I welcome comments from all, but would especially like to hear from clients who have already gone through the process with us. Knowing what you knew beforehand, and what you concluded after we were done, I would like to hear from you on the worthiness of this Q & A, especially if you feel we can do a better job communicating what we do.
Very much appreciate everyone’s input.
Q: If just one sentence were to be used to describe what you do each professional day, what would it be?
- Being a “difference maker” in my client’s financial lives.
Q: How do you make a difference in your clients’ lives?
- After over three decades in and around Wall Street, I have earned the trust of my clients because I have been brutally frank, at times, in order to show them how to conduct their financial lives with discipline, balance and fulfillment. I have earned their respect because while our relationship BEGINS with the financial planning process, it does not end when the process is COMPLETED. My team and I are with them for the long haul.
Q: You often state that most financial plans are doomed to fail. You speak at great length about that in your book. Is there a short description why you believe this to be the case?
A: I wish there were a quick sound bite, or simply a few words, to describe why, but it’s one of the main reasons that I wrote the book so that such a complicated concept could be explained in proper detail (I welcome everyone to read the book online for free at http://www.petergrandich.com/grandichs-book/). You can learn more about it and see what others have said at http://www.confessionsofawallstreetwhizkid.com/
However, I would summarize by saying, most of what you hear, watch and read is common advice typically resulting in common results, and usually disappointing. Our approach is uncommon, yielding uncommon results, resulting in people saving more money without living less, enhancing their cash flow and quality of life, better protecting their assets and not negatively impacting their lifestyle.
Q: Okay, how about comparing what you do versus these “doomed financial plans”?
A; The financial services industry has spent tens of billions of dollars over many decades, creating an illusion that they can better people’s lives when history has actually shown that far more of the financial advisors end up better off than their clientele. I can tell you why this is so.
Q: Please do so.
A: Most financial services organizations focus upon product-based solutions. The challenge with this method often yields additional cost and produces unpredictable future performance of the product(s) that they sell. The other challenge is that critical key points are marginalized, and sometimes ignored, because ONLY net worth and assets under management are the primary focus.
Q: So, what’s different with your planning methods?
A: There’s several differences. But, one of the main differences is that we focus upon a process that both builds and protects wealth with efficiency at the core. In our process, the difference is that we define wealth equals both cash flow and quality of life.
Another key difference is that my team uses an academic approach to asset management and protection – not like the others who offer an emotional approach that is based upon the past performance of a product with the hopes that a successful repetition occurs in the future. “Hope” is a wonderful spiritual strategy, but it is a recipe for disaster in the financial realm.
Financial advisors spend minimal time protecting current assets because they know that the vast majority of investors subscribe to the belief that “money makes money” and thus are mainly focused upon increasing their money through speculation with the hopes that all the stars are magically aligned for their plan to work. Our work teaches how to protect one’s assets and to minimize risk without incurring additional costs in order to implement these strategies.
Q: I assume that’s why these financial firms always state in their disclaimer that “past performance is not indicative of future results”.
A: Yes indeed. But, unfortunately, the public accepts this deft “CYA” marketing as truth and that their investment success is assured.
Q: You said earlier that wealth equals both cash flow and quality of life. Can you explain?
A: Here too, my book details why, but if there’s one sentence that I would emphatically, and continually, state is this:
- Cash flow is for you; net worth is what you leave for others.
Your cash flow determines your quality of life – not your net worth. Many people have substantial net worth but poor cash flow. And, as a result, they don’t come close to growing their wealth. Others have minimal net worth but, by improving their cash flow, they end up wealthier.
The financial services industry has gone to great lengths to convince the public that increasing one’s net worth is key; but ask any successful business owner, real estate investor and the like and they will tell you that managing and maximizing their cash flow determined their success.
Our objective is to assist our clients by building wealth through identifying cash flow strategies that helps maximize their wealth potential.
Q: Before I ask you to demonstrate some of the brutally-honest ways of yours, can you describe what one can expect from your process?
A; Absolutely. Our process will:
- Deliver a unique and proven strategy, which can increase your wealth in excess of your likely anticipated current projections;
- Increase your wealth without taking on additional risk. In fact, we generally will lower our client’s risk exposure.
- Achieve your increased wealth by not only avoiding any sacrifice to our clients’ lifestyle, but also by actually noticeably improving it.
Additionally, we can coordinate the activities of all of your financial professionals in order to assure that they work in unison with the primary goal of managing your investments to achieve your financial goals in a cohesive and cost-effective manner. We would serve you in the financial arena in a similar fashion as an orchestra leader leading the many musicians in an orchestra.
Q: Okay Peter. Your process appears different, but what makes you different from your peers.
A: I think that, when one reads my book, they will have no doubt that I am different. In fact, I am so different that, to some, it may be initially difficult to accept.
Q: How so?
A: Let’s start with the title of my book. When first published in 2011, it was entitled “Confessions of a Wall Street Whiz Kid”. But now, in its third edition published in the Fall 2015, the word “Former” has been added before “Wall Street Whiz Kid”.
Q: Why did you add the word, “Former”?
A: Having now personally made and lost millions twice, I don’t think that anyone who does so should be allowed to still call themselves a “whiz kid”.
Q: What else about you separates you from most?
A: Again, reading my book will make it abundantly clear, but here are some factors:
- I refuse to have any part of the falsehood that one can accurately, and continuously, predict the future. Only God knows the future and to portray oneself as a soothsayer is an insult to the Almighty.
- I refuse to imply that a sum of money can be made into a larger sum on a regular and consistent basis, when, in fact, far more frequently, financial advisors do the opposite. I like to say that if you want a typical advisor to cause you to have a million dollars when they are done, give them two million dollars to start with.
Years ago, I had created the “Seven Deadly Sins of Finance” http://www.petergrandich.com/wp-content/uploads/2015/11/7-deadly-sins-of-finance.pdf and I have committed every one of those “sins” on multiple occasions, as has, or will in time, practically every financial advisor and investor. The only difference is that I make it a point for my clients to be fully aware of them and, together, we strive to minimize, marginalize or eliminate them.
Q: These “Seven Deadly Sins of Finance” sound almost biblical. Can you state what they are?
A: Sure. They are:
- Believing that you can predict future market movements;
- Utilizing traditional financial planning methods that are doomed to fail;
- Assuming financial “advice” is unbiased and objective;
- Exhibiting arrogance;
- Believing more money equals more happiness;
- Participating in mental anguish;
Q: The number 7 appears often in the Bible. Knowing your deep appreciation for what you call the “manual for life”, are there other precepts that you subscribe to?
A: Yes, we teach our clients the “7 Habits of Successful People”. They are:
- Focus upon cash flow;
- Maintain liquidity;
- High savings rate;
- Effective debt management;
- Reduce and/or eliminate tax liabilities;
- Assume risks worth taking;
- Transfer risk effectively.
Q: Okay, if one accepts that both you, and the methods of finance that you employ, are truly different and greatly beneficial, then the cynic would loudly proclaim, “Nobody does nothing for nothing” probably applies to you too. What’s in it for you, Peter?
A: You’re correct. I don’t do this uncompensated. But, I can proudly state these facts:
- When we have completed with our process, there will be little, or no need, for our clients to endure regular calls from us regarding new products and services. The only exception is if their lives encounter unexpected changes. Going forward, what we generally do is to monitor our clients and perform reviews periodically, on request, but at least annually, at no cost to our clients.
- While our process creates a self-sustaining, educated investor, we continually monitor all macroeconomic and microeconomic factors that could impact our clients and we encourage them to call upon us at any time with any concerns, questions or thoughts.
- If history is any indication, our clients become an extension of our marketing arm as they become far-more astute on matters of finance and they will actually share what we taught them to their family and friends to teach them not only “how” economic factors/events came to pass, but “why” they did.
- We refuse to instill the sense of false hope that so many investors hear from other advisors. Being “realistic” does cause some potential clients to seek other “fairytale” advisors; but our team takes great pride in sharing the hard truths about matters of finance to each and every person we meet.
Q: You have two companies, Peter. Can you briefly tell us about them?
A: Our services to the general public are best-served through Peter Grandich & Company www.petergrandich.com. For professional athletes and entertainers, Trinity Financial, Sports & Entertainment Management Company best serves that market segment www.trinityfsem.com.
Q: What else would you like to say before we close?
A: I’ve learned the hard way – both financially and mentally. My ups and downs taught me many things, but, if there was one thought I would want any investor to remember, It’s what Proverbs 21:5 states:
“The plans of the diligent lead to profit as surely as haste leads to poverty.”
Q: What’s the best way for anyone who would like to learn more about what you do?
A: We welcome discussing our process in greater detail. Simply send me an email at firstname.lastname@example.org, noting that you would like to speak to us. We can also be reached by telephone at 732-642-3992
Q: Is there any one thought you like to leave us with?
A: For all my years in, and around the financial world, never have I seen more people ill-prepared to face the many uncertainties ahead. The issue is compounded by a financial services industry, where the vast majority have done more to endanger their clientele, than to protect them. Time to properly prepare is running out.
Thank you, Peter.