Case Study: I don't know anything about investing
Anna, 30-years old currently living in Arizona. She liked her job but didn’t want to get stuck in the 9-5 job and living paycheck to paycheck. She didn’t want to have to worry about money or worry about losing a job. She wanted to have her money work for her and would listen to a lot of motivational videos from Warren Buffet, Tony Robbins, and Jim Rohn. She would hear random investing terms thrown out such as compound interest, bonds, mutual funds, etc. and had no idea what those meant. Investing was very foreign to her because she was a graphic designer and a graduate of fine arts. She didn’t know anything about business or money but was willing to learn how to invest.
She wanted guidance in the right direction for her to learn how to invest because she had heard that by just waiting one year she could be giving up $60,000. She had always heard of investing in companies that you understand but she didn’t want to dive in too quickly into waters that she wasn’t familiar with. Stocks? Bonds? Mutual Funds? ETFs? She wanted a step-by-step plan from not knowing anything about investing to feeling confident and excited about her investment decisions.
HOW WE SOLVED THE PROBLEM
In just 30 days and using our High-Level Signature Program with 8 one-on-one coaching sessions, Silvia and her team brought her from not understanding anything about investing to equipping her with the tools she needed to become financially independent and finally feel relieved, organized and excited about your personal finances. She was excited about building wealth on autopilot and making her money work for her.
Week One: The Mindset of Millionaire Investors. Why some investors make millions and why others lose all of their money. We chose a brokerage firm for her at Charles Schwab to keep all of her accounts in one place.
Week Two: We figured out her goals and went over all of the different accounts that she should be using to reach her goals. Some accounts are better for retirement than others while other accounts are good for education or buying a house.
Week Three: We went into understanding mutual funds, ETFs, stocks, bonds and how to analyze the performance and fees for different types of funds.
Week Four: We determined her personal risk level, creating a diversified portfolio and automating her investments so she could set it and forget it!
SOLUTION TO CLIENT
Anna is now confident about her investment decisions and making her money work for her on autopilot without having to worry about what stocks or funds to purchase next! She feels confident in her financial plan and is excited to be investing for her financial goals.
Case Study: Not Happy with Current Portfolio
Sarah, 41 was not happy with her current financial advisor and the poor performance of her investment portfolio. She complained that he never called her, had her in too much cash, she didn’t understand the funds she was in and most importantly, despite a long positive market, her investments were flat and stagnant.
When our team analyzed her portfolio, we found the common “kitchen sink” approach. This means that the portfolio had high-commission and high fee funds that were designed to make Wall Street money while delivering poor results to Sarah. In addition, the advisor had a large amount of cash due to the fact that he thought that the market had been overvalued and kept her in cash for the past 5 years (missing the incredible long run).
HOW WE SOLVED THE PROBLEM
Our team helped Sarah transfer her accounts to Charles Schwab and completely re-designed her investment portfolio. We upgraded her into low-cost index funds and created a portfolio that maximized her returns while minimizing her risk. In addition, because Sarah cared about ESG investing, we chose to invest 10% of her portfolio in single stocks using our proprietary investment process that included companies with high earnings growth, innovative products, superior management and leaders in their field. This allowed her to use a tax-advantaged keeping her fees low and more money in her pocket.
SOLUTION TO CLIENT
Sarah now finally understands her portfolio, believes that it fits her values and is excited about making her money work for her. In addition, Sarah now understands how the stock market works and why it is important to stay the course.
*Please Note: Limitations: The above Case Studies are hypothetical-not involving actual Manent Capital clients. Case Studies illustrate the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The Case Studies are designed to generally illustrate how we may provide our services to our clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the Case Studies are not to be construed as an endorsement of Manent Capital by any of its past or current clients, nor any assurance that Manent Capital may be able to help any client achieve the same satisfactory results. To the contrary, none of the Case Studies should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Manent Capital is engaged, or continues to be engaged, to provide investment advisory services.