Effective client-advisor relationships are imperative to successful planning for both parties. Talented advisors want to work with clients who want help achieving their long term financial goals, and – according to Stephen Malfitano, Financial Advisor at Morgan Stanley  – clients want a knowledgeable advisor they can trust.

Malfitano not only brings decades of finance and municipal securities experience to the table, but he also spent six years as the Supervisor/Mayor of the Town/Village of Harrison, NY, managing a $50 million budget for the community of 26,000 residents. This experience and vast knowledge makes him qualified to assist clients with complex financial needs.

“We work with clients to help  devise a plan of action that is suited to their obtaining and achieving their investment goals and objectives,” Malfitano said. “That involves planning and the disciplines of asset allocation and asset management.”

Long-term planning requires both discipline and consistency. “We are not transactors or traders,” he emphasized. “We believe in long-term investing. We believe in getting it right the first time by setting the portfolios up correctly.”

Malfitano’s process includes working with individual investors to look through their entire lives. He explained that he approaches longevity planning needs in a way that makes clients feel comfortable with their plans and with any budgetary modifications needed to help ensure a reasonable likelihood of achieving their goals and objectives.

“I have always been of the opinion that a more conservative approach that is disciplined and customized for the client is the right way to go. There can be more predictability to the outcome. That’s not to say you can’t consider one-off investment opportunities with the potential to add alpha from time-to-time, but we don’t make it the focus of the strategy.”

Malfitano explained that this controlled approach not only helps achieve overall financial growth and success for his clients, but it also helps prevent losses caused by knee-jerk reactions.
“When you let human emotion enter into the decision making process of whether to buy or sell securities, history has shown that’s usually not the right thing to do,” he said. “Keeping people out of trouble is really part of our job. We want to keep them from making mistakes as best we can and advise them accordingly.”

The need for stability, experience and objectivity in the decision-making process is also the reason he believes technology – while advantageous in some regards – has limitations in financial planning. “On the one hand, it’s a good development because it’s educating people. On the other hand, it can be dangerous because it can lead individuals into making bad choices and decisions.”

Relying on technology can create a false sense of security that leaves investors prone to making costly mistakes during downturns. “You can’t substitute knowledge, experience and good advice,” Malfitano said.

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The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Wealth Management or its affiliates.  All opinions are subject to change without notice.  Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.  Past performance is no guarantee of future results.

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