By SJS Investment Services Founder & CEO Scott Savage.
Recently, I met with a long-time client for a prototypical portfolio review meeting, like we have had for many years. His portfolio and other existing assets provide more than enough income for him and his family to live comfortably. Unexpectedly, he nervously asked whether I would be willing to analyze all of his assets and liabilities, and provide any recommendations.
Since he uses other investment managers in addition to SJS, he wasn’t sure whether I would be willing to analyze all of his statements and files. Over the years, I have found that the more information we at SJS have, the better our advice can be. Additionally, these types of whole picture financial analyses tend to be really useful, as they remind people of previous financial decisions and spur them to make potentially useful changes going forward. So I told him sure thing.
The SJS team and I reviewed all of his statements and spreadsheets, consolidated all of the information into a more digestible format, analyzed his assets and liabilities, identified some areas that could be simplified and improved, and created a short presentation with our findings.
I have learned that if I present people with too much information (particularly recommendations) too quickly, they tend to think they have to do too much too fast. Paradoxically, this often prevents them from starting to make changes in the first place.
So the next time I met with him, I just wanted to have a conversation with him instead of going through all of the observations and recommendations. Given his situation, there was no need to make quick changes. I was curious what had changed in his life to open up as he had. We talked about his future financial goals, what he wants to do with his time and wealth, what recommendations he is looking for. Throughout his life, partially because of his busy work life, he made financial decisions that he never changed, and he had many investment accounts with many investment managers. None of this surprised me, as it is easy to not regularly review finances while daily life is moving so fast.
However, what struck me the most was he said that he never asked me or another investment manager to review his total financial picture because he was afraid that we would judge him for his past decisions.
Unfortunately, in my experience, his want to not feel judged for his financial decisions is not unusual. Many current clients waited a long time to meet with me initially because they were feeling insecure and embarrassed about their past decisions. I have even seen this with my own family and close friends.
This is one of the reasons why I started SJS over 25 years ago. Money is one of the areas of life that people feel most uncomfortable talking about, and everyone I know feels some regret about past financial decisions. Anyone who says they have no regrets is simply not being honest.
When reviewing their finances, people want to feel understood and supported. If they also feel that they are working with someone who is trustworthy and competent, then they are often ready to make important financial decisions. Negatively judging people - particularly in the early going - never helps.
That’s part of why the SJS mission is: “You come first. All the time. Every time.” We want to help you make good financial decisions so that you can live how you want to and leave your impact on the world. It’s not about us and our judgments. It’s about helping you.
When we at SJS meet with current or potential clients, we have a few rules for ourselves in order to help people feel more comfortable with us:
Everything discussed will remain strictly confidential. “Nothing, Nobody, Never“ is our mantra when it comes to sharing confidential information with anyone outside of your permission.
We listen first in order to understand you and your situation.
We never want to make you feel bad for what happened in the past. It’s about understanding your current situation and doing what may help going forward.
We take the time to do the necessary thorough analysis that you deserve.
We aim to provide helpful options and actionable next steps. We do not give ultimatums or pressure you.
If we don’t think we can help, or if we think another professional can help more than we can, we will let you know.
We always strive to do what is best for you.
We at SJS love what we do, because we want to help people. If you ever want to talk with us about your finances, please know that we will do our best to be understanding, supportive, and helpful, not judgmental.
Important Disclosure Information:
There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.
Advisory services are provided by SJS Investment Services, a registered investment advisor with the SEC. Registration does not imply a certain level of skill or training. This material has been prepared for informational purposes only.
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