Tim Fellow

One of the most common questions I hear from nonprofits and associations is “how do I know if our performance is good or bad?”    The answer is benchmarking, and it’s crucial for allowing leaders and Board Members to verify performance is in line with expectations. Without the context benchmarking provides, it’s difficult to objectively evaluate results and make strategic decisions.    Very simply, benchmarks should be two things:    1️⃣ Static  2️⃣ A mirror of your target asset allocation    So, if your organization’s investment policy has a target of 60% stocks and 40% bonds, your static benchmark should also be 60% stocks and 40% bonds. Unless your target allocation changes, your benchmark should remain the same.      Watch out for one-size-fits-all benchmarks for comparing your portfolio performance. The S&P 500 can be a great benchmark for US stock performance, but it’s not helpful unless your portfolio is solely invested in US stocks. Your benchmark is as unique as your organization’s risk tolerance & asset allocation.  #portfoliomanagement #investmentstrategy

9

1 Comment

https://lnkd.in/gYqDvqB7 Think Advisor's John Manganaro writes how CFP Board pivoted from their "Perfect Job" ad campaign because of the complaints from CFPs. The ads seemed to urge 16-22 year-old ne're do wells to become financial planners. Manganaro reports CFP Board "listened" to the complaints and acted to revise the ads. Kevin Keller released an open letter, https://lnkd.in/g_y88t7t QUESTION. HAS CFP BOARD DONE ENOUGH? Enough to explain what happened, acknowledge the mistake, and repair the damage many CFPs feel the ads caused to the CFP designation? The flood of CFPs who complained, many to a thoughtful Michael Kitces LinkedIn post, were mostly expressions of respectful and clear frustration -- or just outright anger. I think of these CFPs and wonder if CFP Board has done enough to heal the wounds. Your advice for the CFP Board? How would marketing / reputation consultants advise CFP Board? Thoughts?

3

In another piece, we explored how to invest available cash: Should you invest it all right away as a lump sum? Or are you better off wading in more gradually with dollar-cost averaging? In round one, we discussed why lump-sum investing is generally expected to generate the highest returns over time. In markets that have risen more, and more often than they’ve fallen, the sooner you deploy your investable assets, the more time they have to grow. That said, general rules don’t always apply to you. Let’s look at when dollar-cost averaging may be preferred after all. https://buff.ly/3T8nPrh #financialplanning #investing #Denver

6

By aligning philanthropic efforts with personal and familial values, charitable giving is one way that individuals and families can develop their influence. The benefits of charitable giving are multi-dimensional, with actions positively affecting monetary recipients, societal awareness and perception, and individual and familial legacy. A deliberate, strategic approach to giving can help ensure that charitable actions have a meaningful, lasting impact—philanthropic actions affect everyone in both big and small ways. #CharitableGiving #FamilyPhilanthropy #PhilanthropicManagement

13

1 Comment

Fresh off the press. My new guidebook for families and foundations who want to invest aligned with their faith and values. It helps navigate life's big questions and enables you to define a strategic direction and build a portfolio of faithful investments. 1. Legacy. What are you passionate about? What are the injustices you feel called to? 2. Redefining Return. How will you define success of your investments? 3. Evaluating & Discerning. What's in your current portfolio? Is it aligned with your values? 4. Responsibility. What financial returns do you need to generate over what time horizon? Do you have a financial finishline? 5. Approach & Risk. What investment strategies & asset classes will you explore? What is your risk appetite? Are these questions that your family or foundation would like to explore? Let me help you get started. DM me to start a conversation. #investment #purpose #foundation #impact

74

3 Comments

Fresh off the press. My new guidebook for families and foundations who want to invest aligned with their faith and values. It helps navigate life's big questions and enables you to define a strategic direction and build a portfolio of faithful investments. 1. Legacy. What are you passionate about? What are the injustices you feel called to? 2. Redefining Return. How will you define success of your investments? 3. Evaluating & Discerning. What's in your current portfolio? Is it aligned with your values? 4. Responsibility. What financial returns do you need to generate over what time horizon? Do you have a financial finishline? 5. Approach & Risk. What investment strategies & asset classes will you explore? What is your risk appetite? Are these questions that your family or foundation would like to explore? Let me help you get started. DM me to start a conversation. #investment #purpose #foundation #impact

113

13 Comments

I occasionally like to scan through the PE subreddit to keep a pulse on what early career fund managers and others looking to break into the industry are talking about. Recently, I found a question asking if it’s possible to achieve a healthy work/life balance and realized I haven’t said a lot here on the topic. In private equity, the demands are high, especially for those starting out. That means long hours, weekend work, and constant travel are common—making burnout seemingly inevitable. However, here are some ways that I’ve been able to keep that burnout at arm’s length over the years: - Establish clear work hours and communicate with your team to ensure mutual respect for personal time. - Prioritize high-impact activities and delegate when you can. - Remember to take care of your physical and mental health. Regular exercise, a balanced diet, and adequate sleep are non-negotiable. Personally, I favor ice or street hockey to stay fit. - Make time for family and friends to maintain a support system. Nurturing these relationships provides emotional support and helps maintain a sense of normalcy outside of work. - Find ways to give back—you would be amazed at how great it feels to help others who may not have the same options or opportunities you do. Through the Frank Family Foundation, I established as a teen entrepreneur, my mom and I work together to determine which nonprofit organizations to support. We take the time to meet with those in need so we can understand how best we can help. Remember, your career is a marathon, not a sprint. You’ve got to find a way to work toward your goals while maintaining a fulfilling personal life if you want to outlast your competition. https://lnkd.in/db4EJh9k

4

1 Comment

More couples than ever are signing #prenups, but knowing that you need a prenup is different than knowing how to obtain one. Bernstein's latest white paper shares ways to develop a shared vision that can strengthen the relationship. Download it today:

1

There's been a lot of discussion surrounding donor-advised funds (DAFs) and their impact on charitable giving. Some have framed their growing popularity as a "Wall Street takeover" of philanthropy, but this is short-sighted and ignores the benefits of the approach. The growth of DAFs doesn't signal a retreat from traditional charity but an evolution of it. They can enable donors to be more intentional and consistent in their giving, treating charitable dollars with the same care and foresight as other investments ensure. Not only can this potentially ensure the long-term impact of these donations, but it can also make philanthropy easier to manage, encouraging people to make it into a lifelong habit. #CharitableGiving #DAFs #Philanthropy

9

If you’re committed to financial planning - and a legit financial professional, then you have to see this. Register. #LeadWithAdvice

11

1 Comment

What does the Federal Reserve’s “extended period’ comment mean to Community Associations?   At the start of 2024, many “experts” were calling for 3 to 5 rate cuts this year. Now, those same folks say we may only see one cut – or perhaps none this year - as decreases in inflation have stalled with the year-over-year rate at 2.7%, well above the Fed's 2% target inflation rate.   Minneapolis Federal Reserve President Neel Kashkari said the central bank will need to hold interest rates steady for an "extended period" that may last through the rest of the year. For associations with substantial Reserve assets sitting in low-yielding money markets, this means there is still time to lock in 4% to 5% rates with a laddered CD portfolio. Contact our office for more details or for a reserve fund analysis and proposal. Securities and Advisory Services offered through Prospera Financial Services. Member FINRA/SIPC. Certificates of Deposit are FDIC insured up to $250,000 per Depositor. A single account is insured up to $250,000. Joint accounts are insured up to $250,000 for each individual on the account equaling $500,000 in total per issuer. CD rates and their issuer availability are subject to change without notice and may not be available at the time of purchase

1

Each month, more qualified people are launching boutique advisory firms. Look at their marketing. Listen to their value proposition. The sheer # of "wealth management executives" who want nothing to do with the legacy wealth system is staggering (and awesome). We don't want these titles or reputations. We want — 🟣 To help people, including those previously overlooked. 🟣 To unveil the perils of conflicted advice. 🟣 To use our expertise to solve problems, not just collect fees. Not everyone needs an advisor, but it's the best era yet to have one.

86

28 Comments

https://lnkd.in/ea6dVaNN Another thoughtful piece by Dan Solin, on how power corrupts. Advisers need to be wary when clients trust them implicitly. Solin explains in plain language what scholars like Tamar Frankel and Deborah DeMott have spent decades researching. Many stories have yet to be written on what consumers can do in a time of massive distrust. Two other notes. First, "Corruption" is a topic the industry won't discuss, nor will they talk about consumer distrust. Never mind that research puts financial advice reps with car salesmen in the "trustworthy" department. Second, Solin counters conventional wisdom, which says disclosure doesn't work. Here it does. Transparency & clarity on fees, costs and conflicts work.

10

3 Comments

Top quotes from my conversation with Roz Hewsenian and Joshua Fenton from The Helmsley Charitable Trust. 1. "Ask the question of who will succeed you in the case of a life altering event, because it can happen." -Roz 2. "It's never too late to start thinking about a transition." -Roz 3. "CIO promotions from within are the least disruptive to the organization." -Roz 4. "The key criteria in evaluating our four directors for the CIO spot was who can step out of their primary focus area of comfort and generalize across the entire portfolio?" - Roz 5. "Give your team members opportunities to grow incrementally without dropping problems in their lap."  -Josh 6. "Clients love to help managers because they don't want managers to go in the wrong direction and create a problem." -Josh 7. "You can't flip a switch in this business and change your portfolio asset allocation when 50% is in private equity. We have to start making changes for 10 years from now today." -Josh 8. "The most important thing I wanted to keep the same when I took over as CIO is that I would talk the least of my team in meetings." - Josh 9. "A lot of managers talk about a really defined process and the five factors of security selection they evaluate, but it’s a lot squishier than that. Maybe 20% of the ideas fit into this lovely definition." - Josh 10. "If someone comes to you for advice, don’t tell them what to do. Help them get information that will let them decide on their own." - Josh With thanks to iConnections and SRS Acquiom.

34

Crafting a compelling grant proposal is key to funding success. Focus on clarity, impact, and alignment with funder's goals. Not sure how? We're here to help! #GrantAdvice #ProposalWriting https://zurl.co/OniX

5

Listened to a NYSE Webinar Educational Series about ETFs. The panelists spoke about it’s future, general initial reaction from investors when it hit the Exchange, behaviors/characteristics of ETFs and more. General Takeaway (which we all know)… Again, this is just the beginning of cryptocurrencies and its acceptance in the traditional financial markets. As much as you hear about the controverisal actions of Gary Gensler & the SEC, Web3 is here to stay. It’s just a matter of time when all in the US gov’t will accept it’s validity. I mean, just look… the inflows in the ETF playground is tremendous, the halving is here, BlackRock has set its foot firmly in tokenization and ready to pull the trigger, Bitcoin value is rising and more. The guests on the panel are open to even more coins being pulled into the ETF wrapping. Lastly, the next 5/10 years is about positioning. What value will Web3 companies bring to the global financial stage and how can you exponentialize your TVL. I had a conversation with a pitch competition rep on my submittal the other day and he was unsure about the value of Web3. He still thinks it’s “sinking”. It was an indication of his lack of knowledge on what’s happening in the space. It’s not for him. For those that know, they are moving their pieces on the board and will benefit tremendously from the growing market. The Johnny-come-latelys will be the debit/credit cardholders and that’s fine. You have to have a certain risk-taker mentality to move in this space. Hold on, folks… We’re gonna take hold of the wave.

1

Donor Advised Funds (DAF) are a simple but often underutilized strategy. Here is how they operate: 1. Donor gives cash (or ideally highly appreciated assets) to their DAF 2. Assets are sold and invested in the DAF wrapper (No taxable gain) 3. The donor takes a deduction for the value of the contribution this year against taxable income 4. The donor gives to causes of their choosing on THIER schedule. For the right family, this can save tens or hundreds of thousands in tax over many years when implemented properly! #taxplanning #personalfinance

11

🎙️ New Episode Alert with Rich Cancro, Founder & CEO of AdvisorEngine: Key highlights: - AdvisorEngine's journey and expansion of capabilities - Innovative wealth planning tools for advisors and clients - Pioneering fully digital account opening integration with Charles Schwab - Enhanced CRM and client portal integrations - Sneak peek into future AI integrations and advanced reporting Rich shares invaluable insights on how AdvisorEngine is revolutionizing wealth management technology, making processes more seamless for advisors and improving client engagement. Whether you're an advisor looking to streamline your tech stack or a WealthTech enthusiast eager to stay ahead of industry trends, this episode is a must-listen! 🔗 Listen now: https://wp.me/pdTAz8-5Bn #WealthTechToday #FinTech #AdvisorTechnology #WealthManagement #AdvisorEngine

10

As we touched on in "Organize Your Investments: A Guide to Structuring Your Portfolio for Long-Term Success," when you sell an investment for more than you paid for it, there can be burdensome capital gain taxes realized in the year of the sale. How do you manage for this challenge? It helps to identify which trades can be placed promptly, and which may be better managed over time. Read today’s blog where we explore. https://buff.ly/4awzaqM #financialplanning #taxes

4