How does your financial advisor invest?

Blog post #487

You should want to know and understand how your financial advisor invests his or her own money, and whether they invest it in a manner that is consistent with the recommendations that they make for you.

This is an important matter that you should ask about. Surprisingly, very few clients or prospective clients ask us about this.

Our answer is a clear yes. The partners of our firm invest our assets in stock and fixed income mutual funds or ETFs that are the same or consistent with the investments that we recommend to our clients. And relatives of the partners who are clients are invested in the same manner as well.

If you are not a client of our firm or have an account with a major brokerage firm or bank, the answer from those brokers and advisors may likely be very different than ours. If your advisor is investing differently than their recommendations, that should concern you. It should lead to more questions. Maybe that should lead to a conversation with us.

Investing our money alongside our clients is one of the guiding principles we have had since the inception of our firm. For example, I own the same US large, US small value and International large value fund that we recommend for your portfolio (or ones that are very similar in investment strategy and philosophy). If you own an International Core fund, I likely own the same one. You get the picture. The exact allocation of the investments that I own may be different than yours, as the allocations are based on each person’s specific situation. The same goes for Keith, my partner.

We feel this is a vital distinction. Our investments and interests are aligned with yours. We have the same skin in the game as you do. If you are making money, we are making money. If your accounts are going down, our accounts are going down.

I learned many years ago, prior to forming our investment advisory firm, that this was not always the case. In various situations, I realized that some brokers were making recommendations but not investing their own money in a manner consistent with how they advised their clients.

I asked this question when meeting with the brokers who managed my prior firm’s profit-sharing plan. I was very surprised to learn that the brokers, who were close in age to myself (so should have had similar objectives, goals and time-frame), did not own investments or have portfolio allocations that were consistent with what they were recommending to our firm. This made no sense to me. This was a defining lesson for me.

We don’t make recommendations to you and then do the opposite for ourselves. As a guiding principle, we follow the same philosophy and recommendations for ourselves that we provide to our clients. We are consistent in this manner.

This is another reason that you should be confident and comfortable with our firm and our principles.

Your financial future is based on our recommendations and financial advice. Our financial future is dependent on the same investments, strategy and philosophy.

Shouldn’t it be this way?


Talk to us. We want to listen to you. we want to assist you, your family members and friends.

If you would like to read our previous blog posts, click here.

Let us know what you think. If you would like to contact us, please email or call Brad Wasserman ( or Keith Rybak (; or 248-626-3900 (or visit the Contact Us section of our website).

~ Developing Relationships by Doing the Right Thing ~

Wasserman Wealth Management, 31700 Middlebelt Road, Suite 130, Farmington Hills, MI 48334


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