Welcome from Smith Patrick Financial Advisors. This is our new home on the web. We have moved from a more complex web design to a hopefully much simpler creation. The goal will be to be able to deliver the usual information like «who we are» and «how to contact us» while also providing our views on current events and more timeless topics. Enjoy and keep checking back for new content.
Our website design reflects our desire to get to the point just like our advisory practice:
Nothing fancy, chock-full of content, and be as informative as possible!
Use the navigation links to access the various content areas. Below is a brief description of the main links to help orientate you to the content on our website.
- About: Who we are and how we can help you.
- Contact: Contact information.
- F.A.Q.: Frequently Asked Questions.
- Posts: An eclectic collection of thoughts from us in a more informal blog format.
- Tags: A great way to search for topics that you might find interesting.
- Topics: A more formal discussion on a wide variety of topics. (Use those tags to search.)
- Client Links: A collection of links for Client access to various 3rd party resources.
We hope you enjoy our site and would love to hear from you. Give us a call or shoot us an email.
In 2015 I worked on a risk questionnaire that was designed to expand on the more simplistic risk scale that I use as well as is the industry standard. The idea came from a journal article co-written by Dean LeBaron from Batterymarch and published in 1989 in the Financial Analyst Journal.1 As part of introducing the questionnaire, I used what was called the Litterer Perception Formation Model. The idea being that it is important to understand how we process information and make decisions, rational or otherwise.
Here at Smith Patrick we have migrated our financial planning process to MoneyGuidePro. A major reason is the ability to be more interactive with clients in the planning process. This interactive and iterative process is very beneficial in our opinion. Which brings me to this blog post. One of the first changes to our past method is switching from a cash-flow method to planning using a goal-based method. The reality is that when discussing financial planning based on cash flow analysis or by setting goals, it is more about selecting an appropriate method to achieve a plan.
Market Observations for March 2017 After strong post-election moves, the financial markets continue to tread water. For instance as discussed in our November observations that the US 10-year treasury yield jumped to 2.37% at the end of November. The yield was 2.40% at the end of March. This is clear evidence of how informational efficient the capital markets are as they adjusted expectations given the US election results in November.
Market Observations for December 2016 November was a very active month. The biggest movement came from the jump in interest rates. The 10-year US Treasury jumped from 1.83% to 2.37% in the month. This was a trend that had begun back in July when the 10-year dropped below 1.4%. Much of the movement however was post presidential election. The US dollar index also jumped in November, which makes imports cheaper, but is a headwind for overseas investments.
When we look at developing a financial plan or investment strategy, we are interested in determining a household’s savings and spending profile. This in turn helps us generate a cash flow profile which along with current savings is one of the major cornerstones of developing client investment strategies. We find however that client’s often need some help with determining their budgets and more importantly – how to structure a budget.