Financial Advisor

How to Use a Donor-Advised Fund with a Financial Advisor

February 19, 2020 by Hans Blake, CFA, CPA

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview John Putnam on how to use a donor-advised fund (DAF) with a financial advisor. John gives us three insightful reasons to seek your financial advisor concerning your DAF. First, your financial advisor can help you explore the DAF space. It is helpful to ask your financial advisor if the DAF fits with your overall plan. Second, you may want to ask your financial advisor about investment options concerning your DAF. John notes that, as always, investment is a risk. However, there is a potential to grow your investment overtime. Third, discussing your DAF with your financial advisor could help with record-keeping from a tax standpoint. Annually, tax receipts from multiple charities could be simplified into one receipt from a DAF sponsor. Noted is the possibility of a donor approaching their DAF aggressively, desiring a moderate approach to their outside assets.

At Intelligent Investing, we can help you create a donor advised fund and even manage the assets within the donor advised fund differently than your retirement funds…perhaps dialing up the donor advised fund’s risk up or down. If you are interested in having a 15 minute complimentary call to discuss this or retirement planning, click here.

More From John

We’ll be interviewing John Putnam on future podcasts on creative ways to give charitably, how to use a donor-advised fund, and charitable giving with Young Children, so be sure to subscribe.

John Putnam Bio

John is an author, speaker, Kingdom entrepreneur and non-profit leader of NCF Carolinas. He grew up on a cattle farm in Cherryville, NC (that’s ‘Churvul’ for you locals ☺), and attended college at N.C. State. Above all, John is married to his wife Anne and the father of three children.

John led a thriving financial services practice for over 20 years. Following his passion for stewardship, he launched a Charlotte, NC affiliate of National Christian Foundation. On January 1, 2018, the office merged with NCF Raleigh to become NCF Carolinas. To His glory alone, God has used the NCF Carolinas team to help mobilize hundreds of millions of dollars for Kingdom impact. John’s professional background is as a former Certified Financial Planner, a trained Life Planner through The Paterson Center and a graduate of Charlotte Leadership Forum. He has worked alongside the Halftime organization, a two-time graduate of The Masters Program and a past Strategic Coach participant. He enjoys sharing through media, workshops and his website at JohnPutnam.com.

Three Things You Must Share with Your Financial Advisor

February 11, 2020 by Hans Blake, CFA, CPA

Reading Time: 4 minutes

I recently had the opportunity of being invited back to the South Carolina Business Review on South Carolina Public Radio to discuss this topic. Mike Switzer interviewed me on the importance of core values in investing. You can hear the interview by clicking here.

You’ve probably heard it said, “You’re the average of the five people you spend most of your time with.” The people around you matter. Especially the ones you are entrusting with your wealth and family.

We generally share common beliefs with those who are closest to us. If you’re married, think about where you met your spouse. Most of the time it isn’t random. Typically, there was a common bond, a shared activity, or a mutual friend who introduced you to each other.

Now, think about who you ask for recommendations. Typically, I start with my family, and then I may ask some friends on Facebook or some other social media platform.

Have you ever stopped to wonder, why we ask them for recommendations? It is likely that we know them, and we trust them.

What if your car mechanic gives you some recommendations, or perhaps your dentist or doctor? Depending on your relationship with such person and whether you trust them or not will determine whether you act upon their recommendation.

What about when it comes to money and working with a financial advisor who has recommendations. In order for the relationship to work best, there must be a common bond, but we think it goes beyond that. In fact, we think if you are going to work with a financial advisor, you must share three things with them.

You should share common values with your financial advisor.

We don’t mean that if the client is Presbyterian, they shouldn’t work with a Baptist financial advisor. Nor do we mean that you must line up exactly on the political spectrum with your advisor. However, we believe that the client’s core values should closely align with the one who is managing their wealth. Talking about money and families, and sometimes faith can be a very intimate conversation. We believe it best that the client and advisor align.

Simon Sinek says you should start by answering the question, “Why?” People like Martin Luther King Jr., Steve Jobs, and the Wright Brothers had little in common, but they all started with WHY. They realized that people won’t truly buy into a product, service, movement, or idea until they understand the WHY behind it.

I don’t have time to go into each one of them in this blog, but our core values are an acronym for the word, “CLIENT.” They are Compassion, Legacy, Integrity, Excellence, Nimbleness, and Truth. They answer the question of “Why we are in business.”

How to Know If You Share Common Values?

When we interview prospects to see if they would be a good fit, we are constantly processing whether we can trust them and if they are understanding the basic tenants of our investment philosophy. At the same time, we are hoping they are listening and asking good questions to decide whether they can trust us with their wealth and whether our process makes sense. If we get any sense the prospect isn’t going to be a good fit in the long run, we’ll probably walk away. We think of this interview process as the dating phase. If you aren’t careful, and just focus on the assets the prospect has, you could end up needing a “financial divorce” down the road, which could prove inefficient and costly.

Intelligent Investing has found that the clients we most enjoy working with are those who:

Share our core values and investment philosophy.
Understand our process and how we integrate their financial goals, plan, and risk.
Have wealth we can manage. We are after all a boutique wealth management firm.

Notice the order of those three. Sharing our core values and philosophy is much more important than whether the client has a lot of assets we can manage.

You should share an unbreakable trust with your financial advisor.

If you see headlines about fraud or a financial institution being sued because of misappropriation of funds, and you say to yourself, “I wonder if my financial advisor would ever do something like this” it is time to pull the plug.

At Intelligent Investing, speaking the truth in love is one of our core values. Speaking the truth in love means that sometimes we have to have a difficult conversation with a client. Perhaps they are spending too much…perhaps they are being taken advantage of by their children. Whatever the issue, we must have the ability to communicate with them…even though at the time they may not want to hear it.

Wars and divorces begin with a lack of trust. If you aren’t comfortable with your dentist or doctor, then pick another one. If you aren’t sure your financial advisor has your best interests in mind as they manage your wealth, then pick another advisor. Life’s too short to miss out on a great experience you could be getting from another professional.

We believe that technique and technology are important, but trust is of utmost importance.

You should share a common financial interest with your financial advisor.

I chose this profession because it afforded me the opportunity to build my own family’s wealth by helping other people build (and protect) theirs.

Intelligent Investing’s fee is based on a percentage of the assets we manage. We are an independent 100% fee-only fiduciaries who must always act in the best interest of our clients. Intelligent Investing never sells any products (such as annuities or insurance), nor makes any money off of commissions, nor are paid by anyone other than our clients. We believe this creates perfect alignment of interests between us and our clients. When our clients prosper, then we prosper. When our client’s suffer due to inevitable and temporary declines, then we suffer.

Last Thoughts…

So, in conclusion, the three things we think clients should share with their financial advisor are:

Common Values
Unbreakable Trust
Financial Interests

If you aren’t working with a financial advisor who shares these three things with you, we’d love to have a quick coffee and introduce ourselves. We’d be happy to have a short conversation with you to see if we can serve you and your family. The families we can serve best have between $500k to $5M of investable assets. Click here to learn more about our firm, or click the link below to schedule a stress-free call or meeting.

Schedule a short discovery call or meeting

What is a Donor-Advised Fund?

January 8, 2020 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview John Putnam on what is a donor-advised fund. John begins by giving us a simple definition. A donor-advised fund is a low-cost flexible account for charitable giving. Due to some of the similarities, you can think of a donor-advised fund as a “charitable checking account.” Rather than giving directly or creating a private foundation, a donor can choose to open a donor-advised fund instead. The 501(c)(3) public charity is the holder of the account instead of a bank. Unlike a checking account, however, the donor makes “irrevocable gifts” than cannot be retracted. John recommends a donor-advised fund for a donor giving to a greater number of charities. A note-worthy advantage of a donor-advised fund is the ability of the donor to remain anonymous. A donor-advised fund is a wonderful opportunity for the donor seeking to keep things simple.

At Intelligent Investing, we can help you know whether a donor advised fund makes sense, and can help you with creating one. If you are interested in having a 15 minute complimentary call to discuss this or other financial topics, click here.

More From John

We’ll be interviewing John Putnam on future podcasts on creative ways to give charitably, how to use a donor-advised fund, and charitable giving with Young Children, so be sure to subscribe.

John Putnam Bio

How to Integrate Charitable Giving

December 11, 2019 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview John Putnam on how to integrate charitable giving. John discusses ideas on how to encourage charitable giving within your family. First, John states that communication is key for families deciding on how to give. He encourages families to talk about their passions and concerns. Specifically, he encourages family members to talk among themselves. For example, a husband and wife or mom and dad communicating about charitable giving is a great start. These conversations can be the light to shine on a passion or a concern another family member may find important. Second, John discusses charitable projects. Giving an example, he suggests a group effort from individual family members. Each family member may contribute to what he or she has discovered about an organization.

We’d love to help your family explore different charitable options. we’ve included resources and a link to the National Christian Foundation which you can check out by going here.

More From John

We’ll be interviewing John Putnam on future podcasts on creative ways to give charitably, how to use a donor-advised fund, and charitable giving with Young Children, so be sure to subscribe.

John Putnam Bio

What the National Christian Foundation Can Do for Families?

October 30, 2019 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview John Putnam on what NCF can do for families. John states initially that NCF can help families create a giving plan. NCF helps families think about their giving legacy, along with their passions and impact. One way NCF guides families is to show them how to engage all of their resources. Ultimately, the desire is for families to experience more joy. More specifically, John states that NCF will first help the family simplify their giving with a donor-advised fund. Families are advised with strategic giving using complex asset, i.e. land, real estate, etc. NCF also desires to include the family’s advisors. Finally, bringing family around generosity is encouraged. You can find a link to more resources from NCF here.

We’d love to help your family explore different charitable options. we’ve included resources and a link to the National Christian Foundation which you can check out by going here.

More From John

We’ll be interviewing John Putnam on future podcasts on creative ways to give charitably, how to use a donor-advised fund, and charitable giving with Young Children, so be sure to subscribe.

John Putnam Bio

An Overview of the National Christian Foundation

September 25, 2019 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview John Putnam on an overview of the National Christian Foundation (NCF). John Putnam is the president of the National Christian Foundation Carolinas. Beginning today’s episode, John gives the background of NCF. Larry Burkett, Ron Blue, and Terry Parker found NCF in 1982. Their goal was, and still is, to assist families and encourage them to have an impact with what they have. NCF comes alongside families, their advisors, and the organizations they love. Using innovative and creative ways, NCF helps donors give more wisely to these organizations. The founder’s initial desire was for one billion dollars of giving to flow through their doors. Today, however, over ten billion dollars have been granted by NCF and families locally and around the world.

The National Christian Foundation (NCF) is a U.S. non-profit organization that helps donors give more wisely and tax-efficiently to support their favorite charitable causes. In 2018, NCF ranked as the 8th largest non-profit organization in the U.S. At Intelligent Investing, we strive to align your charitable gifts with your strategic, philanthropic and financial goals. Whether you need to develop gift-giving strategies, create a foundation or endowment, or receive overall philanthropic guidance, we deliver the right level of expertise with a focus on maximizing your tax efficiencies and protecting your wealth while you generously share it with those you love.

More From John

We’ll be interviewing John Putnam on future podcasts on creative ways to give charitably, how to use a donor-advised fund, and charitable giving with young children, so be sure to subscribe.

John Putnam Bio

Three Military Discipline Investing Values

September 18, 2019 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Rick Ferri on three military discipline investment values. During this episode, Rick recounts his military days and how they shaped his financial career. Also, he provides three valuable advisor skills he gained from his service:

Learn to trust people.
Develop keen precision.
Speak the truth regardless of the consequences.

At Intelligent Investing, we establish clear expectations with our clients because we value transparency. We use state-of-the-art technology to determine a quantitative number that visually demonstrates your risk tolerance. Learn more about our investment philosophy here.

Check out our previous podcasts with Rick on The Impact of Investment Expenses and Dangers on Backtesting & Performance Managers. We’ll be interviewing Rick on several podcasts regarding index investing, behavioral finance, and practical tips for retirees, so be sure to subscribe to our Intelligent Money Minute podcasts.

Rick Ferri is a fellow CFA Charterholder, Marine veteran, author, and owner of Ferri Investment Solutions. He continues to write books and articles, provide educational webinars, and teach financial lectures.

Rick Ferri Bio

Rick Ferri earned a B.S. in Business Administration and an M.S. in Finance. He also holds a Chartered Financial Analyst (CFA) charter through the CFA Institute. After college, Rick served as a U.S. Marine Corps officer and fighter pilot for 20 years of active duty and reserve service.

Rick’s investment career spans three decades and offers a history of empowering people to achieve their goals. He landed in the brokerage industry in 1989 where he learned the wrong way to invest. As a result of 10 frustrating years, Rick founded one of the country’s first low-fee investment advisory firms. Rick’s firm grew to a sizable business over the next two decades due to the explosion of interest in low-fee investing. This growth provided good-paying jobs to dozens of people and allowed Rick to take on business partners with whom he generously shared his equity. Rick left the firm a few years ago and is no longer an owner.

Ferri Investment Solutions is Rick’s new firm. This modern concept provides even greater value to investors by “unbundling” adviser services whereby clients pay only for the time it takes to assist them. In addition, Rick’s industry consulting firm helps other advisers build their investment practices, and he has launched Core-4 Portfolios to provide simple model portfolios for use by a wide variety of investors.

How’s It Going To End?

July 18, 2019 by Hans Blake, CFA, CPA

The Truman Show is a 1998 science fiction film featuring Jim Carrey as Truman Burbank. Truman, the unsuspecting star of The Truman Show, a reality television program broadcast live around the clock worldwide, spends his entire life in the fictional seaside town of Seahaven Island. This giant set equipped with state-of-the-art technology can simulate day/night, weather conditions, and has thousands of cameras to watch him. During his college years, Truman was supposed to fall in love with and marry co-student and actress Meryl. Instead, he fell for Sylvia, an “extra.” Sylvia warns Truman his “reality” is fake. Outside of the show, Sylvia has become part of a “Free Truman” campaign that demands the end of the show and Truman’s freedom. Sylvia helps Truman realize he is a pawn within a greedy corporation and wears a red sweater with a pin that says, “How’s it going to end?”

The question on Sylvia’s button may be the same question on your mind when it comes to the market. How is it going to end? When is it going to end?

What is a Bull Market?

First, let’s define a bull market. A bull market is a market pattern that occurs when prices keep rising up 20% from a previous drop of 20%. A bull market can refer to the securities market (like stocks and bonds), but can also refer to other markets like housing.

How Will This Bull Market End?

The U.S. economic expansion entered a record 11th year, while the bull market in equities is a few months older. You may be asking yourself the same question Sylvia’s button asked. The three Ts– Trump, Tariffs and Trade wars, can be a wet blanket on the embers of growth, but the market can still go higher. The adage, “Bull markets don’t die of old age” may be true, but attempting to time when to get in and out of markets can be futile and dangerous to reaching your long-term financial goals. Always keep in mind that the bottom of a bear market is the start of the next bull market, and also remind yourself of your personal time horizon. The truth is nobody knows how the current bull market is going to end.

When Will This Bull Market End?

There is no expiration date for bull markets. Nobody has a crystal ball to say when the bear market will begin and how long it may last, which is why we believe it is prudent to maintain a diversified approach and focus on the things you can control and not let fear or greed dictate your next move in your portfolio.

Maintain Discipline

Warren Buffett famously said that like dieting, successful investing is far easier to understand than to accomplish—because it requires discipline. At Intelligent Investing, we monitor and rebalance portfolios with the goal of maintaining the amount of risk we jointly agreed to take. We have a strong philosophy and set of processes that strive to reduce the emotional component of managing wealth.

Preparing for the Next Drawdown

Remember your history. Big equity drawdowns happen time and again and tend to drag down typical investor portfolios with them. The S&P 500 drawdowns worse than 20% have happened 11 times since 1926. We will have a bear market, but studies have shown that attempting to tactically avoid the next equity selloff is likely to disappoint investors. Diversification and discipline are still investors’ best bet.

We are long-term wealth managers. We try not to get caught up in the loud noise of the markets and we encourage you to do the same. If you’d like a financial accountability partner who can help minimize financial stress to maximize your life, let us know.