I have exciting news to share. We are expanding our team and geographic reach with a new partner in Nashville, Tennessee. Read the press release here.

We are honored and excited to join forces with Malissia Johnson and her team at Emerald Spectrum, based in Brentwood, Tennessee. From the first time we met Malissia (President and Founder), we knew we were talking to our kind of person, someone we’d like to work with in the future. What did we notice?

They care about serving clients in an unusual way.

They care about clients more than their own interests.

They care beyond a spreadsheet and a quarterly performance report.

They care the way we care at Hill Investment Group.

I know a lot of financial planners and advisors, but few have the character and dedication we see in Malissia’s team. Malissia has helped her clients plan for their ideal future, and we’re thrilled to be a part of her plan for her next chapter.

I’m confident we’ll be better together.

For our current clients, you can be excited about this announcement too, as we are incredibly sensitive and careful with growth. The shareholders of Hill Investment Group will always prioritize our clients over profits. Planned and controlled growth is a critical element of what keeps and attracts top team members at all world-class organizations. Maintaining our values and team culture are equally important. As I’ve previously mentioned, because of our partnership with Focus Financial, we have institutional resources and leverage to bring to our team and clients. A boutique firm with big resources is a winner for our clients and us!

With the addition of any new team members, we always look to enhance our capabilities for you, and we believe the skills that Malissia and her team bring will directly benefit you. In addition to enhancing our existing team, Malissia’s team adds services that were missing in our current offering, including enhanced wealth planning. Stay tuned. 

Finally, here’s Malissia in her own words: 

“My favorite part of the wealth management business is the deep, uniquely personal relationships I have with my clients,” said Malissia Johnson. “As I got to know the Hill team, I found that they had a similar sense of care and an uncompromising fiduciary commitment to their clients, truly living by their mantra “take the long view.” Our shared ethos gave me great comfort that joining Hill was the right next step for my clients and team, allowing them to benefit from Hill’s robust resources and ensuring that they will be well served for generations to come.”

That’s a perfect fit.

Music City, here we come!

Matt

We highlight the work of Morgan Housel a lot. Maybe we do it too often, but he’s just that good. We think he’s the best personal finance writer alive. Read this piece (and stick with it to the end) for a new way to think about what really matters as you measure your investment performance.

Click here for what Morgan calls “Lifestyles”.

I taught personal finance and leadership at the high school level for over twelve years. One of my favorite concepts I loved to communicate was the magic of compounding. Although great financial value is derived by recognizing the wisdom of compounding, I believe there is even greater value in recognizing the compounding of wisdom.

Could your financial success be exponentially enhanced by making wise financial decisions repeatedly over a long period? 

In the months ahead, I’ll share important ideas I’ve seen result in positive financial outcomes, and give you the roadmap. The goal? Help you make wise choices at every turn in your own financial road trip. Think of it as an introductory – or “101” – guide to compounding financial wisdom.

Compounding Wisdom on Investing:

Compound Wisdom Actions

• Pay yourself first – invest every time you get paid, even if the amounts seem small, through automatic transfers to either your 401k/403b or personal accounts. 
• Stretch to invest – target 15%-25% of your income to save or invest each year.
• Diversify – spread your investments across multiple asset classes to manage risk.
• Leave nothing on the table – make sure you receive the full match your company offers.
• Look out for Roth – consider the Roth 401(k) option if available in your employer plan.
• Control for fees – you can’t control returns, but you can control investment fees by investing in low-cost funds.
• Keep emotions in check – you invest for the long term, so resist the urge to trade urgently, or time the market.
• Rebalance – keep your investment allocation in balance across asset classes.
• Harvest your losses – take advantage of down markets to accumulate valuable capital losses.
• Be aggressive – as a young adult, don’t fear an allocation that is dominated by equities.
• Look under the covers – many target date funds are costly and may not be appropriately allocated. 
• DIY is difficult – work with an advisor who always works in your best interest (also known as a Fiduciary). 

Actions to Avoid

• Waiting to get started – your most valuable dollar invested is your first.
• Failing to sign up for employer retirement plan – start the first month you are eligible.
• Failing to earn the entire match – one of the only free lunches around.
• Investing in mutual funds with high fees – don’t be seduced by sexy short-term returns that are unlikely to persist.
• Paying penalties – don’t incur penalties by withdrawing from retirement accounts early.
• Abandoning your plan – don’t get sucked into the latest “can’t miss” stock recommendation you hear online or from a friend.
• Timing the market – invest regularly or whenever you can, as early as you can.
• Loving your company too much – monitor the risk you may incur from owning too much company stock.

Feel free to pass this along if you know someone who might benefit from the guidance and look for more from me in this monthly series.

I lead our Hillfolio level client service and planning efforts, learn more about me here and reach out if I can help you put the magic of compounding on your side.