Here's why you should stay away from market volatility in your investments, says Marin County adviser

The "Follow This Story" feature will notify you when any articles related to this story are posted.

When you follow a story, the next time a related article is published — it could be days, weeks or months — you'll receive an email informing you of the update.

If you no longer want to follow a story, click the "Unfollow" link on that story. There's also an "Unfollow" link in every email notification we send you.

This tool is available only to subscribers; please make sure you're logged in if you want to follow a story.

Please note: This feature is available only to subscribers; make sure you're logged in if you want to follow a story.

Subscribe

James N. Patrick

Senior vice president and senior financial adviser

The Patrick/D’Amico Team at Merrill Lynch, Pierce, Fenner & Smith Inc.

2 Belverdere Place, Suite 100, Mill Valley, CA 94941

415-289-8868

Read more tips on and coverage of wealth management.

James N. Patrick, a senior vice president and senior financial advisor with the Patrick/D’Amico Team at Merrill Lynch, Pierce, Fenner & Smith Inc. in Mill Valley, offers tips for wealth management.

What difference does the age of a client make in what you suggest to them as an investment strategy?

Age is one of several factors that goes into developing a sound investment strategy for our clients. The investment strategy is a component of the overall wealth management strategy we design. Our ultimate goal is to design a strategy that incorporates all of the individual clients’ goals, objectives and time horizon for achieving them.

How do you help a client determine what level of risk they are comfortable with when it comes to investing their money? Are there key questions you ask to assess that risk?

We begin the wealth management strategy by developing a customized financial plan. Through this process the client gains a clear understanding of how their economic variables can be integrated to achieve their specific objectives. This leads us to the design of an investment strategy that provides them with targeted rates of return and the risk parameters associated with them.

With faster technology, algorithms to pick stocks and instantaneous investments, are clients making more frequent moves with their money, not being content to stay with investments for the long haul? What do you tell them if you consider this approach unwise?

These factors tend to increase daily volatility in the financial markets. We urge clients not to get caught up in the daily gyrations of the market.

Our approach to wealth management provides our clients with a discipline to achieve their long-term goals and objectives. We tend not to be stock pickers but more long term asset allocators. We strive to achieve a high level of predictability in the outcomes we target. This requires discipline and patience.

What mistakes do you see individual investors making in the current financial climate?

The current financial climate has become more volatile over the last few months. There are heightened concerns over geopolitical risk, trade tariff escalation, political risks in Europe, Brexit and slowing growth in China.

Investors tend to lose sight of their long-term goals and objectives as market volatility increases. They tend to make short-term emotional decisions in this environment, which can have a negative impact on their financial plan.

What is your best advice on planning for a financially secure future?

Our best advice is to follow a disciplined wealth management strategy that is based on identifying objectives and developing a strategy to pursue them. This approach is often described as goals based wealth management (GBWM).

It begins with an assessment that clarifies life priorities, investment personality and risk profile. As part of this process, one should then articulate their specific goals and identify the financial resources they have available to them. Once goals are set, an asset allocation strategy can be designed that aligns with these goals.

Needless to say, we believe working with an experienced financial adviser is essential to this process. The implementation of investment strategies should be based on numerous activities that may include behavioral coaching, tax management, goal-relative optimization, product allocation and savings and withdrawal guidance. Once the wealth management strategy is set, it is imperative to monitor ongoing personal and financial concerns, and update the plan accordingly.

James N. Patrick

Senior vice president and senior financial adviser

The Patrick/D’Amico Team at Merrill Lynch, Pierce, Fenner & Smith Inc.

2 Belverdere Place, Suite 100, Mill Valley, CA 94941

415-289-8868

Read more tips on and coverage of wealth management.

Show Comment

Our Network

Santa Rosa Press Democrat
Sonoma Index-Tribune
Petaluma Argus Courier
Sonoma Magazine
Bite Club Eats
La Prensa Sonoma
Emerald Report
Spirited Magazine