13 North Bay wealth managers reveal what to expect with investments
For the fifth year, the North Bay Business Journal surveyed wealth management advisers across the North Bay on three questions related to the investment climate today and long term.
Responses are presented alphabetically by firm name. (See the list of the region's largest advisories.)
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Thelia Eagan, CPA/PFS
Wealth Advisor, Office Director
Buckingham Asset Management
3550 Round Barn Blvd., #212, Santa Rosa 95403
buckinghamadvisor.com, 707-542-3600
Have you adjusted your investment strategies in response to economic trends over the past year? Why, or why not?
My goal is to help clients tune out market forecasts and fluctuations and to instead focus on things they can control, such as minimizing costs and building a diversified portfolio. As part of a company that uses an evidence-based investment philosophy, I use decades of peer-reviewed academic research to help investors increase their expected returns over the long term. My approach to investment strategies has not changed in the past year - I continue to focus on creating a plan for clients that weathers the ups and downs of the market to help them reach their goals.
What mistakes do you see individual investors making in the current financial climate?
The biggest mistake I think investors make is listening to forecasters who say the market is due for a crash. While it's simple to recommend that investors “stay the course,” it's not always easy for investors to follow that advice if the market isn't performing as expected or if they fear an impending crash. Historical evidence shows that a thoughtfully designed, diversified portfolio of passively managed funds will outperform in the long run.
What trends are you anticipating will most impact investors over the next year?
As online portfolio management platforms continue their effort to replace advisers with algorithms, the discussion surrounding the value of the client-adviser relationships will continue to be a hot topic. As much as we try to automate our lives, some aspects cannot be replaced by a computer. I think an adviser's role is more than crafting an investment portfolio that reflects investors' goals and what is important to them. I believe investors will increasingly recognize the value of having a trusted adviser who not only continually reviews and reallocates their investments but who also designs a personalized plan that blends every aspect of the investors' financial life: tax strategy, wealth transfer goals, risk management and charitable giving.
Is there anything you would like to add?
Long-term planning is the key to making sound investment decisions and to helping investors avoid making emotional decisions. All too often, emotions - such as greed or envy in bull markets, and fear or panic in bear markets - can cause investors to throw out well-developed financial plans. Working with an adviser who creates a portfolio based on evidence (not emotion) and research (not opinion) can help investors safeguard their financial futures and take the fear out of investing.
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William J. Sullivan
Vice President & Investment Officer
Exchange Bank Trust & Investment Management
P.O. Box 208, Santa Rosa 95402
exchangebank.com, 707-522-2376
Have you adjusted your investment strategies in response to economic trends over the past year? Why, or why not?
We have not adjusted our approach or philosophy relating to how we construct client portfolios. Our philosophy remains embedded in a consistent approach borne of decades of academic research and a focus on risk and cost control. We constantly review our portfolios in the aggregate as well as the individual components. We seek to maintain the broad diversification that is a hallmark of our process while looking for investments which offer lower cost, better performance or both. We make changes with an abundance of caution to ensure that they reflect positively on client portfolios and market conditions that stimulate any change (i.e. persistent low rates).
What mistakes do you see individual investors making in the current financial climate?
Investors tend to be reactionary to the news of the day. During the past year we've been faced with disruption in the oil patch, the impact of Brexit, terrorism in Europe and the uncertain presidential campaigns. The common thread that runs through these events, which can create mistakes, is that they are seen as negatives by some investors that stimulates the need in them to “do something” to react to the news. The reality is that these events happen consistently throughout history and often, in the end, the impact is nowhere near as damaging as some investors and the press perceives that they will be at the time. This is where we provide tremendous value to our clients as we guide them through the noise and disruption and avoid reacting out of fear.