If you have been following our briefings, you know that we have a blunt view of the financial services industry and how sophisticated investors can gain an edge in mitigating financial complexity and planning for their financial destinations. We have stated ad nauseam that there’s no longer a secret sauce when it comes to asset allocation or portfolio rebalancing. Computers do this stuff now and the services themselves are a commodity, so we don’t think that investors should pay for it.
So how can investors gain an edge?
One of our obsessions at SWS Partners is thinking about the role of the advisor and how to build the most value for clients. One powerful driver of value comes from automating everything that can possibly be automated within a firm’s business, especially today where the actual products and investments in any given portfolio are increasingly commoditized.
More than a year ago, I published a piece for Investments and Wealth Monitor that was a follow up to an interview I participated in as part of the Schwab Impact Conference in 2016. It felt appropriate to resurface the article now because many of the ideas are increasingly mainstream today even if they felt a little radical only a few years ago. Alas, it’s important for affluent investors to discern between talking points and the implementation of tools that will assist with financial self-actualization.
A few weeks ago, my partner, Phil Kessler, authored a blog detailing how SWS Partners is different from other investment managers. For a firm with a bit of a renegade streak, this piece was foundational in articulating not only how SWS Partners is not only different but, more importantly, how this can translate to better outcomes for our clients.
To recap, we offer highly sophisticated solutions, employ a team of specialists, innovate continuously, and leverage technology whenever possible. In aggregate, we think this can position affluent investors for better outcomes.