One of the things I value most about being a financial planner is the opportunity to have real, meaningful conversations with my clients. These discussions aren’t just about numbers—they’re about addressing personal concerns, setting goals, and building trust. I recently had a conversation with a client who shared some great questions about market volatility, retirement planning, and fees—questions that I know many people have when approaching retirement.
In this post, I want to give you a glimpse into what it’s like to work with me. This isn’t a generic overview of financial strategies—it’s a real client conversation, showing exactly how we address concerns, navigate market ups and downs, and create a plan that’s tailored to your needs. Whether you’re wondering how market fluctuations might impact your retirement timeline or why fees matter, this conversation offers a behind-the-scenes look at how I approach each of these topics with my clients.
By sharing this conversation, I hope to give you an honest look at how we work together to make sense of the complexities of financial planning. It’s not about giving cookie-cutter advice—it’s about understanding your unique situation, answering your questions, and helping you feel confident in your financial decisions. So, here’s a real example of the kinds of conversations we’ll have when you work with me at QED Wealth Solutions.
The Reality of Market Cycles and Predicting Downturns
One of the biggest concerns for many investors, particularly those nearing retirement, is the potential for another market downturn. My client expressed this worry when they asked, “If I have $1 Million in there and it goes to $700k like 2008, how does that project out?”
This is a very real concern, and I completely understand where it’s coming from. The 2008 financial crisis was a defining event that shook many investors, and it took years for the market to fully recover. The fear of seeing substantial losses again, especially when retirement is on the horizon, is natural.
However, here’s the thing: While market downturns are inevitable, they don’t always spell disaster. I explained that downturns are simply part of the market cycle, and staying invested during these periods is often the key to long-term growth. “While market corrections are a normal part of investing, trying to time the market—jumping in and out based on short-term predictions—often leads to missing the best recovery periods,” I explained. It’s easy to feel anxious when the market drops, especially when you’re close to retirement, but the real risk lies not in the downturn itself, but in how we react to it. If we make decisions out of fear and sell off assets, we often miss the gains that follow when the market rebounds.
That’s why I emphasize the importance of staying invested with a well-thought-out strategy. I reassured my client by saying, “If we see a 30-40% drop in the coming years, it would be tough in the short run, but historically, markets have always rebounded given time.” The key is maintaining a long-term perspective, avoiding decisions based on short-term market fluctuations, and sticking to a plan that’s built to weather the ups and downs.
For those nearing retirement, like my client, it’s crucial to have a portfolio that reflects both growth potential and protection against market swings. That’s why we’ve already factored in more conservative assets. “That’s why we have 20% of your portfolio allocated to more conservative assets—providing stability and a buffer against market swings as you approach retirement.”
Balancing Market Growth and Volatility
Another concern my client expressed was about the sustainability of current market growth: “Do you think with all that’s going on, the market will continue to grow at this rate?”
The short answer? Markets don’t grow in a straight line. “Market growth is never linear and will always jump around a bit,” I explained. “We faced a very stagnant 2022 and 2023, and a phenomenal 2024. Ultimately, when trying to evaluate it, I try to look at historical averages.”
I told my client that, historically, equity investments have averaged annual growth of about 8-10%. “A prime example of the benefits of staying invested in recent history is the stagnation of 2022,” I pointed out. “While the market did have a slight pullback, those who stayed invested have experienced an over 30% increase in their investments (since the beginning of 2022).”
The goal is not to time the market, but to stay invested through both the up years and the down years. It’s crucial to remain focused on long-term growth and avoid reacting impulsively to short-term market fluctuations. The real value comes from consistency and patience, rather than jumping in and out based on temporary market movements.
Addressing Fees and Fund Selection
One of the most common questions I get from clients is about investment fees. My client asked, “If we are in the Vanguard stock and all it does is track the S&P, why do we give them our money? They are just taking care of themselves and charging a fee. Why not just put it in the S&P without using them?”
This is a great question, and I completely understand the thought behind it. “If there was an option to invest directly into the S&P 500 and cut out any middleman, I would do that,” I said. But here’s the thing: Standard and Poor’s develops and tracks the index, but they don’t offer any investment products. So, investment companies like Vanguard and BlackRock are needed to compile and package the individual stocks into mutual funds or exchange-traded funds (ETFs).
I also explained that Vanguard and BlackRock are some of the most well-known and efficient firms in this space because they provide low-cost options: “They are the most well-known because they have the lowest cost and most efficient options on the market.”
When it comes to managing fees, I’m always very mindful of keeping costs low. “For some context, VOO, which is Vanguard’s S&P 500 Index Fund, as well as what we have you invested in for your large-cap holdings, has an expense ratio of 0.03%,” I explained. “Many mutual funds have expense ratios in a range of 0.4%-0.8%. In general, we are very proud of the work we do to keep investment costs as low as possible.”
Maximizing Efficiency Through Fund Diversification
Another common concern revolves around the number of funds in a portfolio. My client asked, “In my last round of this with [another advisor], he had me in so many stocks they were all taking fees out all the time. You have us in quite a few. They all take money out for fees and it adds up. How do you justify those kinds of fees?”
I completely understand the concern about fees, especially when there are multiple funds involved. But here’s the thing: “The number of holdings in no way increases the cost to you, as each simply has an expense ratio associated with the fund, and you are charged that in proportion to your holdings,” I clarified.
The key to a diversified portfolio is ensuring each fund serves a specific purpose. “Each fund in your portfolio serves a specific purpose—some provide growth, others reduce risk, and together they work as a system,” I explained. “If we consolidated into just one or two funds, we’d lose some of that flexibility and risk management.”
I emphasized that our goal is always to build a strategy that maximizes both efficiency and flexibility. “Our firm charges no transaction fees or commissions as well, so we are not compensated in any way for the number of holdings or any transactions within your accounts. Any holding that we have, or change we make, will not change our compensation in any way and is simply done because that is what we think is best.”
To provide further clarity on how we charge: Our fee structure is based on assets under management (AUM). This means that our compensation is directly tied to the growth of your portfolio. We don’t charge any transaction fees or commissions, and we don’t profit from the number of trades or the specific funds we choose. This ensures that our interests are fully aligned with yours—we succeed when your portfolio grows, and we’re committed to making the best decisions for your financial future, not for generating additional fees.
Final Thoughts: A Personalized Approach to Planning
At the end of the day, these conversations are about building trust and providing clarity. My goal is always to make sure my clients understand their investment strategy and feel confident in the decisions we make together. Every discussion is tailored to your concerns, your timeline, and your goals.
If you’re wondering what it would be like to work with me, this is a glimpse into the kind of discussions we’ll have. We’ll dive into the details of your financial picture, explore your concerns, and develop a strategy that helps you stay on track for a successful retirement.
If you’re ready to have a similar conversation about your own financial future, feel free to reach out. Let’s work together to create a plan that gives you peace of mind and confidence in your retirement journey.
This post is for education and entertainment purposes only. Nothing should be construed as investment, tax, or legal advice.