Elissa Buie on Financial Times Top 100 Women Financial Advisers List

YeBu in the Mediaon November 20th, 2014No Comments

Elissa BuieFinancial Times, the venerable 126 year old London based newspaper, has named Elissa Buie to its inaugural FT Top 100 Women Financial Advisers list for 2014.  In compiling the list, FT set out to identify the 100 best women financial advisers in the U.S. The guiding principle was to assess advisers from the perspective of current and prospective investors.

Financial Times describes their methodology as “quantifiable and objective” and consisting of the following elements:

FT’s sister company, Ignites Distribution Research, contacted brokerage firms, registered investment advisors (RIA), and other wealth management firms asking for the names of prospective advisors. To be considered, an advisor had to have at least 10 years of experience and manage more than $200 million.  The more than 400 qualifying advisors were asked to complete a detailed questionnaire, which was supplemented by additional independent research by Ignites.

The final analysis included a number of factors, including adviser assets under management, asset growth, years of experience, industry certification (CFP, CPA, etc.), compliance record, and online accessibility. Assets under management was considered a proxy for investment experience and client trust, while asset growth signaled good performance and client satisfaction/retention. Years of experience indicated that the advisor had managed client assets through many different economic environments and certifications signaled a commitment to professional growth and expertise.

Elissa has been practicing financial planning for nearly three decades and has played a pivotal role in the development of the financial planning profession. She is currently Chair of the Foundation for Financial Planning’s Board of Trustees. The Foundation’s mission is to help people take control of their financial lives by connecting the financial planning community with people in need. Visit the Foundation’s website (www.foundationforfinancialplanning.org) for information on how you can help make a difference in the financial lives of others. Elissa is also a past national Chair of the Financial Planning Association (FPA®), the largest professional association for financial planners.

Elissa has published extensively in the Journal of Financial Planning and is a frequent conference presenter on the topics of policy-based financial planning, the discovery process in financial planning, and the role of science in the development of the profession. She has been a conference keynoter throughout the world, including the United States, Japan, the UK, and South Africa. She will be presenting at the Korea Financial Planner Association’s annual conference in November, 2014.

Elissa is a Dean in FPA’s Residency Program and holds an appointment as Distinguished Adjunct Professor in Golden Gate University’s Ageno School of Business, where she teaches the capstone course in the school’s graduate financial planning program. She has been quoted in The Washington Post, Time, and Business Week, and has made appearances on The Today Show, NBC News, and CNBC. Ms. Buie is a Certified Financial Planner® licensee and holds business degrees from the University of Virginia and the University of Maryland. Learn more about Elissa and Yeske Buie at www.YeBu.com.

 

How to Hire the Next Generation

Articles of Interest, YeBu in the Mediaon November 3rd, 2014No Comments

Yusuf FP Mag coverThe November issue of Financial Planning Magazine sports the smiling face of our very own Yusuf Abugideiri under the heading, How to Hire the Next Generation.  Elissa is quoted extensively in the accompanying article, beginning with a discussion of how Yeske Buie has helped support the FPA student chapter at Virginia Tech.

Wealth management executive Elissa Buie, for instance, has co-sponsored FPA chapters at Virginia Tech in Blacksburg, Va., as well as William Paterson. “I pay for dues and pizza, and I’ve also gone and spoken at the FPA chapter at Virginia Tech,” says Buie, co-founder and CEO of Yeske Buie, which has offices in San Francisco and in Vienna, Va. “When students get input from people who are out in the world doing [the work], it’s really valuable.”

Elissa also discusses Yeske Buie’s team approach to serving clients and how this creates opportunities for young planners, interns, and residents to get client-facing experience from day one.

“We always have a senior planner in a meeting, plus a second chair for someone who is more junior. The intern shadows that [junior] person,” says Buie, whose firm offers both internships and residencies. “They learn what it means to prepare for a meeting, take notes, and do the follow-up.”

Buie also assigns interns projects. “Maybe we have client tax returns, but we haven’t been tracking losses carried forward. We might have [interns] create the database, go through the returns and enter the data. Is it generally done very well? Yes,” she continues. “Perfectly? No — but it’s easier for an assistant financial planner to do cleanup than to do it all from scratch.”

Elissa also has the opportunity to highlight the key drivers behind Yeske Buie’s “In Residence” program.

Buie does hire some former interns, but her firm also uses the residencies to attract young talent while managing their expectations. Residents join the firm for two or three years, and are paid the same as a permanent hire at the same level — but everyone knows that their time at the firm is finite.

“You can’t keep growing and hiring and have everyone on a partnership track,” she says. “Our residents fill the paraplanner positions. They … get experience and take the CFP exam while they’re with us. When they leave, they’ll be ready to get scooped up by another firm or start their own business.”

Learn more about Elissa and Yusuf’s background.

Elissa Buie Appears on Washingtonian Magazine’s List of Top Money Advisors for the Fifth Time

YeBu in the Mediaon October 24th, 2014No Comments
November Washingtonian Cover

Source: http://www.washingtonian.com

Elissa Buie, CFP®, co-founder and CEO of Yeske Buie, has been named to Washingtonian Magazine’s list of the Top Money Advisers in the DC metro area for 2014. Ms. Buie has appeared on all four of Washingtonian’s previous lists of top financial planners.

The magazine developed its list by surveying hundreds of financial professionals in the DC Metro Region, asking “Whom would you trust with your own money?” The magazine then followed up the recommendations with their own research, interviewing experts and consulting industry organizations and publications. Those on the list received the most recommendations from all sources. Elissa was one of only 58 fee-only financial planners named.

The November issue of Washingtonian, which is now on newsstands, highlights Yeske Buie and the firm’s unique financial planning philosophy:

“Money, however hard earned, is a renewable resource. At Yeske Buie, we help our clients make the most of their most valuable resource: life. Our motto is Live Big® – It’s about the size of your life, not the size of your wallet®.”

Elissa has been practicing financial planning for nearly three decades and has played a pivotal role in the development of the financial planning profession. She is currently Chair of the Foundation for Financial Planning’s Board of Trustees. The Foundation’s mission is to help people take control of their financial lives by connecting the financial planning community with people in need. Visit the Foundation’s website (www.foundation-finplan.org) for information on how you can help make a difference in the financial lives of others. Elissa is also a past national Chair of the Financial Planning Association (FPA®), the largest professional association for financial planners.

Elissa has published extensively in the Journal of Financial Planning and is a frequent conference presenter on the topics of policy-based financial planning, the discovery process in financial planning, and the role of science in the development of the profession. She has been a conference keynoter throughout the world, including the United States, Japan, the UK, and South Africa. She will be presenting at the Korea Financial Planner Association’s annual conference in November, 2014.

Elissa is a Dean in FPA’s Residency Program and holds an appointment as Distinguished Adjunct Professor in Golden Gate University’s Ageno School of Business, where she teaches the capstone course in the school’s graduate financial planning program. She has been quoted in The Washington Post, Time, and Business Week, and has made appearances on The Today Show, NBC News, and CNBC. Ms. Buie is a Certified Financial Planner® licensee and holds business degrees from the University of Virginia and the University of Maryland. Learn more about Elissa and Yeske Buie at www.YeBu.com.

SOURCE – Yeske Buie

 

NYTimes: Market Turbulence Serves as Reminder to Tread Lightly

YeBu in the Mediaon October 16th, 2014No Comments

Tara Siegel Bernard ends her New York Times article with a reference to the Yeske Buie approach to weathering choppy markets:

Still unsure what to do? David Yeske, a financial planner in San Francisco, recently sent out a calming note to his clients explaining that downturns are an inevitable feature of the economy, but he offered another strategy. He offered some “fun and uplifting” distractions from the scary headlines, and he provided links to videos featuring a rendition of “Stand by Me,” and a flash mob.

Wall Street Station

Dave’s article on CNBC Digital: “Invest the Time to Find the Best Financial Advisor for You”

YeBu in the Mediaon October 9th, 2014No Comments

CNBC

Dave’s article on how to choose the best financial advisor was published on CNBC Digital on October 1, 2014.

Proper financial planning has the power to transform your life by reducing worry and establishing a workable path to your goals and dreams, but you need the right person to be your partner in this process. So what are you to do when the complexity of your financial life finally drives you to seek some professional financial help?

He summarized the key points in facilitating the search:

  • Research – Get clarity about what you are looking for and what you expect to accomplish.
  • Focus – Filter your options by considering financial advisors with the appropriate credentials.
  • Interview – This is potentially the most important step in the process. Interview two to three candidates to determine the following:
    • Can the financial planner address your particular issues?
    • Does the financial planner work with people like you?
    • Do you feel comfortable interacting with this person?

Financial planning, involving some of the most important issues in your life, is a deeply personal service and requires a solid, trusting relationship. So take the proper time to find an advisor you are comfortable with and one you feel will help you achieve your financial goals.

Read the full article on CNBC Digital

Retirement Special: Planning for the New Old

YeBu in the Mediaon September 11th, 2014No Comments

Samantha Allen recently wrote an article with financial-planning.com that focused on the key questions and assumptions to consider when planning for retirement. She enlisted Dave’s advice among the group of planners featured in the article. Dave’s contributions are featured below or you can read the article in its entirety.

WHAT IS ENOUGH?

Some planners also argue that longevity fears are overblown, because minor adjustments to life expectancy wind up having relatively minimal impact on a spending or investing plan. “Once you are planning beyond 30 years, you don’t gain that much by shortening” the time horizon, says David Yeske, managing director of Yeske Buie, with offices in San Francisco and Vienna, Va.

Similarly, he adds, a fairly conservative estimate means that clients will still be safe with even longer life spans: “Once you plan for your money to last for 30 years, it’s likely going to last a lot longer.”

AVERAGE WITH PADDING

Yeske points out that the only way to have a high probability of success is to follow a plan that likely ensures you die with a lot of money — but for most clients, that’s not really a negative outcome.

Investors often have other goals, whether it is to live comfortably or leave money to their children or a charity, Yeske explains: “The ‘conservative’ path means they have enough money for their other goals.”

ASK HARD QUESTIONS

Yeske contends that one of the most important question advisors can ask is this: Are you a smoker? Because smoking can dramatically reduce one’s life expectancy, “it would be disingenuous” to put their life span assumption at age 100 and force them to spend accordingly, he adds.

Policy-Based Financial Planning

Financial Planning, YeBu in the Mediaon August 28th, 2014No Comments

Investor Behavior: The Psychology of Financial Planning and InvestingPolicy-based financial planning is a technique that Elissa and Dave have been developing since their first article on the topic appeared in The Journal of Financial Planning in 2006. The approach has received a lot of attention in the press lately, in no small part because of a book called Investor Behavior: The Psychology of Financial Planning and Investing to which Elissa and Dave contributed a chapter on the topic of financial planning policies.

Financial Planning Magazine
Carol J. Clouse from Financial Planning Magazine wrote an article about client behavior that discussed policy-based financial planning (free registration required) as a system for developing compact decision rules that make it easier to take appropriate actions in a rapidly changing environment. Carol did a great job of capturing the essence, notwithstanding the article’s unfortunate title, “When Clients Behave Badly: What to Do,” which would, of course, never apply to Yeske Buie clients!

Carol opens her article with a humorous example of how our natural propensities can be channeled by a simple policy:

You know that friend who always arrives 15 minutes late, so you tell him the movie starts at 7:15 when it really starts at 7:30?

Advisors who use a strategy they call policy-based financial planning do something like that. A good advisor knows that, while you cannot change human nature, you can use a client’s habits and behavioral biases to craft a financial plan that works for him.

POLICIES: CLEAR BUT FLEXIBLE

A good policy should return an unambiguous answer for clients even if circumstances change, so it should be structured around percentages and other adaptable targets. For example, a young client (or a client’s adult child) who needs a strategy for saving might have a four-part policy that sounds something like this:

  • I will save the first 10% of every paycheck.
  • All of that will go into my emergency fund until I amass three months’ wages.
  • After that, the savings will go into a retirement vehicle up to the maximum contribution.
  • Any remaining savings will go to a supplemental retirement account.

Yeske’s observations on policy-based financial planning are among the insights he has developed with his wife and business partner, Elissa Buie. They appear in a recent book, Investor Behavior: The Psychology of Financial Planning and Investing, by H. Kent Baker and Victor Ricciardi.

At more than 600 pages, the book has 30 chapters written by investment professionals and academics. “The majority of the content focuses on the decision-making process of the individual investor,” says Ricciardi, a finance professor at Goucher College in Baltimore.

The book tackles a wide array of subjects, including the effects of religion on investment decisions; the neuroscience of financial decision-making; post-crisis investor behavior; and the real world of trader psychology.

Investment Advisor Magazine 

Bob Clark wrote a review in Investment Advisor Magazine saying that while the 30 articles in the book were fascinating from an intellectual standpoint, he singled out the policy-based financial planning chapter as particularly useful for practitioners in their work with financial planning clients.

Finally, one of the dynamic duos of the financial planning world, veteran planners Yeske and Buie, wrote: “Practitioners not only need an understanding [of behavioral finance concepts] but also practical tools. Policy-based financial planning is one such tool, offering a framework and approach that allows practitioners to craft decision rules that can keep clients committed to a consistent course of action.”

Based on their 2011 paper, Yeske and Buie provided a six-step process for creating effective financial planning policies for each client:

  1. Engage in the discovery process in which the financial planner learns about the client’s personal history, values, beliefs, goals and resources.
  2. Identify planning areas and best practices required by this client.
  3. Combine goals with best practices to create a proposed policy.
  4. Test the policy: Is this a good policy?
  5. Test-drive the policy with the client and listen to their feedback.
  6. Conduct periodic reviews and updates checking for changing circumstances.

The couple concluded: “Financial planning policies are structured decision rules that can act as a touchstone for both clients and their advisors and allow for rapid decision making in the face of a changing environment.”

While Yeske Buie has found Policy-Based Financial Planning to be very helpful in developing policies for risk management & insurance, investments, charitable giving, and when and how to refinance, financial planning policies can also be extremely helpful in the work we do with the adult children of existing clients, some of whom are just launching themselves in their career. In most cases, these young people will experience many significant changes in a relatively short period of time, including multiple job changes, significant changes in pay or benefits, and multiple living arrangements, from shared apartments to buying homes. Policies can help them deal with all of these changes without requiring them to “reinvent the wheel” with every move.

In conclusion, policy-based financial offers a framework and approach that allows practitioners to craft decision rules that can keep clients committed to a consistent course of action in a seemingly chaotic and unpredictable world.

Dave on CNBC’s Power Lunch

YeBu in the Mediaon August 28th, 2014No Comments

On Tuesday, August 19, Dave Yeske was featured on CNBC’s Power Lunch to discuss what small business owners need to do to prepare for retirement. The discussion stemmed from a recent survey conducted by the Financial Planning Association (FPA) and CNBC.

Lori Ioannou, senior editor, summarized the study and interview on Power Lunch in her article (snippets below) on CNBC.com.

Neglecting a personal financial investment strategy and just plowing money into a business is fraught with risk. “It means the only way to fund retirement is to sell and cash out,” explained David Yeske, a principal in Yeske Buie, a financial advisory firm with offices in San Francisco and Vienna, Virgina. “There is always uncertainty on how successful the owner will be in finding a buyer at the right price. If he or she dies before this is accomplished, all can be lost.”

Financial advisors who participated in the CNBC/FPA survey pointed to three key initiatives small-business owners and their financial planners should follow in order to secure their financial future.

1. Diversify. Work to reduce dependence on the eventual sale of the business to fund retirement. Instead, strike a balance between reinvesting all profits in business expansion and diverting some funds to other investment assets.

2. Prepare for the worst. Protect your family and your business assets by buying insurance that covers the business owner’s disability or premature death.

3. Plan for succession. The time for a business owner to start developing a succession plan or exit strategy is from the first day the firm is launched. That’s because a well-designed strategy—including grooming the right individuals for succession—may take years or decades to implement.

The good news is, there is usually a fallout benefit. As Yeske pointed out, “Having a smart exit strategy boosts the odds of a small business’s long-term success, since it guides the founder on how the business should be properly structured and managed on a day-to-day basis.”

Consumer Reports: Are Your Investments Too Diversified?

YeBu in the Mediaon July 14th, 2014No Comments

Consumer Reports addresses the hazards of being over-diversification in your portfolio (Are Your Investments Too Diversified?) in an online article that originally appeared in the June issue of Consumer Reports Money Advisor.  They quote Dave on the dangers of loading up on the winners of the recent past, which, while understandably tempting, is like driving with the rear view mirror.

Another common cause of portfolio imbalance is loading up on previous winners. Dave Yeske, managing director of Yeske Buie, a wealth-management firm in San Francisco and Vienna, Va., explains it this way: “People say, ‘I’m looking for the best-ranked funds from Lipper or Morningstar,’ but that will lead them to buy 10 of the same thing. Based on last year’s results, you’d end up with 10 funds investing in U.S. small-cap stocks. The year before, you’d have ended up with a portfolio full of global real estate.”

Another point addressed in the article is the risk of buying mutual funds with seemingly different goals based on their names and stated objectives, only to find that they nonetheless are loading up on the same (often popular) stocks.  Dave points out the virtues of using index funds, which are not only allow you to choose well-defined, non-overlapping segments of the market, but to do so at a tiny fraction of the cost of the average actively-managed fund.

When there’s overlap, many experts advise choosing an index fund. “I don’t know of a stock index that doesn’t consist of hundreds, if not thousands, of stocks,” Yeske said. “That’s one way of being assured of broad diversification within the asset class.” And the operating expenses of an index fund are extremely low. Yeske says that the average charge of all the equity funds in the Morningstar database is about 1.3 percent, about 20 times more expensive than an index tracker. “You just can’t do better than index funds,” he said.

Consumer Reports continues to do a great job of ferreting out the misleading information that is so prevalent in the world of financial services.  You may recall that the Yeske Buie financial planning team participated in a Consumer Reports project aimed at rating the quality of investment plans offered by major firms across the country.

Dave in the Chicago Tribune – ‘Getting personal with your financial expert can pay off’

YeBu in the Mediaon February 28th, 2014No Comments

Dave was recently quoted in the Chicago Tribune, where writer Janet Kidd Stewart tells readers how ‘Getting personal with your financial expert can pay off.’  Stewart suggests that clients get more for their money if their financial adviser has conversations with them and plans for those things that matter most to them, including the lifestyle they want now and in the future. Many financial service firms are increasing their efforts to address these important planning areas with clients. So how do you balance the values/lifestyle discussion with the numbers? Dave tells Stewart that it requires more than just a good relationship:

How do you ensure you’re actually getting something other than a new best friend out of these more intimate conversations?

Always look for metrics, said Dave Yeske, a financial planner with Yeske Buie, a firm with offices in San Francisco and Vienna, Va.

For retired clients, for example, Yeske advocates long discussions about matching lifestyle needs with the realities of a nest egg’s size. Once a spending level is agreed on, he sets strict guidelines on sticking with the plan.

If investments underperform, spending is automatically cut back according to a formula. If they outperform, clients get a bonus for the next year.

Yeske said the system greatly reduces client anxieties about market volatility because they see the original parameters as guidelines that they set based on their own goals.

“You can’t just talk the talk about having more personal relationships,” he said. “Advisers will do their best work if they can go deep with clients, but they can’t just pander. They actually need to bring in financial planning rigor with well-crafted strategies.”

Read the full article 


“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