Testing the RISKS
2008 financial crisis left lingering, unpleasant memories in its wake – and now investors expect wealth management advisors to handle risk much more effectively. That’s what David Adams, President of the Nashville-based David Adams Wealth Group, hears now when he speaks with clients.
“I would agree that clients as a whole really desire a more customized, tailored, comprehensive financial planning approach,” Adams said. “I think this fundamental shift started gaining momentum after 2008, when many investors lost over half of their portfolio values.”
Adams, who offers securities through Raymond James Financial Services, Inc. Member FINRA/SIPC, said that his firm is fiercely independent, putting clients’ needs first by sitting “on the same side of the table” as they do. Adams added that he vowed to never work for a company pushing specific investment products.
Part of keeping clients at the center is making sure they feel confident their money will last a lifetime and could sur- vive stress tests. To do that, Adams’ uses sophisticated software that can test investments against predicted stresses – recessions, a collapse similar to 2008, longterm illness – or against investor fears, such as living longer than expected. These tests help Adams and his team further customize the advice they provide.
“It’s the ultimate problem-solving task we have to address as advisors, that our clients don’t outlast their money … By the end of this simulation, clients know where they stand,” said Adams, a Certified Public Accountant and Certified Financial Planner ™.
Adams told The Suit that his team – which handles a diverse clientele comprised of households, singer/songwriters and professional athletes – performs these simulations. “My competition doesn’t go to this level of detail- it’s what makes us different,” he said. Adams and his team also provide “white glove” treatment for every client, and enjoy having genuine conversations with them and continuing to have those conversations as situations change and plans evolve.
Adams emphasized, “I feel that financial plans are meant to be dynamic, not static.”