[Why I am a Coach and not a Financial Planner]
In 1992, I received the designation of Certified Financial Planner® Certificant. They didnt call it certificant back then but that is not of importance. I continue to provide financial plans for clients but over the years it has become apparent that a large part of my client interaction has been with the investment side of the plan. I still work with associates who provide tax advice, legal advice and risk protection advice but I have found that I must focus on the emotions of my clients as they pertain to investing.
In recent years, the term coach has been almost ubiquitous. When I was growing up, coaches were only people who dealt with sports. Now we have voice coaches, life coaches, anxiety coaches and yes, even Investor Coaches. When I was first told that I needed to be an investor coach and not a financial planner I was not comfortable. Today I am totally comfortable with the designation. Here is why;
In 2008, the market crashed and so did I. On Sunday morning, September 28, 2008, I pitched backward off an embankment onto my driveway. I broke my left elbow, cracked four ribs and two vertebrae. The worst part was the back injury that kept me incapacitated for about 5 months causing me to miss the ski season. However, it gave me a lot of time to do research on the market, trying to find and answer to the question, Could I have done better for my clients? I was under no illusion that with the market conditions of 2008 that I could have made them money in their portfolios but rather, could I have positioned them such that their losses were lower? Or could I have given them some indication before the fact that their portfolio could lose 10, 20, 30 or 40% in a 12 month period? The answer I found was a resounding YES!
By utilizing Free Market Investing which incorporates the belief of a) Efficient Markets b) Modern Portfolio Theory and c) The Three Factor Model we can develop portfolios that can predict variation in the expected return of a portfolio based on historical returns and the clients risk tolerance. That does not mean we can guarantee a positive return, for past performance is no guarantee of future results. However, by educating clients on how to attain market returns in a well diversified portfolio and coaching them in down as well as up markets we can guide them toward peace of mind investing. Today, that is what I do with all clients.
Financial planning cant do that. Coaching can! Thats why today, I am an Investor Coach.
For more information on Efficient Markets, Modern Portfolio Theory and The Three Factor Model and why track record investing, market timing and stock picking are anathema, contact me at bmullen@capatapulsion.net or 435-655-0508
Investment Advisory Services offered through Mullennium Finance LLC a Utah Licensed Investment Advisor
12/2/10
