How It All Began
Thirty years ago, I stepped away from an 11-year career at a major Wall Street firm in Seattle. Back then, the financial services industry was all about selling stocks and bonds, with compensation based solely on commissions. Financial planning was rarely discussed. I found a niche in selling tax-free municipal bonds, but after 11 years, I wanted something different.
I moved to a small town north of Seattle to figure out my next steps. Out of that period of reflection came a desire to write about an evolving investment philosophy, inspired by Burton Malkiel's A Random Walk Down Wall Street and John Bogle's efforts at Vanguard to introduce low-cost, passive index funds. This led to the publication of The Coffeehouse Investor in 1998 and my return to the financial services industry as a partner in a local Registered Investment Advisor (RIA) firm.
Investing Principles for All
My goal has always been to introduce this investment philosophy to everyone responsible for saving and investing for their retirement. Many of you have joined me in this journey, having taken it upon yourselves to share it with folks in your life, and together we are changing the world, one investor at a time.
Embracing this philosophy has profoundly impacted my life in three ways.
First, I put the performance of returns in its place. With low-cost passive and index funds, I seek to maximize returns in each asset class. There will always be another "fund of the moment" outperforming mine, but chasing it is a fool's game.
Second, ignoring the market allows me to focus on financial planning issues that truly matter, like my savings goals while working and in the not-too-distant future, my spending targets in retirement. This shift in focus has brought clarity and peace of mind.
Most importantly, I no longer feel the need to follow the market's every move. This freedom allows me to pursue the things that interest me most and to live a more fulfilling life.
The Gift of Financial Clarity
With the holiday season upon us, and in the spirit of giving, I encourage you to share this simple philosophy with someone in your life who is seeking clarity with their money, investing, and planning for the future. It might just be the most valuable gift you give this season. Together, we can help others find the peace of mind that comes with a thoughtful, disciplined approach to investing.
If you’ve been seeking financial clarity over the past year, I invite you to connect with me for a complimentary strategy call*. Together, we can discuss a plan to help set you on the right track for the new year.
* Limit one complimentary offer per household, per 18 months. Only applicable to households with minimum investable assets of $25,000. Offer criteria may be waived at Edelman Financial Engines' discretion.