What do I do as an adviser? Is it just investing?

Yes, I do provide investing assistance to help put in place a properly structured asset allocation based on different asset classes that help diversify, and rebalance, your holdings as an Investment Adviser. The resulting portfolio, or portfolios, form the foundation based on passive indexes.

Indexing is used to remove “management drag” on returns that come from mutual fund manager errors through tilting the fund allocation too much towards or away from market results based on their projections and opinions. In other words, since nobody know the future, and future market returns are unknown, indexing has been shown to persistently achieve what the markets provide.

However, simply investing in something is unlikely to result in you reaching your goal. Why? Because investing is the tool. Your goal is what you want the tool to result in making. Just making money is not your goal. Why? How much money do you need? People always want more money … they keep shifting their goal post!

You have to establish where the goal post is. I suggest the answer is enough to sustain your current Standard of Individual Living … this is a goal post everyone seems to agree on (for retirement). If you can save more, then yes, maybe you can improve your Standard of Individual Living later on.

You see, the biggest problem seen today is that people haven’t saved enough for retirement, or their other goals for that matter, and there are always reports coming out that demonstrate this to be true. People are on the gerbil wheels trying to make money so they can spend it (and more – through credit). This is a recipe for working your whole life (on that gerbil wheel).

My job is to help you understand how this affects your life, and more importantly, how to adjust your affairs over time so that you may eventually arrive at your goal … what at one time seemed impossible may slowly become within reach … but it takes awareness on your part to know where it is you are trying to go … and how to get there. How to make choices with your resources … That’s what I do for you, and this is what client fees compensate me for.

In order to perform this function, I need to understand personal finance, behavioral finance, economics, and other subjects that may relate to these areas such as longevity probability, and sustainable income probability, etc. Thus, there is ongoing research that I need to continue to do … and this discipline was taught to me through my Master’s in Business Administration program long ago … the way you learn is to continue to learn.

There is more that I need to do with you than simply stuff your money somewhere … and this “more to do” stuff is actually more important than the investing.

As a result … all of the postings I have in my blogs are designed to address with you the various aspects of life that have an effect on your plans. There is more to achieving your goal than simply stuffing your money somewhere … in other words, there’s more to it than just investing. There is more to it than just getting the highest return possible (which comes with the highest risk too by the way). My blog postings bring those other considerations into the light as well. If all I blogged about was investing … then you would get the impression that’s all I do for you. It’s not … so I need to help you become aware of other aspects of life besides investing that have an affect on your plans too. Happy reading!

The Big Picture (Who does what?)

Related blogs:

What does TD Ameritrade Institutional do?

What does Loring Ward do?



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  1. What does Loring Ward do? | Better Financial Education Blog - March 5, 2012

    […] the support staff function at Loring Ward frees up my time from administration duties, so that the adviser function I do, is separate from your investment in SA Funds, which are managed by the investment committee […]

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