Kayla Tausche CNBC

y michael gordon
CALCULATED RISK
Beats Inflation’s Wealth Erosion
I
If there is one trend that has remained constant since the
nation’s emergence from the Great Recession’s market
corrections of 2007 to 2009, it is that today’s investors
do not merely desire transparent transactions from their
financial advisers – they expect such.
“People have become disenchanted with the constant
marketing, the push toward sales of products and a lack of
transparency that still pervades too much of this industry,”
Phil Bollin believes.
As president of his own firm,
Bollin Wealth Management
based in Perrysburg,
Ohio, Bollin’s statement can’t only
be accredited to his status as a
Midwesterner. He is talking from
the perspective of a financial adviser
whose career in the financial services
industry began as a broker. He
himself became disenchanted with
the approach he was told to take with
clients, becoming more of a sales
person than working as a consultant
who could help clients identify the
best strategies and products for
their personal investing goals. After
starting Bollin Wealth ten years ago,
he hasn’t looked back since.
“The people seeking out our firm
are people who want a Certified
Financial Planner; they want
somebody who is fee-only in terms
of their compensation, because that
is transparent and allows for a more
holistic approach,” Bollin noted.
He actively seeks out clients who
are willing to be coached away from
what Wall Street has drummed into
investors for more than 80 years.
Bollin admits it is difficult work to
retrain an investor well enough to
overcome preconceived notions of
being active, trend-driven traders
rather than long-term, moderately
passive investors who are willing to
ride out market corrections.
“Yet that attitude is what is
required for a successful transition
from wealth accumulation during the
working years to wealth preservation
through retirement, as well as being
prepared for a wealth transfer to
the next generation or a charitable
interest at life’s end,” Bollin said.
“What we found is the clients
that are most successful and able
to retain the lifestyle they wish to
live were able to maintain it if they
also maintained their investment
discipline, even during severe market
corrections. If they did not panic
and move everything to cash or go
completely conservative, they were
fine,” Bollin explained. “Markets
rebound. It does take some time and
it may not be overnight, but within
two to four years, clients had earned
back everything they lost and then
some, and were further ahead than if
they had waited for that alarm to get
back into the market – which no one
is ever ringing anyway.”
He recognizes that it takes
perseverance to remain invested
when markets are down. But he also
knows it takes coaching from him
and a few short trips down memory
lane with clients when markets are
up. Without assuming any risk, there
is no gain, he explains to clients –
especially those in retirement.
“Retirees face a higher level of
inflation than most of us working
people because of the extremely
high rate of inflation for health care,”
Bollin said. “My clients quickly
begin to understand that risk and
reward are related and that by
taking a smart and reasoned risk
with their portfolio, we can also
provide a measure of safety through
diversification.”
www.bollinwealth.com
THE SUIT MAGAZINE p.77