Realistic Expectations?

Investing and potential return on investment are hot topics, especially in the current market. We have all heard someone say something like, ‘I beat the market!’ but what does that really mean? From our perspective, this is a subjective view with too many variables to measure. Optimism and confidence in your investments are desirable attributes. However, watching the market rollercoaster through highs and lows can make it difficult to keep a grasp on reality. How can we remain invested and calmly optimistic at the same time? This is what we work hard to help our clients do.

Financial Advisor IQ published an article recently regarding the gap between clients’ expectations and advisors’ expectations on what kind of return is realistic for investments. They stated: 

“Only 20% of advisors expect returns on investment of 10% or more per 

year while 59% of investors expect returns of 10% or more and 40% 

of investors expect returns of more than 25%.”[i]

Emerald Advisors believes in serving our clients by going above and beyond expectations. From working with unexpected deadlines to helping someone access cash quickly, these are areas where you can expect us to do what we can to help clients. 

When we read a statistic about client expectations regarding return on investments, we can see some truth behind it. Some people think investing is like a magic wand in which dollars multiply when you wave it. Investing over time can be a beneficial way to grow your money, but it does not happen overnight. Investing is something that is best done for the long term and can assist you in developing financial skills to serve you throughout a lifetime. Even though we know a mismatch of investor expectations to advisor expectations can be the reality for some, we are actively working to combat this disconnect, and here’s how. 

Addressing Retirement Anxiety

Emerald Advisors is a holistic wealth planning firm, and a big part of how we approach planning is through the lens of retirement. From our first meeting with a client, we bring up the topic of retirement. We desire to help clients manage their finances and invest in ways that align with their retirement goals. We understand the stress that can come from not having enough for retirement, funding retirement, or not knowing when a good time to retire would be. Helping clients plan for retirement can alleviate undue stress and set realistic goals. 

Clients of the Future

Emerald’s history is steeped in providing family office services to our clients and helping build a foundation of financial education. When we bring you on as a client, we view it as bringing your whole family on. We know many clients want to pass on a financial legacy to their children and grandchildren, yet many of these individuals need support to get started with creating their first budget. 

As younger clients reach the age of maturity, take ownership of accounts, go to college, or begin their first job, Emerald aims to be the first point of contact for them. With so much financial advice accessible to younger generations, we want to become an elevated voice above the noise, one they grow to recognize and trust. We do this by sharing relevant educational articles on our blog, teaching the basics of investing, and being available when they need us. Our aim is to develop and nurture this relationship so that as your kids get older, they know whom to call when they need financial guidance.

Emotions and Finance

We understand the intersection of emotions and finance. Money can be a touchy subject for many people depending on the money story we tell ourselves, family life events, or a change in circumstances. To reduce the emotional upheaval clients may experience around finances, we work hard to understand your goals, worries, and the complete picture of your finances. Emerald meets with clients during the year and is readily available for check-ins as well. Knowing you have our support at important times in life can help alleviate some of the worries around finances.

Timely Communication

Emerald strives to be in contact when important things happen in the market. Emerald works with each client to develop individual plans that serve the client in their current circumstances while considering the market’s fluctuations. We let your goals be the driving force behind changes to your investments more than moves in the market. 

Long-Term Thinking and Planning

To serve our clients well, we must start with being realistic. The firm’s job is not to help you stick your head in the sand but to look up and accurately assess your finances. We consider ourselves your coach or Chief Financial Officer (CFO) and want to help you navigate your financial journey with as much knowledge as possible. 

Once you know and understand your options, you can better prepare for the future confidently. We help clients understand where their retirement income streams will come from, identify any shortfalls, or when to take advantage of capital gains and losses. 

Emerald Advisors is here to help. It’s why we do what we do and show up daily for clients, their families, and friends. 

[i] [i] Raagas De Ramos, R. (2022, August 23). Financialadvisoriq.com. Mismatch of Investment Expectations Between FAs, Clients. [Online] Available at: Financial Advisor IQ – Mismatch of Investment Expectations Between FAs, Clients