WealthShape isn't a traditional investment advisory firm. It's an idea that came about after years of observation, logic and experience. At various points in my career I've worked as an advisor, consultant, portfolio manager, and vice president for institutional money management firms with billions of dollars in assets under management. It's these experiences that brought about the vision for WealthShape. Investors deserve access to the combination of high quality advice and institutional grade investment solutions that are backed by financial science, not speculation. WealthShape delivers these services while upholding the highest fiduciary responsibility in the industry.
There is so much that the public doesn't understand about the financial industry. Brokers, Advisors, Wire houses, Custodians: all industry titles that most individuals can't tell the difference between. Fee's and expertise: what am I paying, and for what? These are the questions that the world is now waking up to and our goal is to lead the way.
A couple of things that every investor should know:
1. An advisor is not an advisor in its truest form unless he or she provides fee based fiduciary advice. Those other guys are called "brokers". They receive commissions on the products they sell and have no responsibility to you other than to make sure that the product they are selling is suitable.
2. It is critical to understand how your money is invested. If the jargon gets too technical, ask questions. Most people spend more time deciding on the features they want in a new car than they do understanding the investment philosophy behind their hard earned money.
3. Costs matter. Insist on transparency. It's been my experience that if you don't know what you are paying, you're often paying the most. The finance industry has a lot of ways to disguise fees. Some come in the form of commissions, upfront sales charges or internal expenses that are often wrapped together.
These are basic but powerful ideas that I have been vocal about for over a decade. At WealthShape our influences come from evidence and academia. We are dedicated to ongoing research and its application to the real world. It's what drives the evolution of our investment strategies. The research we put our faith in is subject to rigorous peer review. It's published, critiqued, and scrutinized by the world. Our pledge is to make high quality advice and high quality investment solutions available to everyone. Let the movement begin.
Timothy Baker, CFP® is the Founder and CEO of Wealthshape LLC, a firm built on the belief that investment advice should rely on long term, proven academic evidence and everyone should have access to it. Wealthshape engineers advanced, institutional grade portfolios that are responsibly delivered at a low cost to investors from all walks of life.
By Tim Baker, CFP®
Advice and investment design should rely on long term, proven evidence. This column is dedicated to helping investors across the country, from all walks of life to understand the benefits of disciplined investing and the importance of planning.