Isaac Newton Isn’t So Smart? Our Investing Principals in Actions

It was one of the first “bubbles” in stock-market history, and even Isaac Newton got caught up in the rush.

In an updated edition of Benjamin Graham's investing classic "The Intelligent Investor," The Wall Street Journal’s Jason Zweig summarized Newton’s experience:

"Back in the spring of 1720, Sir Isaac Newton owned shares in the South Sea Company, the hottest stock in England. Sensing that the market was getting out of hand, the great physicist muttered that he 'could calculate the motions of the heavenly bodies, but not the madness of the people.' Newton dumped his South Sea shares, pocketing a 100% profit totaling £7,000. But just months later, swept up in the wild enthusiasm of the market, Newton jumped back in at a much higher price — and lost £20,000 (or more than $3 million in [2002-2003's] money. For the rest of his life, he forbade anyone to speak the words 'South Sea' in his presence." 


By any practical measurement, Newton was one of the smartest individuals to ever walk the planet.  Investing isn’t about smart and stupid, it’s about what works and what doesn’t. 

Newton violated all of our three investing principles

1)      No one can predict the future

2)      Markets trend

3)      Manage risk (with a plan!)

Understanding and practicing any of these principles would have helped Sir Isaac avoid this catastrophic loss in wealth. 

Stay tuned for more of our investing principles in action. 



What’s a VUL? The First Day I Knew Something Was Wrong

I was 3 months into my first role as a Financial Adviser for a large well know firm and something seemed….off

I met with my boss almost daily, but today he was excited to discuss a product I needed to learn about. Variable Universal Life Insurance or VUL. 

 “It’s a great product, it combines insurance and investments in one vehicle,” my boss said. 

“But the best part, it pays more commission!”

How could that be? We were providing identical products separately and getting a lower commission.

I asked my boss, “Wouldn’t the client be paying higher fees on the same products?”

“Oh don’t worry, the market goes up 12% on average every year.  The client will make it back.”

The craziness of that statement from my boss about market returns is one thing, but the higher cost of the same product really bothered me.  What is a VUL really (find out here) and what exactly is the cost of a VUL?  My boss couldn’t tell me, however I found out years later while working with a client.

This client had over $300K in VULs.  I asked to review his statement.  I found fees, fees and more fees!  The ever more complicated fee names and contract language pushed me toward contacting the VUL Company. 

After many confusing phone calls, I totaled up the fees…….slightly higher than 10% PER YEAR!

The fees are bad enough, but we found this client was vastly over insured and had not made any return for ten years.

VULs are simply one example of the confusing and misleading financial industry.  Do you have an example where something seemed off in your financial life?  I’d love to hear your stories of your most confusing financial moments.  Please contact me directly or share on our Facebook page. 


Josh W.

Why Start an Investment Adviser Now?

Because the financial service industry is broken

Our industry has problems that we would not tolerate from any business:

-          We don’t know how much this costs

-          We don’t understand how our money is invested

-          No one can explain anything in a way we can understand

-          Nothing is customized for my specific needs

-          Achieving financial goals isn’t the focus

Our Solution

The challenge is clear.  The solution is here, and honestly, it’s really simple. 

-          Identify your goals first

-          Design a customized rules based investment plan

-          Implementing a financial planning process that proactively addresses your changing needs

-          And most importantly, common sense answers and explanations to all your questions

How are we able to deliver a different our solution?  By combining best in class technology and our 15+ years developing unique investment solutions. 

The time to put clients first and change this industry is now!

CALL TO ACTION!  Sign up for our blog! 

We will be handing out knowledge for free.  Our focus will be on the following topics:

-          Building smart financial goals

-          Educating investors – crushing myths, destroying confusing jargon, sharing our process

-          Behavioral finance – understanding why us humans do what we do with money

Before our next post we want to help you right now! 

Send us your most challenging, confusing or scary financial questions by March 15th and we will answer them on our blog and review your financial situation one-on-one for free.  Simply ask your question on our Facebook page in the comments, tweet at us or send an email to

Thank you for starting this journey with us!

Josh W.