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Before hurricane season, it is important to understand how flood insurance works. We also think it is important to understand who needs flood insurance, and what flood insurance covers.
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It is hard to believe it has been three years since Truett Cathy left this world on September 8, 2014. He grew up during the Great Depression, served in the US Army during World War II, and began the now famous restaurant chain in the Atlanta suburb of Hapeville in 1946. In a restaurant called the Dwarf Grill (since renamed Dwarf House), he and his brother Ben created the chicken sandwich that later became the signature menu item for Chick-Fil-A.
I had the opportunity of working for Chick-fil-A during my high school and college years. I was privileged to go through Chick-fil-A’s leadership training and was selected to join all the Chick-fil-A operators in Nashville for their annual meeting. There in the Opryland Hotel, I saw the personal side of Truett, and he was just as gentle and meek in person as he was on the poster hanging in our local store.
A couple years later after my trip to Nashville, I visited the Chick-fil-A headquarters in Atlanta with my brother and dad. We were escorted to Truett’s office on the top floor, and he had time to visit with us for a few minutes. We were about to meet with the president of the fastest growing fast food chain! How excited we were! We talked about Truett’s hobby of collecting cars, and how we were watching an ESPN auction and saw Pistol Pete Maravich’s BMW being sold for a bargain. Truett nodded his head through the story making us feel important. When we wrapped up the story, he looked at us with a straight face and said,
“Well, do you want to see it”?
“See what?” we asked.
“Pistol Pete’s BMW. I’m the one that bought it, and it is back at my home.”
My jaw hit the floor. For a minute, I thought he was senile, but then I realized he was dead serious. What are the odds? As I left the headquarters, Truett left an indelible mark on me. He was one of a kind.
As I reflect over my time I spent at Chick-fil-A, there are three lessons Truett taught me:
When Truett was a teenager delivering newspapers, he treated each customer like the most important person in the world. “I delivered each paper as if I were delivering it to the front door of the governor’s mansion,” he said. He made sure they didn’t have to dig through the bushes for their paper, and on rainy days he found a dry spot at every door.
The Golden Rule states “Do to others what you want them to do to you.” However, the Platinum Rule states, “Do to others as they would have you do unto them, not as you would have them do unto you.” Truett instilled in his employees to answer customer’s “Thank you” with “My pleasure.” That was his signature phrase, and it makes people feel important.
Do to others as they would have you do unto them, not as you would have them do unto you. Share on XIntelligent Investing echoes these principles by treating each prospective and current client with compassion. Compassion is the first core value of the firm. By treating others with compassion, you not only will transform their lives, but you transform your own life as well.
Truett had a close and consistent walk with the Lord, and he was consistently faithful to his wife Jeannette for 66 years. This consistency bled to other areas of his life and work. To operate over 2,000 Chick-fil-A stores, you must have a consistent process and product.
Intelligent Investing has purchased a lot of great technology to be consistent in our process. This doesn’t mean there will never be change, but it does provide comfort to our clients as they onboard and see our consistent message throughout the firm and communication.
Due to Truett’s strong religious beliefs, all of the Chick-fil-A’s are closed on Sundays to allow employees to attend church and spend time with their families. He was often ridiculed for his convictions. Many in the industry said he was foolish when other fast-food restaurants were opened an extra day and that his sales would be hurt. He stuck to his convictions, and Chick-fil-A now ranks in the top 10 fast-food restaurants with over $8 billion in sales last year.
We don’t like it when politicians change their minds and go back and forth on their viewpoints depending on the crowd they are talking to. The word hypocrite derives from the Greek hypokrisis meaning to “act on a stage or play a part.” This pretense is often described as being luke-warm, and I don’t know anyone who wants to be described that way.
Intelligent Investing believes in minimizing financial stress to maximize lives. Share on XIntelligent Investing believes in minimizing financial stress to maximize lives. We do this through fee-only fiduciary wealth management. We do not offer products such as insurance and annuities, and manage our clients’ risk to increase the chances to meet their goals. Having a great financial plan is important, but if you don’t understand clients and how they feel about their investing, they won’t stick to the plan. Fear and greed never go away. This behavioral coaching is our conviction, and we know that clients and advisors left on their own often make unwise decisions.
I’ve often said that I want Intelligent Investing to become the “Chick-fil-A of Wealth Management.” That is the standard of customer service I want to live up to.
Each person's destiny is not a matter of chance; it's a matter of choice. ~Truett Cathy Share on X“Each person’s destiny is not a matter of chance; it’s a matter of choice. It’s determined by what we say, what we do, and whom we trust.” ~ S. Truett Cathy
Intelligent Investing helps you understand all your employer options to ensure you make wise and informed decisions, so you know how to rollover your employer retirement plan assets. In addition, you’ll get an array of portfolio planning tools, research and education, so we can design a portfolio that aligns with your retirement goals and your ability and willingness to accept risk. Whether you have a concentrated stock position or a simple 401(k), we minimize financial stress to maximize your life.
[gview file=”https://investedwithyou.com/wp-content/uploads/2017/08/Nuts-and-Bolts-How-to-Roll-Over-Your-Employer-Retirement-Asset-Plan.pdf”]Ever since I was a kid, I’ve been fascinated with astronomy (not astrology–big difference). My neighbors introduced me to the planets and moon’s craters using a telescope on their back porch in Pennsylvania. I used to wake up in the middle of the night to watch meteor showers, took Astronomy as an elective in college, and have even been to a star party. (but that is for another blog). OK, so I’m an official geek. Well, this year is a big year for astronomy. Unless you’ve been hiding under the shadow of a rock (see what I did there), you know a total solar eclipse is coming.
A solar eclipse is when the moon is in between the earth and the sun, and the moon blocks the sun’s rays. The first total solar eclipse visible in the U.S. in nearly four decades is expected to dazzle on Aug. 21, 2017. During the so-called Great American Total Solar Eclipse, the 70-mile-wide shadow cast by the moon will darken skies from Oregon to South Carolina. During most solar eclipses, the moon takes just a “bite” out of the sun — these are called partial solar eclipses. However, the August event will go down as the first total solar eclipse whose path of totality stays completely in the United States since 1776. How patriotic is that?
Ancient cultures tried to understand why the sun temporarily vanished from the sky, so they came up with various reasons for what caused a solar eclipse. Legends surrounding solar eclipses involved mythical figures eating or stealing the sun, and others interpreted the event as a sign of angry or quarreling gods. Though the following story relates to a lunar eclipse which is where the earth’s shadow appears on the moon, it still applies:
Columbus had on board an almanac and upon consulting the book, he noticed the date and the time of an upcoming lunar eclipse. He was able to use this information to his advantage. He requested a meeting that day with the leader and told him that his god was angry with the local people’s treatment of Columbus and his men. Columbus said his god would provide a clear sign of his displeasure by making the rising full moon appear “inflamed with wrath.”
On March 1, 1504, the lunar eclipse and the red moon appeared on schedule, and the indigenous people were frightened.
So what can the solar eclipse teach us about markets?
Just as there is a schedule established for the location and time of eclipses, there are business cycles as well. The business cycle consists of four phases:
Columbus timed the eclipse with his hourglass, and shortly before the totality ended after 48 minutes, he told the frightened indigenous people that they were going to be forgiven. When the moon started to reappear from the shadow of the Earth, he told them that his god had pardoned them. Intelligent investors know that the current phase we are in doesn’t last forever. That doesn’t mean you should try and time the markets, but you should be prudent and be aware of where we are compared to historical averages. A diversified portfolio should be able to weather all phases of the business cycle. That doesn’t mean there won’t be losses, but the eggs shouldn’t be placed all in one basket.
Many economists believe we are in the latter parts of the expansionary phases, while others believe this could be a new floor to new heights. It is important to not be fearful or greedy as we are likely in the mid to late parts of the expansionary phase of the current business cycle in the U.S. Below are some common emotions that people have when they face different market phases. Whatever your viewpoint, be sure to have an accountability partner who can help you weather the storms. Remember that behavioral coaching is one of the most important things an advisor can provide.
Unfortunately for the indigenous people, they didn’t have the knowledge about the eclipse and acted emotionally out of fear. However, you are now aware of the market cycles and with some help can protect yourself from the next downturn in the markets.
Blog Resources:
https://en.wikipedia.org/wiki/Historically_significant_lunar_eclipses
Reading Time: 3 minutes
In earlier blogs, I talked about the Fear of Losing the Business and the Fear of Being Embarrassed. In this third and final blog, I will talk about Patrick Lencioni’s Fear of Feeling Inferior in his book, Getting Naked.
When I was dating my then-girlfriend-now-wife in college, I went to see her parents for the first time over Christmas break. As you know, it is a good idea to be on your best behavior when you are meeting your potential in-laws. It was Christmas time 2003, and things were going pretty well. I liked her parents, and they seemed to be liking me…
Well one evening when we were playing card games in the kitchen, I dismissed myself to use their guest bathroom. I didn’t realize it at the time, but this was to be a defining moment in my relationship with Amanda and her parents. After using the restroom, facing a potentially embarrassing moment and feeling quite inferior, I sheepishly whispered to Amanda that I needed a plunger.
Amanda started laughing uncontrollably, making a much larger scene than I wanted. I couldn’t believe she was betraying me and making a laughing stock out of me before her parents. My face turned four shades of red with embarrassment. What I didn’t know at the time was this same guest bathroom toilet had been the source of many issues over the years and had trouble flushing–embarrassing other guests and family members. After we all had a side-splitting time of laughter, I realized I had nothing to fear, and there was no need to put up pretenses and feel inferior to my future in-laws.
In Patrick Lencioni’s book, he mentions a third fear–the fear of feeling inferior. To avoid feeling inferior or being irrelevant or overlooked, we often try to achieve and maintain a high level of importance in clients’ minds. At some point, we all have made the mistake of projecting an image of ourselves that is much better than our true self. Whether it is holding our breath while taking a photograph to look thinner or covering up that acne before our first date, we all have been there.
The reality is clients are more interested in honesty and transparency than they are in confidence and perfection. One of our core values is truth. Intelligent Investing believes speaking the truth in love is better than making an “empty promise” the client may want to hear, but will hurt them in the long-run.
Competence is still relevant, and clients need to know that we have the knowledge and experience to help them. However, competence is not enough. My dad always said, “People don’t care how much you know until they know how much you care.” Let your clients know when you don’t have the answer to their complex question. It’s ok to be transparent and let them know you’ve been in their shoes.
The best way to differentiate ourselves from competition...is to be vulnerable with them. ~Lencioni Share on XWell, by God’s grace, Amanda and I have been married for 11 years now. We’ve had our embarrassing moments, but we have tried to be more vulnerable with each other. It still is a challenge, but we have grown closer through the years by letting our hair down and loving each other for who we are. I encourage you to give it a try and see what happens…you may be surprised.
To continue learning more about getting naked with your clients, consider purchasing the book.
Getting Naked: A Business Fable About Shedding The Three Fears That Sabotage Client Loyalty
Intelligent Investing is able to stress-test your existing portfolio to determine what raising rates may do to your portfolio. We’d be happy to let you know what hidden risks may be lurking in your portfolios, and whether you are in an appropriate portfolio based on your risk tolerance. See the article below for what rising rates could mean for your money.
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In my earlier post, I mentioned that we must get vulnerable with our clients in order to build trust. This post focuses on the second step that hinders trust which is fear of being embarrassed.
When I was in the final week of kindergarten preparing for graduation, my teacher, Mrs. Depew, sternly warned us to hold up our gowns as we went up the stairs in the auditorium so we wouldn’t trip on graduation night. I didn’t really pay attention during rehearsals, but (surprise, surprise) was constantly talking to my friends around me. Trying to win friends and influence people, I guess.
Well, the big day arrived and the auditorium filled up with parents, siblings, and grandparents who were excited about seeing their little one get that diploma that required knowing letters, shapes, and numbers. I remember waving excitedly to my family as I walked down the aisle, and they waved back. I was beaming from ear to ear with my blue graduation cap and bow tie and white gown. Unfortunately as I went up the steps, I tripped on my gown, and my bow tie untied.
Well, I held my fragile emotions together until I reached the church’s choir loft, and then I started crying. The girl next to me offered to fix my bow tie, and I turned four shades of red from embarrassment. I then recalled Mrs. Depew’s warnings about holding up our robes. How could I ever face the public again?
Most of the time, our embarrassment is blown way out of proportion, and we feel as though everyone is looking at us and laughing at us. This phenomenon is called the spotlight effect which says we think that others are paying more attention to us then they actually are. Research also shows that people who become embarrassed are more likeable. I hope that’s the case.
Fear of Embarrassment
Nobody wants to be embarrassed, but in order to get vulnerable with our clients, we must face this fear of embarrassment. I’m not talking about the fear of walking into a meeting with your fly down or having toilet paper stuck to the bottom of your shoe, I’m talking about a fear of embarrassment by not having all the right answers. I’m talking about the fear of being proven wrong in public.
To prevent embarrassment, leaders play their cards close to the vest, don’t share information with others, and don’t allow participation in decision-making. Share on XTo prevent embarrassment, leaders play their cards close to the vest, don’t share information with others, and don’t allow participation in decision-making. Unfortunately, this causes more work for the leader, as they are afraid to delegate, and employees don’t want to share their ideas. Arrogance breeds a fear of embarrassment.
Creating a culture where mistakes are celebrated as learning opportunities, risk taking is encouraged, and stupid or obvious questions encouraged will help mitigate this fear and lead to higher levels of trust in leaders’ relationships. This “nakedness” lets your clients know that you are just as human as they are, and no question is too dumb to ask.
Getting Naked: A Business Fable About Shedding The Three Fears That Sabotage Client Loyalty
Reading Time: 2 minutes
In the fall of 2005, I was sent by my accounting firm to Birmingham, Alabama on a mission to help reinstate the fraudulent Accounts Receivables for HealthSouth’s financial statements. To burn off some energy from sitting at a computer most of the day, I ran semi-faithfully on the Hilton treadmills in the evening. In order to pass the time, I would turn on the television mounted in the corner, and was entertained by this guy named Jim Cramer on CNBC’s “Mad Money” which launched in March, 2005.
Jim would burn more calories than I did by running around his studio with his shirt sleeves rolled up, while yelling, “Sell, sell, sell!” or “Buy, buy, buy!” He would hit certain buttons which would make all sorts of sound effects, and he distracted me from the pain of getting through those first couple of miles. Like watching a car wreck on the side of the highway, I had a hard time turning the channel, and continued to listen to his passionate yelling.
After a few months of this entertainment, it became obvious to me that Jim Cramer was an entertainer, and not necessarily a financial expert. He had the same message, but interchanged stock names and tickers. I often wondered if anyone took his stock tips seriously, and what would be the results if they did.
Well, I found out there is a paper from two researchers at the University of Pennsylvania’s Wharton School that finds that Cramer’s picks have been less than scintillating.
On its website, TheStreet compares the return of the Action Alerts PLUS Portfolio to the S&P 500 plus dividends received but not reinvested. That’s because the portfolio donates the dividends to charity rather than reinvesting them. Launched in August 2001, Action Alerts PLUS Portfolio has been a centerpiece of the financial advice offered by TheStreet.com. PLUS Portfolio subscribers, who pay $15 a month, always get the recommendations before Cramer buys them for the portfolio. Likewise, subscribers get Cramer’s picks before he airs them on “Mad Money.”
When someone is screaming at you to buy anything, hold tight to your wallet Share on X
The lesson is that good investing is usually pretty boring, and when someone is screaming at you to buy anything, hold tight to your wallet. ~Jonathan S. Hartley, Matthew Olson, The Wharton School, University of Pennsylvania
Intelligent Investing believes that having a long-term investment philosophy is best.
Do not wear yourself out to get rich; do not trust your own cleverness. Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle. ~Proverbs 23:4-5
All hard works brings a profit, but mere talk leads only to poverty. ~Proverbs 14:23
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