Helping you achieve your personal vision based upon your individual needs, goals and risk tolerance..

If Elite Athletes Use Coaches, Shouldn’t You?

Elite and professional athletes have coaches. Athletes have the knowledge and skills to train and play their sports on their own; however, coaches give them unbiased feedback, provide perspective, encourage them to do more, notice their strengths and areas for improvement, refine strategies, and typically has specialized knowledge and training.

Bo Hanson, a four-time Olympian and coaching consultant, says that effective coach-athlete relationships are underpinned with trust and respect, which develop over time. He says, “Creating this relationship means coaches need to truly understand their athletes. What makes them tick?” He adds that when athletes feel as though you are trying to learn more about them, they feel valued, which makes them want to contribute more to their own success.

The same is true of effective advisor–client relationships. Although you might have the ability to do your own financial planning, finding the right advisor can potentially improve your performance, reduce stress and save you time. The key is finding the right advisor for your situation. This should be a partnership, so finding a right fit is key.

In coaching, in life and with investing, experience matters. It is not about predicting, forecasting or using advanced analytics, because it’s impossible to predict what tomorrow will bring for the markets, economy, world events, etc.

For an individual investor, it’s not the bus you see coming that hits you; it’s the one you don’t see. An experienced advisor can help you prepare for situations like a catastrophic illness, long-term care or a market downturn. The true value of an advisor is most evident when things happen that we have not anticipated.

What to Look for in an Advisor

You will be sharing extremely personal details about your financial situation, dreams and goals with your advisor, so it is important to work with one you trust and feel extremely comfortable with. Here are some questions to ask when you are interviewing potential advisors to work with:

  1. First and foremost, do you feel that this person listens to you and understands you and what’s important to you?
  2. Does the advisor have experience in working with clients like you? A PGA golf coach is not a good fit for helping a football player. Likewise, if you are nearing retirement, it is wise to choose an advisor who has helped many people retire well.
  3. What type of education, accreditations, and licenses does the advisor have?
  4. Does the advisor work as part of a team or on his or her own? If the advisor doesn’t work with a team, what happens if he or she leaves the business or is out of town when you need help?
  5. How is the advisor compensated? Does he or she earn more when you do well, or is compensation based on transactions?
  6. What type of independent third-party recognitions has he or she received?
  7. Does the advisor have the time to provide you with the attention you need and deserve?

The “Advisor’s Alpha”: Improved Performance Often Offsets the Cost of Hiring an Advisor

Some people resist seeking out the help of an advisor because it costs money to work with a professional advisor versus doing planning on your own. However, in the right situation, the cost can be more than offset by what you save in time, income tax and even in net returns.

Financial advice typically costs 0.5 percent to 1 percent of your portfolio per year. But Vanguard, one of the world’s largest investment companies, has concluded that there is a quantifiable increase in return from working with a financial advisor. Vanguard calls this advantage the “Advisor’s Alpha.” When certain best practices are followed, the result can be an Alpha in the range of 3 percent per year. Vanguard has been examining this topic of how much value financial advisors add to client portfolios for 15 years.

A separate study by Russell Investments, a large money-management firm, came to a similar conclusion. Russell estimates that a good financial advisor can potentially increase investor returns by 3.75 percent.

Of course, that number varies, and the 3 percentage points come after taxes and fees. This return varies each year and according to client circumstances.

Finding the Right Advisor Team Is Worth the Time and Effort

A better return is just one tangible measurement of the value a financial advisor can provide to you as you navigate the unfamiliar and challenging road to retirement. The right financial advisor also provides you with increased confidence, less anxiety, an accountability partner and a knowledgeable coach during retirement planning.

Finding the right advisory team (aka coaching team) is a process that can take time; however, once you get it right, the partnership can be for life. It is definitely worth your time and effort to interview several potential advisor teams and select one you can see yourself working with for the long term.

While other firms focus on investments and markets, The advisors at Carver Financial focus on you and your vision. We will help you define the goals that are important to you, implement a plan and then review your progress and make adjustments as needed.

Using this holistic approach, our team of financial advisors looks at your needs, objectives, risk tolerance, tax- and estate-planning needs, and overall vision for your future. As your needs and vision change over time, our team works with you to update your planning. This process is a partnership with you. Our team will meet with you for annual reviews and between scheduled meetings with any recommendations. Different advisors and teams have different approaches. Finding the right fit is the first step.

It’s not just beginning investors who need advisors, just like it’s not just beginning athletes who need coaches. In fact, the more complex your financial situation, the more you could benefit from working with a knowledgeable advisor team. We hope you will call on us to partner with you to help build your best future possible.

Randy Carver is the president and founder of Carver Financial Services, Inc., and also a registered principal with Raymond James Financial Services, Inc. Having been in business 30 years, Carver Financial Services, Inc. is one of the largest independent financial services offices in the country, managing $1.6 billion in assets for clients globally, as of July 2020. You can reach Randy at randy.carver@raymondjames.com and check out the firm at carverfinancialservices.com.

Carver Financial Services Wins Fast Track 50 Award for Lake & Geauga Counties for 2020

September 2020, Carver Financial was recognized as one of the Lake-Geauga Fast Track 50 winners for the 14th year in a row.

The Fast Track 50 recognizes the contribution of local companies to Lake and Geauga county economies. The Fast Track 50 Committee compiles a list of the fastest-growing companies in Ohio’s Lake and Geauga counties. Companies are ranked by sales and employment growth over the previous five-year period and the top 50 are recognized. Carver Financial Services Inc. has consistently been recognized on this list for the last nine years.

The 2020 Lake-Geauga Fast Track 50 honors companies and individuals in Lake and Geauga counties who have shown growth. The Fast Track 50 Committee compiles a list of the fastest-growing companies in Ohio’s Lake and Geauga counties. Companies can nominate themselves. To be eligible for the award, companies must be located within the two-county region, be organized as a for-profit business, and must meet a minimum sales profit. Companies are ranked by sales and employment growth over the previous five-year period and the top 50 are recognized. Winners are chosen by a math formula: 80% of weight is given to sales growth and 20% of the weight is given to employee growth. To more fairly compare larger and smaller companies, the Fast Track 50 is divided into Established and Emerging categories. For 2020, Established companies must report revenue of at least $2.75 million in 2019, the baseline year for all evaluations. Emerging companies are required to have 2019 sales of between $250,000 and $2.75 million. There are 25 companies on each list. Out of 100 firms nominated, 50 received the award. This ranking is not indicative of future performance, is not an endorsement, and may not be representative of individual clients’ experience. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. Raymond James is not affiliated with The Fast Track 50 Award.

 

3 ways to know if your 401(k) is too aggressive

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the advisors listed in the article and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of the strategy selected.

Randy Carver Ranked Among Barron’s 2020 Top 100 Independent Wealth Advisors in the Country

MENTOR, Ohio, Sep. 18, 2020 – Randy Carver, RJFS Registered Principal, and the President of Carver Financial Services, Inc. was once again included on the 2020 Barron’s list of the “Top 100 Independent Wealth Advisors” in the country. Randy has been included on this prestigious list of top wealth advisors every year since 2010.

Barron’s produced the listing of top advisors after weighing factors such as client assets under management, philanthropic work, compliance record and the overall quality of their practices. Investment performance is not a criterion because client objectives and risk tolerances vary, and advisors rarely have audited performance reports*. There are nearly 300,000 licensed financial advisors in the United States, so being named one of the top 100 independent advisors is a notable recognition.

Full story – https://www.barrons.com/report/top-financial-advisors/independent/2020

Carver Financial Services Inc. offers securities through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc. Carver Financial Services Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. Barron’s “Top 100 Independent Wealth Advisors,” September 2020. Barron’s is a registered trademark of Dow Jones & Company, L.P. All rights reserved. The rankings are based on data provided by over 4,000 individual advisors and their firms and include qualitative and quantitative criteria. Data points that relate to quality of practice include professionals with a minimum of 7 years of financial services experience, acceptable compliance records (no criminal U4 issues), client retention reports, charitable and philanthropic work, quality of practice, designations held, offering services beyond investments offered including estates and trusts, and more Financial Advisors are quantitatively rated based on varying types of revenues produced and assets under management by the financial professional, with weightings associated for each. Investment performance is not an explicit component because not all advisors have audited results and because performance figures often are influenced more by clients’ risk tolerance than by an advisor’s investment picking abilities. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of advisor’s future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. Barron’s is not affiliated with Raymond James. Please visit https://www.barrons.com/report/top-financial-advisors/independent/2020 for more info.

The Washington Update: 2020 with Jeff Bush

An Overview of the Political Environment, Prospective Legislation, and Strategies for Investment and Retirement Planning

Jeff Bush from The Washington Update provides an insider’s view of Washington and the coming election. Jeff discusses details of the coronavirus legislation, including how it affects individuals, small businesses, and industries, as well as the legislation’s effect on other important concerns, such as the U.S. fiscal situation, U.S.-China relations, and the national election. Jeff also shares his insights on the election, from the Democratic primaries and nomination through the election of the president, House, and Senate in November, providing a unique analysis of the factors likely to influence the election result, as well as the markets’ likely reaction.

Randy Carver Named to Forbes’ 2020 List of Top 250 Wealth Advisors in the U.S.

August 25, 2020 – FORBES published their 2020 list of Top 250 Wealth Advisors in the United States. This is the fifth year in a row that Randy Carver, President of Carver Financial Services Inc. and registered Principal with Raymond James Financial Services Inc., was included in this prestigious list. There were more than 32,325 nominations received from across the country, six were recognized in Ohio, with Randy Carver being ranked #104.

Full story – https://www.forbes.com/profile/randy-carver/#13c1301c739a

The Forbes ranking of America’s Top Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative and quantitative data, rating thousands of wealth advisors with a minimum of seven years of experience. Ranking algorithm is based on quality of practice, including: telephone and in-person interviews, client retention, industry experience, review of compliance records, firm nominations; and quantitative criteria, including: assets under management and revenue generated for their firms. Investment performance is not a criteria because client objectives and risk tolerances vary, and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research, LLC which does not receive compensation from the advisors or their firms in exchange for placement on the ranking. Research Summary (as of August 2020): 25,732 Advisor nominations were received, based on thresholds. 9,596 Advisors were invited to complete the online survey. 7,174 Advisors were interviewed by telephone. 1,503 Advisors were interviewed in-person at the Advisors’ location. Final list of the top 250 Advisors was then compiled based upon the quantitative criteria. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC. Data provided by SHOOKTM Research, LLC. Data as of 6/30/20. America’s Top Wealth Advisors (Forbes.com Aug. 2020).

Welcome to the “Normal Normal”

Do you remember when people put on dress clothes to travel and then smoked on planes? Do you remember when seatbelts started being required? Perhaps when email was created, or when eBay and Amazon became household names? When you got your first cell phone and then your first smartphone?

In 1968, wearing a seatbelt in a vehicle became a legal requirement in the United States. It wasn’t until 2000 that the United States banned smoking on all flights to, from or within the country. But before that, it was common for people to smoke on airplanes. We don’t know what new requirements the future will bring; only time will tell.

As Justin Trudeau said, “The pace of change has never been this fast, and it will never be this slow again.” Change is normal—not a “new normal,” as we keep hearing in the news, but just “normal normal.”

Change can be difficult, and the pace of change continues to accelerate as technology leads to more technology being developed. As we hear more about how the pandemic will change lives with more digital interaction, face coverings and other requirements, this is nothing new. Again, this is not a “new normal”; this is “normal normal.”

We Will Always Face Uncertainty

As we look forward to balance of 2020 and beyond, we will see businesses, communities, individuals and the country change and adapt. New ways of doing things can provide opportunities for those who evolve and challenge for those who don’t. Can you imagine not having a smartphone or at least a cell phone today? Sometimes the best, most profitable opportunities emerge from unexpected and even negative situations.

According to the Wharton School at the University of Pennsylvania, seeing the opportunity during times of crisis requires that we change our mental model. “Instead of viewing the present situation as a short-term necessary evil that we should try to leave behind as soon as possible and return to a comfortable pre-crisis past, we should ask how to use the current situation to speed up long-overdue changes.” Each of us can weather the storms around us more effectively if we adopt this mindset.

Uncertainty about what might happen next can lead to both personal anxiety and market volatility. Markets can handle bad news; however, uncertainty tends to result in increased volatility. Proper wealth management takes into account both what we know and what we don’t know. We need to hold some funds for near-term needs while investing to meet long-term goals. Personally, we need to know that the unexpected will happen. We have faced tremendous challenges before as a country, and we came through them all. We will prevail through the COVID-19 pandemic just as we have in the past.

Focus on the Long-Term, Avoid Making Decisions in Panic Mode

During uncertain times and times of unprecedented change, the danger, both from a mental-health standpoint and regarding investing, is making decisions in a panic mode due to a short-term situation, rather than looking at the long term. Selling when markets are down only locks in losses and exposes investors to other risks like inflation, transaction expense and income tax.

Given the negativity in the media, it’s no wonder we feel like things are constantly deteriorating. We continue to be bombarded with negative news about the pandemic, crime, race relations, politics, the economy and more. Those with vision and courage will not only feel better but can benefit from the opportunities that are hidden behind all the misinformation. Once again, this is not new. More than 200 years ago, Thomas Jefferson wrote, “Nothing can now be believed which is seen in a newspaper. Truth itself becomes suspicious by being put into that polluted vehicle.”

I expect a lot more volatility in the markets and portfolios, along with a seemingly unending stream of panic-inducing media coverage in the coming months. Don’t fall for it. Have a plan, and stick with your plan — for the sake of both your personal mental health and your wealth management.

Extinguish your cigarette, buckle up, get your face mask on, and look to the future with optimism, even when it feels uncomfortable. As always, we are here for you, and your vision is our priority. We have navigated many storms together, with our eyes on the long term, and we will continue to do so.

You can contact me personally at randy.carver@raymondjames.com or 440-974-0808. Learn more about our team and how we can help you at www.carverfinancialservices.com.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Randy Carver and not necessarily those of Raymond James. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results.

The Dishes Don’t Matter When Your Pants Are on Fire

How to Manage Financial Priorities During a Crisis

The Covid-19 crisis is wreaking havoc on the hearts and minds of so many of our friends and neighbors. Wild stock market fluctuations, fear of what the future holds, and the health and safety of our families are top of mind. I want to address how to manage financial priorities during a crisis, with the hope of shifting any fear and panic you might have, to calm confidence about what lies ahead.

How Important Are Those Dishes, Anyway?

Dirty dishes seem like a top priority when dinner is done. But let’s say your pants catch fire when you brush by the candle on the table. All of a sudden, the dishes are no longer your top priority. You’d extinguish your pants (hopefully, without injury) and deal with the dishes later.

Applying this metaphor to financial planning, a rapid drop in the stock market following a bad news event, or persistent negative news about a pandemic and rioting in the streets, can make short-term financial preservation feel much more pressing than long-term retirement planning.

Worry robs us of joy and peace. Certain events require immediate attention (like catching your pants on fire), and others don’t.

However, there’s a difference between quick action in an emergency and chronic worry over the unknown. If fear becomes a daily driving force, it can affect decision-making, creating long-term uncertainty with potentially disastrous results.

Keeping your eyes on the future can help you through uncertain times. I want to encourage you to keep your eyes on your long-term goals, not on the daily negative news we’re seeing during the Covid-19 crisis.

Remember Your Long-Term Plans

To enjoy today and grow assets for an uncertain tomorrow, it’s important to take care of ourselves before trying to help others. We must plan for tomorrow and at the same time, enjoy today. This balance defines the values of Carver Financial Services, and it drives our philosophy in managing your assets.

We believe in enjoying today, appreciating what we have, and cherishing our loved ones in each moment. After all, we don’t know what tomorrow might bring. Anyone could suffer a tragedy at any moment. Sacrificing today to worry is no way to live.

At the same time, planning for the future creates financial confidence, and knowing how to manage a crisis with a long-term eye on the future is key to enjoying today and achieving an independent future.

Perception vs. Reality

We must see the risks in life and deal with them rationally. Covid-19 can be dangerous; however, so is cardiac disease, which kills more than 600,000 people each year in the United States. Taking every precaution against Covid isn’t much help if a daily dose of hot dogs and cigarettes leads to a deadly heart attack.

Market fluctuations are a bit like this: volatility can cause panic, but long-term poor planning can be a death knell.

Consider inflation as an example. Losing portfolio value after a market drop can feel like a serious crisis today. Over time, though, history proves the market will come back. Conversely, failing to plan for the known eventuality of future inflation can be disastrous to your long-term financial preservation.

Do you know anyone who paid more for the last car they bought than they did for their first home? Inflation is a reality that requires careful attention and planning. It’s not a crisis today, but failing to plan for it can be a disaster tomorrow.

Confidence Through Planning

By having enough cash and fixed income on hand to meet your needs and a long-term plan to meet your future goals, you’ll be more likely to weather short-term events and create the independent future you desire.

Our Personal Vision Planning® process takes a proactive approach to rebalancing your portfolio based on your changing needs and market opportunities while working to minimizing expenses, income tax, and volatility at the same time. 

This is a dynamic process guided by your needs, objectives, and risk tolerance rather than market movement or media hype. It works in tandem with your other advisors, such as accountants and lawyers.

As the pace of change continues to accelerate and media hype scratches on your nerves, it’s more important than ever to work with a trusted financial advisor in maintaining and enhancing your lifestyle.

Let’s Talk About Your Future

I’ve been in the financial services industry for more than 30 years. I can say without hesitation that now more than ever, competent professional financial advice is a must-have. And in an increasingly impersonalized and automated world, I believe having a personal relationship with your financial advisor is key to achieving financial confidence.

If you already work with us, we are humbled to be your partner and appreciate the confidence you have in what we do. If you are not a client and would like our insight on your current financial plans, please get in touch. You can reach me directly by email here or call our office at 440-974-0808.

Continuing to Serve You – Covid-19 Update

Our Five-Part Safety Plan

As we navigate through these times of uncertainty together, we want you to know we have been working hard to safely maintain service during the COVID-19 pandemic. Our five-part safety plan puts your health and safety at the center of all we do. It is a comprehensive, multi-layered approach with guidance from public health experts and in compliance with state and federal mandates.

As our routines shift in an effort to protect those most vulnerable, we want to take a few moments to update you on changes we have implemented to reduce health risks while maintaining the same high-quality, accessible service we have provided for more than 30 years. Here are five steps we’re taking to ensure everyone’s safety:

1. Holding virtual meetings
Though we enjoy seeing clients in person, we are offering virtual appointments over the phone or through video chat for the safety of all. Zoom allows virtual meetings and screen sharing and is a great way for you to interact safely with your advisor. Rest assured, we have the technology available to serve you from any location and to conduct business as normal while keeping you and your data safe. If you need assistance, please contact our office.

2. Limiting visits to appointments only
At this time, limited client meetings will continue, though we ask that you call first to set up an appointment for the safety of all. We are limiting the number of people in the building at any given time. We respectfully ask for your careful consideration and cooperation when booking an appointment. If you feel unwell or believe you may have been exposed to the coronavirus, simply reach out, and we be happy to reschedule for a time when you’re feeling up to it. Or we will schedule a virtual meeting.

3. Increasing our cleaning efforts
We have instituted elevated cleaning and sanitation protocols within the office using CDC-recommended disinfectants and steam cleaning. Public areas are sanitized throughout the day, and each meeting room is cleaned between meetings. Also, we have UV light sterilizing the air in our HVAC system.

4. Training our team extensively
We have put extensive employee protocols in place, including requiring employees to perform daily self-assessments for COVID-19 symptoms and verify being symptom-free, and training programs on health and safety protocols.

5. Using face coverings and PPE
We are following the state mandate for face coverings. Guests are strongly encouraged to wear masks in public areas, and our team members are required to wear an approved mask while working with you. We are happy to provide you with a mask and/or gloves if you would like them.

As a reminder, you can always check on your portfolio 24/7 and view financial documents online through Client Access. Our team can help you set this up if you have any questions.

You can also visit our Coronavirus COVID-19 Resource web page to view recent videos, blog posts and for other helpful information

No matter the challenge, we are here for you. Please reach out with questions or whenever we may be of service. In good health!