My RJ Diary
After thirty four years in the business, it is uncommon for me to come across novel ideas that may make perfect sense for my clients. Not to boast, but I have been exposed to more than you can imagine during my years as an advisor, training manager, and branch manager. Investment opportunities that went awry, mistaken trading ideas, interpersonal dilemmas, and patently poor communications are among the common experiences that have required me to sift through the wreckage in order to find the lesson to be learned. As an old dog, you might think that I am unable to learn new tricks. But here is proof otherwise.
Recently, I established a new client relationship. She was a referral from another long-term client who understands my admittedly old-fashioned approach with individual investors. We met, discussed her situation, reviewed her accounts, and all of the other standard fare that takes place when we initiate a new client relationship. As a follow up, I prepared a specific investment plan for her. One thing that struck me during this multi-step process was the client’s involvement in her planning and portfolio decision-making. She was definitely engaged.
After we established RJ accounts and transferred assets in from other firms, I circled back to her with my specific investment plan. Rules require me to perform this step, so nothing was unusual for me. It was at this time that my new client mentioned something to me that had "aha" written all over it: she was keeping an "RJ Diary". Her diary was a way for her to record conversations and, in her words, "it serves to remind me of the thinking behind certain decisions….down the road". Wow! What a great idea!!
First, you should know that I keep a "daily log" of my calls and activities. I have kept my logbooks since I started in 1985. I bet you could use them to chart the changes to the spiral binder manufacturers in America. These records have proven valuable to me over the years – I track the closing value of the Dow Jones Industrial Average, the S&P 500, the ten year U.S. Treasury bond, and West Texas Intermediate and Brent Crude prices each day. I can go back and see my calculations on the value of certain companies, the comparisons between Chinese and Russian oil companies (yes, I actually looked at this at one point – I decided neither group was worth the risk despite the discounted prices), or some other item that caught my interest. And since I am inundated with new information each and every day, it serves as a helpful reminder of the thinking behind certain decisions down the road, as my client phrased it.
Why didn’t I realize that the same approach would be helpful to my clients? Good question, and I have no answer. But I do have one very strong suggestion, a new "best practice" if you will: Keep a diary of your conversations with me. The process of thinking about and recording meaningful conversations between you and your financial advisor will be a helpful record "down the road".
Every diary has a different author, and I encourage you to make this your own. Record what you think is important. Note my responses to your inquiries. Over time, I bet you will find this practice useful. I know I have.
Yes, this will take effort on your part. Good ideas don’t result in improved outcomes without determination and discipline to follow through. As an encouragement, I’ll offer to buy your first journal. Are you game? LMK.
Ralph McDevitt May 7, 2019
P.S. Celebrating my 13th anniversary with Raymond James this week. Woo hoo! Thanks, Tom.
