Word of mouth is bread and butter for Brighton Financial Planning, based in Clinton, New Jersey.

“I would say that at more than 90 percent of our new clients in the past five years have come to us via word of mouth from our existing clients,” said John P. Middleton, owner – whose credentials include being a Chartered Financial Analyst (CFA), a Chartered Alternative Investment Analyst (CAIA) and an Accredited Investment Fiduciary.

Increasingly, the role of trusted fiduciary is one he highlights as coming to the fore in today’s more conservative investment market.

“We certainly consider ourselves to be the fiduciary (for our clients) and we do present ourselves as such,” Middleton said. “We have a responsibility to our client first and to ourselves second.”
It’s a mindset change in investment portfolio management Middleton believes grew out of the Fall 2008 banking crisis sparked by failing sub-prime real estate lenders in  the previous year. Gone are the days when commission-based, alpha strategies ruled management of investment portfolios.“Investors should see a move toward recognizing and acknowledging that, despite the increased liability, our role as an independent registered investment adviser is to be entrusted by clients to manage their assets in accordance with their intents and what we believe to be prudent,” Middleton explained. “Since 2008, we have seen a much more conservative approach, with a business model moving more and more toward a fiduciary role. The opportunity for us to make a living comes from doing the right things for our client.”

At Brighton, that increased protection of the client’s assets means staying away from fee-based funds. Brighton focuses on no-load, no12b-1 opportunities for its client base, whose average discretionary investment portfolio is $500,000.

Middleton also likes dividend investing, although he notes its future is uncertain as long as the U.S. Congress continues to alter the tax code. Speculation that lawmakers may remove the tax protection currently applicable to dividend income and treat dividend funds as “ordinary tax,” leaves concern for investors looking for a reasonable return with limited risk.

“We do like dividend stocks because they tend to be larger cap value oriented, more stable, long-term performers,” he said, noting that any Congressional changes could have a big impact on the current market.

Yet for Middleton, such changes only mean yet another opportunity to communicate with his clients. While his firm isn’t aggressive in marketing itself, both he and former owner James J. Chesterton, Jr. – who remains in-house as the firm’s lead estate planner – are attentive to keeping their clients informed of market movement.

The firm uses its Facebook and blog presence on the Internet to post daily and weekly updates, while Twitter messages are being sent out for communiques of an immediate nature. And of course, nothing substitutes for old-fashioned phone contact.

“Constant communication – phone, email, Internet – it all helps clients manage their concerns and doubts,” Middleton said. “Providing that information and transparency is a big component of what keeps clients on track.”

For more information, please visit: www.brightonfinancial.com