Stop Guessing With Your Money™

Fiduciary Standard

Fiduciary: a person or organization that owes to another the duties of good faith and trust. The highest legal duty of one party to another, it also involves being bound ethically to act in the other’s best interests.*

Clients are best served with comprehensive, integrated, holistic advice.

Individuals deserve, and the industry should deliver, solutions that deliver the highest probability of success with the least amount of risk.

Acting as a fiduciary is easiest when there is a common platform that incorporates assets, debt, and taxes. Our goal is to provide the tools and resources to leave advisors better positioned to act in their clients’ best interest throughout their lives.

Duty of loyalty. Duty of care. Duty of good faith.

Fulfilling these duties requires a view of the complete picture. And it’s what every individual deserves.

Our industry-leading education provides mathematical proof that through an integrated strategy, clients can:

reduce risk

increase return

increase liquidity and survivability during crisis

reduce and eliminate taxes

Education meets automation.

We are creating the platform to help you navigate the critical decisions clients face throughout their lives.

Whether you are an individual, advisor, wealth management firm, bank, or CPA, our goal is to help you address the key questions that determine client success.

The questions we should be asking:

Rate
  • If you are borrowing any money, are you doing so at the lowest possible cost?
  • How has this been documented?
Amount of Debt
  • Are you borrowing the right amount of money?
  • What process are you using to get a loan?
Types of Debt
  • What types of debt do you use?
  • Do you have a strategy in place for how to deal with each type of debt?
  • How do you structure debt and why?
Terms
  • Should you pay for more flexible terms?
  • How much should you pay and how is the rate determined?
  • Are the pros and cons of amortization factored into the financial picture? If so, how?
  • If you have amortizing debt, what may that decision do to your long-term probability of success?
Fixed versus Floating
  • How do you choose between fixed versus floating rate debt?
  • What process are you using to make these decisions?
Liquidity
  • How do you value access to cash?
  • How much liquidity do you have and what are the sources of that liquidity?
  • What happens to your sources of liquidity in bad economic times?
  • Do you have a line of credit? Why or why not? How was this decision made?
    • What is the cost to set up, maintain and use this line?
Behavioral Finance
  • How does behavioral finance factor in to your decision making?
    • How do you document and demonstrate this?
    • How do you quantify and balance behavioral finance decisions with quantitative decisions?
    • Is your client aware of these judgments? How have you documented and discussed them?
Risk
  • If you have debt, of any type at any time in your life, how does that debt increase or decrease your short-term liquidity and long-term probability of success?
  • How does your asset allocation strategy relate to your debt strategy in various economic environments?
Future Cash Flow Strategy
  • If you are paying down debt, is your strategy leading to the highest probability of success?
  • If you are building up assets, what is your long-term strategy with respect to your debt?
  • What accounts (taxable and tax deferred) do you use for contributions and withdrawals, and why?
Efficiency
  • If you have debt, do you also have cash? Why?
  • How much debt do you have and how was this determined?
  • Do you also have assets that have a high probability they will earn less than the cost of your debt? Why and what is the strategy?
Fees
  • Are you paying fees on assets that earn a rate of return less than your cost of debt? Why?
  • Should you pay down your debt instead? Why or why not, and how was that decision made?
Taxes
  • Are you contributing to a Roth or a traditional retirement plan?
  • What tax assumptions did you make and have they been accurate?
  • If you are paying down debt, what are the tax consequences of that decision?
  • Did you take money out of a retirement portfolio?
    • If not, why not?
    • If yes, how was the amount determined?
    • Why was the decision made to take out that amount?
Retirement
  • Were you advised to pay off your debt in the years leading up to retirement?

    • How was this advice determined and did it improve your probability of success?  
Asset Allocation
  • Do you implement modern portfolio theory, yes or no?
    • If no, please explain your process.
    • If yes, how do you create the tangency portfolio? How do you create and implement the capital allocation line?
  • How do you apply efficient market theory to your portfolio decisions?
  • Explain your client’s efficiency ratio.
    • What debt, of any type, does your client have a greater cost than the expected return on an investment? For example, if your client has cash and debt explain why, detail the strategy and explain what you have done to minimize this negative spread.

Our industry should be committed to creating the best path to financial freedom. A path that has the highest probability of success with the least risk.

A scalable, repeatable process will get us there.

Let us empower your journey.

Together, let’s make being a fiduciary the standard.