And I mean us, you and me. This is an intimate business that requires a special relationship between client and advisor. In order for it to work, we both have to be honest and trust each other. Someone once put it very well to me by comparing it to a marriage. And she wasn't far off. So let's first discuss you and what you are most likely looking for.
In the nearly 10 years since I began offering my services to the public in this innovative way, it has attracted many different types of people. Although their ages, gender, and level of investment knowledge may differ, each of them share a number of common characteristics. They are knowledgeable, cost conscious, independent, have a long term focus, and are looking for more than the superficial. They want informative direction from competent and trustworthy sources that are free from the many conflicts of interest and other issues that were elaborated on in the Issues section.
No one is in a hurry. They think before they act and prefer to use their own intelligence. They know that being independent doesn't mean having to go it alone and that self-directed investing is about investing for yourself, and not necessarily by yourself. It often means obtaining just the right amount of help and guidance to confidently make a decision on one's own.
My clients and I have been drawn together out of a complex set of shared values and interests and not out of short term economic convenience. Most of those who have started with me have stayed and have become loyal clients and friends. It is not coincidental that in an advisor-client relationship, all parties eventually end up with the type of constituencies that they sought and deserved.
When I started this, I had one purpose in mind, to offer others what I had been looking for and could not find when I first started out as a retail investor over 35 years ago. I wanted to be treated fairly, have questions answered promptly and with respect regardless of how simple they may have appeared to be. I wanted to receive objective help and guidance from someone I could trust who was a qualified and informed professional and without having to feel intimidated or worry about conflicts of interest tainting the advice. And of course I wanted to receive value and pay a reasonable price.
I have been trying to do just that and as a consequence have seen my business grow to include a client base that stretches across Canada and the US. In the past my clients and seminar participants have ranged from major financial institutions and for-profit crown corporations to a segment that I am increasingly focusing on - ordinary retail investors.
As you may have read earlier in the Issues section, I have written a serious research article on investment planning that has been published in US and International financial planning journals; however you are probably more aware of me through the occasional comment on financial or investment planning issues that appear in the national media.
I currently hold designations as a Certified Financial Planner®(CFP) and Canadian Investment Manager (CIM) and am a member of the US-based Financial Planning Association (FPA). My earlier formal education includes an MBA with academic honours from a major Canadian university. Prior to moving to the Okanagan Valley of British Columbia and devoting myself fulltime to investment research and managing my own portfolio, I was a Certified Management Accountant (CMA) and trading member of the Toronto Futures Exchange. My earlier work experience included financial management positions at Canadian locations for two major multinational corporations.
Dimensional Investment Planning Inc. is an internet based fee-only independent financial planning company specializing in evaluating and designing low cost asset class investment portfolios for retail investors throughout Canada and the US. It also publishes the newsletters Capital Ideas and Permanent Alert for clients and subscribers that focus on investment research and its practical implementation for retail investors through examples using real money in real time.
All compensation is derived solely from services performed and reader subscriptions. Neither commissions, compensation based on size of assets or any other form of direct or indirect consideration is accepted from anybody or any company. Period.
But my commitment doesn’t stop there. Because I don’t use up time and money on self-promotion or lavish overhead to sell anything or impress anybody; I have eliminated all unnecessary costs and directly pass the savings on to you.
Since I am a sole practitioner, you are assured that once you become a client you won’t be passed on to someone else with less experience or qualifications. If you are a subscriber to my publications, you’ll know that I write every word.
Success to me is how well you do and how confident you become in managing your money. The less you need me, the better the job that I‘ve done at educating and empowering you. But what is most gratifying, after becoming a fully capable and independent investor, clients still choose to remain with me year after year because they appreciate the value that I offer and recognize that this is a process and not a one stop event.
By now you have a good idea of what I think is important, what I offer and even how understandable my written communication is. (No small issue when most information is exchanged through e-mail.) Now isn’t this the part where I am supposed to close the deal by demanding that you act now by creating a sense of urgency?
Instead, I don't want you to act impulsively. Take your time to think about what you have read. This is about more than just investing and your money, it is about a way of thinking and approaching the markets. Nobody should be rushed into a decision that to be successfully implemented requires more than a short term commitment.
If you still remain unsure about what to do, don't forget, you can always choose to ease into this by subscribing to my newsletters Capital Ideas and Permanent Alert. They only cost $290 for one year and will give you more time to learn about whether this new way of providing financial help is for you.
Thank you for your time, I look forward to you joining us and working with you in the future whenever you are ready.
Fred Kirby Armstrong, British Columbia.