Simple Advice | Planning Ahead

The start of a new year invites reflection and evaluation of how to simplify—house, diet, schedule, etc. Financial advice can be similar. In our experience, most people don’t want good advice; they want advice that sounds good.

When it comes to wealth, simplicity feels scary. People want algorithmic alpha-driven rebalancing. Multi-manager tactical overlays. We want to believe there are some sophisticated trading formulas or indicators that “outsmart” the market. Investors often chase unnecessary complexity because it feels like protection against an unknowable future and fears.

Complexity is often just mediocrity in a nice suit.

Most of those impressive-sounding, jargon-filled products are repackaging the same underlying market risk. They add layers of fees, often limit liquidity, increase taxes, and create an illusion of control, while consistently underperforming a basic globally diversified portfolio.

The truth? Good advice is boring. It’s focusing on tax efficiency, liquidity, and cash flows—while employing a broadly diversified equity portfolio that quietly compounds for decades.

No jargon. No quarterly “strategy pivots.” Just discipline and patience.

Carl Richards said it perfectly: “Complexity is seductive. Simplicity is nearly always better.”

PLANNING FOR MULTIPLE GENERATIONS: There is an important mindset shift among families when a couple or individual realizes they have more than enough to meet their wants and needs throughout their lifetime. Now, what might they do with the rest? It leads to questions like:

• Can we partner with our kids to open doors in this season of life? (Education, experiences, renovations, etc.)
• Can we accelerate our giving to our favorite charities to see greater impact?
• What could this bucket of excess capital be used for beyond our needs?

The first requirement is to define what you will need (with a margin) and then craft a vision that guides the rest.

UMBRELLA INSURANCE: Umbrella insurance is boring until it saves you. It is an essential layer of personal liability protection that goes beyond the limits of standard home and auto insurance.

We regularly meet couples with $0–$1M in coverage. That’s reckless. Umbrella insurance typically costs $150–$300 per million in coverage. It costs pennies to protect your dollars. Adequate coverage depends on your net worth. Here are a few common risk triggers:

• Pools, hot tubs, trampolines, or treehouses on your property
• Pets
• Hosting events, functions, fundraisers, or playdates at your house
• Serving on boards
• Owning vacation rentals or STRs
• Storing firearms at your residence
• Teen drivers or adult kids on your car insurance
• Hiring contractors to work at your house
• Being easily found online with seniority or a notable job title

Also, most people are unaware that your umbrella policy is likely void if you allow underage drinking on your property.

The point is preparation. Protect what you’ve built and the people you love.

We don’t sell liability insurance, but we do know a few people who do it well. We can make the introduction!

2025 IN REVIEW: Yes, this chart is busy. Some might call it overwhelming. But what might investors learn from yet another year of headlines, market lows, and all-time highs?

NOW GO TALK ABOUT IT: Social media and kids is not a new topic, but learning about the effects is your job. It’s not fun, but it’s important. Author of The Anxious Generation, Jonathan Haidt, offers a perspective that childhood as we knew it was destroyed by smartphones. Watch the interview.

IT’S NOT JUST THE KIDS:

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.