Wealth Protection

Shifting Focus From Benchmarks to Client Goals

 

Contrary to popular belief, beating benchmarks won’t necessarily help financial advisors address their clients’ financial goals.

Instead, shift the focus to guide clients toward the strategies they need to pursue their target for whatever financial goals they are working toward. Sure, beating benchmarks can at times equate to a ten percent gain. But those are rarely permanent and why add risk if a client truly needs a seven percent gain to manage objectives?

That’s how Brad Blackburn, managing partner of Dyadic Financial Management, LLC, based in Columbia, South Carolina, advises his clients seeking consistent, reliable gains via their investment portfolio.

He says the focus on benchmarks is something he’d like to see change within the financial services industry because it significantly detracts from pursuing client goals.
“Every client’s starting point is different and every client’s ending point is going to be different and their risk tolerance along the way is going to be different,” Blackburn explained. “I want to provide a customized approach for every client as opposed to taking a cookie-cutter approach which throws everyone into the same strategy for their investment planning.”

Some clients may need more alternative investments in their portfolio, versus other clients for whom the use of annuities or life insurance with long-term care benefit riders are the better option to protect their wealth accumulation.

This requires client education – a tactic Blackburn engages with gusto.

As a big believer in client education, he wants his clients to understand why he is using certain strategies in their portfolios and why he isn’t using other vehicles. He wants them to be able to communicate that back to him – and their friends – in plain English.

That is not always an easy task based on the extensive amount of complicated lingo that characterizes the financial services industry, yet it remains his goal.

Blackburn became an advisor in large part because he saw a lack of financial literacy among his own family members whom, despite having good paychecks, were struggling with their own progress toward security.

It was because they could not fully define their goals, he said, noting it is a common problem he sees among new clients until they sit down together on the same side of the table and roll up their sleeves.

“People often have a hard time actually defining their goals to develop a game plan toward pursuing them,” Blackburn said. “I enjoy getting them down on paper because once they are written out, we have a better chance of developing a plan to address them.”

Learn more about Dyadic Financial Management, LLC, online at dyadicfinancial.com

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.

Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.

No strategy assures success or protects against loss. Securities offered through LPL Financial. Member FINRA/SIPC.

 

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