At Sierra Wealth Advisors, our motto isn’t just a catchy slogan. It represents some of the primary values that imbue our daily work. You know what the words mean, but let us tell you what they mean to us.

Intelligence.

intelligence (in·tel·li·gence): noun: the ability to comprehend; to understand and profit from experience.

Source: WordNet ® 2.0, © 2003 Princeton University

Unfortunately, many advisors don’t seem to embrace intelligence, at least not in practice. Intelligence means being able to recognize, and minimize, potential conflicts of interest.  Intelligence means being able to recognize your limitations (e.g., that you can‘t beat the market) and then knowing how to act accordingly in the best interests of your clients.  Intelligence means being able to recognize that making commitments to too many clients means that you’re not committed enough to any one of them. There are many definitions of intelligence, but the above definition seems very apt.  You should be able to profit from your advisor’s experience and their ability to comprehend the many complexities of finance and how those complexities relate to each other and to your goals.  Isn’t that why you work with an advisor in the first place?

Integrity.

integrity (in·teg·ri·ty): noun: firm adherence to a code of especially moral or artistic values; incorruptibility; synonym : see honesty

Source: Merriam-Webster Dictionary, © 2005 Merriam-Webster, Inc.

Integrity has many definitions, both denotative and connotative: honesty, virtue, dependability, trustworthiness, fair-mindedness, and honor, to name but a few.  At Sierra Wealth Advisors, integrity is represented by our Fiduciary Oath (which we proudly state on the very first page of our Wealth Management Agreement), by the way we’re compensated for the services we provide (fee-only, to eliminate the conflict of interest inherent in any compensation arrangement that includes commissions), by our insistence on creating an Investment Policy Statement for all of our clients (to serve as the foundation for all future investment decisions by clearly stating an appropriate client-specific level of risk in the context of a client’s unique goals and constraints), by our use of asset class mutual funds (broadly diversified, accurately represent their respective asset classes, low-cost and relatively tax-efficient), and by the way we treat our clients (per the Golden Rule, the way that we ourselves would like to be treated).

Investment.

investment (in·vest·ment): noun: 1 : the outlay of money usually for income or profit : capital outlay; also : the sum invested or the property purchased; 2 : the commitment of funds with a view to minimizing risk and safeguarding capital while earning a return — compare speculation

Source: Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.

There are a couple of words mentioned in the above definition that warrant comment.

First, speculation.  As the definition implies, investment and speculation aren’t the same thing.  However, all too often, individuals, much of the financial press, and even some people who refer to themselves as financial advisors, won’t make an adequate distinction.  They’ll imply that successful investing is about picking individual securities or even assets classes that are going to go up or down in value more or less than everything else.  Nothing could be further from the truth.  Nobody can accurately predict when or even if a given security, or an entire asset class, is going to go up or down in value.  It is virtually impossible to capture returns in excess of market returns without taking greater than market levels of risk.  Period.  If you want to speculate with your hard-earned money, that’s certainly your prerogative.  But call it what it is, gambling.

Second, commitment.  The word invested is often used interchangeably with committed.  When you invest your money, you’re making a financial commitment.  And when you invest your money via a financial advisor, that advisor should also be making a commitment to you.  Not a commitment to beat the market, of course, but a commitment to do what is in your best interest.  Investment means all of these things to us.  At Sierra Wealth Advisors, we’re fully invested in providing superior service and value to our clients, with intelligence and integrity.

Philanthropy.

philanthropy (phi·lan·thro·py): noun: 1: The effort or inclination to increase the well-being of humankind, as by charitable aid or donations; 2 : Love of humankind in general; 3 : Something, such as an activity or institution, intended to promote human welfare.

Source: The American Heritage Dictionary, © 2000 by Houghton Mifflin Company

There are numerous ways in which we all contribute to the benefit of society.  We pay taxes, we vote, we volunteer our services, and we provide financial support to institutions or people in whom we believe, to name but a few.  However, there are only two basic ways that we spend our hard-earned dollars to directly contribute to the benefit of society.  We pay taxes or we make charitable contributions.  The government recognizes that making charitable contributions benefits society just as does payment of taxes.  That’s why the government supports charitable contributions by making them deductible from income tax or estate tax in many situations.  The potential benefits of charitable giving are almost too numerous too list.  It remains an attractive way to not only reduce your tax burden, but to be able to direct specifically how or where your dollars will be put to work.  It can be used to create a living legacy in the form of a foundation or donor-advised fund.  It can provide you with lifetime income in the form of a charitable remainder trust or charitable gift annuity. Charitable giving can also provide indirect benefits to the donor such as helping to bring a family together behind a common purpose.

Lastly, at Sierra Wealth Advisors, we enjoy working with people who share our values and want to give something back to the society that helped them create their wealth.  Nothing could be more rewarding.

For more information about charitable giving and whether it makes sense for you, contact us at 888.536.1710.