financial advisor

Getting to Know Richard Bloom: The Making of a Great Financial Advisor

August 24, 2020 by Grace Bennett

Richard Bloom’s first memory of the stock market was when he was a young child. He would hear his grandfather talking about buying shares of GE. “I didn’t know what it meant, and actually thought he owned the whole company! Eventually he taught me what it really meant to buy and own a piece of a company. As a way to educate myself and my siblings, he asked us to pick a company we liked and agreed to buy us each 10 shares of that company.”

Of course, as any kid would do, Bloom chose Toys R Us! “As this was the pre-internet era, he bought us graph paper and taught us how to look up the ticker in the newspaper each day and chart the price of the stock,” said Bloom. It was his first introduction to investing, “but more importantly, it was a great learning experience and bonding opportunity with my grandfather.”

This early introduction ignited a desire in Bloom many years later to study finance in college. From his career’s start nearly 15 years ago, he has worked with the same team, The MayerGelwarg Group at Morgan Stanley. His two partners, each with over three decades experience have taught him that what makes a great advisor is not only helping clients develop sound financial plans, but doing so at the highest level of service.

Building Relationships

Today, the part of Bloom’s job that he loves the most is the deep lasting relationships that he has built with his clients. “My job is not only to ensure they are taking the right steps toward financial security, but to assure and reassure so they can handle the emotional side of investing in the markets,” he explained. “This entails asking very specific individualized questions during a first and second meeting to understand how the client views the world and what impact that will have on their emotional fortitude during the inevitable ups and downs we will experience together.

“From the moment I meet a prospective new client, it is my responsibility to demonstrate financial acumen and understanding of their unique needs,” Bloom continued. “Knowing my clients seek out and trust my guidance is incredibly rewarding.

Since the pandemic, Bloom has interacted with many individuals within and outside of the industry who wonder how he and his clients are handling the stress and uncertainty. While acknowledging the increased demand in terms of time and energy, Bloom has also found it to be one of the most fulfilling moments of his career. “Now more than ever, clients and potential clients are razor focused on the importance of having an experienced financial advisor. I continually remind my clients of the plan in place to ensure their short-term needs will be met under any market conditions without jeopardizing their long-term financial goals. And most importantly, if/when there are changes to their personal situation, we can make any necessary adjustments needed. While we cannot control the markets, we have complete control over the decisions we make together.”

Discipline as Key to Success

Bloom emphasized that although there are virtually no barriers to investing in the markets on your own, a great deal of discipline is required to be successful in the long run. “Investors must develop a strategic asset allocation and stick to it; they have to rebalance across asset classes including selling outperforming investments; they also must understand the tax ramifications of each trade because at the end of the day, it’s not about what you make, but what you keep.”

If any one thing frustrates Bloom, its hearing of investors who panic and sell out of the markets at the lows and miss the inevitable rebounds. During his local “Wine and Wealth” seminars at Le Jardin in Chappaqua, Bloom has maximized the opportunity to educate numerous members of the community. “These are fun, low-key social and educational events where I team up with one of our portfolio managers to present on different investing topics,” he said. “My goal is for all attendees to walk away with a few investment concepts that they can use to prevent themselves from making financially detrimental mistakes.”

Bloom and his partners also practice what they preach. “We make it a focal point of our business not to invest our clients’ assets in anything we ourselves or our families are not invested in. Most financial advisors cannot say that,” he stated. “Our asset allocation, or the mix of stocks and bonds, may differ but the portfolios we utilize for various asset classes are the same. We do this to eliminate any conflicts of interest and our clients take comfort in knowing that we are invested alongside them.”

Westchester Living

Bloom is proud to call Westchester home, a perfect choice to establish roots personally and professionally. His wife Marisa grew up in Chappaqua. Bloom, originally from the Philadelphia suburbs, originally thought he would move back there. “However, I quickly learned that once I married a New York girl, I’d be here for life. And now I absolutely love it.

He said his kids love spending time at Gedney Park, and always look forward to the Chappaqua Children’s Book Festival and the Armonk Cider and Donuts Festival. His family visits the local farmers markets every weekend as well. “We make it a priority to shop at and support local businesses. We couldn’t be happier living up here.”

But no matter how grounded one might feel in the community, Bloom understands how ‘unsettling’ the markets can be right now, and the feeling of uncertainty that comes along with it. “The markets also tend to operate in the exact opposite way of how we live our lives and are hardwired to think,” said Bloom.

“In the very short term, people generally know what is going to happen to

them–what their schedule is going to be tomorrow or next week or next month. Where we will be in 10 years has a much wider range of outcomes and very little certainty.

The ‘Long Term’ Mindset Advantage

“The markets, on the other hand, have much more certainty in the long run while there can be extreme volatility in the short term. Understanding this helps alleviate my concerns for what is happening in the world right now. No doubt we are experiencing sea-level changes in our country and society; however, when you look back in history, changes are always taking place with industries being disrupted. Being able to take advantage of these changes, block out the noise, and stick to your long-term plan through it all provides you with the best chances of success.”

A recent article by Bloom in this press discusses strategies to help investors remain focused during turbulent times, even when it can be hard to think clearly. (https://www.theinsidepress.com/staying-focused-in-turbulent-times/)

Most meaningful for Bloom has been growing with his clients and witnessing wonderful things that happen to them in their lives. What he has found is that many times those great things do not have anything to do with wealth. That thinking has accorded Bloom perspective. “There are three simple rules I try to live by: First, be a good person and respect others. Second, surround yourself with people you like and can learn from. And lastly, don’t ever sweat the small stuff, including a bad day in the markets!

To reach Bloom, write to Richard.Bloom@morganstanley.com

Staying Focused in Turbulent Times

May 22, 2020 by Inside Press

By Richard Bloom

While today’s markets can be nerve racking for even the most experienced investors, those who approach it with a long-term plan in place have a much greater chance of protecting themselves from mistakes and seizing the opportunities that lay ahead. The best way to take advantage is to create a goals-based approach to wealth management using a disciplined four-step process. The first–and often the most important–step is discovery, an honest, open conversation about your goals and your entire financial picture. In the second step, your Financial Advisor works with you to assess various scenarios and advise on appropriate strategies designed to help you meet your goals. Your plan should safeguard your short term needs while strategically positioning you to ensure your long term goals will be met. Once you have agreed on a personalized wealth strategy, your Financial Advisor advises how to implement in the most efficient way. Finally, as time progresses, your Financial Advisor will regularly review your financial situation with you, making adjustments according to your needs, life events and changing market conditions.

In addition to taking a goals-based approach, below are some further tips on how to navigate through this unpredictable period.

When the market is volatile, almost everyone thinks about their financial future and the potential impact such fluctuations may have on their retirement accounts. However, it is during these turbulent times that it’s important to remember certain basic, time-tested principles of investing.

Continue Contributions

It may not seem intuitive, but continuing to contribute to your retirement plan–even during market downturns–can potentially enhance your returns over the long-run. A down market can be an opportunity for you to acquire more shares of your investments at a lower price. Consistent investing through market ups and downs is called “dollar-cost averaging.” If an investment’s price is high, you buy fewer shares, or units. When prices are low, you buy more. Investing regularly, using dollar-cost averaging, can help reduce the risk associated with buying during big swings in market prices.

Diversify

If you’ve ever heard the saying, “Don’t put all your eggs in one basket,” then you already have a basic understanding of diversification. Diversifying your portfolio can reduce risk and volatility. Review your account and make sure your portfolio is not too heavily weighted in company stock, or in any single asset class.

Stay Invested

You may be anxious about the decrease in the value of your investments. But don’t be tempted to move out of the market, sit on the sidelines and wait for prices to rebound. Trying to time the market could potentially jeopardize your financial strategy–and your future goals.

Maintain a Long-Term Focus

Any investment decisions you make should be based on your financial goals and objectives, time horizon and risk tolerance, rather than concerns about market volatility. Even if the market seems volatile, remember that ups and downs are normal. It is important to stay focused on your financial future and refrain from making short-term decisions on long-term investments.

History demonstrates that there will always be some degree of uncertainty and volatility in the markets. While market events are out of our control, we do have control over our financial objectives and how our investments are allocated to help us achieve them. If you would like assistance in determining the mix of asset classes that can help you meet your financial objectives, contact your Morgan Stanley Financial Advisor.

Disclosures:

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard Bloom is a Financial Advisor in 1290 Avenue of the Americas, New York, NY 10104 at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597. His website is https://advisor.morganstanley.com/the-mayergelwarg-group.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate or all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Asset allocation and diversification do not guarantee a profit or protect against loss. Any type of continuous or periodic investment plan does not assure a profit and does not protect against loss in declining markets. Since such a plan involves continuous investment in securities regardless of fluctuating price levels of such securities, the investor should consider his financial ability to continue his purchases through periods of low price levels.

This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be appropriate for all investors. Morgan Stanley Wealth Management recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not “fiduciaries” (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by Morgan Stanley and/or as described at www.morganstanley.com/disclosures/dol . Individuals are encouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://www.morganstanleyfa.com/mayergelwarggroup.

CRC 2992110 03/2020

Five Tips for the Sandwich Generation Juggling the Needs of Your Kids and Your Parents Without Losing Your Balance

February 22, 2020 by The Inside Press

BY RICHARD BLOOM

In today’s fast-paced world, life can be hectic – especially if you’re among the growing number of adults caught in the middle known as the sandwich generation. According to the T. Rowe Price 2019 Parents, Kids & Money Survey, more than one in three parents with kids between the ages of 8 and 14 is also caring for an aging family member. Of those, nearly 70% have an aging parent or relative living under the same roof.¹ Being a dual caregiver can cause emotional stress and even financial strain, but planning ahead and seeking out the support you need can help you find – and maintain – your balance.

Here are some tips for living – and thriving in – the sandwich life.

1. Simplify where possible.

Simplifying your finances is a good first step in knowing exactly where you stand in terms of being able to afford your own retirement and still support your kids and parents. Many of us have our money spread across multiple bank accounts, brokerage accounts and even retirement accounts. Consolidating these accounts may make it easier for you to manage your financial life, removing a layer of stress and potentially making your assets work more efficiently, guided by a cohesive investment strategy.

2. Break the ice on family finances.

In many families, money is a taboo topic. But as your parents age and your children grow up–and sometimes boomerang back to the nest–having frank conversations about the family finances is a must. Take the brave step of asking your parents about their finances and how they would like their affairs to be handled if they are no longer able to make important decisions about their money or health. And talk to your children about your expectations when it comes to what you will pay for and what you expect them to pitch in. This is especially important if your grown-up children move back in with you.

3. Don’t be afraid to delegate.

You don’t need to shoulder all of the responsibility alone. Whether it’s finding a reliable babysitter for your kids, a trusted caregiver for your aging family member or someone to help around the house, delegating to others can help to ease the load. Talk to you kids about chipping in with household chores, or share caregiving responsibilities with a sibling. If you need outside help, ask family members and neighbors for recommendations or referrals. There are also websites and agencies that can help you with finding good care.

4. Explore all your options.

In addition to parental leave benefits, an increasing number of employers are offering caregiver support as part of their benefits package. You may also be able to talk to your employer about flexible work arrangements.

According to the Home Care Association of America and the Global Coalition on Aging, 70% of adults over age 65 will require assistance with their daily activities at some point.² Nursing home stays or in-home care can be expensive, and another option to consider is long-term care insurance.

5. Take care of yourself.

You want to give your all to the people who rely on you. But, remember, in order to provide the best possible care for your kids and your parents, you need to be at your best. That means carving out time to recharge your physical, emotional and mental batteries so you can make the time you give to your family more meaningful and effective. Just as flight attendants remind you to put on your own oxygen mask first in the event of a loss in cabin pressure, prioritizing yourself is sometimes part of maximizing your ability to help those around you.

Whatever challenges you face, working with a Financial Advisor who understands your circumstances and priorities can help you formulate a plan that is designed to safeguard not just your finances, but also your family.

FOOTNOTES

1. Money Confident Kids. 2019 Parents, Kids & Money Survey Results.

2. Home Care Association of America and Global Coalition on Aging. Caring for America’s Seniors: The Value of Home Care. Available here.

DISCLOSURES

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters.

You Can’t Time the Market

December 1, 2019 by The Inside Press

By Richard Bloom

Why You Should Avoid Practicing Market Timing

There are many things that could affect the overall equity market and any individual stocks you may own—from economic trends to geopolitical events like an election. What is certain is that the market will always have its peaks and dips.

This market cycle can make it tempting for investors to attempt to buy and sell stocks at particular times to maximize gains and avoid down periods. This investment strategy is known as market timing, the practice of moving in and out of the market based on predicting when the market will shift.¹

Missing out on Market Moves

Although the idea of market timing can be tempting, it is also extremely difficult for most investors to predict the future of the market. In fact, those who try to time the market may actually underperform investors who simply buy and hold stocks.²

One reason is the tendency of the market to experience big upswings and downswings on adjacent days during periods of market volatility. That means an investor who sells after a substantial down day for the market may miss a subsequent period of gains. Also, many investors let emotions dictate their actions, leading them to buy stocks when the market has already gained in value, only to sell when the market has declined, leading to sluggish returns. Moreover, even with sophisticated tools to analyze the factors affecting stock prices, it is very difficult to forecast future stock market movements.

Also, missing out on just some days in a market cycle can drag down returns considerably. The S&P 500 generated an annualized return of 9.6% between 1990 to 2018 for investors who were invested during that entire period. Investors who missed just the 15 best days during that period only enjoyed returns of 3.6%, and investors who missed the best 90 days actually suffered an annualized loss of 3.5%.³

Market Timing Can Carry Costs

Along with possibly missing out on market gains, market timing can have other penalties. The transaction costs from buying and selling stocks can add up and drag down overall returns. In addition, investors who do sell stocks for a gain will likely trigger capital gains taxes, again reducing their overall profit.1

Creating and staying with a financial strategy can help you avoid making rash moves in response to what’s happening in the market. A Financial Advisor can help you tailor a framework that’s set against your long-term goals and considers key aspects of your financial life, from your age and aspirations to current market opportunities. While market conditions may vary, a personalized, adaptable wealth strategy that’s centered around your life goals should remain a constant as you build your wealth and plan for your future.

FOOTNOTES

1 – https://www.investopedia.com/terms/m/markettiming.asp
2 – https://www.forbes.com/sites/simonmoore/2016/03/07/the-myth-of-market-timing/#53448611461e
3 – Morgan Stanley Client Conversations & Primers, Intro to Investing PDF – Market Timing Is a Flawed and Costly Strategy Charts

DISCLOSURES

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”) and its Financial Advisors and Private Wealth Advisors do not provide any tax/legal advice. Consult your own tax/legal advisor before making any tax or legal-related investment decisions.

The Benefits of Having a Financial Advisor on Your Side

May 31, 2019 by The Inside Press

In today’s complex and volatile markets, making sound investment and financial decisions is a challenge. Investing on your own can be complicated, overwhelming and risky. In fact, studies have shown that self-directed investors can often be their own worst enemies, entering and exiting the market at inopportune times in reaction to market movements that make them uncomfortable or emotional.

Steps to Successful Investment

Successful investing involves fortitude and a focus on the long term. The first steps you can take toward minimizing the likelihood of costly mistakes are:

1. Understanding the emotional and behavioral factors that contribute to investor pitfalls

Psychology influences the choices investors make, such as how often they trade and how they make buy-sell decisions. Common psychological blind spots include:

Overconfidence – assuming you know more than you do.
Mental accounting – consciously or unconsciously dividing your wealth into separate buckets.
Anchoring – fixating on past prices, such as what you paid for a particular stock.
Loss aversion – putting more emphasis on avoiding losses.

2. Defining your goals and developing a plan–and an asset allocation–that helps you reach them

Having a plan and sticking to it can help you avoid making emotional decisions.

3. Having the discipline to stay the course as markets fluctuate

Some investors try to time the market by moving in and out of it. Professional advice can help keep you focused by taking emotions out of the equation.

Your Financial Life Is More Than Just Your Investments

Over the past few years, the proliferation of robo-advisors that provide digital financial advice based on algorithms has received significant buzz. While robo advice offers a low-cost entry into investing, it also comes with little to no human intervention. Instead, an asset allocation is generated from an investor’s answers to an online questionnaire. But, how you value money–and what you believe about money–cannot be captured or solved by mathematical rules or algorithms.

The bottom line is that you want advice that connects with your thinking, experiences and beliefs around money.

If you’re deciding among traditional Financial Advisors or robo-advisors, consider the following:

What is most important to you at this stage of your financial life?
How confident are you in your financial knowledge?
Are you able to take emotions out of your financial decision-making?
What are the financial complexities that you currently face?

If there are complexities in your financial life–debt, children, employee benefits, major life events, estate and tax issues–you may want to consider choosing a traditional Financial Advisor who can help you customize a plan that is tailored to your specific situation.

And, keep in mind that reaching your goals often involves going beyond investment advice to include conversations about estate and wealth transfer planning, risk management and even your philanthropic aspirations.

By working with an experienced Financial Advisor, you can have the best of both worlds–the freedom to make your own investment and financial choices, but with the guidance of a professional who understands your unique needs, improving your chances of achieving your goals.

Disclosures

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Asset Allocation does not assure a profit or protect against loss in declining financial markets.