Morningstar - Q2 2023 - 71

They bought the second house before selling the
first, which strained their finances. Berger
assumed people would love their first home as
much as they did, but after an initial offer
fell through, traffic was slow. There was an urge
to spend more, such as updating a bathroom.
Instead, Berger and her husband remained patient
and waited for the right buyer.
One lesson for Berger centered on separating
feelings from decision-making. " Money and
emotions are closely intertwined, " Berger says.
" It is important to recognize our emotions,
feel them, and decide if they warrant action. "
This approach comes in handy with clients,
most of whom are in their 50s, 60s, or 70s,
with $1 million to $5 million in assets. Many of
them are current or former employees of
technology companies, healthcare systems,
and local universities. Others are entrepreneurs.
Berger personally managed about $90 million
in client assets at year-end 2022, up from
$70 million two years earlier, with a roster of
around 115 households.
Charting Her Course Early
Berger, 41, found her calling early in her career.
She majored in business management at
North Carolina State University and interned as
a financial analyst at IBM, but she didn't like
the work. A professor who ran a financial planning
business himself steered her to her current path.
He referred her to Bill Ramsay, chief executive
officer of Financial Symmetry, where she started
working in 2005 and never looked back.
At the time, the firm had two advisors, Ramsay
and Chad Smith; a part-time office manager;
and an intern or two. Now, the firm has 12 advisors
and a dozen or so employees focused on client
support. Berger started as an investment specialist,
performing client investment reviews, running
payroll, and managing an internship program.
She accumulated her own referrals over the years,
building her own roster of clients. She hosted
booths at wedding trade shows and community
events to drum up business.
Allison Berger, CFP, CeFT, financial advisor and
principal, Financial Symmetry
How she caught our eye: Recognized by
Investopedia as a top 100 financial advisor
for 2022.
Career path: Graduated from North Carolina
State University in 2004 and joined Bill Ramsay's
firm, later renamed Financial Symmetry, in
January 2005. She first helped with Ramsay's
clients while building her own roster over
time. Achieved a certified financial planner
designation in 2007 and added the credential of
certified financial transitionist in 2022.
Favorite funds: Dimensional Fund Advisors
family of funds.
Personal: Married, with kids ages 8 and 12.
Lives in Cary, North Carolina. Works using
a treadmill desk, often reviewing financial plans
and portfolios while walking, logging 2 to 6
miles a day. She also loves soccer and driving her
kids to games, while squeezing in her own
time to play. She is a self-described Disney
fanatic, an enthusiast of the boy-band New Kids
on the Block, and a big fan of Seinfeld.
A blog spearheaded by Smith proved more fruitful.
Launched in 2008, and the blog features videos
and podcasts, with Smith, Berger, and other
advisors contributing on topics such as budgeting,
avoiding scams, asset allocation, credit card debt,
tax planning, market developments, and
behavioral finance. The site provides a platform
of credibility for incoming referrals.
Risk Capacity Over Risk Tolerance
Berger and the firm take a straightforward
approach to deciding how much of a client's
assets to invest in the stock market. Rather than
center on someone's risk tolerance, it
emphasizes the client's capacity for risk. Five
to seven years' worth of expenses are kept
in cash and bonds. So, when the market takes a
dip, clients know they have an ample cash
cushion to weather the storm.
" We find capacity a much more compelling
reason to construct the portfolio, versus
the feelings on risk tolerance at any particular
time, " Berger says. " We want to make
sure they're invested appropriately to meet
their long-term goals. "
For equities, Financial Symmetry uses low-cost,
high-quality mutual funds and exchange-traded
funds, including the DFA Core Equity funds.
International exposure can be as high as nearly
50% of a client's equity allocation.
Berger uses Morningstar Advisor Workstation
to create and monitor portfolios. The software also
allows Berger to examine a client's holdings
in the aggregate, giving a total picture of how
assets are allocated. For new clients, Workstation
can pull in the data of holdings in other
accounts, such as 401(k)s, providing Berger a
fuller view of a client's investments.
In the meantime, Berger makes sure her
clients are ready for transition. Since getting the
CeFT designation, she has adjusted how she
advises. One change includes asking clients their
communication preferences and what they
feel is the most effective way to talk about money.
It sounds basic, but it's an important step to
getting the client focused on the financial side of
things, she says. Some people prefer to get to
the point, others want to spend more time building
the relationship and making sure things are
explained in detail.
" For most of us, money is a bit of a trigger
topic, " she says. " So, starting out by setting up
a communications framework helps me
meet people where they are and learn what's
important to them. "
It's a part of financial planning that needs
attention. " There are really two sides to money, "
she says. " One is technical, and a lot of
the time we spend as a financial advisor is on
this part. But there's also the emotional
side, and both sides are equally important
and complex. "
That's an approach likely to resonate with anyone
who sees a big transition on the horizon. K
Charles Keenan is a freelance financial journalist.
Photography by Geoff Wood.
morningstar.com/products/magazine
71
https://www.morningstar.com/authors/2439/charles-keenan http://www.morningstar.com/products/magazine
Morningstar - Q2 2023

Table of Contents for the Digital Edition of Morningstar - Q2 2023
