Does your investment advisor provide a financial plan?

February 6, 2019

 

Recent research by Vanguard shows that between 30% and 50% of clients do not get a financial plan from their investment advisor and that the smaller the client’s portfolio, the less likely they are to get one.  In other words, the focus is on portfolio management versus financial planning.

 

Lyon Park sees this as backwards; it’s like focusing on how fast you’re going without considering where you’re going and whether or not you’ll get there.  A rocket ship will take you to the moon but it’s not the best choice for a trip to the grocery store.

 

In fact, we believe that portfolio management is the easy part and that financial planning is the real value an advisor adds.  Nearly all peer-reviewed research shows that a focus on specific investment dimensions implemented with low-cost index funds consistently beats actively managed investment solutions.  To a significant degree, successful portfolio management is formulaic.  That’s what robo-advisors do: manage portfolios based upon formulas.  But robo-advisors don’t do well is articulate and match clients’ goals for well-being, their fiscal philosophy, and their life events with the appropriate spending and investment priorities.

 

At Lyon Park, we’re not against robo-advisors, we’re for financial planning.  We do financial planning before we even consider investment advice.  We provide a stand-alone financial plan with portfolio management as an option.  We can manage your portfolio, you can do it yourself, or you can engage a robo-advisor.

 

If all you want is portfolio management, consider robo-advisors. They can manage your investments using formulas at a reasonable cost.  But if you want to know where you’re going you’ll need a financial plan tailored to you.

Share on Facebook
Share on Twitter
Please reload

Featured Posts

What’s my retirement number?

It’s a catchy title but over-simplified.  Is it the answer to the question “How big does my portfolio have to be so I can...

What's my Retirement Number?

January 17, 2018

1/3
Please reload

Recent Posts

September 28, 2018

Please reload

Archive
Please reload

Search By Tags
Please reload

Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws, Lyon Park Advisors, LLC (referred to as "Lyon Park") disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement and suitability for a particular purpose. Lyon Park does not warrant that the information will be free from error. None of the information provided on this website is intended as investment, tax, accounting or legal advice,  as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall Lyon Park be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the materials in this site, even if Lyon Park or a Lyon Park authorized representative has been advised of the possibility of such damages. In no event shall Lyon Park Advisors, LLC have any liability to you for damages, losses and causes of action for accessing this site. Information on this website should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.

                                                                                                                         © 2017 - 2019 by Lyon Park Advisors, LLC.