t anyone who knows what the next week, month, year or even decade will look like in the stock market. Anyone who says they do is someone you should run from.What are some other things we just don’t know?
Read the full artical via Why I Dont Know Is Often Your Best Money Answer – NYTimes.com.
December 20th, 2011
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