Frequently Asked Questions
Have questions about working with a fiduciary financial advisor? Below you’ll find straightforward answers to the questions we hear most often about our services, fees, credentials, and investment approach—along with a glossary of common financial terms to help make sense of the concepts that matter to your financial future. Don’t see your question answered here? Reach out and we’re happy to talk it through.
F.A.Q.
Questions About Delphi Wealth Partners Financial Services?
We Have Answers.
A fiduciary standard requires registered investment advisors (RIAs) to always place their clients’ best interests ahead of their own, disclose any potential conflicts of interests and maximize an investor’s welfare rather than their own compensation.
While all of these financial service providers can provide a range of financial services, only registered investment advisors are held to fiduciary standards.
In 1990 Aaron began his lifelong passion for tracking investments by reading the Wall Street Journal and checking Prodigy dial up internet service. He became a professional Financial Advisor in 2007 with Ameriprise Financial Services, at the peak of the market, right before one of the largest stock market drops in American history. Based on Aaron’s desire to offer truly independent, comprehensive, and personalized financial services, in 2015 he founded Delphi Wealth Partners.
All investments are tools. As an independent Registered Investment Advisor, Aaron works on his client’s behalf to which investments from any company best meet his client’s needs. Delphi Wealth Partners currently uses: Mutual Funds, ETFs, Individual Stocks, Bonds, Options, Structured Products, Insurance, Annuities and many others. Just as no single tool is right for every purpose, Delphi Wealth Partners recommends determining which investment or combination of investments will best serve each client’s specific goals.
Beyond types of investments, many clients don’t know which types of investment accounts make the most sense for their goals. For example, the majority of Americans don’t know that a Roth IRA can provide tax free investment growth and income, which can matter more than which S&P 500 index fund they choose.
I advise my clients on all aspects of their financial life, no matter where those aspects lay: real estate, stocks, bonds, 401(k)s or pensions, trusts or estate planning, 529 plans, or how to structure your business ownership, down to even just your current occupation. The decisions you make every day will define the future opportunities and risks you face in the future. Ensure you have a trusted and learned friend to talk to who can help you make the right decisions based on your values and goals.
We’re available for our clients ALWAYS. Whether it is evenings, weekends, holidays, via e-mail, text, phone, or video-conferencing, we will utilize any and all ways to communicate that YOU prefer. We meet with most of our clients at least twice a year, face-to-face, however we want to tailor your experience to your expectations and needs.
There are many factors you must consider when determining the level of risk you take and how to implement it. I recommend my clients base their decisions on three risk and return factors:
- How comfortable are you with risk?
Your investment preferences matter. How comfortable are you with swings in the market or the price of your investments? - How much risk could you safely take?
Your total financial picture makes a difference. Do you have other investments or is this “all your eggs”? - What rate of return do you need to reach your goals? Why take more risk than you need? Even more important—why invest in something risky that can’t earn enough to reach your goals.
“Know thyself and all things in moderation” An inscription said to be found above the door at the Oracle of Delphi.
By helping my clients develop a diversified portfolio that best reflects their situation and risk tolerance relative to desired growth, we can implement several different “styles” or philosophies to achieve their goal. Some focus on the lowest fees, or the lowest volatility, while others want the most growth possible.
I personally am a Warren Buffett and Benjamin Graham disciple. I believe:
- If you discount the cash flow of the future earnings of stellar businesses, you will be rewarded over time, again and again.
- The price you pay matters.
- The appearance of safety will cost you a lot.
- Math always wins in the end.
Financial Terms
Our goal is to make sure you fully understand what you want and need to know about investing and how it pertains to you. While we’re happy to take the time to simplify these often confusing financial concepts further, you may find this list of common financial terms defined helpful.
Diversification is a strategy that can be neatly summed up as “Don’t put all your eggs in one basket.” The strategy involves spreading your money among various investments in the hope that if one loses money, the others will make up for those losses.—U. S. Securities and Exchange Commission
Investopedia defines A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund’s assets and attempt to produce capital gains or income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives stated in its prospectus.’
Mutual funds give small or individual investors access to professionally managed portfolios of equities, bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of securities, and performance is usually tracked as the change in the total market cap of the fund—derived by the aggregating performance of the underlying investments.
An emergency fund is a bank account with money set aside to cover large, unexpected expenses, such as:
- Unforeseen medical expenses.
- Home-appliance repair or replacement.
- Major car fixes.
- And, costliest of all, unemployment.
—NerdWallet
Investopedia defines an IRA as an individual retirement account (IRA) is a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.
Unlike other individual retirement accounts, with a Roth IRA you pay taxes on your contributions every year. But also unlike other individual retirement accounts, with a Roth you pay no taxes on distributions—including your investment growth—when you reach retirement age.—NerdWallet
Bonds are an asset class where the investor lends a government or business money for a set period of time, with the promise of repayment of that money plus interest.—NerdWallet
Investopedia defines A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. This entitles the owner of the stock to a proportion of the corporation’s assets and profits equal to how much stock they own. Units of stock are called “shares.”
Investopedia defines A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. Trusts are established to provide legal protection for the trustor’s assets, to make sure those assets are distributed according to the wishes of the trustor, and to save time, reduce paperwork and, in some cases, avoid or reduce inheritance or estate taxes. In finance, a trust can also be a type of closed-end fund built as a public limited company.
A Family Office is [typically] a privately held company that handles investment management and wealth management for a wealthy family, generally one with over $100 million* in investable assets. [Family Office services focus on the growth] and transfer [of] wealth across generations.—Wikipedia
*Delphi Wealth Partners offers this same mix of multi-family-office services for families with $5 million to $25 million or more in investable assets.