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Ty Vinick Continues a Family Legacy at Moors & Cabot

By
Ty Vinick
Special Coverage Wealth Management

Lessons Learned

Ty Vinick

Ty Vinick

Ty Vinick says his grandfather, the late Jim Vinick, had been “training me my whole life.”

That’s not surprising to anyone who knew Jim, the former managing director of investments at Moors & Cabot — and a 2013 BusinessWest Difference Maker — who passed away in June, and was known for his passion for financial literacy.

“When I was like 8 years old, he was teaching us stocks and bonds and everything else,” Ty recalled. “I came to work with him at the start of this year, and I was hoping to work with him longer — I mean, he’d been teaching me my whole life though.”

That wasn’t meant to be, however. “Three days before he passed, we were in the hospital, and he was asking to check on his portfolio. So he was working right up to the end. He went out with his boots on.”

Those are certainly massive boots to fill — Jim was one of the driving forces behind the establishment and evolution of the Basketball Hall of Fame in Springfield, as well as a longtime, respected wealth manager and financial expert — but Ty is up for the challenge, recently taking over his grandfather’s book of clients and running the Springfield office of Moors & Cabot, a Boston-based financial planning firm with numerous locations across the U.S.

“He loved his job,” Ty recalled. “Outside of his family, he loved his job, and he loved the Basketball Hall of Fame. Anyone who ever met him heard all about both things. He had incredible relationships with people, and I feel really fortunate that I get to do the same thing he did.

“I had a lot of teaching experience, which I actually find helpful now because I spend a lot of time explaining different concepts to people in terms of investing, or different investment vehicles they might not know about.”

“I see a side of him that maybe even other people in our family don’t get to see, where I’m talking with people, and they say, ‘you know, he was like a father figure to me. He was there for me when my husband passed or when my parents passed, and I didn’t know what to do, and there was money, and I needed help handling it,’” he went on. “And then they’re like, ‘but he was also just there to talk about life and what I might need.’ So it’s good to see, not just coming from him, but from other people, the impact he had on them, where they say, ‘you know, when I really needed somebody, he was someone I could turn to.’ That’s pretty cool.”

And the younger Vinick finds it gratifying to help people in the same way.

“Life keeps on going for everybody, and different things come up, and people call me because they had someone pass or they’re planning for their kids,” he told BusinessWest. “Sometimes you’re helping them because it’s a good situation that you’re trying to manage, making things a little more secure, like parents paying for college. And sometimes you’re helping them because it’s a sad situation; if a partner dies or spouse dies or a parent dies, they’re in a really tough moment, but at least you’re there to make that tough moment a little more manageable and a little bit smoother to get through.”

 

Let’s Talk

Vinick’s title is financial professional, though, as noted earlier, it involves a lot of education, too. That makes sense, considering his career journey.

At Tufts University, he majored in economics and also studied pre-med, thinking he might want to be a doctor. But after that, he went to Spain for a year and worked as a teacher in a rural village of about 700 people; he had also done some tutoring in college.

“I had a lot of teaching experience, which I actually find helpful now because I spend a lot of time explaining different concepts to people in terms of investing, or different investment vehicles they might not know about. So, in a weird way, it actually ended up being very, very helpful.”

After returning to the States and working in a few doctors’ offices, he realized he had lost enthusiasm for the medical profession. So he worked in biotech for a time, then returned to his native Western Mass. and entered the family business. In retrospect, it was the logical choice.

Jim Vinick, pictured here in 2013, when BusinessWest named him a Difference Maker, was well-respected in the region for wealth management, financial literacy, and civic commitment, particularly with the Basketball Hall of Fame.

Jim Vinick, pictured here in 2013, when BusinessWest named him a Difference Maker, was well-respected in the region for wealth management, financial literacy, and civic commitment, particularly with the Basketball Hall of Fame.

“I think I took a lot of it for granted growing up. We would sit with my parents and with my grandfather at the table, learning about investing and things like that, and now that I’m working in this role, a lot of times, I’m explaining things to people that I’ve been taught my entire life, and he was so good at teaching all that.”

It’s an ethos he brings to each client interaction today.

“I’m constantly talking to my clients, pretty much every month. So I get to really know them as people,” Vinick said. “A lot of the planning and understanding their finances is ongoing, rather than just sitting down and having it be a one-time conversation. It’s ongoing conversations, understanding where people are in life and meeting their shifting needs.”

Those clients, he said, range from young families all the way up through retirees working on estate planning matters, and they come to Moors & Cabot with a wide range of income levels and assets. Obviously, the investing strategies — and those conversations — are far from cookie-cutter.

“It definitely changes with retirees who might be looking more for income and living off of the savings that they have, versus younger people who might be looking to build something for the future, planning for a house or college,” Vinick said. “There are a lot of key factors that most people want to consider, so we just talk through those. You can always start with the big picture and then hone down as you go.”

As for clients closer to retirement, at a time when people are living longer than ever, it’s important to help them understand they might be looking at 25 years or more of post-work years — and how much money it will take to live the lives they want.

“Part of it is factoring in the fact that there’s going to be inflation in that path, and expenses might vary even during retirement. Health concerns can come up. Do you plan on traveling, and do you have certain goals or a certain lifestyle you want to maintain during retirement? Those costs can change as you go,” he explained. “So you want to consider that variability. You don’t want to get to retirement and then run out of money because that would be a tough position. So that’s part of the plan as well.

No matter what one’s age, Vinick said, it’s important to start crafting that life plan as soon as possible.

“The best time to start was yesterday, and the second best time to start is today. So even if you didn’t start yet, you can always get started now, and it’s better than not getting started at all. Better late than never, they say.”

“Some people can see volatility and say, ‘it’ll be fine. I know I’m not investing for tomorrow; I’m investing for 10 years.’ And for some people, there could be a 1% change in their account over the span of a month, and it will worry them.”

Another element of helping clients is guiding them through periods of uncertainty in the market, like during the roller-coaster ride this past spring when the market kept diving and rising amid constant tariff rumours, announcements, and rollbacks.

“Part of investing for different clients is meeting the level of risk that they’re willing to accept,” Vinick said. “Some people can see volatility and say, ‘it’ll be fine. I know I’m not investing for tomorrow; I’m investing for 10 years.’ And for some people, there could be a 1% change in their account over the span of a month, and it will worry them. It’s something to keep in mind for each client, how much risk they can accept or how much tolerance they have for it.

“And then part of it is explaining to them, ‘hey, something may have happened last month, but overall we’re doing OK,’ or ‘this is the vision for the long term, and this is what we’re looking to do,’ and keeping them on track rather than giving in to either overjubilance when things go really, really well, or panicking when things get a little rocky for a month here or there, whatever it might be.”

That’s easier to do with somebody who’s at an earlier stage of life and can take a longer view, but it’s also a matter of personality, he added. “Younger people can still panic, too. I think it just depends on the personality, the person, and the risk they can accept.”

 

Back to School

Vinick’s father, Michael, didn’t choose the financial services path, but rather forged a successful career in the HVAC trade; he’s president of Duct & Vent Cleaning of America in Springfield. But Ty’s transition into leadership at Moors & Cabot ensures a multi-generational family legacy there — serving clients that are often also multi-generational.

“My grandfather had clients that were parents, grandparents, great-grandparents, and then, with his passing, I now have them as clients,” he said. “I’m the fifth generation of my family that’s in Springfield, and part of the business for me will also include being involved in the community that my family’s been involved in.”

And also education and communication. Vinick is already thinking about not only how he can become more involved with community organizations, as Jim was, but also how to continue his grandfather’s work on financial literacy, which included, many years ago, The Vinick Report, a local TV show on that topic.

“I love talking to people. I get to be on the phone all day with people, and you get to know them quite well,” he said. “You get to build these very meaningful relationships with people where you can kind of track them through their life. I think that’s the part that I enjoy doing.

“And I get to have a meaningful impact on their lives as well — I’m genuinely helping people reach milestones and achieve their financial goals,” he added. “You know, outside of their health, making sure they have a reasonable financial plan creates the foundation for everything else they want to do.”

How Financial Planning Has Changed with the Secure Acts

By Contributor
Wealth Management

Securing the Future

By Patricia M. Matty, AIF

 

With the Secure Act 1.0 of 2019 and the updated Secure Act 2.0, which went into effect in 2023, there have been many important changes to the rules and regulations for retirement saving and investing over the past five years.

While the elimination of the ‘stretch IRA’ was a key feature of the first Secure Act, the update provides many enhancements for investors. (The so-called stretch IRA refers to leaving an IRA to a non-spouse beneficiary who could then ‘stretch’ distributions from the IRA over their lifetime, thus enhancing the tax-deferral feature of the IRA.)

As financial planners, one of our goals is to help clients save as much as possible for retirement in the most tax-efficient manner. This usually involves maxing out retirement-plan contributions (workplace plans like the 401(k) and 403(b), as well as IRAs), as well as deferring the income associated with retirement-plan withdrawals as long as possible.

“As planners, these changes often prompt investigating alternative ways to pass on wealth earlier to heirs, including layering in additional diversification with investments spread between retirement accounts, Roth IRA/401(k) plans, and non-retirement assets.”

Some key changes associated with these goals are summarized as follows:

• Starting in 2025, the workplace ‘catch-up’ contribution for individuals ages 60-63 will increase to $10,000 per year (from $7,500). The IRA catch-up contribution, which is now set at $1,000, will be indexed to inflation starting in 2024. For high-income earners, 2026 will see a change that restricts catch-up contributions in workplace plans to a Roth account in after-tax dollars.

• RMDs (required minimum distributions) from retirement accounts start at age 73, thanks to the Secure Act 2.0. Starting in 2033, this will increase to age 75. For retirees that have sufficient income and assets in non-retirement accounts, delaying RMDs as long as possible is generally preferred.

• The penalty for not taking your RMD decreased to 25% from 50% (of the RMD amount). This penalty will decrease to 10% if the IRA owner withdraws the RMD and files a corrected tax return in a timely manner. While these penalties are quite rare in our experience, the previous 50% rate was severe and too punitive.

Younger workers and their priorities also received some beneficial changes to the rules and regulations:

• Starting in 2025, businesses adopting new 401(k) and 403(b) plans must automatically enroll eligible employees at a contribution rate of at least 3%. We’ve found that inertia is the enemy when it comes to saving for retirement. Getting younger workers started on the habit of saving and investing is critical to reaping the benefits of tax-deferred growth over the long term.

• Student-loan debt and payments are often cited as a reason for not contributing to a workplace retirement plan. Starting in 2024, employers will be able to match employee student-loan payments with matching payments to a retirement account.

• For 529 college savings plans that have been open for at least 15 years, ‘unspent’ plan assets can be rolled over into a Roth IRA for the beneficiary (subject to a lifetime limit of $35,000).

These selected highlights represent a small sample of the changes brought about by Secure Act 2.0. On balance, we believe the changes provide enhancements to the ability of investors and savers to provide for a prosperous retirement.

As planners, these changes often prompt investigating alternative ways to pass on wealth earlier to heirs, including layering in additional diversification with investments spread between retirement accounts, Roth IRA/401(k) plans, and non-retirement assets.

Eliminating the stretch IRA is inducing non-spouse beneficiaries to take mandatory distributions out over a five- or 10-year period versus over their lifetimes. This can significantly increase the beneficiary’s tax bracket, which may not have been the intention of the financial/estate plan.

Here are just a few options your financial planner can help you look at to navigate these changes:

• Depending upon your own personal tax bracket, you may want to take larger IRA distributions and gift funds to your children before you pass.

• Convert pre-tax retirement assets to Roth IRAs.

• Diversify your savings between qualified and non-qualified accounts.

• If you give to charities, you can donate directly from your retirement accounts once you hit age 70. These gifts and distributions are tax-free to you and have zero tax implications on your income

• Take larger retirement-plan distributions (speak with your accountant and your financial advisor first to ensure this may be a good option, as taking larger distributions may also impact your Medicare premiums), and make annual gifts to your children while you are alive. If you are married, you have a higher AGI than if you are single in later years.

As is always the case, consult your financial professional or tax preparer to see how the changes in the Secure Act 2.0 affect your individual circumstances. This information is provided for informational purposes only and should not be construed as advice. St. Germain Investment Management does not offer any tax or legal advice.

 

Patricia M. Matty is senior vice president, financial advisor, and financial advisory director for St. Germain Investment Management.

It Pays to Have a Healthy Dose of Skepticism

By Contributor
Wealth Management

ESG Investing

By Josh Bedell, CFP, CIMA and Sylvia Callan, CFA

 

As with any new investment trend, a rise in popularity can give way to bad actors.

ESG (environmental, social, and governance) investing is not immune. Recent articles from the Economist, Barron’s, and the Wall Street Journal focus on the rise of ESG investing, and the perhaps predictable attempt by some to capitalize on this trend in a disingenuous and unscrupulous manner.

However, they leave investors who are socially conscious without a way forward in seeking to decipher the good from the bad.

The need couldn’t be more pressing, with ESG investing slated to rival traditional forms of investing in the next several years. With this potential surge in demand, concerns have arisen about how seriously the ESG criteria are being considered.

“Some mutual funds and portfolio managers have taken to slapping an ESG title on a fund or portfolio without doing much of anything to truly incorporate ESG factors into the investment process. This practice of attempting to woo well-intentioned investors, while not actually striving for change, has even earned a sardonic title: ‘greenwashing.’”

Indeed, some mutual funds and portfolio managers have taken to slapping an ESG title on a fund or portfolio without doing much of anything to truly incorporate ESG factors into the investment process. This practice of attempting to woo well-intentioned investors, while not actually striving for change, has even earned a sardonic title: ‘greenwashing.’

Josh Bedell

Josh Bedell

Sylvia Callan

Sylvia Callan

The good news is that the SEC has taken notice, and has proposed some rules that would create consistent standards and disclosure requirements. In addition, the Principles for Responsible Investing (PRI), a globally recognized institution for sustainable investing, tracks the development of regulatory policies in sustainable finance that support ESG investment principles. Over the past year alone, the PRI identified more than 200 new or revised policy instruments that support, encourage, or require investors to consider long-term value drivers in ESG — the main elements of socially responsible investing.

Understanding the evolving landscape in ESG can feel like a daunting task, especially if you have many other things on your plate, like a job, family, and normal day-to-day responsibilities. The good news is, there are some relatively easy steps investors can take to ensure their portfolio aligns with their values.

For starters, mutual-fund families that focus exclusively on ESG and/or socially responsible investment (SRI) funds are more likely to utilize stringent criteria than a traditional fund family that has added one or two ESG funds in recent years. Further, actively managed funds, which incorporate at least some degree of qualitative analysis, tend to evaluate companies more thoroughly than index funds, which simply track a list of ‘approved’ holdings from a third party, though there are exceptions.

Investors without the time or inclination to do this research on their own can turn to a trusted asset manager who takes ESG investing seriously. Dedicated ESG portfolio managers do extensive work in the field, often talking to mutual-fund managers directly, visiting corporate offices, analyzing lists of underlying holdings, and obtaining advanced credentials related to ESG investing.

Ultimately, it pays to have a healthy dose of skepticism. It certainly helped our firm when we decided to offer an ESG strategy for our clients. It required an added layer of scrutiny to ensure that ESG investment principles were clearly defined, closely monitored, and reported in a timely manner.

It could be an encouraging sign that increasing numbers of investors are seeking to effect positive change while also generating competitive — or possibly even superior — returns. A shift of this magnitude is bound to encounter some hiccups along the way.

Far from a reason to abandon the initiative altogether, greenwashing concerns offer an opportunity to further investor engagement, advance regulatory reform, and promote endeavors to improve ESG reporting and investing standards with the potential to benefit us all.

 

Josh Bedell is a financial planner and investment advisor, and Sylvia Callan is a portfolio manager, for Gage-Wiley. Callan has earned the CFA Institute certificate in ESG investing and leads the firm’s ESG efforts. Securities offered through St. Germain Securities Inc., a FINRA member. Gage Wiley is a d/b/a of St. Germain Securities Inc.

The Benefits of Having a Financial Advisor During Volatile Times

By Contributor
Banking and Financial Services

Investing for the Long Run

By Barbara Trombley, CPA, MBA

 

As I write this article, the S&P 500 index, which tracks the performance of 500 large companies in the U.S., is down almost 22% for the year. Even more remarkable is that the Barclays Aggregate Bond Index is down more than 14% year to date. If the average investor had a 60% equities / 40% bond portfolio that followed these two indexes, they would be down 18.8% for the year! This is without any portfolio or advisor fees.

After many years of positive stock market returns, this is extremely unsettling for the average investor. Usually, investing in bonds or ‘fixed income’ serves as a buffer to the stock market by providing what is usually a more conservative return. This year, because of rampant inflation, the Federal Reserve has rapidly increased interest rates. Bond prices and interest rates move in opposite directions, leading to large drops in bond prices and, therefore, a depressed bond market.

Barbara Trombley

Barbara Trombley

“Sometimes during volatile market periods, an advisor may strive to counsel a client to change their withdrawal strategy from their portfolio or offer advice on large purchases that can be financed another way.”

As a financial advisor, I wear many hats. The obvious one is that I provide investment guidance and strive to help my clients make financial choices. A less obvious role that I play is that of cheerleader. At times, some investors are very tempted to sell out of the market when times are bad. They feel nervous and uncomfortable. But history has shown us that investing is a lifelong event. A financial plan needs to be followed in good markets and bad.

There is a J.P. Morgan asset-management study that shows that seven of the best ten days in the stock market occurred within two weeks of the ten worst days. Since Jan. 1, 2002 through the end of 2021, for example, an investor who was fully invested in the S&P 500 would have returned 9.52% year over year (without fees). If the same investor missed the 10 best days in the market during that same time period, their return may have been 5.33% year over year (without fees) — almost half! An advisor will strive to provide guidance and education to prevent their client from making rash decisions.

Another area where an advisor can assist clients during volatile stock-market periods (and other times as well) is, if appropriate, potential tax-loss harvesting. If an investor has money that is not in a retirement plan, they can sell positions held at a loss in order to offset any gains held in other stocks. The investor can also offset $3,000 in ordinary income each tax year (if he or she has already offset gains) and carry forward unused losses to be used against gains in future years.

The investor would want to be aware of wash sales rules, which prohibit selling an investment for a loss and replacing it with the same or a ‘substantially identical’ investment 30 days before or after the sale. This would void the loss that the investor was deliberately trying to achieve. The investor is allowed to sell a stock at a loss and buy a similar one in the same industry so that he or she can continue to have their money working for them. Tax planning in volatile times could be part of your financial plan as well.

Sometimes during volatile market periods, an advisor may strive to counsel a client to change their withdrawal strategy from their portfolio or offer advice on large purchases that can be financed another way. I have often counselled clients on the options available to them, from where to draw money for their monthly expenses. In a volatile market, for many clients, using cash savings to pay monthly expenses can take the stress off a portfolio that has declined.

The greatest benefit to you from using a financial advisor is having someone to listen to you, someone for you to seek out and reassure you that, based on history, industry knowledge, and their experience in the financial world day after day, you can pursue financial independence.

 

Barbara Trombley, MBA, CPA is an owner and financial consultant with Trombley Associates. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material was created for educational and informational purposes only and is not intended as ERISA tax, legal, or investment advice. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.

Investing Is About Having the Proper Frame of Mind

By Contributor
Wealth Management

It’s Not Just About the Money

By Pat Grenier

We have a well laid out plan for how our wealth-building investment portfolios will provide us with the lifestyle we want, confidence in our financial strategy that we believe we deserve, and the legacy we want to leave our loved ones.

Inflation, rising interest rates, high gas prices, the war in Ukraine are non-trivial distractions that test our ability to stay calm and focused. As Mike Tyson once said, “everyone has a plan ‘till they get punched in the mouth.”

Pat Grenier

Pat Grenier

For many depending on their 401k plans, their IRAs and/or their investments, this is a gut-wrenching feeling. It certainly is painful to watch the value of our monies depreciate — especially in an inflationary environment. Emotions can take over and cause anxiety, nervousness, and fear. You are not alone. These feelings are real and may drive the person into a decision that may be irrational, absolutely the wrong one at the wrong time.

Until we address these feelings with facts and common sense, we will not be able to make rational decisions about our investments and the impact it will have on our lives.

As a start, let’s put the current market environment in perspective. As with any market decline, we don’t know when it will hit bottom or how long it will take for markets to come back. What we do know, and history has proven, is that market corrections occur periodically and have been short-lived:

 

As much as anyone would like to avoid these declines, they are an inevitable part of investing.

Looking back at the 15 largest single-day percentage losses in the S&P 500 since 1960, we see that investors are rewarded for staying the course:

Warren Buffett said it best “American magic has always prevailed, and it will do so again.” Can you think of a year where there was not an event that had a negative impact on the economy and investments? It is reassuring to know that despite these annual headwinds, the U.S. economy is resilient and has always recovered.

As much as the fearmongers want us to believe the world is falling apart, we should know better than to listen to the 24/7 negative news cycles. For our own sanity, we need to focus on the positive. Our economy continues to open after the closures due to the Covid pandemic, there are plenty of jobs for anyone that needs one and consumers are still spending. To our surprise many corporations for the first quarter of this year reported higher-than- expected earnings. In addition, in spite of higher mortgage interest rates, pending home sales rose in May. This should provide us with optimism for the economy, even if the ride is bumpy.

Famed British Banker, Sir Baron Nathan Rothchild, is credited with the phrase “buy on the sound of canons, sell on the sound of trumpets.” The old adage ‘buy low and sell high’ makes sense but is one of the most difficult principles to follow and act upon.

Markets decline on negative news. The negativity creates fear, but the decline presents an opportunity to reassess our investments, our allocation, our risk tolerance and to take advantage of quality investments that may have been beyond our reach. If time is on your side, buying on sale makes sense.

It is not just about the money. Investing is about having the right frame of mind to make our money work efficiently and effectively.

 

Pat Grenier, CFP® is president and founder of Springfield-based Grenier Financial Services; (413) 736-6712; [email protected]

Securities and advisory services offered through Cadaret Grant & Co., an SEC Registered Investment Advisor and member FINRA/SIPC. Grenier Financial Advisors and Cadaret Grant are separate entities.

Expertise Is Under Attack

By Contributor
Wealth Management

And When It Comes to Investing, That’s Not a Good Thing

By Jeff Liguori

 

Malcolm Gladwell, prolific non-fiction writer, journalist, and podcaster, has written extensively about mastering a subject. In his book Outliers, Gladwell builds upon the idea that it takes a person 10,000 hours to become a master, or expert, at something.

The premise was originally put forth nearly 50 years ago by two academics, Herbert Simon and William Chase, and published in the American Scientist specifically to address how one becomes an expert chess player. Gladwell elaborated on the idea by saying that an innate ability, or even exceptional intelligence, on a particular subject was not enough to excel or master that subject. In an article he wrote for the New Yorker in 2013, he stated “nobody walks into an operating room, straight out of a surgical rotation, and does world-class neurosurgery. And second — and more crucially for the theme of Outliers — the amount of practice necessary for exceptional performance is so extensive that people who end up on top need help.”

Today it seems that expertise is under attack. Whether it is climate science, economics, or healthcare. There are no hurdles to gathering information, factual or not, which has emboldened many to opine on, and in some instances act on, areas for which they are not equipped. Being informed and questioning authority is not a bad thing. But acting as an expert has the potential for serious long-term damage.

Let’s break down the 10,000 hours concept. A young woman decides on majoring in accounting her junior year in college. She has four semesters until graduation, where most of her classes are related to her major. Let’s assume that is a total of 100 hours of study. She graduates, gets a job in a major accounting firm where she likely works 50 hours per week. At night she studies for her CPA exam. After three years, between college study, work, and prepping for the CPA, she has logged approximately 3,200 hours of work in a single subject: accounting.

And it is likely in a specific area, either audit or tax work. At 25 years of age, she is about one third of the way toward the 10,000-hour rule. This is precisely why a business or individual, with complex accounting issues, would not hire a young person with that level of experience. The analogy could be made for doctors, lawyers, or diesel mechanics as well.

In the investment field, the information needed to manage one’s money is widely available. I’m not aware of a network that dedicates 24 hours to the practice of medicine. But turn on CNBC and it is a non-stop barrage of stock quotes and ideas, complete with bright colors, loud voices, and blinking lights. It thrives on our culture of excitement and reality TV.

Almost anyone with a decent Internet connection can invest his or her hard-earned funds. And early success reaffirms the dangerous bias that ‘I’m a talented investor.’ Until one morning, inevitably, that “hot stock” that had appreciated 78% is down 50% before the market even opens because the drug the company produced killed people in the FDA trial, or the company missed earnings by a wide margin, or the CEO was a fraud. Much of which could’ve been fleshed out by skilled analysis and a disciplined approach to investing to avoid such scenarios.

There is nothing inherently wrong with the do-it-yourself trend. However, the intersection of social media, and the assault of information from a variety of sources (some questionable), has empowered many to shun traditional expertise that has been built upon years of study. Logging on to WebMD to diagnose your poison ivy or watching a YouTube video on installing a garbage disposal, or even learning about a public company’s business on Yahoo! Finance is smart. Reputable sources with solid information. But these are part-time tasks, which don’t carry significant consequences if done incorrectly. They are suited for the curious individual with a penchant to learn.

But for more complex matters, requiring a longer success horizon — say preserving your retirement funds to support your lifestyle once your earning years are over — it is best to leave that to a full time, educated, disciplined professional. They’re called experts.

 

Jeff Liguori is the co-founder and chief Investment officer of Napatree Capital, an investment boutique with offices in Longmeadow as well as Providence and Westerly, R.I.; (401) 437-4730.