August 14, 2020

2020: The Year of Opportunity for Advisors

By Vance Albitz, CFP®

2020 has been a year in which financial advisors have had many opportunities to provide value to their clients. We here at Albitz/Miloe have certainly seen it firsthand. In this video, I want to talk about three major areas of value that our team has focused on this year and strives to maintain in the future.

From a broad perspective, the goal of most people in the financial services industry is to create strategies, specific to clients, that help them pursue their financial goals. The value that our firm provides rests within these strategies that help our clients build wealth over time. Here are a few of them.

The first is our attention to the creation and monitoring of an investment portfolio. From February 18 to March 23, the stock market as measured by the S&P500 dropped 35%. Though we did not welcome the market decline or know it would happen at that exact time, we did feel prepared within our clients’ portfolios. This preparation took work. It entails an education and an understanding of past market moves, like the dot.com bubble of the late 90’s or the subprime mortgage collapse of 2008-2009. It demands keeping up with the current economy and daily action of the market. It consists of checking the allocation of stocks to bonds and making sure it is appropriate for each individual client. This preparation allows us to communicate what is happening and what we think is the best strategy going forward. When done right, this limits errors in judgement when the stakes are at their highest; and quite frankly, these mistakes happen more when someone without the proper knowledge or someone who hasn’t put in the work attempts to manage their money. This ability to make sound decisions within an investment portfolio is the first layer of value our team provides; and it has been prevalent so far in 2020.

When we are working to invest money for a client, we get to know them on a personal level. These conversations eventually lead to a second value we provide, which is giving advice on the big picture financial plan. In 2020 alone, it has been important for us to review and update planning in areas such as insurance, retirement, college savings, estate planning, charitable giving, and others. It may be an arduous task but strengthening each piece of the financial plan is crucial. Without it, not much else matters. This year has brought forward these financial planning issues for our clients and we have done our best to provide sound advice.

Finally, I think it is important to note that most good financial advisors have the ability to help with the first two strategies just discussed: the investment portfolio and big picture financial plan. However, a third value that we have taken pride in this year is providing the intangibles. Think of nurses and doctors who exhibit good bedside manner, treating their patients with kindness and a sense of understanding, often resulting in a faster healing process. We may not be perfect, but these are the intangibles we aim for. The peace of mind that a comes from knowing, that during uncertain times, there is a solid team managing your money.

Those are three ways in which 2020 has been an opportunity for our team to provide value. Similar to an athlete who works with their coaches before a big game or a racecar that gets reviewed by mechanics before a big race, this year has been an important time for us to help redefine goals and fine tune things along the way for our clients’ money. Next time you think about your finances, please keep these values in mind. Thanks for watching and have a great day.

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change with notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.

The S&P 500 Index is a capitalization-weighted index made up of 500 widely held large-cap U.S. stocks in the Industrials, Transportation, Utilities and Financials sectors.