Frequently Asked Questions

"The problem with averages is that if my head is in the fire, and my feet are in ice, then I'm comfortable on average."  -Mark Twain

"Why Choose me as your Financial Planner?"

I once heard, “If the only tool you have is a hammer, the whole world looks like a nail.”  Many advisors work for firms that promote proprietary products and earn additional compensation for recommending certain products over others.  Therefore they end up selling clients products that might suit their pocket books more than the clients’ best interest.  I am 100% independent and have access to literally thousands of investment alternatives.  I take pride in objectivity. 

"How are You Different than Other Advisors?"

I am different because this has always been my passion, my gift, and my calling.  I was blessed to have a wonderful set of parents who lead by example when it came to money management, and realized that managing money and the sense of security it brought was something that I wanted to share with others.  I also differentiate myself from my competition by having the heart of a teacher and spending the necessary time with all my clients to gain the comfort level and education they need to be successful investors. 

"How are You Prepared to Handle the Needs of the Baby Boomers Facing Retirement?"

I specialize and focus most of my energy on studying the wide array of financial decisions and obstacles that retirees will face, such as: increasing life expectancies, a troubled Social Security system, and a market that is increasingly volatile.  This knowledge, coupled with a strong understanding of the tax system, allows me to develop strategies designed to help meet the income needs of my clients and weather the multitude of "market storms" they will encounter during these years.

"I Read that You Should Hire an Advisor with Certain Credentials- What is Your Level of Technical Competence?"

From a technical and knowledge standpoint, I have a well diversified background of education and credentials in the field of investment, estate, insurance, and tax planning.  Very few, in fact less than 1% from my research, of all financial planners are both CPAs and Certified Financial Planners ™.  I believe this combination of tax and investment knowledge helps further separate me from other advisors.  More importantly, I enjoy helping people and watching the transformation from the initial stress they may bring to our first meeting to financial independence and relief after our plan is established.  I have helped people pay off their homes and witnessed the happiness and new perspective about finances that followed.  I have been at clients’ sides when dealing with the loss of a loved one, and helped manage the difficult financial decisions during emotional times.  I have helped my clients turn the stress of retiring and cashing out their last paycheck into a feeling of security after getting their first income check from their portfolio.

"How Do You Get Paid?"  

I take great pride in explaining and determining the best fee structure for my clients based on their goals.  Many of my clients opt for a fee-based platform which I feel makes great sense on a long term basis. In certain situations, it is more efficient for you, the client, to use retail mutual funds and try to obtain certain breakpoints, or to obtain reductions in fees by consolidating accounts.  Regardless of which route we take, I am committed to finding the best solution for you.  I always strive for a win/win relationship where we all meet our goals and prosper.  Once we explore the options for your particular situation, you will have full transparency of fees and know every dollar that leaves your account.

"Do You Believe that Investors Should Stick with Long-Term Investment Plans Despite Recent Market Volatility and Recession Fears"

Markets are driven by emotion in the short run, however in the long run economic fundamentals dictate market movements.  In all of my analysis, I always factor in that periodically there are going to be dramatic declines with the stock market.  I will use those opportunities to rebalance between fixed-income, equity and real estate, but not to change our overall investment allocation. 

It is important that clients remember that we own companies, not stocks.  Today there is a lot of pressure on 'stocks' as hedge funds and pension funds liquidate positions.  However, nothing has really changed with regard to a company.  If a client owns Johnson & Johnson and it is publicly traded, it can fluctuate wildly depending upon panic selling or emotional buying.  If Johnson & Johnson were a closely held business, however, almost everyone would be thrilled to own it knowing that it is a stable global franchise with an outstanding history of weathering almost any economic storm.  My portfolios for clients, whether individual stocks or mutual funds, are invested in these types of businesses.  We do not speculate, but buy into franchises that we believe over five and ten years will have significant earnings growth, on average, and thus increase in value.

"How do Long-Term Investors Ignore the Daily Market Volatility?"

Note that currently earnings yields on stocks are at their highest levels relative to Treasury bonds since the 1980s.  Therefore, it appears that stocks are cheap, and a cheap stock market tends to weather economic disruptions much better than an expensive one.  You can't time the markets effectively and consistently, but these valuations should help calm your nerves.  Always keep in mind that it is time in the market, not timing the market.  Sticking to fundamentals of a good financial plan such as having a 6 month emergency fund can help keep a client's focus on the long term with their investments, and not be forced to liquidate during a down market due to poor planning.

I have found, that for some strange reason, the stock market is the only investment that consumers want to pay a high price for, versus buying it while it's cheap.  As humans, we are wired to fail as investors, because it goes against every bit of logic and emotions that we are used to.  Long story short- you need professional help to succeed.  Call me.

David W. Adams
CPA
CERTIFIED FINANCIAL PLANNER™

354 Cool Springs Blvd.
Suite 102
Franklin, TN 37067
Phone: 615-778-0258
Fax: 615-778-1789
Direct: 615-778-0262
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