Brad Sherman Named To Investopedia’s 100 Top Financial Advisors of 2023 List

I am very honored to be named to the seventh annual Investopedia 100 list of most influential financial advisors of 2023 for the fifth year in a row! The seventh annual Investopedia 100 awards program recognizes financial advisors who demonstrate an industry-leading ability to reach large and diverse audiences, and use their influence to foster financial literacy education in the communities that need it most.

Thank you to everyone for their support on this journey and congratulations to the great advisors, peers, and friends listed as well!

Methodology

The annual Investopedia 100 list honors independent U.S.-based financial advisors who have demonstrated top-of-the-industry skills in the following critical areas:

  • Reach: defined as the domain authority of their personal blog or website, followers across socials (LinkedIn, Twitter, TikTok, Instagram, and YouTube), and podcasts (including appearances or ownership of a personal podcast).
  • Commitment to financial literacy: measured by the advisor’s participation in workshops, programs, nonprofits or collaboration with others in the community to spread financial education to those who need it most, as well as the creation of accessible content.
  • Community support: measured through peer nominations by industry professionals outside of their own firms, as well as the advisor’s presence and engagement with others in the financial planning industry.

Each advisor CRD number was checked for validity, and each application was checked for accuracy and quality. Final scores were tabulated according to weights designated for each of the criteria above. Investopedia receives no compensation from placing advisors on our list, nor does an advisor’s appearance on our list constitute an individual endorsement by Investopedia of such advisor.

Brad Sherman Listed As A Top Financial Professional In Bethesda Magazine!

Brad Sherman was listed as a Top Financial Professional in the November/December issue of Bethesda Magazine! On behalf of Brad and Sherman Wealth, we want to say congratulations to the other financial professionals who were listed and thank you to our clients, friends, and family for the continued support as well as the financial professionals who recommended us to this Bethesda Magazine survey.

For Brad Sherman’s profile, see here.

For information on how this list was created see below:

“Bethesda Magazine sent a survey to hundreds of financial professionals in Montgomery County and Upper Northwest D.C. asking, “If you had a close friend or relative who needed financial planning advice, and you could not handle the case yourself, to whom would you refer them?” The resulting list represents those who earned the greatest number of endorsements from their peers.”

Brad Sherman Named On Investopedia’s 100 List of The Most Influential Financial Advisors of 2022

I am extremely honored to announce that today I was named on the Investopedia 100 list of the most influential financial advisors of 2022. The sixth annual Investopedia 100 awards program recognizes financial advisors who demonstrate an industry-leading ability to reach large and diverse audiences, and use their influence to foster financial literacy education in the communities that need it most. Sherman Wealth was built upon the core value of financial literacy and empowerment across the globe. Congratulations to all those who were named and thank you to everyone who has supported us along the way. To view the full list, click here.

About Investopedia

Investopedia is the world’s leading source of financial content on the web. They help investors understand financial concepts, improve investing skills, and learn how to manage their money.

Methodology

The annual Investopedia 100 list honors financial advisors who have demonstrated top-of-the-industry skills in the following critical areas.

  1. Reach: defined as digital presence across their own websites, social media, and other media platforms such as video and podcasts.
  2. Community support: measured through peer nominations by industry professionals outside of their own firms.
  3. Commitment to financial literacy: measured by the advisor’s participation in workshops, programs, nonprofits or collaboration with others in the community to spread financial education to those who need it most, as well as the creation of accessible content.

All three factors weighed heavily in the 2022 Investopedia 100 methodology. Applications were checked for accuracy and quality, and final scores were tabulated according to weights designated for each of the criteria above. Investopedia receives no compensation from placing advisors on our list, nor does an advisor’s appearance on our list constitute an individual endorsement by Investopedia of such advisor.

The Return Of Beers with Brad

After a two and a half year hiatus due to COVID-19, we were extremely excited to be back to host Beers with Brad on May 19th, 2022. It was great to gather with local centers of influence, peers, friends, and clients to discuss all the economic data we have been seeing and the market has been digesting. Not only did the event provide an open space for individuals to ask their own personal finance questions, but it was a great opportunity to network with local professionals and enjoy some beers.

For those of you who may own a small business and would like us to host a Beers with Brad for your employees to provide them the opportunity to learn about financial literacy and ask questions they may have about personal finance or their benefits at work, please email us at info@shermanwealth.com or schedule a complimentary intro call here to learn more. Due to the great outcome and positive feedback, we will be hosting another Beers with Brad on July 14th, 2022 At Launch Workplaces (9841 Washingtonian Blvd #200 Gaithersburg, MD 20878). Please rsvp to the link following or email ashley@shermanwealth.com. https://www.eventbrite.com/e/beers-with-brad-july-14-2022-tickets-347954359857 to RSVP.

Investopedia 100 Top Financial Advisors of 2021

One of the core reasons I started the company was because financial literacy and empowerment was lacking in the US education system and big firms made you believe unless you had a lot of investable assets, finding conflict-free financial advice was impossible. Investopedia is a fantastic website full of educational resources and is doing such great work to bridge the financial literacy gap across the country. We are honored to be included in their 2021 top 100 list of financial advisors who are breaking barriers and pushing the ball forward in terms of financial literacy and empowerment of financial education.

The Investopedia 100 celebrates financial advisors who are making significant contributions to critical conversations about financial literacy, investing strategies, life-stage planning and wealth management. With more than 100,000 independent financial advisors in the U.S., the Investopedia 100 spotlights the country’s most engaged, influential, and educational advisors. Brad Sherman has been named to this list for the third year in a row.

About Investopedia

Investopedia is the world’s leading source of financial content on the web. They help investors understand financial concepts, improve investing skills, and learn how to manage their money.

Disclaimers

Investopedia’s proprietary methodology focuses on awarding financial advisors who have demonstrated a top-of-the-industry ability to reach the largest and most diverse financial and investing audience. That reach is measured by the impact and quality of the advisor’s published work, public appearances, online following, and commitment to financial literacy across diverse communities. The 2021 Investopedia 100 also heavily weighed peer-to-peer nominations, highlighting the most influential advisors who were recommended by their peers. We receive no compensation from placing advisors on our list, nor does an advisor’s appearance on our list constitute an individual endorsement by Investopedia of such advisor.

Awards, third-party rankings and other recognitions are not indicative of future performance. Awards and other recognitions should not be interpreted as a guarantee or suggestion that a client or prospective client will experience a certain level of results if our firm is engaged, or continues to be engaged, to provide investment advisory services, or as an endorsement of our firm by any past or present client. Neither Investopedia nor any of its associates are affiliated with Plancorp, none of the awards or other recognitions are based on client evaluations of our firm, and we have not made any payments for or in anticipation of any award or other recognition.

Brad Sherman Named to Investopedia Most Influential Advisors

One of the core reasons I started the company was because financial literacy and empowerment was lacking in the US education system and big firms made you believe unless you had a lot of investable assets, finding conflict-free financial advice was impossible. Investopedia is a fantastic website full of educational resources and we are honored to be included in their top 100 list of financial advisors who are breaking barriers and pushing the ball forward in terms of financial literacy and empowerment of financial education. Honored to be on the list among other great advisors, peers, and friends.

The Investopedia 100 celebrates financial advisors who are making significant contributions to critical conversations about financial literacy, investing strategies, life-stage planning and wealth management. With more than 100,000 independent financial advisors in the U.S., the Investopedia 100 spotlights the country’s most engaged, influential, and educational advisors. Brad Sherman has been named to this list for the third year in a row.

About Investopedia

Investopedia is the world’s leading source of financial content on the web. They help investors understand financial concepts, improve investing skills, and learn how to manage their money.

Disclaimers

Investopedia’s proprietary methodology focuses on awarding financial advisors who have demonstrated a top-of-the-industry ability to reach the largest and most diverse financial and investing audience. That reach is measured by the impact and quality of the advisor’s published work, public appearances, online following, and commitment to financial literacy across diverse communities. The 2020 Investopedia 100 also heavily weighed peer-to-peer nominations, highlighting the most influential advisors who were recommended by their peers. We receive no compensation from placing advisors on our list, nor does an advisor’s appearance on our list constitute an individual endorsement by Investopedia of such advisor. 

Awards, third-party rankings and other recognitions are not indicative of future performance. Awards and other recognitions should not be interpreted as a guarantee or suggestion that a client or prospective client will experience a certain level of results if our firm is engaged, or continues to be engaged, to provide investment advisory services, or as an endorsement of our firm by any past or present client. Neither Investopedia nor any of its associates are affiliated with Plancorp, none of the awards or other recognitions are based on client evaluations of our firm, and we have not made any payments for or in anticipation of any award or other recognition. 

Has Your Employer Suspended Its 401(k) Matching During COVID-19?

According to a recent survey, 16.1 percent of organizations have suspended matching employer contributions due to financial hardships caused by COVID-19. Worse yet, 1.3 percent of businesses have terminated their 401(k) plans altogether.1 401(k) plans and their matching employer contributions are relied on by millions of Americans to bolster their savings for retirement. If your employer has recently made an adjustment to its 401(k) offerings, you may want to consider how this could impact your future retirement and the next steps you should be taking.

Why Are Employers Changing Their 401(k) Plans?

COVID-19 has had a tremendous impact on businesses throughout the globe. With most states implementing stay-at-home orders, businesses have been forced to reduce hours or cease operation altogether. As Americans were encouraged to stay home throughout March, April and May, foot traffic all but vanished across America for months.

Even though some states have begun relaxing measures and stores are starting to open back up, America remains suspended in a fairly volatile market. People are worried about what the future will look like.  Many of them are strapped for cash and not willing to spend like they used to. In return, businesses are suffering and searching for ways to save. Unfortunately, one of the first things to go is often employer-sponsored benefits such as 401(k) plans or their matching contributions.

Is it Legal for an Employer to Suspend Matching Contributions?

In most cases, it is legal for an employer to suspend matching 401(k) contributions. While it may have been an enticing addition to your benefits package upon your hiring, employers do have the power to simply stop offering this benefit. The most important thing an employer can do in this instance is to effectively communicate with employees who will be affected by the change. For example, explaining that cutting these benefits is their solution to avoiding layoffs will likely make employees more understanding and receptive to the change.

If your employer doesn’t provide you with an explanation or any idea of if/when contributions will start up again, speak to your manager or HR department. If your employer offers contribution matches to a safe harbor 401(k) plan, they must offer notice to employees 30 to 90 days in advance of suspending contributions.2   

What Should You Do if Your Matching Contributions Are Suspended?

In the case that your employer does suspend matching contributions, there are a few next steps you can take to help maintain and grow your retirement savings.

Having an employer suspend matching contributions, even if it’s only temporary, is a sign of the times. We’re facing a global pandemic, the stock market’s unpredictable and people are worried about money. If you have been personally impacted by the coronavirus, you can even withdraw up to $100,000 penalty-free as part of the recently passed CARES Act,3 although this should only be done if you are in dire need of financial assistance.  Withdrawing any amount from your 401(k) now will only rob your future retirement. 

If you have questions regarding your company 401(k), please reach out to your financial advisor.  Your advisor’s sole responsibility is to help you make unbiased, educated and objective decisions about your money. Use him or her as a sounding board to voice your concerns and discuss potential paths forward. How will you make up for the missing contributions? What financial impact will this change have on your future retirement? The market is volatile and economic confidence is low amongst investors. If you haven’t already, use this as an opportunity to reevaluate your current asset allocations and investment strategies. You likely have plenty of questions regarding any changes to your 401(k) and other investments and your advisor may be able to help you identify potential areas for improvement based on your current tolerance for risk.

Even if your employer has slashed matching contributions, that doesn’t mean you still can’t contribute to your 401(k). If you have the means to do so, consider upping your contributions, for now at least, to help offset the loss of any missing contribution matches. The contribution limit for a 401(k) increased in 2020 to $19,500. If you’re over 50, you’re allowed to contribute an additional $6,500 in catch-up contributions.4

In these challenging times, you are not alone if you find yourself working for a company that has suspended its 401(k) matching contributions.  Hopefully, these changes are just temporary, but it is necessary to plan accordingly for what is happening in the present.  Every penny counts when it comes to preparing for retirement and it is important to know how these 401(k) changes will affect your future savings.  If you have any questions about the impact this may have on your future retirement earnings and what you should be doing right now to make up for any lost funds, please contact us.  We are here to help!

  1. https://www.psca.org/sites/psca.org/files/uploads/Research/snapshot_surveys/CARES%20Act%20Snapshot%20Summary.pdf
  2. https://www.irs.gov/retirement-plans/mid-year-changes-to-safe-harbor-401k-plans-and-notices
  3. https://www.congress.gov/bill/116th-congress/house-bill/748/
  4. https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19500-for-2020-catch-up-limit-rises-to-6500

Robo Advisors vs Traditional Advisors: Beyond the Red Pill and the Blue Pill

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When you hear the words Robo Advisors, what do you think of…? The Matrix?

And does Financial Advisor conjure up a swaggering DiCaprio in The Wolf of Wall Street? Or maybe someone in a Brooks Brothers suit, describing products you barely understand?

If you said yes to either, you’re not alone.

One common fear about the new wave of robo advisors is that, once you take the “red pill” and dive in, you’re no longer in control. You’ve turned your money over to a mysterious series of algorithms with no human in sight to help you guide it.

Many investors – particularly younger ones – are also put off by the idea of bespoke-suited advisors from traditional firms who are trying to up-sell them investments and insurance products with hefty fees and commissions. And even if they were to opt for the more conservative “blue pill,” traditional advisories are often not interested in speaking with them because they can’t make the hefty minimum investment.

While there is some truth to both stereotypes, there are also big shifts going on in the financial industry that make this a great time to take advantage of both a new breed of independent financial advisor and the efficiencies that targeted robo-platforms can provide.

Here are the differences – as well as drawbacks and benefits – in a nutshell:

Robo Advisors:

Pros:

  • Inexpensive compared to full-service portfolio management
  • Lower barrier to entry: lower initial investment requirements
  • Democratic: all clients benefit equally from algorithmic decisions, not just the big investors
  • Data-driven: driven by numbers, trends, and deep data – not emotions

Cons:

  • Limited scope: robo advisor only handle investment management, not comprehensive financial planning
  • Generic: they categorize you using broad-stroke demographic – not individualized- goal and risk-tolerance profiling to build your portfolio
  • Automatic: selling or “rebalancing” can be triggered by pre-set formulas at times that you might be wiser to stay put
  • Limited opportunities: many robo-firms currently have a limited or “preferred” set of funds and options you can invest in
  • Impersonal: no human interaction for questions regarding your individual investment portfolio

Traditional Financial Advisory Firms

Pros:

  • Someone who picks up the phone when you call or will see you when you make an appointment.
  • Flexible: can make real-time decisions about what’s right for you or when to buy or sell not rather than being locked into formulas.
  • Multi-layers of expertise to call on

Cons:

  • Barrier to entry: many traditional advisories have high minimums and confusing requirements and may only offer enhanced services to “premium” clients
  • Conflict of interest: many advisories have a “corporate agenda” to promote certain products, or they follow a [Suitability Standard] that doesn’t necessarily put the clients’ interests above their own
  • Change resistant: larger organizations can be “too big for their own good,” and slow to incorporate new tech or new processes that add value for their clients or address clients’ individual needs.
  • Limited customization: established firms frequently use old-school models of demographics, risk allocation, and target dates without factoring in what makes each client unique
  • Impersonal: while customer service is available, traditional firms often don’t truly “meet you where you are” and customize services and portfolios for you unless you have a large portfolio

Enter the New Breed

A growing number of independent financial advisors are disrupting the traditional model and starting to create a “third way,” hybrid advisories that strive to offer all the pros and – hopefully – none of the cons. They offer clients customized fee-only services – unhindered by corporate agendas – and with a lower minimum investment. At the same time they are able to incorporate the newest tech tools that not only make it easy for new clients to get started, but also offer fast, best-in-class investment management modeling to make faster decisions about managing investments.

Or, as Josh Brown so eloquently put it in a recent blog post, “…innovation and creative spirit is fleeing from the Old World to the new one.”

So why haven’t all advisors embraced the new technology to offer enhanced services to their clients? The three biggest reasons are inertia, inertia, and inertia. It’s not easy to change entrenched business models, culture, and processes. Remember how Netflix caught the video rental business napping?

Why Not Just Go with a Robo Advisor?

Robo advisors generally only offer investment management, not comprehensive, goal-oriented financial planning. While both investment advisors and robo advisors can recommend investment direction, strategy, and allocation, a good financial advisor can help you identify goals, customize budgets and cash flow planning, and help you with insurance, credit, and debt management, things a robo-platform can’t do.

The most important thing about the integration of new tech with personal attention and a customized plan is that a user-friendly tech interface can allow clients to manage all the pieces of their financial plans, from cash flow to 401Ks, while allowing an experienced advisor to monitor it and give clients a call when that advisor sees an opportunity, a red flag, or wants to check in about goals and direction.

These days, clients can see through the bespoke suits; what they’re looking for is bespoke service. By embracing selected and appropriate technology, this new breed of independent financial advisors are able to offer all the “pros,” while creating a new model of more transparent, conflict-free financial management that’s available to everyone who wants to set – an achieve – financial goals.

 

Wishing you a Happy Birthday

We are excited to be celebrating our one-year anniversary this week, and even more excited to share these custom-designed birthday cards we made for our clients. Coming to a mailbox near you…