Fix It Friday Ep. 30 - The Missing Half of Fiduciary Advice

• A great financial plan only works if you can stick with it during difficult markets.

• Most investing mistakes are behavioral—not intellectual.

• Successful investors prepare for uncertainty instead of trying to predict it.

• Long-term wealth is built through discipline, patience, and emotional control.

Disclaimer: [00:00:00] The following podcast by Fusion Family Wealth LLC, Fusion, is intended for general information purposes only. No [00:00:05] portion of the podcast serves as the receipt of, or as a substitute for, personalized investment advice from Fusion or any other investment professional of your choosing. [00:00:10] Please see additional important disclosure at the end of this podcast.

A copy of Fusion's current written disclosure brochure discussing our advisory [00:00:15] services and fees is available upon request or at www.fusionfamilywealth.com.

Jonathan Blau: Hello, everybody. [00:00:20] Welcome back to the Crazy Wealthy podcast, the Fix It Friday edition. [00:00:25] Today, I'm gonna be talking about something that relates to the heart of what [00:00:30] every advisor in modern practice is moving toward, [00:00:35] at least as I see what's happening in industry migration from brokerage firms [00:00:40] like UBS and Merrill Lynch to independents.

And what I'm talking about is the fiduciary [00:00:45] standard of care, being required to, by law, [00:00:50] resolve any potential conflicts in your client's best interests and to [00:00:55] always act in your client's best interests. So that's traditional fiduciary standard [00:01:00] defined. But today I'm gonna talk about what I call the missing half of [00:01:05] fiduciary advice.

So again, welcome back to Fix It Friday, and let's get right into it[00:01:10]

Voiceover: Welcome to the Crazy [00:01:15] Wealthy Podcast with your host, Jonathan Blau. Whether you're just starting out [00:01:20] or are an experienced investor, join Jonathan as he seeks to [00:01:25] illuminate and demystify the complexities of making consistently rational financial [00:01:30] decisions under conditions of uncertainty. He'll chat with professionals from the advice [00:01:35] world, entrepreneurs, executives, and more to share fresh perspectives [00:01:40] on making sound decisions that maximize your wealth.

And now, here's your [00:01:45] host.

Jonathan Blau: I want to share an idea, [00:01:50] uh, just to repeat a little bit of what I said at the introduction that sits at the heart of how [00:01:55] we think about wealth management here at Fusion. Most fiduciary advisors would say [00:02:00] that their job is simply to act in their client's best interest, and they'd be very [00:02:05] right.

Frankly, that's a given. It's what every client should expect. But I've always [00:02:10] felt that's only half the job. The other half, and arguably the harder half, [00:02:15] is helping our clients consistently act in their own best [00:02:20] interest. Think about it. I can recommend a great financial plan. I can build a [00:02:25] thoughtful portfolio.

I can help minimize taxes and improve estate [00:02:30] planning, but none of that matters at all if a client abandons the plan at [00:02:35] precisely the wrong time. If fear causes you to sell during a bear market, [00:02:40] if greed convinces you to chase the latest hot investment, if [00:02:45] uncertainty pushes you into making short-term decisions that hurt [00:02:50] long-term goals, then even a great plan can fail, not because the plan was [00:02:55] wrong, but because we're human, and that's really the issue.

Most financial [00:03:00] mistakes aren't intelligence problems, they're behavior problems. In fact, [00:03:05] when we're stressed, scared, or overly confident, what feels right emotionally [00:03:10] is often exactly the wrong thing financially. That's why I've often said that the biggest [00:03:15] risk to most financial plans isn't inflation, taxes, interest rates, or even [00:03:20] m-market volatility.

Although fear of volatility is a very real risk. The [00:03:25] biggest risk to most financial plans is often the person looking back at [00:03:30] us in the mirror, not because we're broken, but because we're human. [00:03:35] The market goes down and our instincts scream, "Do something!" This is [00:03:40] just what I call the action bias. In real life, when we sense [00:03:45] danger, our instincts scream, "Don't just stand there.

Do something!" To [00:03:50] succeed as investors, we need to flip that script and say, "Don't [00:03:55] just do something. Stand there." We're wired for survival, not for [00:04:00] successful investing. The market goes up, and everyone seems to be getting rich on the next big [00:04:05] thing, and our instincts scream, "Don't miss out!" Neither reaction is [00:04:10] unusual.

They're completely normal. The problem is that normal [00:04:15] human behavior often leads to abnormal investment mistakes. That's why we spend so much [00:04:20] time focusing on behavior. At Fusion, we're not trying to predict the future. We're [00:04:25] trying to help people make better decisions while living through an uncertain future [00:04:30] And if I had to boil that down into a few behavioral reminders, this is what they would be.[00:04:35]

Have a plan before emotions show up. Focus on your goals, [00:04:40] not the headlines. Don't let temporary feelings drive permanent long-term [00:04:45] decisions. Recognize that uncertainty isn't a bug in investing, [00:04:50] it's a feature. Remember that some of the best investment decisions you'll ever make [00:04:55] involve doing nothing at all.

And replace a focus on [00:05:00] predicting with a focus on preparedness. The truth is that protecting and growing wealth [00:05:05] is rarely about finding the perfect investment. It's usually about having the [00:05:10] discipline to stick with a good plan when it's hardest to do so. And that's why I believe the [00:05:15] highest form of fiduciary advice isn't simply acting in the client's best interest, [00:05:20] it's developing the skills and approach to be able to help [00:05:25] clients develop the temperament to consistently act in their own best interest.

[00:05:30] Because in the end, investment success is often less about what you own and more [00:05:35] about how you behave, less about what you know and more about what you [00:05:40] do. Wishing everybody a great weekend, and remember, the person most capable of creating [00:05:45] your wealth is you. The person most capable of sabotaging it once you've created [00:05:50] it is also you.

Our job is to help you s- stay on the right side of that equation. [00:05:55] As legendary investor and mentor to Warren Buffett, Benjamin Graham said, "The [00:06:00] investor's chief problem, and even his worst enemy, is likely to be [00:06:05] himself." Thanks again for tuning in to Fix It Friday, and we'll talk to you next time. But [00:06:10] until then, you can find us on crazywealthypodcast.com website, [00:06:15] fusionfamilywealth.com website, and all of your favorite podcast venues.[00:06:20]

Voiceover: Thank you for tuning in to another episode of the [00:06:25] Crazy Wealthy Podcast. For more insights, resources, and to sign up for our [00:06:30] newsletter, visit crazywealthypodcast.com. Until then, stay [00:06:35] crazy wealthy[00:06:40]

Disclaimer: The previous podcast by Fusion Family Wealth, LLC, Fusion, was intended for general information [00:06:45] purposes only. No portion of the podcast serves as the receipt of, or as a substitute for, personalized investment advice from Fusion or any other [00:06:50] investment professional of your choosing. Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any [00:06:55] specific investment or investment strategy or any non-investment related or planning services, discussion, or content will be profitable, be suitable for your [00:07:00] portfolio or individual situation.

Neither Fusion's investment advisor registration status nor any amount of prior experience or success should be construed [00:07:05] that a certain level of results or satisfaction will be achieved if Fusion is engaged or continues to be engaged to provide investment advisory services. Fusion [00:07:10] is neither a law firm nor accounting firm, and no portion of its services should be construed as legal or accounting advice.

No portion of the video content should be [00:07:15] construed by a client or prospective client as a guarantee that he or she will experience a certain level of results if Fusion is engaged or continues to be [00:07:20] engaged to provide investment advisory services. A copy of Fusion's current written disclosure brochure discussing our advisory services and fees is [00:07:25] available upon request or at www.fusionfamilywealth.com.