Q: Some indicators are pointing towards a possible recession in the near future. How do you instill confidence in your clients as they prepare for the long term?
A: When we are building portfolios, we are building them based on goals, needs and risk tolerance, something hopefully they are comfortable with. Our portfolios for those approaching retirement look a lot different from those in the accumulation phase in their 20s. (It’s about) building portfolios the clients are comfortable with, setting the expectations that the market does not go straight up, it will go up, down and sideways, reminding them when we’re building portfolios, why we’re doing it, how we’re doing it and making sure they understand these things are possible and if they’re not OK with that we should adjust the portfolios along the way. Some of the short-term noise we hear, we’ve got to wade through and put it to the side and stick to our plans. Being available to walk them through that, and reminding them of the long-term nature and to answer any questions are things we can do to keep them confident in their plan.
What is the most important thing you have learned in your more than 10 years in the financial services industry and how do you apply It to your current role?
I’ve learned a lot in the last 10-plus years and I think the thing that is most important, or that affects clients the most, is emotions can be an investor’s worst enemy. Making decisions based on emotions or short-term thoughts can be detrimental to your financial plan. You don’t want to make decisions based on emotionally stressful times. We make sure we’re setting expectations and that they will be comfortable with some of the volatility over time. As far as what I can do, setting expectations is one of the most important things we can do to help manage investor emotions.
Does everyone need a wealth advisor? Why or why not?
I do not think everyone needs a wealth advisor. If the person is capable, inclined, has the time to understand some of the financial planning concepts, the rules and regulations, I do think people can be successful on their own. However, what I also find is most people do not have the time or the inclination to do that stuff, and most probably do nothing because they don’t know what to do. A lack of action could be very detrimental to your financial plan and reaching your goals. I think for those who want to be wealthy, I’m here to help accumulate or position assets for retirement, and those who may not have a lot of money but want to accumulate in an efficient way, they should. Small changes to your financial plan over a long period of time can have huge impacts. While I don’t think everybody needs a wealth advisor, I do think most people would benefit.
Who is your favorite wrestler?
I will have to go with the easy answer and say Dan Gable, who is the old Iowa head coach. As a young youth wrestler, we’ll call him my idol, the person I looked up to. He was very talented and coached a lot of great wrestlers.
About Joseph Perretta
Joseph Perretta, 35, joined Mechanicsburg-based IFS Group in July as senior wealth advisor. He has more than 10 years of experience in the financial services industry, beginning his career with the Chicago Mercantile Exchange as an interest rate trader and serving as a financial advisor with Merrill Lynch and Fulton Financial Advisors.
Perretta earned a bachelor’s degree in business finance from Franklin and Marshall College and is also an Accredited Asset Management Specialist (AAMS).
He also is the head wrestling coach at Trinity High School.
A resident of Lower Allen Township, he and his wife, Stephanie, have two daughters, Ava and Olivia, and another due in October.