Mural, 16th at Bryant, SF
Our work with you is ultimately about bringing together the decisions that have brought you to where you are today, with a strategy to move towards what you want next. It’s called personal financial advice for a reason: because it’s about you and your family, finances and finding happiness no matter what life doles out, including problems money can’t solve. We strive to offer you an environment in which taking the necessary and sometimes challenging steps towards aligning your finances with your life goals is supported and encouraged.
Investments…
Other advisors will tout their skill in stock-picking or investment research. Satori’s founder was profoundly influenced by the work of Roger Ibbotson, Professor in the Practice of Finance at Yale’s School of Management, under whom she had the privilege to study. Widely known for his research in the history of returns in U.S. financial markets, Ibbotson has studied more than 80 years’ worth of returns of various asset classes. This research has shown that approximately 90% of the variability in portfolio returns is due to the asset allocation decision and it appears that on average money managers are “not adding value above their asset allocation policy due to their combination of timing, security selection, management fees and expenses.”
If this is true, why would you pay a financial advisor?
We don’t offer active management of stocks. We don’t pretend to know what will happen in the stock market. We don’t consider stock picking or market timing to be investing: we call it gambling. Our recommendation is that if you want to gamble, go to Las Vegas, because at least there they’ll comp your drinks.
…and Everything Else
We focus our work with you on your plans, financial and otherwise. We don’t really know what to do with your investments until we understand what you need them to do.
The strategies we recommend focus on the factors you can control (how much you spend, how much you save, what you pay in taxes and fees) and respecting forces beyond your control (financial market performance). In working with you to achieve or preserve financial independence, we will never recommend taking risk for risk’s sake alone.
Tax Expertise
Unlike most financial advisors, Satori has the qualifications to offer tax advice with financial and investment strategies to help you make tax-savvy decisions. As part of our approach, we review your past tax returns and provide tax projections to highlight potential tax minimization strategies.
For some of you, tax strategies for equity compensation (stock options, RSUs, GSUs, etc.), irregular cash flow from a business venture or liquidity events like an IPO are part of our offerings. For those with charitable intent, we can help you develop a defined charitable giving plan (including cash and volunteer hours) that focuses your generosity for maximum effect – in the world and on your tax returns.
Process
Over the course of our work together, we will work through various aspects of your personal financial situation methodically, incorporating new actions and outcomes as we go. We will tend to work through your plan like this:
- Analyze your current financial position, free cash flow, identify financial risks and outline your life goals
- Develop a risk management plan and prepare a long-range projection
- Review your current asset allocation and assess your risk profile
- Examine your tax situation and agree on the investment strategy for you
- Develop investment recommendations (FLP only)
- Review estate plans, intergenerational needs and any charitable intent (FLP only)
- Reassess financial position, have cocktails[1]
[1] Or other celebratory ritual of your choice