The Evidence-Driven Way: Can You Afford to Ignore the Data?

In today’s world, data is king in our digital world. We use it to track our fitness, optimize our commutes, and even choose the perfect movie for Friday night. But what about our money?

As a high achiever, you’ve undoubtedly used data, research, and rational decision-making to achieve your success. So, when you think about the success of your financial future, you may want to make investment decisions based on hard evidence, historical research, and facts, rather than emotionally charged or reactive decisions based on the media’s interpretation of current events. 

This is why you should consider using evidence-based investing. It’s a methodology that uses data-driven research and long-term historical trends over gut instinct or fleeting market fads. By leveraging this approach, you can move beyond emotion-based decisions and build a long-term investment strategy with a higher probability of success.

Our team of Chicago fee-only financial advisors specializes in evidence-driven investment strategies for our more affluent clients.

Why Evidence-Based Investing Matters to You as a High Achiever

Think about it this way: would you undergo surgery performed by a doctor who relies on hunches rather than proven medical practices and solutions? Probably not! You want a specialist who has a history of successful operations.

Investing your hard-earned money deserves the same level of care and focus.

Read two examples of ways evidence-based investing can be used to improve your results.

Long-Term Outlook During Market Volatility: 

Over the years, we’ve heard many disturbing stories from people who lost significant wealth during periods of stock market volatility. When we dug deeper into their experiences, we found that oftentimes, they were making short-term financial moves, which resulted in losses that impacted the achievement of their long-term financial goals. 

An evidence-based strategy helps you avoid these situations and maintain your long-term outlook during a variety of market conditions. 

By not reacting to short-term market fluctuations and maintaining a long-term investment horizon, you can better protect your assets from extreme downturns and capitalize on the recovery phase by making smart, informed decisions based on data, not emotions. 

Reduced Stress: 

You can turn on the TV and watch many talking heads discuss the economy and financial markets. Each has their own opinion and personal predictions, but it’s possible that many of these insights are not supported by historical data or research. 

While you can subscribe to their advice, understand that it’s more speculative and subjective, as it may not be grounded in rigorous analysis or proven investment principles. If they tell you they can see into the future, they are lying to you. 

The key difference lies in the foundation of the investment strategy: one is based on data and research, while the other is rooted in personal viewpoints and controversial forecasts. 

The Role of a Fee-Only Financial Advisor in Chicago and St. George

As someone who has achieved personal and financial success, your true wealth extends beyond mere figures—it’s about harmonizing your financial decisions with your principles, goals, legacy, and vision for life. 

You need a financial advocate in your corner who, as a fee-only fiduciary, has the following responsibilities to you as a client:

  • Commission-free advice is driven purely by what is considered the optimal choice for your specific needs.
  • Being fully transparent and straightforward about the costs associated with your investments, along with regular communications, so you know what is happening and why.

Watch our video on how the right financial guide will help your financial life.

Finding the Right Fee-Only Financial Advisor 

Choosing a financial advisor is one of the most important financial decisions you will ever make for you and your family, so asking the right questions is crucial to your search process. Here are 12 important questions you should ask a potential wealth manager during a face-to-face or Zoom interview. 

Remember, this is just a starting point. Don’t hesitate to ask additional questions that will help you make the right selection decision. :

  1. Do you act as a financial fiduciary, prioritizing my best interests over yours?
  2. What qualifications and certifications do you hold? How long have you been a financial advisor? 
  3. What is your investment philosophy? 
  4. How do you manage investment risk? 
  5. How do you get compensated – fee, commission, both? 
  6. What are your fees, and are they any other layers of fees? 
  7. How will you keep me informed about my investments, and how often? 
  8. Do you have a minimum account size requirement? If so, what is it?
  9. Do you have any compliance disclosures or conflicts of interest that I should be aware of? 
  10. What types of clients do you typically work with?
  11. What types of financial planning services do you offer?
  12. What happens to my money if something happens to you?

Get to Know Cogent Strategic Wealth

We’ll come out and say it: we’re different from most wealth management firms. Our experienced team is driven by a strong entrepreneurial spirit and a keen ability to listen closely to your needs, crafting personalized strategies that reflect your values, goals, and tolerance for risk.

Acting as your financial guides, we help you pursue financial prosperity with a deep commitment to your success.

As a part of our ongoing efforts to act in your best interest, here is our pledge:

  • We hold ourselves to a high standard of clarity and accountability, ensuring you know what you are paying for.

Our suggestions are driven purely by what we believe serves your best interests. 

  • We believe in being clear about what we charge for our financial advice and services.
  • We begin by understanding your current circumstances, core values, and financial goals, aiming to align finances with your life.
  • Foster education and empowerment. A strong foundation includes financial knowledge that is key to making informed decisions that benefit you and your family. 
  • Focus on sustained growth. Our believe in using a comprehensive approach to wealth management that includes asset accumulation, preservation, and distribution.
  • We pay particular attention to tax-efficient investing.

Benefits when you partner with Cogent:

  • We rely on solid research, not speculation, to invest in your assets.
  • Our firm culture promotes easy access, teamwork, and continuous communication with our clients.
  • We share your need to succeed.

Ready to learn more about our evidence-driven investment™ solutions? Let’s connect for an introductory conversation.

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Cogent Strategic Wealth

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