Financial Planning

Insights for DIY Investors and Fiduciary Seekers

April 25, 2024 by Hans Blake, CFA, CPA

Reading Time: 2 minutes

At Intelligent Investing Advisors, we often delve into discussions about the intricacies of financial planning, wealth management, and investment strategies. Recently, we had the opportunity to sit down with Rob Isbitts, a seasoned investment expert, to explore the realm of do-it-yourself (DIY) investing.

Recognizing the Value of Professional Guidance

In our dialogue, Rob drew parallels between DIY investing and everyday tasks like lawn care or tax preparation. While there’s merit in autonomy, he stressed the point where outsourcing to professionals can yield superior outcomes. Recognizing when professional guidance is essential, especially in finance’s complexity, becomes paramount.

Rob illuminated the mindset of the DIY investor, who may view financial advisors as sales-oriented rather than focused on client welfare. While autonomy is admirable, he cautioned against navigating the financial landscape solo. Developing a robust investment philosophy and seeking guidance on non-investment aspects are crucial steps for DIY investors.

Establishing an Investment Philosophy

Emphasizing the cornerstone of successful investing, Rob highlighted the significance of a well-defined investment philosophy. Articulating beliefs and principles guides decision-making amidst market fluctuations. At Intelligent Investing Advisors, we align with Rob’s stance, emphasizing values and goals alignment in our investment strategies.

Rob stressed the importance of combating behavioral biases in today’s information-rich investment environment. At Intelligent Investing Advisors, we acknowledge behavioral finance’s impact on outcomes and empower clients to make informed decisions grounded in sound financial principles.

As the debate between DIY investing and professional guidance persists, Intelligent Investing Advisors stands firm in empowering clients with knowledge and tools for informed decisions. Whether seasoned or new investors, we offer tailored guidance for each unique financial journey. Let’s navigate the markets together, one informed decision at a time.

Rob Isbitts Bio

Rob Isbitts, the founder of ETFYourself.com, is a seasoned investment expert renowned for his role as a serial myth-buster and educator in the finance industry. With 30 years of professional investment experience, he transitioned from a Wall Street grunt to a fiduciary advisor for nearly three decades. Notably, he sold his advisory practice and “retired” in 2020 at 56, only to enter a “10-year, no-cut contract” to provide model portfolio services. In 2020, he founded Sungarden Investment Publishing, followed by ETFYourself.com in 2023. Rob has authored over 1,000 articles for esteemed platforms like etf.com, Forbes, and Marketwatch, and is a frequent guest on podcasts. He’s recognized as a straight-talker, fair-play advocate, and champion of diversity in investing, with accolades including three-time mutual fund manager, author, and honoree in Worth Magazine’s “Top 100 U.S. Wealth Advisors” list. His wife, Dana Isbitts, plays a pivotal role in managing their ventures.

The Five Ways to ReFire Your Retirement

March 14, 2024 by Hans Blake, CFA, CPA

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At Intelligent Investing Advisors, we believe in helping our clients not just retire but re-fire their lives for a fulfilling and purposeful future. In a recent interview with Kathleen Rehl, a leading expert in empowering widows financially, we delved into the concept of “re-firement” and the five essential elements that make it possible.

Kathleen’s Journey: From Childhood Chores to Financial Empowerment

Kathleen Rehl’s journey is a testament to the power of resilience and adaptation. Born and raised in Wisconsin amidst challenges and responsibilities, Kathleen’s path led her from humble beginnings to becoming a beacon of hope for widows seeking financial independence. Her background in academia, nonprofit work, and financial advising uniquely positioned her to make a difference in the lives of those navigating loss and transition.

The Five “Re-Fire” Principles

1. Family: At the core of Kathleen’s philosophy is the importance of family. Beyond financial stability, re-firement involves nurturing relationships and cherishing moments with loved ones.

2. Fun: Re-firement isn’t just about responsibilities; it’s about finding joy in everyday experiences. Kathleen emphasizes the value of incorporating fun activities into retirement plans to cultivate a sense of fulfillment.

3. Focus and Purpose: While retirement may signify the end of a career, it’s also an opportunity for a new beginning. By staying focused on personal goals and finding purpose in each day, individuals can redefine their sense of fulfillment.

4. Friends: Social connections play a vital role in re-firement. Kathleen advocates for fostering meaningful friendships and nurturing a support network that enriches life beyond retirement.

5. Fitness: True wealth encompasses more than just financial stability—it extends to physical, mental, and spiritual well-being. Prioritizing fitness in all its forms ensures a balanced and holistic approach to re-firement.

As Kathleen’s journey illustrates, life is a series of pivots and transitions. Embracing change and staying open to new opportunities is key to crafting a fulfilling retirement. Just as Kathleen discovered her true calling in empowering widows, individuals approaching retirement can find renewed purpose by embracing the five pillars of re-firement.

In conclusion, Kathleen Rehl’s story reminds us that retirement isn’t the end of the road—it’s a chance to ignite new passions, cultivate meaningful connections, and embrace life’s journey with enthusiasm. By adopting the “re-fire” mentality, we can turn retirement into a chapter filled with purpose, joy, and fulfillment.

Some of our most popular blogs are the financial scam series we posted on our website. We talk about how to emotionally heal after being financially scammed, how to help others who have been financially scammed, and 11 ways to protect yourself from being financially scammed. You can find all of those on our blog page.

Please be sure to subscribe to our podcasts as we will be interviewing Kathleen on an upcoming podcast where she explains how to simply write a legacy letter to your family and friends. You will not want to miss it. You can purchase Kathleen’s book here.

Kathleen Rehl Bio

Kathleen M. Rehl, Ph.D., CFP®, CeFT® wrote the multi-award-winning book, Moving Forward on Your Own: A Financial Guidebook for Widows. Experiencing widowhood herself, Dr. Rehl empowers widows financially™ and inspires their advisors. Her work has been featured in the New York Times, Wall Street Journal, AARP Bulletin, CNBC, USA Today, U.S. News & World Report, Journal of Financial Service Professionals, Journal of Financial Planning, and other publications. Rehl owned a financial planning firm for 17 years before retiring to her “encore” career. She walks an hour daily, practices yoga, enjoys art and music festivals, writes poetry and makes art, loves her grandsons . . . and continues to evolve on her journey.

Navigating the Ice: A Tale of Family Adventure and Financial Resilience

January 11, 2024 by Hans Blake, CFA, CPA

An Unforgettable Ice Skating Experience

The Christmas and New Year break brought a delightful family adventure as I took our kids to The Pavilion ice skating rink. Amid the frosty air and laughter, an unexpected turn of events unfolded, weaving an unforgettable tale of resilience and vulnerability.

After an hour and a half of joyful skating, my twin daughters approached, their eyes filled with excitement. They requested their older teen brother’s company, seeking the comfort of holding his hands as they navigated the icy rink. You can guess how that went. Knowing that their older brother would not want to hold their hands, I embraced the opportunity to be my daughters’ hero. I laced up my skates, envisioning a daddy/daughter skate that would etch itself into the fabric of their memories.

However, the canvas of smooth ice turned out to be a bit rough, as the Zamboni had missed re-icing before our skate. Undeterred, we embarked on our adventure.

A Tumble and a Lesson in Vulnerability

I should have calculated that the ice was in bad shape after an hour and a half of usage. However, eager to keep pace with the youthful exuberance around me, I took off too quickly, lost my balance, and found myself hurtling forward. In an attempt to regain composure, I leaned too far forward, and the ice skating brakes hurled me forward, resulting in a hard landing on my left shoulder.

Embarrassed and hoping to maintain an air of nonchalance, I rose to my feet. Internally, however, I was grappling with the physical aftermath of the tumble. After concluding our skate with my twins, I headed to the car for a dose of ibuprofen to alleviate the discomfort.

From Ice Rink to Examination Room

Concerned that I had separated my shoulder, given the audible pop and the peculiar sensation akin to hitting my funny bone, I sought the expertise of my brother-in-law, an orthopedic surgeon based in Anderson. The following day, he worked me into his schedule for a thorough examination and X-rays.

The journey to the examination room was an experience in itself. Clad in a flimsy green gown with darker green crowns, an unconventional take on camouflage, I pondered the parallels between vulnerability in medical situations and our approach at Intelligent Investing.

Financial Vulnerability and Intelligent Investing’s Approach

Just as changing into a gown signifies a willingness to be vulnerable for a medical diagnosis, at Intelligent Investing, we encourage our clients to be open about their financial situations. Our aim is to diagnose and prescribe a financial portfolio that not only supports their financial plan but aligns with their unique goals and dreams.

We delve into the intricacies of our clients’ lives, understanding family dynamics to aid in estate planning and unraveling their fears and investment backgrounds. Sensitivity plays a pivotal role, especially when clients have encountered challenges with past financial advisors.

The Importance of a Full Picture

Just as my brother-in-law needed to see the X-rays to comprehend the full extent of my injury, obtaining a complete picture is crucial in the financial realm. Without a deep understanding of our clients’ goals, family situations, risks, and dreams, we cannot choose or tailor an appropriate portfolio to suit their needs.

Misdiagnosis, whether in a medical or financial context, can lead to suboptimal outcomes. In my case, the accurate diagnosis allowed for the prescription of steroids to alleviate inflammation in my left shoulder, paving the way for a gradual recovery.

Gratitude for Professionals and a Financial Invitation

Reflecting on the entire experience, I’m grateful for the professionals who, through years of practice, lend their expertise to guide us through various challenges. As we step into 2024, the team at Intelligent Investing aims to be your financial professionals.

Catering to high-net-worth individuals and couples heading towards retirement, we employ our proprietary Intelligrations® to organize financial complexities. Our mission is to minimize financial stress and maximize lives, leveraging our understanding of complex concepts like inflation, taxes, volatility, and investor behavior.

If you resonate with our approach and seek a financial partner to navigate the intricacies of your financial journey, we invite you to reach out. Whether for a call or a coffee, let’s explore how Intelligent Investing, with its proprietary integrations, can be the compass guiding you towards financial success.

P.S. Exploring Vulnerability in Finance

For a deeper dive into the parallels between vulnerability in personal experiences and financial interactions, I’ve written a blog post titled Getting Naked. Feel free to explore and gain insights into the essence of our approach at Intelligent Investing.

🌐 Sources

InvestedWithYou – Getting Naked

What An Intelligent Investor Should Do with Market Outlooks

November 30, 2023 by Hans Blake, CFA, CPA

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Reading Time: 3 minutes

In this episode of Intelligent Money Minute, I had the pleasure of interviewing Larry Swedroe, head of Financial and Economic Research at Buckingham Strategic Wealth, on what an intelligent investor should do with market outlooks.

The Reality of Market Forecasts

Larry firmly grounds his perspective in empirical evidence, highlighting that market forecasts hold no genuine value. The research indicates that predicting the future is beyond the prowess of even the most esteemed experts. Warren Buffett, revered for his investing prowess, hasn’t entertained macro forecasts for over 25 years, emphasizing their futility in guiding long-term plans.

An intriguing paradox emerges when investors revere individuals like Buffett or Peter Lynch yet often disregard their advice. Larry notes the danger of succumbing to predictions by market gurus like Jeremy Grantham, whose forecasts have often faltered, leading investors astray. The empirical evidence reaffirms that forecasting market trends accurately remains elusive.

The Ark Investment Phenomenon

Kathy Wood’s approach at Ark Investments soared on a narrative of disruptive technologies, akin to the late 90s tech boom. However, as Larry points out, this strategy historically led to significant volatility and long-term underperformance. Wood’s fund initially gained traction, attracting billions of dollars during its successful periods, only to face substantial challenges when those speculative trends faltered.

The pattern echoes a cycle familiar in investing: rising investor interest leads to inflows, magnifying the fund’s exposure and driving up the prices of thinly traded stocks. This reinforcement ultimately feeds back into the momentum, creating a self-fulfilling prophecy. However, when these high expectations are not substantiated by earnings, the bubble bursts, leaving investors vulnerable.

Prudent Advice for Investors: Tune Out Market Forecasts

Larry’s analysis emphasizes that while Kathy Wood’s strategies occasionally yield short-term successes, they often culminate in long-term disappointments. This rollercoaster ride in performance, influenced by speculative investments in disruptive technologies, serves as a cautionary tale for investors.

Larry Swedroe’s wisdom is clear: investors should tune out market forecasts and strategists and adhere to well-crafted investment plans. Instead of chasing returns or following the latest headlines, the focus should remain on executing well-thought-out plans. He cautions against hasty reactions driven by market noise.

For those seeking a financial advisor or aiming to reevaluate their investment strategies, we extend an invitation to connect with us. Our goal is to help you minimize financial stress and maximize your life’s potential through informed, tailored financial decisions.

Schedule a short discovery call or meeting

We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Since joining Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

In his role as chief research officer and as a member of the firm’s Investment Policy Committee and Board of Directors, Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations.

Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives and ETF.com.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.

Credits: This blog was written in part by ChatGPT, an AI language model developed by OpenAI. The content of this blog reflects the knowledge and opinions of ChatGPT, may or may not reflect the knowledge and opinions of Intelligent Investing, and is protected by copyright laws. Please do not reproduce or distribute without giving proper credit to ChatGPT and OpenAI.

What An Intelligent Investor Should Do When an Asset Class Falls Out of Favor

November 16, 2023 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

All Risk Investments: Enduring the Ebb and Flow

Larry emphasizes a fundamental truth: every risk investment, whether it’s stocks, bonds, commodities, or others, experiences prolonged periods of underperformance. Investors often underestimate these cycles, mistakenly assuming that three, five, or even ten years are lengthy evaluation periods. However, historical evidence proves otherwise, with instances where the S&P 500 trailed behind treasury bills for 13-year durations occurring three times since 1929.

The crux of Larry’s advice centers on diversification across various unique risks, aligning with one’s risk tolerance. This strategy, substantiated in his book, “Your Complete Guide to Factor-Based Investing,” promotes the inclusion of assets proven to offer premiums over time. Diversifying globally and including varied sources of risk—be it stocks, bonds, commodities, or currencies—reduces dependency on any single investment, mitigating the impact when a particular asset class is out of favor.

Intelligent Investing: A Holistic Approach

Larry Swedroe’s wisdom underscores the importance of persistence and diversification in an investor’s journey. When faced with an asset class in decline, staying committed to a diversified strategy tailored to individual risk tolerances is key. We invite you to engage with us in exploring your unique risk profile and leveraging our financial technology to fortify your investment journey.

Schedule a short discovery call or meeting

We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry Swedroe Bio

Since joining Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.

Assessing Risk in Your Small Business

November 2, 2023 by Hans Blake, CFA, CPA

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Reading Time: 3 minutes

In this episode, we had the pleasure of interviewing Bethany Winston, owner, and Editor-in-Chief of Kidding Around Greenville, as she shares valuable insights on assessing risk in your small business.

Small Business Financial Risk: The Peaks and Valleys

At Intelligent Investing, we emphasize four dimensions of risk:

Your willingness to take on risk
Your ability to manage risk
Your need for risk to meet your financial goals
The actual risk present in your investment portfolio

Bethany Winston highlighted the financial challenges inherent to her small business, which relies predominantly on advertising revenue. It’s not uncommon for income in this sector to fluctuate throughout the year. The feast-or-famine dynamic can make managing finances nerve-wracking

Financial Safety Nets and Resilience

Bethany wisely shared that she maintains a clear distinction between personal and business finances, a practice we strongly advocate. She sets aside specific amounts for personal income, ensuring that, even during lean periods, the business can continue to operate and pay employees.

COVID-19 was a stark test for businesses. Bethany’s experience mirrored many entrepreneurs’, with traffic and client advertising taking a hit. However, she emphasized the importance of having a financial safety net to weather such storms. By diversifying her content and addressing the changed needs of her audience, she managed to not only stay afloat but also experienced increased traffic in 2020.COVID-19 was a stark test for businesses. Bethany’s experience mirrored many entrepreneurs’, with traffic and client advertising taking a hit. However, she emphasized the importance of having a financial safety net to weather such storms. By diversifying her content and addressing the changed needs of her audience, she managed to not only stay afloat but also experienced increased traffic in 2020.

Living Below Your Means: A Wise Financial Habit

We discussed the critical principle of living below your means, which acts as a buffer during times of financial stress. Having a game plan and the ability to pivot is pivotal to surviving and thriving through challenging times. Risk management is at the core of Intelligent Investing’s financial strategies. We offer a complimentary risk assessment to help you understand your risk tolerance and assess your portfolio’s risk. Reach out to us to get started.

Small business owners face unique financial risks and rewards. When it comes to risk management, especially in your finances and financial goals, we encourage a prudent, diversified approach. The COVID-19 crisis highlighted the importance of having a financial safety net. Ensuring you can manage expenses and continue operations during challenging periods is crucial. We always advocate living below your means and having a solid financial game plan in place to navigate financial uncertainties.

Schedule a short discovery call or meeting

We’ll be interviewing Bethany on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Bethany Winston Bio

Bethany Winston is the owner and editor-in-chief of Kidding Around Greenville & Kidding Around Spartanburg. She enjoys exploring parks, discovering local events, and meeting the people who make Greenville an amazing place to live.

Kidding Around Greenville is known for tapping into the heart of Greenville and bringing readers firsthand reviews of the best things to do and see in the Upstate and Southeast region. Readers use Kidding Around® to find things to do, places to visit, and businesses and resources they need, helping them to make wonderful memories with their families.

The Rapid Rise of Artificial Intelligence

October 19, 2023 by Hans Blake, CFA, CPA

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In this episode of Intelligent Money Minute, we had the pleasure of interviewing Larry Siegel, the director of the CFA Institute Research Foundation and a prolific investment management author. We dive into a discussion with Larry on the rise of artificial intelligence.

AI’s Ever-Changing Landscape

Larry Siegel began by highlighting the dynamic nature of AI technology. It’s a field that’s progressing at a breathtaking pace, making it challenging to keep a steady viewpoint. The implications of AI’s continuous evolution extend far beyond what we can currently anticipate.

An anecdote from Tyler Cowen’s blog, “Marginal Revolution,” left Siegel impressed. The story was written by an AI program and exuded creative writing with a flair for evoking emotions. This starkly contrasted previous AI outputs, which Siegel found unimpressive and likened to amateurish essays.

The Future of Financial Advice and AI

Despite the breathtaking progress in AI, Siegel remains cautious. While acknowledging AI’s ability to process vast data sets at remarkable speed, he is skeptical about whether it can truly mimic human intelligence. The debate rages on about the extent to which AI can replicate the intricacies of the human brain.

The interview delved into the question of AI’s role in financial advice. Could AI replace human advisors, particularly for intellectual tasks? Siegel’s cautious approach to AI’s evolution is timely given its potential impact on various professional fields, including finance.

At Intelligent Investing, we continuously explore the intersection of technology and human intelligence. As AI develops, it’s essential to strike a balance, recognizing the strengths of both humans and machines. The future will likely demand a collaborative approach to maximize the potential of both.

Larry Siegel Bio

Laurence B. Siegel is the Gary P. Brinson director of research at the CFA Institute Research Foundation and an author, consultant, and speaker on investment management and economics. Before retiring from full-time work in 2009 he was director of research at the Ford Foundation and, before that, head of research at Ibbotson Associates (since acquired by Morningstar). He attended the University of Chicago (BA 1975, MBA 1977). His book, Fewer, Richer, Greener, has been published by Wiley and is available, along with his other work, at https://www.larrysiegel.org.

Is Bitcoin a Good Inflation Hedge

October 12, 2023 by Hans Blake, CFA, CPA

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Reading Time: 3 minutes

In this episode of Intelligent Money Minute, I had the pleasure of interviewing Larry Swedroe, head of Financial and Economic Research at Buckingham Strategic Wealth, on the topic of whether Bitcoin is truly a good inflation hedge.

Blockchain Technology’s Potential

Larry Swedroe commenced the discussion by emphasizing the potential of blockchain technology, the foundation on which cryptocurrencies like Bitcoin are built. The blockchain is already revolutionizing the financial sector by facilitating faster and more efficient payment transfers and record-keeping.

While the blockchain shows promise, Swedroe took a more skeptical view of Bitcoin. He pointed out that Bitcoin’s value proposition is questionable. Bitcoin has a theoretical limited supply, capped at 21 million coins. However, the existence of an unlimited number of substitute cryptocurrencies means Bitcoin faces a daunting challenge. An asset with an unlimited supply typically sees its value approach zero. Swedroe categorized Bitcoin as a Ponzi scheme, though he acknowledged that it could achieve high trading values based on what people are willing to pay.

Bitcoin: A Poor Inflation Hedge

Swedroe was humble in his skepticism, admitting he might be wrong. He would never recommend shorting Bitcoin. Nevertheless, he found comfort in the agreement of financial economists like John Cochran and Nobel laureate Gene Fama, who shared his view on Bitcoin’s intrinsic value.

Addressing a common belief that Bitcoin is an inflation hedge, Swedroe made it clear that Bitcoin’s performance does not support this notion. Its value is highly volatile and can plummet significantly during times of rising inflation.

Speculation ≠ Intelligent Investing

Swedroe’s insight serves as a reminder that speculation does not equate to intelligent investing. While some may choose to speculate on Bitcoin or other cryptocurrencies, such endeavors come with substantial risks and should be approached with caution.

At Intelligent Investing, we prioritize serving high-net-worth clients. Through our proprietary financial technology, Intelligrations®, we help our clients minimize financial stress and maximize their quality of life. If you’re seeking a new financial advisor or haven’t had one before, we’re here to discuss your financial goals and risk tolerance. We aim to provide sound financial advice and services tailored to your unique circumstances.

Schedule a short discovery call or meeting

We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry Swedroe Bio

Since joining Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.