If you’ve ever worked with a financial advisor before, chances are the conversation focused on how much money you have, where it’s located, and how to earn a higher return. Many investment firms share this singular focus: finding “better” products that promise higher rates of return, often at the cost of increased risk.
While generating strong returns is important—and something I can help you with—no amount of analytics or mathematical modeling can predict the future. That’s why my approach is different. Before taking on more risk, I focus on helping clients avoid unnecessary losses, which often has a greater impact on their financial outcomes than chasing incremental returns.
Understanding Your Personal Economic Model
Return is only one aspect of your financial picture. To build a truly efficient personal economic model, it’s important to consider three types of money:
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Accumulated Money
These are the dollars you currently have invested and are actively saving. Many advisors focus exclusively on this money, looking for investments that pay higher rates of return. -
Lifestyle Money
This is the money you spend to maintain your current standard of living: housing, food, travel, and leisure. For most people, this is where financial conversations stop, because reducing lifestyle expenses isn’t a popular option.But what if you could address your financial goals without cutting your lifestyle or taking on additional risk?
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Transferred Money
These are dollars that may be leaving your financial picture unnecessarily, often without your awareness. Examples include:-
How you pay for your house
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Taxes you pay
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Funding for retirement accounts
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Non-deductible interest
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Major purchases such as cars, education, or weddings
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How I Help My Clients
A financial advisor can generally add value in one of two ways:
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Finding better products that pay higher returns, usually requiring more risk.
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Improving efficiency by avoiding unnecessary losses.
I focus on the second approach first—helping clients plug the “leaks” in their financial bucket before trying to pour in more. Think of it this way: if your bucket has holes, no matter how much water you add, it will never fill. By addressing the unnecessary losses first, your financial resources go further, often without taking on additional risk or reducing your lifestyle.
Which approach more closely resembles the way you are currently managing your finances?
This approach allows my clients to feel confident that their financial foundation is secure, their resources are working efficiently, and any further growth comes from deliberate and informed choices—not from trying to chase returns while ignoring hidden losses.