In Financial Services – complexity is often sold under the guise of “sophistication”. As investors, the questions we should consider are:
1. How does this investment vehicle give me a rate of return
2. How complex and costly is the investment, and is the solution (risk/return) projections worth the squeeze
3. From a tax standpoint, does this investment get me closer to or farther from my desired tax picture
4. Will this investment take much of my time to manage? Am I comfortable with that time commitment?
By definition – Complexity is the structural intricacy of a system, while Capability is the functional output or problem-solving power.
As wealth managers – our investment role is to work behind the scenes to build the best boat possible for our clients. Not necessarily the biggest or most complex, but one that is sound and resilient – capable - to chart any waters.
Beyond that quantitative commitment - when our clients can understand what they own, why they own it, and “how” the boat is designed – we have done our job.
Educating, Activating, Equipping others to be informed in the relationship of how their assets work for them, and help them get to the future they desire is a key outcome we drive toward every day.