Personalized Investment Services:
Your Life-Long Solution

For those clients who have become dissatisfied with the financial advice offered by the commission based brokerage community, we offer (through a separate Registered Investment Advisor entity) personalized, disciplined, fee-only investment management services that are designed to become a systematic, life-long solution to the investors’ dilemma of constantly searching for the elusive “beat the market” investment.  In today’s investing world, the need for broad diversification of the portfolio among asset classes has become an urgent and apparent need, which is rarely addressed adequately in an investor’s portfolio. Our professional coaches personally assist each client to develop a portfolio that is diversified, structured and regularly rebalanced to meet the pace of the marketplace.

What is Wealth Coaching?

Wealth Coaching helps you find happiness as it guides you in the TRUTH of investing, by teaching you how to make wise choices as you journey through your life’s stages. It is all about your relationships and what you value, not your net worth. We believe that traditional financial planning is the problem and Wealth Coaching is the solution.

Are you overwhelmed and frustrated? If so, answer these questions:

  • Are you smart but feel that you are missing out on getting good returns?
  • Do you feel betrayed by the mutual fund company scandals and the advisors you have worked with?
  • Do you feel overloaded with information from the media?
  • Do you feel like you do not know who to trust?

What Makes Us Different?

Every financial advisor claims they are different from one another.  But is it true?  Let me tell you a quick story.  As an estate planning attorney, my primary objective is to ensure that your trust is positioned to best protect you and your family’s interests.

And for most families, the most valuable asset within their estate are their investments.  What I’ve also learned through experience is that no matter how well the estate plan documents are written, if the investments inside the plan are not properly managed it can seriously jeopardize the effectiveness of the plan and more importantly, your financial future.  What’s worse is that too often people don’t know there is a problem exists until the damage has been done.

These are important and challenging issues that I’ve struggled with how to solve for years both personally & professionally.  And as a result, I have spent a lot of time, money and effort to find a solution that can help me protect my family as well as my client’s families, and I realized the increasing importance of having an integrated estate, tax & investment plan.

I also realized that there are really only three critical factors that differentiate one advisor from another.  They are: the Investment Philosophy—Active Management vs. Structured Investing, Portfolio Construction, and Coaching vs. Selling.

In the investment world, there are really two different and diametrically opposed philosophies—Active Management and Structured Investing.  Most investors do not realize this because Wall Street firms, their brokers, and the financial media only push the first.  And who can blame them? By its very nature active management makes more money for them and moreover, they are not paid to educate the investor–they are paid to sell them products.

Active Management believes that the advisor can create value for the client by helping them either time the market or pick the right stock, mutual fund, money manager, IPO, bond issue, or whatever.  The believers of this philosophy include:  Wall Street firms at-large, the financial media (CNBC, CNN, Fox News, Bloomberg), all major mutual fund companies, all major brokerage houses, and my guess is that unless you’re working with a financial coach, we can put your financial advisor in this group as well.  Active Management is built upon the foundation of Timing, Selection, and Track Record Investing.

The second investment philosophy believes just the opposite.  It believes that Timing and Selection is a fool’s errand; that the markets are efficient, diversification is essential to long-term success, and asset allocation is the reason why your portfolio gets what it gets.  Believers include me, my money manager, (Matson Money), Dimensional Fund Advisors (DFA), Nobel Prize winning economists, and world-renowned academics.  Structured Investing is founded upon the principles of Academics and Economics.

Neither investment philosophy is right or wrong.  It’s what you believe works FOR YOU.  But I do think you need to enter this game knowing the rules and with your eyes wide open.  So know this: there is not one shred of evidence to support Active Management as a successful long-term investing strategy–NONE whatsoever.  (In fact, all the evidence supports the use of Structured Investing). There is no academic paper, research, dissertation, or theory that proves someone can know IN ADVANCE which investment will be the winning one. There is only anecdotal “evidence”.

If you look at your investment statements it will have a variety of products—mutual funds, individual stocks, and maybe some fixed income (bonds)—some will look familiar, others will seem foreign.  Whatever you have I can guess with a high degree of certainty that the underlying investments that make up your portfolio all employ some sort of active management—either strategically or tactically.  And because active management is based on predictions and active trading, it increases costs and decreases tax efficiency.

Our portfolios are made up of Structured Funds.  Unlike traditional mutual funds (or index fund funds for that matter), Structured Funds are specifically designed and engineered to capture risk-return dimensions identified in the Three Factor Model.  These are the premiums that exist in the small cap and value arenas which have been identified through academic research.

Also, any trading within the portfolio is pre-defined by our Investment Policy Statement (IPS) and is usually triggered by rebalancing. Mutual Fund trading is at the mercy of the mutual fund manager’s predictions and index funds are forced to buy and sell specific securities as they fit (or do not fit) the criteria of the specific index.  This adds costs by incurring trading commissions and bid-ask spread costs. Because Structured Funds are never forced to buy or sell any security nor are they at the mercy of the manager’s prediction, they usually lower trading costs and increase tax efficiency.

Many of my clients bemoan the fact that their previous financial advisor only contacted them when they wanted to sell a product.  And that’s because their advisor was under the Selling model.
We believe that there’s a better way and that’s the Investor Coaching model. Investor Coaching is made up of two parts. The first is Investor Education which is really the prerequisite to investment success.  This is the foundation upon which your portfolio needs to be built. Quite simply, there are a number of questions that investors need to answer about their portfolio before they can achieve complete peace of mind regarding their investments.

The second part of our process relates to Coaching Investor Behavior.  Proper Investor Behavior trumps all other factors in investing.  Research shows that equity investors overall get only about one-third of market returns—mainly due to improper behavior—either their advisor’s or their own.  Investor behavior is more important than portfolio construction, lowering costs, using Structured Funds, proper diversification or even education.  Nothing works without proper behavior.  It is THE critical function, THE critical factor, THE critical ingredient in successful investing.  Without it, nothing works. Without proper behavior, you’re setting yourself up for failure.

To that end, we conduct Investor Coaching Workshops, conference calls, special events, and meetings throughout the year designed to increase awareness, answer ‘The 20 Must Answer Questions’, and encourage proper Investor Behavior.

In conclusion, my hope is that you are starting to realize what makes us different from Wall Street and other advisors. It all starts with the investment philosophy. This in turn drives portfolio construction, which then is supported by educational and behavioral coaching.

This is what makes us different.

Want to Learn More?

Investment advisory services offered through Pegasus Wealth Coaching LLC, a Registered Investment Advisor. Quraishi Law Firm, PLLC and Pegasus Wealth Coaching LLC are separate and distinct business entities and their fees are independent.