How we add value
This is a pyramid of how we view the most important factors that result in successful financial outcomes. And below the pyramid, you will find how we address each of these.
Investor behavior is by far the most critical factor in creating successful outcomes. For some components of behavior, investors can develop systems to fight against negative outcomes. For others, there is almost no solution. At Modern, we understand this is the most important component of financial success, therefore this is where most our research and reading time is spent - learning how we can better help our clients by better understanding human behavior.
Asset Allocation is the mix with in your portfolio to provide an investor with the right balance of risk and reward in order to improve their probability of having positive financial outcomes and achieving their goals. This is a mix of stocks and bonds, small companies and large, domestic and international. Though we feel that we nail this part down well, this is primarily an area where you just don’t want to screw up. Our asset allocation is different for each client, and checks all of the right boxes. Among the best fee-only firms out there, you’ll find a lot of the same asset allocation.
fees & Transaction costs
We enjoy research and data, and the data is clear when it comes to fees and transaction costs. In summary: the higher the investment expenses, the lower the investment performance. With this knowledge, our approach is quite simple - we use investment vehicles with low fees that do not impact investment performance, and we keep transactions costs low. In addition, we price our own services below what is known as “industry standard.”
Taxes may be the largest expense of your lifetime. Therefore, tax management within financial planning is extremely important. Our founder, Michael Troxell, is a licensed CPA - a license that less than 5% of investment advisors have. This allows Modern to add value on the tax side by keeping close tabs on your tax situation, reviewing your tax return, and working side=by-side with your personal tax preparer to ensure that opportunities are evaluated and taken advantage of.