It’s not often that someone unfamiliar with the phrase Live Big® appreciates our worldview without additional insight. But sometimes, we find that the universe can be in serendipitous alignment. For instance, consider the following phrase: “Financial planning doesn’t just make your life better, it makes it bigger”. This sounds like a quote you may hear from anyone at Yeske Buie, don’t you agree? In actuality, we simply changed two words in a phrase that comes from a recent advertisement for Purina pet food. As part of Purina’s new “Live Big” communications campaign, the company produced a commercial that we couldn’t help but to smile and connect with. We share the commercial below and encourage you to read our own Yeske Buie “subtitles” to accompany the video.
They say ‘BIG’ like it’s a bad thing. They say big is “indulgence”, that it means “live large”, they say big can never be reached: Yeske Buie believes it can! And together, we’re helping make a big difference in the lives of our Clients… Inspecting every inch of your financial plan for quality – that’s good! Being confident that your assets and goals are safe – that’s big! Helping Clients worry less about financial security like they could when they were younger – that’s amazing! Celebrating one more Live Big goal together – that’s big! Live Big is limitless, Live Big is authentic, Live Big is for everyone, everywhere, every day. Financial planning doesn’t just make your life better, it makes it bigger. Yeske Buie – LIVE BIG®!
It was recently announced that Millennials – defined as anyone who was 18 to 34 years old in 2015 – are now the largest living generation in the United States and have surpassed Generation X to become the largest generation in the U.S. labor force. And while Millennials often face workforce stereotypes including entitlement, job hopping, and social media addiction, they are finally gaining some positive attention as leaders when it comes to saving money. A recent CNBC article by Landon Dowdy shares statistics about Millennial’s saving habits and saving tips from financial professionals including Dave Yeske.
One habit that Yeske Buie has observed with Millennials – and would recommend for those who aren’t doing it – is that they’re more inclined to use technology, including apps, to do two things: save automatically and take a data-driven approach to saving opportunistically. Dowdy shares Dave’s thoughts in her article saying, “Apps like Goodbudget, Wally or Mint can help you track all of your accounts. Take advantage of being part of a particularly tech-savvy generation and use a data-driven approach to saving,” said … Dave Yeske, CFP® of Yeske Buie.”
Additionally, Millennials seem less nervous than other generations about sharing login information in order to set up electronic money-links between their various financial accounts and also tracking systems like Mint.com. Setting up systems to automatically transfer some amount – whether $20 or $200 – every month from checking account into mutual fund or brokerage account is very powerful. Like payroll deducting into a 401(k), set-and-forget automatic transfer arrangements utilize one of the most powerful of the mental biases that the behavioral economists talk about: inertia. Once we’ve put some arrangement in place, it tends to continue indefinitely because of this bias. Harnessing it in this way takes something that in some settings could be a vice and transforms it into a virtue.
Knowledge is power, meanwhile, and as Dowdy shares in another quote from Dave, using tracking systems like Mint.com, “Not only [lets] millennials “know where their money is going — opening up the possibility of changing spending behavior — but also allows them to be aware in real time when surpluses appear that can be swept into a savings or investment account”.
Around this time last year, we shared how and why Elissa and Dave have been promoting the fiduciary standard as this issue has been near and dear to Yeske Buie for many years. Now a year later, the financial world is currently abuzz over the Department of Labor’s new ruling to broaden the definition of fiduciary investment advice. Under the new rule, any individual receiving compensation for providing advice that is individualized or specifically directed to a particular plan sponsor, plan participant, or IRA owner for consideration in making a retirement investment decision will now be a fiduciary. As a fiduciary, the advisor must provide advice in their Client’s best interest rather than acting in a way that is broadly suitable to Clients based on their overall circumstances.
It is important to us that our commitment to the fiduciary standard is congruent to that of our strategic partners. On several occasions, we have highlighted how Dimensional Fund Advisors’ approach to investments and Client success aligns with Yeske Buie’s. The video we share today is no different. In this two minute Dimensional Stories video, DFA Founder David Booth and Nobel Laureate Robert Merton discuss the relationship between financial advisors and Dimensional. We find particular congruence in the approach of the two firms as Robert Merton describes the fundamental importance of having aligned incentives…
“There’s a natural and very powerful mutual benefit if you have people who are aligned.”
Over the past year, we have shared a variety of videos from strategic partner Dimensional Fund Advisors, as we feel they provide important insights into Dimensional’s way of thinking and highlight the similarities between Dimensional and Yeske Buie. To continue illustrating our connection, we share a video that features Dimensional’s Vice President of Research, James Davis, PhD explaining the theory of Mean Reversion. As Davis explains, mean reversion is “the idea that higher than average returns will be followed by lower than average returns, and lower than average returns will be followed by higher than average returns.” This theory excites some investors because the ability to anticipate these cycles would allow them to buy or sell securities at advantageous times. However, Yeske Buie and Dimensional know that there is simply not enough evidence to support that these kinds of patterns exist or serve as profitable trading strategies. As Dave notes in our piece titled, “How to Pick Hot Stocks: Secrets of a Stock Picker”, we believe that it’s not enough to simply rely on historical data alone to develop or propose any technique for investing, which serves as the basis for many of these techniques.
To test the existence of the Mean Reversion theory, Davis conducted an experiment across 15 different stock markets, including the United States, and comes to a conclusion to answer the question, Can You Predict a Good Time to Buy and Sell Stocks?
An entrepreneurial spirit and a drive to advance the profession’s interests are the defining attributes for the firm poised to receive the Trailblazer Award. This award recognizes a firm for its dedication to helping the profession as a whole reach new heights through focused initiatives or the passionate commitment to service excellence. From unique approaches to serving key market segments, community-focused programming, profession advocacy, and support of next-generation RIA talent, there is a broad range of ways firms can demonstrate their vision and profession commitment.
SAN FRANCISCO, Ca, November 12, 2015 – Yeske Buie was selected as the winner of the 2015 Trailblazer IMPACT AwardTM, part of Schwab’s IMPACT Awards® program created to recognize excellence in the business of independent financial advice. The Trailblazer IMPACT Award honors a firm for its dedication to helping the profession as a whole reach new heights through focused initiatives or the passionate commitment to service excellence. The award was selected by a judging panel of profession experts and presented to Yeske Buie at IMPACT® 2015 in Boston, MA on November 12th. The entire Yeske Buie team was in attendance for the prestigious ceremony.
“I’m very proud that our firm is being recognized in this way,” said Yeske Buie managing director, Dave Yeske, “and I’m also tremendously proud of our talented team members without whom this would not have been possible.”
Yeske Buie is a leading wealth management firm providing financial planning and asset management to over 200 clients around the world. The firm’s founders and principals, Dr. Dave Yeske, CFP® and Elissa Buie, CFP®, have almost 60 years of combined experience practicing financial planning and leading the profession. The firm is known nationally for its volunteer service and the Principals’ leadership in the profession and their writing and presentations on topics such as Evidence-Based Financial Planning® and Policy-Based Financial Planning. Their philosophy of Live Big® and Creative Strategies – Grounded Wisdom® form the pillars for their company vision and strategy and contribute to their primary focus of delivering an exquisite experience to their Clients. Internally, the firm has a culture of excellence, learning, team work, constant improvement and fun.
Yeske Buie’s Financial Planning Resident Program, Give Big philosophy, and ambitious technology strategy are among the reasons why Yeske Buie earned this award. Yeske Buie’s innovative Financial Planning Resident program, fashioned after a Medical Residency at a teaching hospital, equips aspiring financial planners with three years of hands-on guidance and foundational training necessary to qualify to be a CFP® licensee. In return, the firm gains additional capacity and helps contribute to the pipeline of new planners entering the financial planning profession adequately prepared to work with Clients. Additionally, one of Yeske Buie’s defined core values is a commitment to sharing their time, their intellect, and their resources; they call this philosophy, Give Big. The Give Big philosophy encompasses community service, domestic and international speaking engagements, high-level involvement in professional associations, educational engagement, and more. Yeske Buie has incorporated these activities into a culture and a lifestyle that they embody both as individuals and as a team. Finally, Yeske Buie continuously seeks technologies that will leverage internal processes and external communication and will contribute to their primary focus of delivering an exquisite experience to their Clients. They have adopted many technology platforms to achieve these goals including their Client Private Page® which streamlines internal report generation while maximizing the frequency and quality of client reporting. These are just some of the initiatives that defined Yeske Buie as a pioneer in the profession.
As part of the Trailblazer IMPACT Award, Charles Schwab & Co., Inc. will make a $15,000 donation on behalf of Yeske Buie to the Foundation for Financial Planning, an organization devoted to providing pro bono financial planning services to the underserved. Yeske Buie has a strong involvement with the Foundation; in addition to serving many years on the Board of Trustees, Elissa Buie also served a two year term as Chair of the Foundation, and the Yeske Buie Financial Planning Team makes regular donations to the organization.
Yeske Buie and its employees are independent of and are not employees or agents of Charles Schwab & Co., Inc. (“Schwab”). Schwab does not prepare, verify or endorse information distributed by Yeske Buie. The Trailblazer IMPACT AwardTM, part of Schwab’s IMPACT Awards® program, is not an endorsement, testimonial endorsement, recommendation or referral to Yeske Buie with respect to its investment advisory and other services.
For nearly a decade, Elissa and Dave have been defining the characteristics of an ideal financial planning policy to help anchor Clients to a consistent course of action despite changes in external circumstances. Their work in this field has become increasingly important for many reasons, but especially considering the steady stream of news and gossip that inundates today’s world and threatens to move Clients off course. With financial news, or what we call financial noise, in a current lull, we wanted to share a satirical video that we feel is the epitome of all financial noise. We encourage you to watch the humorous segment titled “Every TV News Report on the Economy in One” for a good laugh today, and to keep it as a distraction whenever “the numbers” begin to feel scary.
Disclaimer: Video contains language that may be deemed offensive.
Creative is not a word that always comes to mind when you think of wealth management. But at Yeske Buie, our firm, our culture, and our Client relationships are built around our talent for thinking creatively to help our Clients recognize their unique needs, goals, and opportunities, and then use their human material resources in ways that supports a Live Big® life. We also believe that wealth management cannot come from chasing trends and fads. Rather, we believe in creative strategies that are executed with the grounded wisdom that comes from taking an evidence-based approach to everything we do. Furthermore, successful investing comes from knowing why you want to invest, accepting that there are no shortcuts, and engaging in a long-term, disciplined process that is guided by empirically-validated knowledge.
With this in mind, we share another short video from Dimensional Fund Advisors (DFA) “Dimensional Stories” series titled, “Know the Animal”, in which David Booth and Eugene Fama discuss how Dimensional’s approach encourages investors to have a well-grounded perspective of markets. We like to share these videos as we feel they provide insights into the thinking of an important strategic partner and highlight the commonalities between our philosophies which ultimately adds to our Clients’ investment success.
The work we do is complex, but our approach is simple: provide creative strategies that are executed with grounded wisdom.
As Dimensional Fund Advisors embarks on its 25th year of working with financial advisors, they shared with us a series of Dimensional Stories, two minute videos featuring Nobel Laureate Eugene Fama and/or David Booth speaking on the themes and insights that influence Dimensional’s way of investing. Today we share the final video of the series, Dimensional Stories: Things Really Add Up Over Time. In this video, David Booth describes how Dimensional looks for ways to add value at every step of the investment process. As has so often been the case, we find this video to be particularly congruent with our approach and philosophy, exemplified by David Booth when he says in the video:
“What we do in our conversation with our clients is explain all the different areas where we try to add value. Sometimes they wonder why you fight so hard for what might be small differences. It’s because over the long term it really adds up.”
We too believe that, in the long run, small differences really do “add up” and this belief guides us as we seek new ways to add value. Elissa and Dave often tell students – and anyone else who will listen – that financial planning has the power to transform lives for the better. They’ve learned, however, that it’s important to quickly dispel any romantic notions of financial planning as some kind of silver bullet. Instead, it’s the slow accumulation of small gains from regularly rebalancing portfolios, harvesting gains and losses, reviewing insurance policies, flowcharting estate documents, analyzing tax returns, and evaluating Roth conversion opportunities that ultimately add up to better outcomes.
And when it comes to the power of small differences, time is a crucial element. For example, every good financial decision that a young person makes is exponentially more powerful than the same decision made a decade later. And as part of our commitment to help foster good financial habits as early as possible, we recently revamped our Financial Literacy program to include four new books that we send to Client’s children, grandchildren, nieces and nephews at specific childhood and young adult milestones. We believe that, while money by itself doesn’t buy a successful life, an understanding of money is crucial to one and we’ve designed our Financial Literacy program to help our Client’s loved ones begin to build a foundation for long term financial success.
So in the end, like Dimensional, we will continue to fight hard for small differences because we know that things really do add up over time.
As Dimensional Fund Advisors embarks on its 25th year of working with financial advisors, they shared with us a series of Dimensional Stories, two minute videos featuring Nobel Laureate Eugene Fama and/or David Booth speaking on the themes and insights that influence Dimensional’s way of investing. So far, we have shared three videos in the series accompanied by explanations and stories of how the videos relate to Yeske Buie:
We now share the fourth video of the five part series, Dimensional Stories: The Impact of Indexing. This short video features David Booth, founder and co-CEO of Dimensional, reflecting on the early days of indexing and the impact indexing has had on the investment world. In the video, Booth notes the importance of having an investment approach that Clients are willing to stick with and says, “Here you have a great investment approach, that leads to a great experience so that people will stay with it. The world is changing, but the same principles apply”. Similarly, Elissa and Dave have worked, for nearly a decade, to define the characteristics of an ideal financial planning policy as Clients and planners alike often struggle to stay the course when it comes to financial planning. With steady streams of news and gossip often providing little to anchor Clients and planners to a consistent course of action, we strongly believe that well crafted financial planning policies can serve both planners and their Clients by acting as a powerful touchstone in the midst of a rapidly changing world. Elissa and Dave have defined this as Policy-Based Financial Planning and have made various presentations and contribution on the topic.
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? Your playing small does not serve the world. There is nothing enlightened about shrinking so that others won't feel insecure around you. We are all meant to shine. And as we let our own light shine, we unconsciously give others permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.” ~Marianne Williamson