Numerous studies support this belief. A recent study, published by The Vanguard Group in 2016, found that using an investment adviser can add approximately 3.0% to annual returns over time. I believe this white paper is significant, as the Vanguard Group is a trusted name in the financial services industry that has, in large part, earned its reputation by squeezing unnecessary costs out of the investment process. The Vanguard study concludes that implementing best practices in wealth management – such as behavioral coaching, asset allocation, portfolio rebalancing, tax efficient liquidation strategies, cost-effective trading and investment selection – can lead to higher investment returns over time.
What does this mean to you? Using this report as guide, I conclude that over a 20-year period implementing proven wealth management techniques could result in a portfolio that is approximately 60% higher than taking comparable investment risk without using these techniques. *
Please note that while these techniques are available to everyone, they may not apply to everyone. Individual circumstances may be different than those analyzed and past results are not guarantees of future returns.
• The projected investment outcomes mentioned above are hypothetical in nature and do not reflect actual investment results.
• The Vanguard white paper and our opinions are not guarantees of future results.
• All investments include the possible loss of money that you invest.
• Diversification does not ensure a profit or protect against loss in a declining market.
• There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.
• Fluctuations in the financial markets and other factors may cause declines in the value of your account.
• Not all, or any, of the factors presented may be relevant for every investor.
• The estimated future value will vary depending on a client’s unique circumstances and the way the assets are actually managed.
• Sapling Wealth Management’s calculation of the possible benefits of implementing wealth management techniques as “about 3% annual return * 20 years = approximately 60%”.
I work with small business owners to design and implement sophisticated, cost-effective 401(k) plans for their employees that enhance employee retention and create personal retirement wealth.
I provide a range of financial services and a pre-screened network of approved vendors to clients. My clients range from start-up entrepreneurs with little to no liquid financial assets to high net worth individuals.
I started my career on Wall Street in 1986 and was one of the first analysts to cover Real Estate Investment Trusts and Master Limited Partnerships – at the time a fledging asset class. Later, I specialized in health care service stocks and was voted an “All-Star” analyst by the Wall Street Journal. Those days, we had lots of resources to chase investing ideas where we could make differentiated investment recommendations.
These days, I have access to extremely sophisticated analytical and investment tools online that would have cost a fortune just a decade ago. Which means I can do all my analysis from my home office in Seattle and provide cost-effective financial services to my clients. When I am on the road meeting with clients I access information via secure cloud computing channels. In many ways, my business model represents the dream the people at Microsoft, Amazon, and Google are working so hard to create.
This is important because it allows me to spend more of my working hours being effective, which my clients like. (It also allows me to spend more of my personal time with my family, which I like.)