Today’s guest is financial planner and writer, Allan Roth. Allan speaks about his unconventional business model of having the lowest client retention rate where he provides clients with a one-time financial plan and then gets fired. Allan and Arden discuss his goal to help people have an exciting life by having an incredibly boring investment plan. As a frequent contributor for publications such as The Wall Street Journal, New York Times, and Bloomberg, Allan explains his simple investment philosophy and the different ways he helps clients to minimize their risk and maximize a high return.
IN THIS EPISODE:
- [01:57] Allan’s investment philosophy and how he manages client’s risk and fear during uncertainty.
- [05:10] Allan’s business model and thoughts on a holistic approach to investing.
- [08:00] Who can this model work for: Allan’s low client retention model.
- [10:33] Minimizing risk through investment sectors and index funds versus individual companies.
- [16:36] Generational investing and advice for future financial advisors.
- One way to experience success in investing is having discipline to stick to your financial plan. This means buying and selling even when it’s difficult. The older we get, the more money means to us and the harder it is to invest but we have to remain disciplined.
- If you own thousands of companies, you’re taking a smart risk. You’re minimizing the risk in the market. The market itself is risky, but this way you’re maximizing the probability of having a good outcome.
- Allan encourages clients to own the entire market. Sometimes, clients don’t want to invest in certain sectors because of a lack of understanding or having certain religious beliefs that don’t align with company values. Invest in all industries, take the profits earned from those low cost index funds, and then contribute that to whatever cause they believe in.
Allan is a financial planner and writer. His investment columns can be found in publications such as AARP, Barron’s, ETF.com, and Advisor Perspectives. Allan has been an adjunct finance faculty member at Colorado College, the University of Colorado at Colorado Springs, and the University of Denver. He is frequently quoted in such publications as The Wall Street Journal, New York Times, Bloomberg, and others. Allan is the founder of Wealth Logic, LLC, an hourly-based financial planning and investment advisory firm. Neither he nor the firm has ever charged commissions or fees based on assets under management. The goal of his firm is to provide clients with a one-time plan and then get fired. Allan is proud to have the lowest client retention rate in the business. Allan is a licensed CPA and CFP and has an MBA from Northwestern University (Kellogg), but still claims he can keep investing simple, at least as simple as possible, given very complex tax issues in developing a plan.
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