Have some questions? Chances are you have similar questions to others and we have put together is helpful page to answer some of those questions we get asked the most.
+ Why should I hire someone instead of investing on my own?
You certainly could simply invest on your own. You could also change your own oil, do your own home improvement projects and make your own clothes. There are many reasons to delegate some taks. Delegation allows us to focus on what we enjoy or where we can add the most value. At RIM, we do more than just invest your portfolio. We get to know you and what is important to you and help you plan your finances to support your dreams. We design a portfolio that matches your needs and maintain this portfolio, using the latest research to try to gain an edge. We pay attention to taxes, locating assets in a way that optimizes a client's taxes. We can also help with charitable and distribution planning to not pay more on taxes than is necessary. Vanguard (which is perhaps the top provider for "DIY" investors) estimates that a financial advisor adds about 3% of value per year to a portfolio through suitable asset allocation, cost-effective implementation, asset location, total return vs. income investing, rebalancing, spending strategy and behavioral coaching. https://advisors.vanguard.com/iwe/pdf/FASQAAAB.pdf
+ What does fee only mean?
Fee-only means that our entire compensation for helping a client comes from the client. We receive no commissions, nor do we accept trips or anything else that would incentivize us to favor one investment over another.
+ What is a fiduciary?
A fiduciary is a person who acts on behalf of another, and is obligated to honor this trust by always acting in the best interest of the client. Financial advisors can be divided into two groups: fiduciaries, who must put the clients' interests above their own and financial salespeople who are obligated to only make recommendations that are suitable to the client, but may choose among a wide array of "suitable" choices, each of which may have different financial implications to the salespeople. At RIM, we believe that our advice should be always be unconflicted, so we only operate as a fiduciary.
+ What is a reasonable expectation for investment returns?
That depends on your risk tolerance, time horizon and other factors. While the US stock market has averaged in the ballpark of 10% annual return over a long period of time, this is not a reasonable expectation for the future, nor is it wise to invest one's entire portfolio in one asset class, such as US large capitalization stocks. For an estimate of what return you can expect over a long time horizon, contact us and set up an appointment.
+ Is Financial Planning the same thing as investing?
No. Both financial planning and investing are important. Financial planning involves determining what one is trying to accomplish, assessing the resources available for this end and then designing, monitoring, and updating a plan to arrive at the desired outcome. Investing is deploying one's capital to preserve and grow it. Investing is an integral part of a financial plan, but is only one component of the plan.
+ Who does RIM work for?
At Rothman Investment Management, we work for our clients directly. We do not offer products that pay commissions and we do not get paid by anyone but our clients. Our compensation is the same regardless of which investments we choose for our clients, so we have no incentives to do anything but what we believe to be best for our clients.
Per Wikipedia: "A Registered Investment Advisor (RIA) is a person or firm who advises high-net-worth individuals on investments and manages their portfolios. RIAs have a fiduciary duty to their clients, which means they have a fundamental obligation to provide investment advice that always acts in their clients' best interests." RIM organized as a RIA instead of affiliating with a Broker-Dealer because we believe the RIA model best aligns with the best interest of our clients.
Still have questions. Contact us and let's discuss any further questions you have. We would be happy to talk with you.