The Philosopy
Ten years ago, using the wealth of historical fund data available, I began to develop a system to respond to this challenge. I have presented this system to thousands of financial consultants around the country. Many of them claim that it changed their whole way of thinking.
“I have been in the investment business for over 17 years and [Jeff’s] presentation and methodology has been by far the best I have seen. He has taken the unmanageable fund market and made it understandable and structured. It should be mandatory that EVERYONE in the investment industry be involved with his presentations and process. [Jeff’s] approach incorporated into my business puts me head shoulders above my competitors and provides me a verifiable process and result!”
— Scot Morris, Financial Consultant - RBC Dain Rauscher, Richmond VA
For Starters
First things first. If I were you, I would break down the investor market into three distinct segments:
- the Do-It-Yourself Investors
- Investors who use financial advisors, just not you!
- Your Clients
Then I would develop a system, a philosophy and process for capturing and managing each segment.
Capturing the Do-It-Yourself Investors
Changing the mind of the do-it-yourself investor requires creating doubt about the tenants of the DIY philosophy.
Tenant #1 Successful mutual fund selection revolves around choosing funds with a strong record of previous performance. Your task Prove that past performance is a miserable predictor of future fund performance.
Tenant #2 The financial media provides quality assistance in the fund selection process.
Your task Prove that the financial media is not an investor’s trusted guide to selecting mutual funds. Expose the historical failure of the mutual fund rankings and recommendations of the financial media.
Tenant #3 A portfolio of no-load, low-cost index funds will outperform a portfolio of actively-managed funds, because active-fund managers cannot beat the index. Your task Prove that most actively-managed funds do indeed beat the index, and on a very consistent basis.
Tenant #4 A successful mutual fund portfolio requires little active management; but rather, it should be tucked away as part of a “buy and hold” investment strategy. Your task Prove that a successful mutual fund portfolio requires ongoing, time-consuming, active management. Prove that a “buy and forget” management strategy is not in the best interest of the portfolio’s safe growth.
With proof in hand that . . .
- past performance is no way to select funds
- the financial media is not an investor’s trusted fund selection guide
- active fund managers actually DO beat their index, and that . . .
- successful fund investing requires ongoing, time consuming, active management
. . . the do-it-yourself investors should be convinced they need help. They should seek the guidance of a professional financial consultant. But why should they pick you?
It is my experience that you are chosen for one of only two reasons:
- They like you . . . OR . . . they don’t!
- They trust you . . . OR . . . they don’t!
Their entire basis for making a decision is subjective. It is based on feel, on emotions. When I ask financial consultants why they get picked, I never hear any objective, concrete, provable reasons for their selection. My system provides better, more substantial reasons for them to consistently select you as the steward of their financial future.
I provide you with all of the materials necessary to shape and explain your investment philosophy, with proofs about why you do what you do . . . and, most importantly, why it works.
I provide a detailed process, with proofs, of how the portfolio should be managed every step of the way. Together, this fund investment philosophy and process will help you build your book by converting more prospects to clients and creating stronger relationships with your existing clientele. Convince them all that a long-term successful investment program requires the active, diligent management of an investment professional like you!
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