SincereCoMuse

Chairman's Muse

Richard Sincere has been a bi-monthly columnist for the National Association of Personal Financial Advisors (www.napfa.org) since February 2006.  His column focuses on the thoughts and perspectives of the high net worth. Through personal stories, experiences and focus groups, Richard tries to articulate what advisors’ clients are thinking behind the scenes.

Staying in the Game

When Alternative Becomes Mainstream

In a previous column, I wondered whether any of your clients had thanked you for keeping them out of trouble over the past two years. While almost everyone’s portfolio was down, the fact is that clients would have suffered greater losses had they been self-directed. (In the extreme example, I know advisors whose clients approached them asking to invest with Bernie Madoff; fortunately these advisors wisely said no.)

The Middle of the Rut

One of the first things you learn in advanced market research courses is not to inject your own biases into product development/advertising.  Rather, an important part of the market research process is the use of focus groups – people who are representative of the target audience for your product, led by a facilitator, to give you an understanding about the new products or advertising you want to introduce to the marketplace.  If everyone thought or behaved like you, it would be much easier and less costly to just develop things to your own liking.  But it doesn’t work that way.

Getting Back on Track

For as long as I can remember, I’ve always had a mantra that guided my life.  As a child and throughout my teenage years, two of my mantras were, “I am who I am because that is who I am,” and “What I am depends on me.”  The first mantra was really my declaration of independence.  In my mind, I was saying to others that regardless of how you feel about me, I accept the fact that I have my own personality that works for me.  The second mantra became my motivator during my adult years when I realized that I could work hard and take advantage of opportunities to create the life I desired.

Having an Impact on Clients’ Lives

Has your client thanked you today?

Given all the people we meet throughout life, only a small percentage actually have a dramatic impact on us. Some people may accompany us through our entire life, others for a year or two, and some only for a brief period. The impact isn’t related to the quantity of time we spend with them, but the quality of our interaction. A select few (i.e., teachers, bosses, etc.) may cross our paths fairly briefly, but they can profoundly change the course of our lives forever.

Think About It, Then Forget About It

I’m sitting on the south side of Chicago in Criminal Court.  I was given a homecoming present from the great State of Illinois, calling me for jury duty right after the New Year.  After months of extreme market volatility and the emotional highs and lows (more lows than highs) that accompanied it, there is probably no better relief than to take a day off.  I used to get the same relief from air travel although, since moving to Chicago, flights to the east or west coast aren’t long enough.  I need at least the five hours of coast-to-coast fly time to “get away.”  So today I’m finding the isolation of jury duty a wonderful place to just sit and think.

An advisor who I deeply respect once told me that one of the major differences between the high net worth and everyone else is that the high net worth can afford more space – first class seats, larger homes, more acreage.  I would add that another advantage is the luxury of thinking.  The high net worth can afford to step back and think.

Bringing Some Woo-Woo to Your Game

A few weeks ago, I attended Northwestern University's football game. I’ve been going off-and-on to Northwestern football games since 1957. While I’m no sports nut (in fact quite the opposite), my father’s 50-yard-line seats were handed down to me.

People normally attend the game for the social part, and Northwestern rewards us by not having crowded stands. But this year, the Wildcats were playing well (their record was 5-1 at the time), so the fans watched more of the game and talked a little less.

Separating the Jekylls from the Hydes

When I was growing up, one of the few unspoken rules in our house was never to discuss business. I was allowed to visit my father at his firm, Sincere and Company, a large Chicago brokerage firm founded by my grandfather (not in any way connected to my own firm, Sincere & Co., LLC), but when my father came home, he didn’t talk about work.

My son is growing up with the complete opposite experience. Given that my wife and I work together out of home offices when I’m not at my office in downtown Chicago, and even early in our marriage when we worked at different companies, we have always discussed work. As an only child, my son is often involved in these conversations and occasionally serves up mature insights over dinner.

So when one of the editors of the NAPFA Advisor hinted that it would be okay to write about my work, it dawned on me that this one unwritten rule I learned from my father continues to stand in the way of people understanding what I do for a living. After thinking it over, I agreed to take this opportunity to talk about myself and my business. So I’d like to discuss the toughest aspect of what I try to do and why I find it both challenging and rewarding.

What happens when you run out of things to say?

During my 21 years of corporate life before I started my business, it wasn’t unusual to see a senior executive “put out to pasture,” sometimes for a year, sometimes permanently. Corporations that give senior executives a temporary “non-assignment” are making a wise investment by giving a valuable employee time to recharge his or her batteries. We all know that long workdays over a long time period can really take a toll on one’s body and psyche, even when you love what you do.

Handle with Care

I went through a very rough period of time when I was in my early 30s, a situation I hope to never live through again. To survive, I spent any free time at the gym when I wasn’t working (all the time) or sleeping (barely).

I was fortunate to have been hired by Citicorp in Chicago during a time when the entire organization was focused solely on winning market share.

Don't Save Your Best For Last

About a month ago, a close friend called to confirm our lunch plans, but he asked if I could come his way instead of him traveling towards me. In retrospect, I’m glad I said I would go anywhere to meet him for lunch. I didn’t know then that it would be the last time I would see him.