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Fiduciary
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Who’s a typical client of Pick Associates, LLC (PAL)?
Tammy E. Pick, MBA, CFP: I hesitate to call any of my clients “typical” but, in general, I’d say that most of my clients are baby boomers and young retirees. They’re mainly looking to build and protect their retirement nest egg. I think most would describe themselves as middle-class. We do have our millionaires-next-door, but they still stick to their middle-class values. I've also noticed a trend for younger folks, in their late 20s and 30s, looking for planning and investment advice. In addition to starting their plan for retirement, they're concerned about the best way to save for college.
Who wouldn’t be a good client for PAL?
Tammy: Well, I like to help as many people as I can but, to be honest, if someone’s interested in hot stock tips, timing the market and other speculating behavior, we’re just not going to get along well. Those folks would be much happier dealing with a stockbroker, and not a financial planner, like me. I just can’t advocate that sort of reckless behavior. I’ve been in this business since 1996 and I’ve never personally met a day-trading type who has beaten the market for any meaningful period of time. My clients INVEST; they don’t speculate.
Do you charge a retainer for your financial planning services?
Tammy: No, but I know plenty of planners who do. I’m not against it; it’s just not a good fit for me, personally. If someone has a planning issue, I think it’s more fair to pay on an as-needed basis. To pay a fee to keep me on stand-by, no, I’m not comfortable with that.
How much money or investable assets do I need to have before you’ll work with me?
Tammy: If you’re a planning client, it doesn’t matter if you don't have any investable assets. I get paid a fee, not a commission. So, you’re paying for my guidance, not buying a product. For investment management clients, I don’t have a minimum. I know most in the industry do. Some start at $250,000; others at a $1,000,000; and everything in between. While I’ve been told that it’s not good business for me to handle what the industry considers to be “small” accounts, I’m on a mission here. And frankly, the smaller investor is often the one who needs my help the most. It doesn’t take that much time to help somebody out.
Do you work evenings or weekends?
Tammy: No weekends, but I do try to make myself available one evening each week, for clients who can’t make it in to see me during the day.
What’s your investment philosophy?
Tammy: I believe that stock markets are mostly efficient. That means I think supply and demand keep the markets in equilibrium nearly all of the time. And because of that, I don’t think you can pick stocks or time the market in any repeatable, profitable way. So, I buy all major asset classes (large cap, small cap, international, intermediate-term bonds, etc) in an appropriate combination and then I let capitalism work its magic.
How does the planning process work?
Tammy: I’ve found that a lot of people are fearful of this process and I really don’t know why. Planning is simply looking at where you’re at now, where you want to be in the future, and deciding how soon you need to get there. When I have that information, I number-crunch and come up with options and alternatives. I think people procrastinate in doing planning because they’re afraid that I’ll tell them what they don’t want to hear -- and that’s usually that they need to do more for retirement. But that’s not always the case. Many times they’re in much better financial shape than they realized. And, of course, the younger they are when they see me for the first time, the better. At that point, time and compounding interest are in their favor. Sometimes a tweak in their portfolio or 401(k) plan can make a huge difference. But I also help people who are retired or about to retire. That's a tricky time in someone's financial life. The money that they've saved has to last them for the rest of their days, so it must be invested properly. And figuring the most tax-efficient way to withdraw those funds is critical.
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