Interview With Registered Investment Advisor

An Interview With Registered Investment Advisor Jim Miller, Author of Retire Dollar $mart by Bookpleasures.com 
 
New York, NY - May 16 2006  - Jim Miller, author of Retire Dollar Smart is also a weekly guest on WYFX, FOX 17/62 in Youngstown, Ohio 
 
Jim Miller is a Registered Investment Advisor who has been involved in such areas as exclusive advisor to Private Limited Partnerships, Certification as an Estate Advisor, development of Benefits Plans for business, and helping individual clients implement strategies to achieve freedom from debt, risk management, goal achievement, and balanced guaranteed Growth & Income retirement portfolios. Jim is also the founder of On Track Financial Services to serve the needs of retirees. On Track and Jim are specialists in retirement investing and money management.

 

Norm:
Good day Jim and thank you for agreeing to participate in our interview.

 

Jim:
Hello Norm I am glad to visit with you.

 

Norm:
Jim, could you tell us what exactly is a Registered Investment Advisor and how do you become one?

 

Jim:
A Registered Investment Advisor is a person or Company who can legally offer the public investment advice and counsel for a fee or for some sort of compensation. I became one as a natural extension of the Estate Planning, Insurance and Brokerage work that I was doing and because of my passion to cure some of the ills in the investment business. I am an Independent, Stand-Alone Registered Investment Advisor. Most of the individuals offering investment advice are representatives of an Insurance Company, or a Bank, or a Broker-Dealer/Wire house. They have company policy and oftentimes-proprietary investment products, sales quotas, and favoured investments that can focus their advice away from the best interest of clients. I work only for clients.

 

Norm:
How does one go about choosing a competent and honest Registered Investment Advisor, and is there a regulatory body that oversees the advisors?

 

Jim:
It can be just as difficult to choose a good advisor, as it is to choose a good surgeon. By the time you know the quality of the work the deed is done for better or worse. So it is best to stack the deck in your favour. Investing has two moving parts: performance and cost. Performance or the amount of gain credited to an investment over time is always determined by economic markets and never within our control. Cost on the other hand is completely in our control. The best advisors, in my opinion, focus first on cost control and then position properly for performance … always according to the needs of the client. Choose an advisor who places cost control and expense limitation first. Independence, objectivity, and open-mindedness are the most critical elements.

 

Experience is important, and reputation should be considered. A good advisor should be prepared to spend substantial time with a client learning that client’s needs and feelings before actually changing any investments. Several regulators oversee Investment Advisors. The Security and Exchange Commission, their state’s securities division and department of commerce, and the national association of securities dealers if the advisor is also a broker, as well as the state’s insurance commission if the advisor is an insurance agent. We are also members of our local better business bureau. But regulators, investment company laws and do-not-call lists can’t keep consumers safe. So pick someone who is brave enough to tell you the truth. Real honesty is obvious.

 

Norm:
Why do you feel it is important that individuals seek out the services of a registered investment advisor?

 

Jim:
When we retire most of us have a limited amount of capital that will need to last us for an unknown length of time and cover many unpredictable situations. Just as it would be absurd to give ourselves open-heart surgery looking into a mirror on the ceiling, it would be nearly as self-destructive to try to manage our own investments. True consultative advice is hard to find particularly in the investment and financial industry. A stand-alone independent Registered Investment Advisor is probably a retiree’s best source of such advice. Someone with the ability and experience and knowledge to cut through all the advertising and conflicts of interest that taint what is known as common knowledge about investing and estate planning.

 

Norm:
How did you come up with ideas that were included in your book Retire Dollar $mart?

 

Jim:
Personal experience working with my clients and what I have learned about effective investing, cost control and risk management is all that I share in my book. There is nothing theoretical there; we are doing or have done everything that is mentioned. I have been fortunate to have terrific personal advisors myself. They taught me to be open-minded, to look around without prejudice, to think outside the box, and to always place my clients’ interests first. The harm that I saw done to my parents and the harm I see being done to retirees today is a strong motivator too.

 

Norm:
How have you used the Internet to boost your career?

 

Jim:
The Internet is my favorite and most-used tool. I can get years worth of information there in minutes. I learn every day how to better serve my clients needs, and I can communicate so much more efficiently because of the tools that only the Internet provides. The Internet allows me to evaluate the true costs of investments in simple expedient ways that would not be available otherwise. After more than ten years I am just now starting to use the Internet to make my message more available to more people.

 

Norm:
Warren Buffett stated that Risk comes with not knowing what you are doing, and Erica Jong said, The trouble is, if you don’t risk anything, you risk even more. Do you agree with this, and if so, why?

 

Jim:
I do agree. Buffett, I believe, is speaking about numerical or rational risk, while Jong, it seems, is referring to emotional risk or taking a chance. Both affect investors. I say: “Risk is a four letter word”. Then I teach investors how to factor risk out of their plans without compromising reward.

 

Norm:
Is there such a thing as an ideal pension plan and if so, what would it look like?

 

Jim:
The first thing I think of is the rule of ten, ten, eighty. Begin tomorrow by taking 10% off the top of each check you get and give it to the good of mankind: donate it to your church or support your favorite charity or give it to the local library. Then take the next 10% and buy your future with it: save or invest in something prudent that makes your money spend bigger some time later or pre-pay something at a discount. Finally use the 80% remaining as your income: pay your bills and live within your means. If the 80% will not stretch across your needs either reduce your needs or increase your income but never compromise on the twenty percent off the top. The overriding factor is to never consider it yours unless you are the owner of it. If it comes from the company or if it comes from the government and you actually get it treat it as gravy, be happy. But know that it never was yours and do not depend on it.

 

Norm:
It has often been stressed that the key pillars of modern portfolio theory is proper diversification and understanding risk. Do you agree and why?

 

Jim:
First, modern portfolio theory is a religion today and like any religion full of dogma and demigods. Second, proper diversification is important to the extent that it is an accurate observation that no matter what the market climate some class of assets is always going up. However it is trivial if you define asset classes with conventional labels because those labels lead to confusion and misunderstanding through the propaganda of advertising. I am not a proponent of propagandized dogma as an investment strategy. What I do support is growing your money faster than the cost of things grows and never drawing income from a declining account. There is no panacea for successful investing only vigilant, critical, accurate observation and active agility. And third understanding risk is key to successful investing. Misunderstanding risk is equating it with volatility. It’s just not as simple as those who preach modern portfolio theory would like for it to be and you must not allow yourself to be prejudiced.

 

Norm:
Is there anything you would like to add to our interview?

 

Jim:
Yes, my book is guaranteed. Read the Introduction and check it out. And come see more about what I have to say at www.retiredollarsmart.com

 

Norm:
Thanks Jim and good luck with all of your future projects.

 

Jim:
Thank you.

 

Review of “Retire Dollar $mart” by Jim Miller
by NORM GOLDMAN: Editor of Bookpleasures.com

 

Surely no one can dispute the importance of financial planning, particularly in view of the many baby boomers that will be retiring very shortly. Unfortunately, however, a huge segment of the population are clueless when it comes to managing their money.

 

In fact, you may say there even exists a segment that unfortunately have an aversion or perhaps even a phobia in entering into a conversation pertaining to money, let alone mentioning financial planning.

 

After reading author Jim Miller’s Retire Dollar $mart, I’m reminded of Charles Dickens’ remarks in David Copperfield- “ having a few pennies to spare after expenses, “result happiness” but being a few pennies short, “result misery.”

 

Or as Miller states: “my goal is always to increase a retiree’s net worth over time. That is not always achievable. My strategic minimum is to never allow a retiree to run out of money.” Miller has been a Registered Investment Advisor since 1998, and he is the owner of On Track Financial Services, L.L.C., of Columbiana, Ohio, a small town near Youngstown.

 

He confesses to have seen many heartbreaking stories, where the fundamental principles of money management have been misinterpreted or erroneous. In fact, one of the reasons for his pursuing a career as an investment advisor was due to the fact that after analyzing his family’s estate, he learned that his parents’ retirement income had been badly eroded because of poor advice from well-meaning, but misinformed persons.

 

Dividing itself into eleven chapters, the book covers a great deal of territory for American readers- its intended audience. It also goes the extra mile by including a spending plan worksheet and an interactive worksheet. The latter is a rough approximation of what an average retiree can save by using smarter strategies.

 

Much of Miller’s counsel focuses on the principle that financial planning must take account of three indispensable components: cost control, tax deferral and discipline.
With these in mind, Miller explores such subject matters as the difference between savings and investments, the best guaranteed investment investments, reducing risk of your without compromising reward, difference between effective advice and planning, making good investments into great ones, what causes you to loose money, differences between volatility and risk of loss and being exposed to less risk and volatility, to realizing a comfortable retirement where risks are met head-on with the ability to manage them.

 

One of the weaknesses of the book is the absence of an index, as well as a glossary of terms, which would have facilitated the understanding of many of the investment terms employed throughout the book.

 

Moreover, a more transparent and consistent organization would have made the book easier to follow, particularly if the conclusion of each chapter contained a succinct summary of the financial principles expounded upon.

 

Nonetheless, the book has a great deal to offer in that it includes sound financial advice that will be of immense benefit to its readers.

 

##

 

Media note: For a review copy of Retire Dollar $mart or to arrange an interview with Jim Miller, contact Jim’s book publicist Scott Lorenz of the book marketing firm Westwind Communications at scottlorenz@westwindcos.com/book or by phone at 734-667-2090 or cell at: 248-705-2214. 
 
Scott Lorenz (scottlorenz@westwindcos.com)
President
Westwind Communications
1310 Maple Street
Plymouth, MI   48170
Phone : 734-667-2090
Fax : 734-455-7090