Attorneys have to meet an evidentiary burden of proof at trial. We believe an advisor should meet a similar burden before you allow them to manage your life’s savings. To us, “evidence-based investing and financial planning” mean:
- Having a written financial plan they regularly update and maintain;
- Appreciating that saving is as important as investing;
- Knowing investing is less complicated than taxes;
- Controlling fees, costs, and emotions;
- Buying the haystack (index funds seeking overall market returns less expenses) instead of looking for the needle in it (trying to pick stocks and time markets);
- Agreeing that many lawyers should think twice before representing themselves (in legal or financial affairs).