I'm a CFP® and I don't pick ANY stocks in my portfolios

WRITTEN BY: Gideon Drucker, CFP® AIF® ECA

I am a Certified Financial Planner. I’m an Accredited Investment Fiduciary. I’m President of a successful wealth management firm & I’ve been named a Top Advisor by InvestmentNews, Investopedia and FinancialPlanning.com. 

I say all that to say this: I have NEVER been interested in picking my own stocks…not even in a “play” or "side" account. Across all of my investments, I don’t have one portfolio where I choose my own stocks. It doesn't interest me and, quite frankly, it seems like a giant waste of time. 

In my experience, I have found there are 3 levels of “stock & investment” knowledge. 

1. I know nothing about the stock market so I’m going to stick to investing in mostly index funds. 

2. I’ve started learning about the stock market so I’m going to start managing my own money, picking styles/sectors, and picking my own stocks.

3. I know enough to know that I don’t anything and I’m going to stick to investing in mostly in index funds. 

What’s the beauty of being in the 3rd group? Contentedness & an appreciation for what matters.

I know that historically, investing in a broad, diversified portfolio of stock market index funds while rebalancing and being tax-sensitive in my strategy will provide me with the rate of return I need to compound my wealth & outpace inflation. 

I have absolutely no desire to take on excessive risk (and spend unnecessary time) trying to squeeze out a few extra percentage points (but more likely erasing all of my gains) when simply existing in the market will allow me to share in the profits of the most successful, innovative, and adaptable businesses in the world. 

Most of you understand that a CFP® is not a portfolio manager, stock picker, or market timer but it bears repeating once more so you understand what our clients DO pay us to do: 

• Cash Management (organizing your spending/saving, setting up automated investing contributions, increasing your savings rate as necessary)
• Tax Optimization (helping you to minimize the amount of taxes you pay over your lifetime by incorporating proactive tax strategies each year)
• Goal Based Planning (helping you plan for specific financial goals so that you understand your financial trajectory & utilizing the most efficient investment vehicles for each target) 
• Retirement Tracking (helping you understand if you’re on track for your desired retirement goals, what needs to change to get there, and if there is anything missing in your current set up)
• Investment Management (building tax-efficient portfolios of investments that are designed to outpace inflation and allow you to achieve your specific spending goals over time) 
• Insurance Planning (making sure that your family has an adequate amount- and the right type- of life insurance, disability insurance, and long term care coverage to protect your financial foundation) 
• Estate Planning (making sure that your family has basic estate planning documents for when the decision makers are unavailable and are leveraging strategies for generational/legacy planning as appropriate)

I am supremely confident that looking through all of these different areas of your financial situation is a better use of your time & energy than trying to pick the "most" optimal stock portfolio (which doesn't exist anyway.)

What's holding you back from getting started? 

Schedule your 15 minute "Right Fit" call here to discuss...