client service

The Golden Business Rule

© Can Stock Photo / czany

The Golden Rule exists in many forms and many cultures around the world. We see it in different formulations: what goes around comes around, you reap what you sow, do unto others.

At 228 Main, we stopped thinking about our business revenue or asset goals a long time ago. We do have goals: a specific one and a broader one.

The narrow one is to try to grow your buckets. This has us reading and researching, assessing opportunities and threats in the economy and markets, forming views, and taking action in portfolios. It is endlessly fascinating to me, one of the reasons I want to work until age 92.

The broader goal is to do great work for you, from your perspective. There are two pieces to this. First, we have to understand your life and your plans and planning. Whatever your financial position is, your objectives and needs play a large role in shaping the best strategies.

The second part is in communicating in clear terms and engaging with you, so we understand you and you see how your money connects with your life. Living with confidence about your financial position may contribute to your happiness and wellness, which is our true underlying purpose. Life may be better when you have confidence in your approach and know that we are responsive to changes in your situation.

The ironic thing is that business got a whole lot better when we stopped worrying about it and began to focus more on your situation. Evidently, what goes around comes around.

Clients, if you would like to talk about this or anything else, please email us or call.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

The Right Stuff

© Can Stock Photo / LiaKoltyrina

Tom Wolfe’s 1979 book chronicled the elite test pilots from whose ranks the first astronauts were chosen. The title The Right Stuff referred to the combination of mental and physical characteristics required for their work.

According to author Charles Duhigg, the same words apply to people who have reached high levels of effectiveness in business. People who become much more productive do not necessarily get more done—they get the right stuff done. Thinking deeply about the work enables them to focus on the most important elements.

At 228 Main Street, we began focusing a long time ago on our three most important activities. Talking with you to collaborate on your plans and planning is at the heart of our work. Investment research and portfolio management are the other most valuable activities. These are the things that make the most difference—they are the right stuff for us.

We figured out that we needed to develop a staff to take care of the important details of service. Having the right beneficiaries, getting money out to you when needed, preparing the forms and maintaining the files we need simply to be in business—all of these things are vitally important, too.

There are about 10,000 minutes in a week. By focusing our work time on the right stuff, we have a better chance to understand what the right stuff is for you—your most important objectives, your most cherished goals—and help you strive to reach them.

Clients, if you want to talk about your ‘right stuff,’ please email us or call.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Aligning Principles and Economics

Clients, we recently wrote about our quest to align our pricing with our values. The advisors of Leibman Financial Services service $50 million in advisory assets through LPL Financial. The fees charged could better reflect your contribution to investment results through effective investing attitudes and behavior. We are going forward with changes by year-end.

We believe that people can learn to frame things more effectively, to see the long term, to find out a temporary drop is NOT a loss. New clients usually require more intensive communication (and hand-holding, in some cases). It makes sense to charge them a little more, and reduce costs for you longer term clients.

For the vast majority of you, “heads you win, tails you don’t lose.” Generally, if the new schedule indicates a fee reduction, that will go into effect as soon as possible. If it shows an increase, we will leave the pricing the same. Current pricing is a hash, depending on when accounts were originally opened. So we will be communicating with each of you.

The new table rewards your persistence three ways.

1. A fee reduction after two years, shown in the table below.

2. Additional reductions after eight and sixteen years, about 3% to 6% depending on household account value.

3. The potential for assets to grow over time tends to put longer-term clients into higher value brackets, with lower fees.

pricing

In a few cases (particularly for newer clients), the table may indicate a higher fee than what we currently charge. Please do not be alarmed—we are not going to try to jack up our rates on anyone we are doing business with. Consider yourself grandfathered in.

Clients, with this project we have attempted to align our economics more closely with our values. We will be in touch about your specific situation. If you would like to discuss this or any other issue at greater length, please write or call.

Additional reading:

About learning to live with volatility: They Say You Can’t Handle the Truth

About discretion to act on your behalf: Freedom to Decide vs. Freedom to Debate

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.