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Tag: wealth management

Johnson Financial Group Appoints Kristin Keffeler: Chief Learning Officer

 

Kristin Keffeler will help Johnson Financial Group incorporate a more holistic approach in helping clients achieve well-being beyond preserving and growing their wealth.

Johnson Financial Group takes an integrated approach in finding better ways to manage wealth, tackling the complexities that often come with investment and financial planning to finding the right advisor team. Based in Denver, the Group operates as a family office with more than 40 years in generational service.

In a recent progression, the firm has created the new position of ‘Chief Learning Officer’ and appointed longtime coach and consultant, Kristin Keffeler, in order to incorporate a more holistic approach in helping clients achieve a financial health of well-being beyond preserving and growing wealth.

“We believe that Kristin’s interactions with our clients will be truly transformational, giving the families we work with the opportunity to learn the best practices about communication, strength building and establishing a healthy legacy,” said Brandon Johnson, Principal and CEO of Johnson Financial Group.

Kristin Keffeler
Kristin Keffeler, new Chief Learning Officer at Johnson Financial Group.

Keffeler is a professional advisor who has spent more than 15 years guiding families on wealth and enterprise management, residing in a dual role as founder and coach of her consultancy, illumination360. She specializes in facilitating conversations about crucial subjects, and collaborates with families in identifying their values, principles that guide decision-making, and visions to realize success as individuals and as a group.

At Johnson Financial, Keffeler will lead the way in supporting clients to identify opportunities and challenges through their planning, while providing guidance on family governance, family dynamics, behavioral change, and intergenerational collaboration.

Keffeler holds a master’s degree in Applied Positive Psychology from the University of Pennsylvania, including a master’s degree in Business Management and undergraduate degree in Biology and Chemistry from the University of Denver.

A sought-after speaker, Keffeler has presented for the Financial Planning Association, the Denver Estate Planning Council, The Kinder Institute of Life Planning, and Resource Generation.

Keffeler serves as Dean of Psychology at the Purposeful Planning Institute, and is an advisory board member of the Bailey Program for Family Enterprise at the University of Denver’s Daniels College of Business.

Additionally, Keffeler has contributed toward the book, “Wealth of Wisdom: Top Practices for Wealthy Families and their Advisors,” and has written for Entrepreneur, Journal of Financial Planning, Trusts & Estates, Journal of Practical Estate Planning, and Denver Business Journal.

Her research on the traits and skills that guide intergenerational collaboration was recently published in 2018, “Becoming the Rising Generation: Uncovering the Path to Thriving for the Next Generation in Ultra-high Net Worth Families,” supporting a path for the next generations and their families to thrive.

 

“Kristin is a national thought leader in this space, and we’re thrilled to share her talents with our clients.” -Brandon Johnson, Principal and CEO of Johnson Financial Group

 

About Johnson Financial Group
Johnson Financial Group is one of the country’s most exclusive, integrated family offices, offering a unique understanding of the complexities and challenges facing affluent families. Through its wealth management arm, the firm provides advising, investment management, financial planning and private capital access. Johnson Financial Group’s history as a single-family office extends across 40 years and encompasses four generations.

The cost of DIY investing every attorney should know

The DIY (do-it-yourself) trend is nothing new. Whether it’s wedding décor, home improvement, or teacher appreciation gifts, DIY projects can provide money-saving satisfaction.

However, certain aspects of life shouldn’t be handled as a DIY project. You could end up with disastrous results that cost far more than you save. Investing is one great example of a project you can’t afford to DIY.

Don’t Wealth Management Services Cost Money?

Saving money is one of the top reasons that lawyers turn to DIY investing. However, as with any single investment, you have to put in the capital to earn more money. Of course, professional wealth management services cost money, but viewing this as an investment rather than an expense can clarify what you’re getting out of working with a professional. You are paying cash upfront or an ongoing fee in order to have a greater potential for reward and simultaneously minimizing your risk.

Investment Options

Most people know that savings accounts, money market accounts, brokerage accounts, and 401(k)s are options for investing. Many DIYers use these accounts. They can make money doing so, but are they making as much as they could be if they were using the services of a wealth management professional? For most, the answer is a resounding no. There are dozens of other options that you can use to grow your investments, but if you don’t know about them or how they work, you’re missing out.

Missed Investment Opportunities

With DIY investing, you could also miss out on many excellent opportunities simply because you don’t know about them. Wealth management professionals stay abreast of changes in investments and unique opportunities that might help their clients. When it comes to DIY investing, what you don’t know can hurt you.

Potential Tangible Losses

Common mistakes made by DIY investors lead to tangible losses, some of them significant. They could be avoided by hiring wealth management professionals. Consider the recent pandemic and other world events outside of your control. Having a trusted person to turn to can make things much easier in the midst of a crisis.

What Happens if You Have Too Much or Too Little in Your Savings Account?

When you keep funds in a savings account — even a high-yield account, over time, you will miss out on earning better returns on your funds and growing it by investing. Additionally, if you exceed the $250,000 limit set by the Federal Deposit Insurance Corporation (FDIC), there’s a risk you could lose some of it.

Typical savings accounts are insured up to $250,000 per account holder for each account. Still, any amounts above that aren’t guaranteed to be reimbursed if something happens like a bank collapse. By keeping too much money in a savings account, not only are you missing other investment opportunities, but you could also be at risk of losing some of your money.

If you keep only a small amount of money in your savings account:

  • You won’t have money to draw from in emergencies—experts recommend keeping 3-6 months’ worth of expenses in a savings account for easy access.
  • You could be charged banking fees by not meeting the minimum balance requirements/

Are You Prepared for the Inevitable Market Corrections?

It’s impossible to know when market corrections will occur. However, it’s essential to be prepared for them. The best thing you can do to prepare is to have a comprehensive financial plan, which includes a properly diversified investment portfolio. Such a portfolio will help mitigate temporary asset changes. Wealth management companies can help you do this.

What if You Make Investment Decisions Based on Fads?

There are always fads and “hot stocks” that people are talking about. If you’re a DIYer, how do you know if what you are being offered is something of value or just a passing trend? Without a financial advisor, it can be tough to tell. Many times, making investment decisions on the latest fads ends up costing money.

What if You Fail to Consider Future Taxes and Changing Tax Laws?

The federal government has many tax laws that investors must abide by, and they are constantly changing. If you don’t have a plan to pay future taxes or stay up to date with tax laws and adjust your investments accordingly, you could lose money.

What if You Don’t Account for Cost-of-Living Adjustments?

As the cost of living increases, your investment returns won’t go as far. For example, suppose a high-yield savings account nets a one percent return and inflation averages near three percent. In that case, you’re not keeping up with the cost of living (inflation). Over time, your cash loses its purchasing power and value. By working with a financial advisor, you can avoid investments that are risky as inflation occurs.

Hire a Wealth Management Service

As a professional, you work hard for your money, but it’s also your job to make your money work for you. Avoid DIY investing and hire a wealth management service to maximize your investment returns. In the long run, working with professionals will cost you less than going it alone.

Mark Candler and Dave Owens of Maia Wealth are go-to wealth advisers for lawyers and law firms in Colorado. Specializing in debt reduction, investment management, retirement efficiency, and legacy planning, Mark Candler and Dave Owens are trusted professionals for attorney-focused wealth management strategies in the Denver metro area.

A Q&A with retirement planning and wealth management experts

Capstone Investment Financial Group is a Best for Colorado company and investment firm focused on long-term, quality portfolios. Their services include retirement planning and wealth management.

Their goal is to help clients pursue their financial futures. Capstone Investment knows that everyone has different needs and priorities when it comes to financial planning. They strive to provide options for everyone, including those who seek to make a difference with their investments.

We spoke with Financial Advisor Lindsey Simek about Capstone Investment’s commitment to ethical investing and doing business better.

Best for Colorado: How long has your company been Best for Colorado?

Lindsey Simek: We were accepted as a Best for Colorado company just recently in 2021.

B4CO: Tell us more about your company in general. What do you do? What is your mission? What makes you different?

LS: We are an investment firm. We focus on quality, long-term types of investments and portfolios. As financial advisors, we are fiduciaries, meaning we put our clients needs above ours at all times. We are fee only and do not sell any type of financial products. We help clients plan for their future, retirement and long-term financial goals.

At Capstone Investment Financial Group we provide portfolios that give our clients diversity and exposure to the market at their comfort level. We also offer portfolios that are environment, social and governance (EGS) based, allowing for impactful investing for those clients that want to make a difference. Here at Capstone we make it a priority to enable our clients, employees, partners and owners to pursue their financial future in order to achieve their dreams and follow their passions.

B4CO: How did your company first hear about Best for Colorado, and why did you decide to join?

LS: We were familiar with The Alliance Center and not only liked but respected what it had to offer. We feel that sustainability can be achieved in all sectors, so we wanted reach out to see what we, as an investment firm, could do. Once we reached out, we found Best for Colorado and the amazing opportunity to become a participating business. We feel this will allow us to demonstrate what we have to offer when it comes to sustainability and impactful investing.

B4CO: What is a challenging aspect of your work?

LS: The most challenging aspect of the investment business is people’s reluctance to work on their financial goals. All too often individuals put off planning and saving and then have unrealistic expectations.

B4CO: What is an achievement your company is proud of?

LS: Our firm ranked in the top 100 financial firms in Colorado. Factors such as ESG implementation, high retention and always putting clients first all have contributed to our company’s success.

B4CO: Why would you recommend joining Best for Colorado to other companies?

LS: I think being a Best for Colorado company has so many obvious benefits. By joining the group we have access to other companies and individuals that have the same concerns and want to achieve the same goals. We are able to see, meet and interact with others that are looking to better our cities, state and planet as whole and do it in so many different ways.

By joining Best for Colorado we are able to work within a community that is all about making an impact, and we are able to experience the multiple ways—ways we never would have even considered—that this can be accomplished.

B4CO: Is there anything else you’d like to share?

LS: At Capstone we are very proud of the ESG platform that we have built. We have provided our clients with quality portfolios that focus on impactful investing. While this isn’t a concern for all of our clients, for many of them it is a top priority. As a company, are able to provide them peace of mind while building on their financial future.

Best for Colorado is a program of The Alliance Center. It allows Colorado companies to measure and improve their social and environmental impact, regardless of where they are on their corporate social responsibility journey. Best for Colorado offers programming and tools for all Colorado companies, including B Corps, to improve their practices and connect participating companies with local resources, education and support.

Tips for controlling your financial portfolio in times of uncertainty

“The chief task in life is simply this: to identify and separate matters so that I can say clearly to myself which are externals not under my control, and which have to do with the choices I actually control.  Where then do I look for good and evil?  Not to uncontrollable externals, but within myself to the choices that are my own . . .”

—Epictetus, Discourses, 2.5.4–5

Epictetus was a Stoic philosopher who was born a slave and lived in Rome until his banishment to Greece.  He reasoned that all external events are beyond our control so we should calmly and dispassionately accept whatever happens. However, Epictetus also believed that individuals are responsible for their own actions, which they can examine and control through rigorous self-discipline.

When we find ourselves awash in confusion, anxiety and uncertainty, we can apply Epictetus’ lessons, particularly in the realm of personal finance.

Lesson 1:  Classify

The critical first step is to understand the world and create a realistic “control” taxonomy.  It’s actually quite simple.  All the variables in our financial lives fall into one of these three categories:

  • Total control.  Here, the most important variables are saving and deferring consumption vs. spending, asset allocation and our behavior regarding our investments.
  • Some control.  Based on our educational and occupational choices, we have some control over our employment earnings and how long we choose to work.  Based on our nutrition, exercise and wellness choices, we also have some control over our potential life spans.
  • No control.  We have no control whatsoever over public policy, including taxes and the treatment of different forms of savings over time, or market returns.

Drivers of Lifetime Investment Outcomes

Keating-control-finances-chart1

Lesson 2:  Control the controllables

We need only turn on the TV or open a newspaper to realize the futility of focusing on public policy or market returns.  More often than we might like, the former gets made up on the fly as events transpire, and the latter is largely dependent on the former.  There is no playbook, there is no precedent, there is no crystal ball—and no one knows exactly what’s going to happen.  It’s that simple.

And since the “some control” category largely reflects the cumulative consequences of a lifetime of decisions, there is no lever we can suddenly pull to quickly change the arc of a long trajectory.  Reality doesn’t work that way.

This effectively reduces the control pie to how much we save, how we invest our assets, and—most critically—how we behave with respect to our investments.

How we behave

Let’s assume that you have a perfect financial plan and a perfect asset allocation—designed in concert to maximize both the probability of achieving all your financial goals and the value of your portfolio value at the end of the plan.  What remains is the most excruciatingly difficult task of all: staying the course.

Your portfolio is like a bar of soap

Think about your portfolio like a bar of soap:  The more you touch it, the smaller it gets.

Researchers have observed that excessive trading is a major drag on performance.  Based on studies of the relationship between portfolio turnover and performance, equity mutual funds in the highest quartile of turnover consistently have the lowest rates of benchmark outperformance.

Don’t Just Do Something, Stand There

Benjamin Graham said, “The investor’s chief problem—and even his worst enemy—is likely to be himself.”  Similarly, Nobel Prize-winning behavioral economist Daniel Kahneman advised, “All of us would be better investors if we just made fewer decisions.”  Here is Vanguard founder Jack Bogle’s more memorable spin on the same subject:

While the interests of Wall Street’s businesses are well served by an aphorism “Don’t just stand there—do something!” the interests of Main Street’s investors are well served by an approach that is its diametrical opposite:  “Don’t do something—just stand there!”

The takeaway is that investor behavior—not investment performance—drives the financial outcomes experienced by most investors.

If your financial plan hasn’t changed, there is no need to change your portfolio.  Long-term equity investors simply need to tune out the volatility—over which they have no control—and stay the course by remaining fully invested, where they have complete control. Declines always turn out to be temporary—a blip in one’s investing career—but the uptrend in equity prices is permanent.

Ulysses put wax in his men’s ears and had them tie him to the mast to avoid the deadly consequences of hearing the Sirens’ songs.  Likewise, you must block out the media noise and avoid the adverse investment consequences of reacting to the shallow risk of temporary declines.  Or as another great Stoic, Seneca the Younger, observed:  “We should always allow some time to elapse, for time discloses the truth.”  In other words, think in decades, not days

Behavioral takeaway

The illusion of control is the tendency for people to overestimate their ability to control events.  To achieve superior lifetime investment performance, we need to focus on the three elements we do control:  savings, asset allocation, and our own investing behavior.

 

Timothy Keating is the president of Keating Wealth Management, a financial planning and investment advisory firm. He has 34 years of Wall Street experience, previously serving as the CEO and founder of a publicly traded closed-end fund focused on pre-IPO investing