What is a conservative investor?
We consider it our great fortune that many of our clients are conservative investors. Our investing style centers around income-producing assets—dividend-paying stocks, real estate, and bonds. As such, it’s an excellent fit for those with less tolerance for risk. Nevertheless, being a conservative investor is about more than simply risk tolerance. It typically says a lot about who a person is at heart.
For example, all are great savers. Most have been great savers all their lives. They likely had much of their savings invested in CDs back when CDs paid higher rates of interest. (Some still have significant amounts of money invested in them.) Because of this, they likely have never had a financial advisor. (This was the case for many of our existing clients.)
Conservative investors aren’t concerned with beating the market. They simply want a decent return on their money. They’ll gladly trade some potential upside for stability and safety.
They enjoy people and typically have a great sense of humor. They order house wines even when they can afford more. They’re proud to be frugal, and they love a good bargain.
They’re family-oriented. Married couples are typically both involved in making financial decisions, and both spouses have immense trust for the other.
They stay busy. Many continue to work in retirement, typically at jobs with very little stress. They often have multiple streams of income in retirement—social security, pensions, income from work, and dividends and interest from their investments.
The conservative investors we help have full, fruitful lives. Even if they had the time to manage their money, they would rather have an expert do it. They have better things to do. Nevertheless, when we asked them why they decided to hire us in the first place, they didn’t mention how we manage money or any specific financial knowledge. It was simply trust. And that’s always been our goal: honest, trustworthy advice.