Growing Your Practice During COVID

by | Sep 28, 2020 | Advisor Blog

Home > Advisor Blog > Growing Your Practice During COVID

Growing Your Practice During COVID

2020 has been dominated by COVID-19, with the effects of the global pandemic reaching across every industry to change the way we fundamentally operate. While there have been many articles highlighting the economic woes in the U.S., on an individual level, there is no downplaying the serious impact this health crisis has had on personal finances. In a recent survey by Prudential and Flexjobs, one-third of respondents had lost all of their income as a result of the pandemic, while nearly half do not have enough emergency savings to last another six months.

This economic climate will certainly have a long-lasting impact on investment behaviors. Based on study findings that were released at the Federal Reserve Bank of Kansas City’s annual conference in September, this pandemic could very well create pessimism among investors that is “likely to dampen risk-taking and economic output for decades.”

During these challenging times, growing a financial advisery firm remains a study in the fundamentals: understanding your clients and building on relationships. These are skills that all financial advisers work to master, but against the background of a global pandemic, that puts people at risk simply if they are within six feet of each other, we’re seeing an accelerated shift in digital opportunities to engage with clients more effectively to drive business.

Financial Advice Goes Online

Digital tools like video conferencing that support online communications with clients are not new to financial advisers, but their increased adoption into everyday workflows is certainly a shift in “business as usual” post-COVID. This goes hand-in-hand with the need to connect with clients on a more frequent basis. When faced with economic uncertainties, people require even more reassurance that their investments are in good hands. Combine this with the added isolation of working from home and the pressures of juggling homeschooling or care for children and the elderly, and it’s easy to see why financial advisers may find themselves in a position to provide more emotional support to their clients — in addition to their usual conversations about portfolio performance.

This is why it’s critical to stay up-to-date on the latest software and tools so that communication occurs on the platforms where clients are likely to engage. Phone calls and texts are still effective ways to stay in touch, but Zoom, Google Meet, and Skype are becoming some of the most commonly used applications to enable video calls for valuable “face-to-face” meetings.

A Multichannel Approach

To maximize engagement with potential clients, financial advisers and companies must employ a multichannel strategy that leverages diverse methods of communication, including email, phone, and video. In a recent survey by Fidelity, those who used such an approach reported the most prospecting success, with 74% of respondents noting average or above average results. Of the advisers who only used email to prospect, three-quarters of them reported below average results. Monthly email newsletters and individual phone calls or video chats are all good ways to create multiple points of contact. In the absence of traditional, in-person meetings, connecting through alternative methods is crucial to growing potential business.

The Power of Social Media

Social media is also an important element in any multichannel marketing strategy. Since the start of the pandemic in the U.S., around 50% of American adults were using social media more, according to a recent Harris Poll. Facebook, LinkedIn, Twitter, and Instagram are all platforms where potential clients can be found. With Google searches for “coronavirus money help” increasing by 3,600% at the beginning of the pandemic, financial advisers can fill the need for more digital resources by creating material about loan programs and personal financial support that can be distributed across social media channels. Podcasts, blogs, and infographics are all examples of the types of content that can be used to position financial advisery firms as authorities on the latest information impacting personal finances — especially when people are spending more time online.

To increase the value of your content, think about repurposing each piece of collateral in different ways across multiple social media platforms. Holding a webinar over Zoom? Promote the live session through LinkedIn and Twitter, record it and then use a clip in an Instagram post that leads prospects to your site for instructions on how they can download and watch the on-demand version.

Building a Path Forward

The world has changed, but the values held by financial advisers and firms remain the same. Creating and fostering authentic relationships with clients is still the most important objective for advisers, even if a majority of those connections now takes place virtually. In times of market volatility, applying fundamental skills to a flexible marketing strategy that leverages technology and multiple channels of communication will lead to the comprehensive emotional support and financial advice that current and potential clients need right now.

Christopher Crawford is the Director of Advisor Relationships for the Buffalo Funds. He has 10 years of experience in the financial services industry, previously holding positions at Invesco, IMA Financial Group, and Arthur J. Gallagher. At the Buffalo Funds, Christopher works with investment consultant relations, key account management, institutional distribution and client service. His main goal is to partner with advisers to bring business building ideas and provide unparalleled customer support to their business, always striving to make it easy and reliable to work with the entire Buffalo Funds investment team. Christopher received an M.B.A. from Washington University in St. Louis and a B.S.F.A. from Southern Methodist University. He also holds licenses for the Series 7, Series 63, and Series 65.

Click here for links to each fund’s holdings. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

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Christopher Crawford
Director, Advisor Relationships
Additional Reading:

Cybersecurity: What Financial Advisors Need to Consider

by | Feb 11, 2020 | Advisor Blog

Home > Advisor Blog > Cybersecurity: What Financial Advisors Need to Consider

Cybersecurity: What Financial Advisors Need to Consider

The number of data breaches is skyrocketing. In the first half of 2019 alone, there were 3,800 publicly disclosed record breaches, 4.1 billion personal records exposed and an increase of 54% in the number of reported breaches versus the first six months of 2018. Although all industries have been affected, the volume of sensitive data and information that the financial industry stores makes them a prime target for hackers. For example, one of the most high profile data breaches of 2019 was with Capital One, resulting in 106 million records being accessed by a hacker. Financial advisers and firms need to be aware of cybersecurity risks, and need to be prepared with a strategy to prepare for these attacks.

The Importance of Cybersecurity

No matter the size of the firm, the sheer volume of sensitive materials that is handled by the financial sector every day means that cybersecurity must be prioritized to protect clients. According to the FBI, in 2018 alone, cybercrime victims lost $2.7 billion, but a data breach can cause firms and victims to lose more than just money. They also lose their sense of security. This translates to firms losing client loyalty and trust. The financial advisery business is built on this, so reassuring clients that their assets and information are secure is imperative.

To ensure that financial advisers and their firms are taking cybersecurity seriously, the Securities and Exchange Commission (SEC) and U.S. state securities regulators are starting to crack down on financial advisers’ cybersecurity practices. Along with regular inspections, the SEC is now performing cybersecurity examinations. They are also charging firms that fail to keep client data safe. In September 2017, New York-based Voya Financial Advisors was instructed to pay the SEC $1 million to settle charges regarding a data breach that compromised customers’ personal information.

The Securities Industry and Financial Markets Association (SIFMA) is also getting involved in cybersecurity, and has worked with financial firms and government regulators to create simulations of real cybersecurity attacks. Cybersecurity certification is also being developed for firms and advisers, such as the Systems and Organization Controls certificate developed by the American Institute of Certified Public Accountants. This certificate validates a firm’s administrative, technical, and physical controls over cybersecurity.

Building a Cybersecurity Strategy

Cybersecurity is not a one-time cost. To ensure that advisers are aware of the risks, and that clients’ data is continuously protected, firms need to build, maintain, and invest in a long-term cybersecurity strategy. Key considerations for these strategies include the following:

Continuous Training and Procedural Updates

Much of cybersecurity prevention comes down to arming staff with enough knowledge to recognize threats and understand how to deal with them. Along with obtaining general cybersecurity certification, ensure that all financial advisers receive continuous in-house training on best practices and procedures, and on how to spot cyberattacks and wire fraud attempts. Criminals know the vulnerability of human error and will frequently attack the human element first. Unfortunately, most firms focus on technology solutions as the primary line of defense and staff training as the last. Keep all employees aware of current cybersecurity crimes and new data breach techniques. Update firm guidelines and processes constantly so that they incorporate the latest technologies.

Vendor Reviews

With their regular inspections and tests, the SEC has uncovered a common vulnerability across firms that can be easily rectified: third-party vendors are often overlooked in assessing potential cybersecurity threats. Although 63% of data breaches begin from a third-party vendor’s vulnerability, only 52% of firms have formalized security practices for vendors, making this an important area of improvement when preventing cyber crime. Every new digital tool adopted by a financial adviser increases the risk of a cybersecurity attack.

Ask about vendors’ cybersecurity plans, their vulnerability testing, and what protocols they have in place if a data breach occurs. Technology vendors should maintain fully separate hosted environments across multiple data centers, use strong encryption and data masking, and be able to show that they regularly test and audit against security best practices. Along with these technological security questions, ask about the vendors’ physical security controls at their tech company offices or data centers. These can include 24/7 security and video surveillance, backup power generators, and data center compliance with standards like Tier IV, SOC 2, or ISO 27001.

Establish Electronic Communication Rules and Protocols

Phishing tactics are one of the main causes of security breaches. They are also one of the simplest types of breaches to prevent. Phishing is when hackers email a target from a known sender, use personal information pulled from public profiles and websites, and trick their target into divulging sensitive data, or in some cases, money.

Within the firm, establish rules about electronic communication and protocols for protecting clients’ records, including the use of social media, and remote access to emails and customer information. The SEC has regularly observed employees storing and maintaining customer information on personal laptops, which do not have the same security measures in place as firm computers. This seemingly simple act can expose client data to hacking risks. Another measure that can be taken to protect clients’ data is to establish a two-factor authentication process for clients looking to access funds or information. This reduces the risk of cloud and account hacking.

As more communication is conducted over mobile devices, mobile security is becoming another area where special attention should be paid. A recent report by Wandera highlighted several security risks for financial services organizations through the use of mobile devices. These include phishing, with financial services firms experiencing more phishing attacks compared to other sectors (57% compared to 42% cross-industry), and man-in-the-middle attacks, which occurs when traffic from one device is intercepted, and then unknowingly read and possibly altered, before reaching its intended recipient. Man-in-the-middle attacks happen frequently through the use of risky hotspots and public Wi-Fi networks, so avoiding unknown networks is a good way to minimize this risk. Finally, a basic step that can prevent the release of valuable data, but is often overlooked by 1-in-20 financial services employees, is enabling a simple lock screen on devices.

Perform Vulnerability Tests

Once written response procedures are established in the event of a breach, regular tests of these procedures can help refine and adjust processes and systems as needed. Along with the tests provided by the SEC, firms must perform their own consistent testing for vulnerabilities. Be prepared to fix the problems that are revealed through these tests. Using real-life scenarios also helps engage employees in cybersecurity protocols.

Prioritizing Cybersecurity

Security breaches and risks will continue to be a pressing issue in 2020 for the financial services industry. With a formal cybersecurity strategy in place that incorporates the four factors outlined here, financial advisers and firms can be better prepared to respond to threats.

Christopher Crawford is the Director of Advisor Relationships for the Buffalo Funds. He has 10 years of experience in the financial services industry, previously holding positions at Invesco, IMA Financial Group, and Arthur J. Gallagher. At the Buffalo Funds, Christopher works with investment consultant relations, key account management, institutional distribution and client service. His main goal is to partner with advisers to bring business building ideas and provide unparalleled customer support to their business, always striving to make it easy and reliable to work with the entire Buffalo Funds investment team. Christopher received an M.B.A. from Washington University in St. Louis and a B.S.F.A. from Southern Methodist University. He also holds licenses for the Series 7, Series 63, and Series 65.

Click here for links to each fund’s holdings. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Back to Advisor Blog

Christopher Crawford
Director, Advisor Relationships
Additional Reading:

Improving Client Experience Through Better Risk Tolerance Assessments

by | Nov 27, 2019 | Advisor Blog

Home > Advisor Blog > Improving Client Experience Through Better Risk Tolerance Assessments

Improving Client Experience Through Better Risk Tolerance Assessments

Heading into the end of the year, investors may be starting to rethink their investing strategies and re-assessing their risk tolerance.

Though the U.S. stock market made it through September and October — notoriously bad months for the market — recent polls of economists and American voters indicate great concern about a looming recession. This means that advisers need to be in tune with the changing needs of investors and actively assess the risk that they are willing to take in a potential bear market. Inaccurate, confusing, or outdated investment risk assessments could result in investors with unrealistic expectations and pose a major risk for financial advisers.

Risk Perception

Risk tolerance, which is an investor’s willingness to withstand variable investment returns, is only a small component of managing risk for clients. Investors may believe that they have a high risk tolerance and are able to handle downturns in the market, but they may not actually understand how to be prepared in a bear market. This is why advisers need to consider a holistic view of a client’s perception of risk. Goals should be evaluated frequently to ensure that investments match time horizons. Advisors should also assess the investors’ understanding of risk. Do they know what percentage of their investments are stable, and which may be lost in a market downturn? Although they may feel prepared to take risks while the markets are looking up, that perspective can quickly change when the market takes a dive.

Other risk determinants that should be considered by an investor are risk capacity and risk perception. Risk capacity relates to the amount of risk that the client can actually afford to take or needs to take to reach certain financial goals, regardless of their perception of risk. This capacity can change based on age or lifestyle factors, and it needs to align with an investor’s time horizons and goals. Risk perception is psychological, and refers to how an individual will actually process financial losses. Although investors may feel like they can and want to take risks, recessions create a very different risk assessment, as investors will see what these risks look like in actuality. Poor investment advice in a market downturn can result in legal liabilities for advisers and could turn investors away from the market completely.

Aligning Investor’s Risk Tolerance

Advisors need to be aware of a number of factors in order to set investors up for success. Alignment on the goals of the investment funds, including the time horizon, will be especially important when deciding the mix between equities and fixed income investments. Typically, younger investors have longer time horizons for their investments, as retirement can be close to 50 years away. This allows them to take more risk and invest a higher percentage in equities. In a potentially unstable market, though, it is still important to ensure that their investments are not completely lost. Traditionally, a balanced portfolio of equities and fixed income, with a diversified portfolio, will ensure that investors reap the benefits of the bull market, but are prepared for a downturn. Consider other large purchases that the investor may want to use the fund for, such as a child’s education. These may have shorter time horizons and the investments will need to be adjusted accordingly.

Older investors may be more hesitant to take large risks with their money. With the 2008 recession still on their minds and their retirement age approaching, older investors tend to be more conservative with their money. Although this was commonly the best approach, as life expectancies increase, this strategy is changing. In order to reach certain financial goals or maintain certain lifestyle expectations, older investors may want to consider a riskier approach to investing. Advisors need to understand an individual’s expectations with their money first, before explaining the factors behind risk and reward.

Improving Risk Assessments

Strategies and technologies are evolving to better assess how risk is viewed by investors. Risk questionnaires are becoming more robust, yet less complex, to ensure that investors understand what is being asked of them. They also are being developed to distinguish between the attitude towards risk and the investor’s ability to actually take on risk. This relies on psychometrics, which is the science of measuring mental capacities and processes. Instead of defining comfort level rigidly as conservative, moderate or aggressive, advisers are also starting to rely on risk numbers to form a more complete picture of their clients’ abilities to take risk, their comfort with risk and the amount of risk that they will need to take to reach their goals. These risk number profiles assign investors a number on a scale ranging from zero to 100.

Risk assessments also need to change based on technologies and how investors are accessing these questionnaires. Software programs are emerging that have the capabilities to delve deeper into comfort levels, resulting in a clearer risk assessment. They are also becoming more user friendly and accessible, allowing the average investor to complete their portion of an assessment on mobile devices.

Although questionnaires and advising software are evolving to improve the client experience, advisers also need to evolve to meet the needs of investors. Banks are increasingly offering robo investing, where clients receive minimal personal connection when making their investment decisions. This means that, in order to maintain client connections, an adviser’s personal approach needs to add value for the client. Communication and understanding can go a long way in ensuring that an investor is happy. This, in tandem with scientifically crafted questionnaires, can help advisers better assess a client’s true risk profile and potentially deliver better outcomes.

Preparing For What’s Ahead

No matter the market outlook, advisers and investors need to be prepared for downturns. To maintain their clients’ trust, advisers need to prepare them financially and mentally for any market upsets that may take a toll on their investments, and by extension, their ability to achieve their financial goals. By considering the factors behind an individual’s risk tolerance and approaching risk assessment in a more personalized way, advisers can be more successful in providing a portfolio mix that specifically suits each client’s needs and expectations.

Christopher Crawford is the Director of Advisor Relationships for the Buffalo Funds. He has 10 years of experience in the financial services industry, previously holding positions at Invesco, IMA Financial Group, and Arthur J. Gallagher. At the Buffalo Funds, Christopher works with investment consultant relations, key account management, institutional distribution and client service. His main goal is to partner with advisers to bring business building ideas and provide unparalleled customer support to their business, always striving to make it easy and reliable to work with the entire Buffalo Funds investment team. Christopher received an M.B.A. from Washington University in St. Louis and a B.S.F.A. from Southern Methodist University. He also holds licenses for the Series 7, Series 63, and Series 65.

Click here for links to each fund’s holdings. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Back to Advisor Blog

Christopher Crawford
Director, Advisor Relationships
Additional Reading:

Millennials & Investing: Now is the Time to Invest Abroad

by | Oct 2, 2019 | Advisor Blog

Home > Advisor Blog > Millennials & Investing: Now is the Time to Invest Abroad

Millennials & Investing: Now is the Time to Invest Abroad

Millennials have a unique point of view when it comes to investing their money. They are the most highly educated generation, with 39% achieving at least a bachelor’s. Unfortunately, the price of a higher education is rising eight times faster than wages, causing crippling debt among millennials. These factors have created a generation that is careful about investing, ensuring every decision is highly calculated. With millennials expected to outnumber baby boomers this year, becoming the largest adult population in the U.S., how are millennials and their investment habits shaping the wealth management industry?

“Global” Citizens

The wealth management industry is shifting in favor of investing in products that allow investors to be part of something bigger, whether it be a social or environmental cause, or the next emerging innovation, and increasingly, millennials have taken on causes that impact the world. For millennials, the impact of globalization goes beyond the ability to invest in foreign markets. It also increases their awareness of larger social and environmental issues, leading them to make “impact investments” in companies based on shared values. A recent Harris Poll survey found that 95% of high-net worth millennial investors preferred investments that had a positive effect on the environment. For this reason, they are taking advantage of alternative investment options, such as social and environmentally charged causes, alternate energy sources, and new and emerging technologies. Millennials do not seem as concerned with higher yields, focusing instead on investments that match their beliefs. Seeking out innovative companies that also have a positive impact for the planet will become increasingly important for investors in this age group.

Tech Generation

Millennials grew up with smartphones and social apps, which is why they are so interested in investing in innovative companies. According to a recent Apex Clearing analysis, the top four stocks they own are Amazon, Apple, Tesla and Facebook. However, the U.S. dominance in the tech industry has decreased, with many foreign companies leading the development of innovative products, services, and apps that many millennials use on a daily basis. The Alibaba Group and Tencent Holdings (both based in China) have invested heavily in smartphone app makers such as Snap (Snapchat) and Supercell (Clash of Clans), and Samsung and LG (both based in South Korea) top the list in global smartphone shipments.

International Investing

Global markets can seem risky, as the issues that impact them tend to get coverage across the news (i.e. Brexit and Russia’s declining energy sector). These issues have caused a decline in international markets, making it an ideal time to invest. Millennials, meanwhile, are investing heavily internationally, with 13 of the top 100 stocks they own based in China. They see that China has huge growth potential, and with their retirement decades away, they can tolerate the short term risks like the U.S. trade wars and China’s economic slowdown. With long term projections looking positive, international investments have the chance to start low and grow exponentially. The forecast for foreign stocks appear to be more promising than the projections in the U.S., meaning that there could be a higher earning potential overseas.

* * *

Getting into international markets while they are still largely undervalued and undiscovered will help millennials tap into a better economic environment and prepare for an uncertain future. With some economists predicting a recession looming in the U.S., investing internationally can help lessen the loss that may be felt with domestic investments. If the U.S. experiences a recession, other markets may be at a different stage in the business cycle and could be expanding. By investing in a variety of markets, investors can minimize the risk of significant losses if one country hits a recession.

In order for millennials to be able to reduce their debt and make up for stagnant wages, now is the time for millennials to look outside of the U.S. to invest, due to favorable market projections. For advisers, it will be important to consider the needs of this next generation of investors. To attract and retain millennial investors, the financial services industry must provide products that speak to their values.

Christopher Crawford is the Director of Advisor Relationships for the Buffalo Funds. He has 10 years of experience in the financial services industry, previously holding positions at Invesco, IMA Financial Group, and Arthur J. Gallagher. At the Buffalo Funds, Christopher works with investment consultant relations, key account management, institutional distribution and client service. His main goal is to partner with advisers to bring business building ideas and provide unparalleled customer support to their business, always striving to make it easy and reliable to work with the entire Buffalo Funds investment team. Christopher received an M.B.A. from Washington University in St. Louis and a B.S.F.A. from Southern Methodist University. He also holds licenses for the Series 7, Series 63, and Series 65.

Click here for links to each fund’s holdings. Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security.

Back to Advisor Blog

Christopher Crawford
Director, Advisor Relationships
Additional Reading:

The Benefits and Risks of Target Date Funds for Millennials

by | Jul 31, 2019 | Advisor Blog

Home > Advisor Blog > The Benefits and Risks of Target Date Funds for Millenials

The Benefits and Risks of Target Date Funds for Millennials

Rising costs, particularly the cost of buying a house and repaying student loans, are forcing millennials to start thinking about their financial future. With a vast landscape of investment options available and with limited knowledge in the market, many millennials are turning to target date funds (TDFs) as a set-it-and-forget-it investing method. Although TDFs are gaining popularity with millennials and company sponsored retirement plans, it’s important to know the benefits and risks associated with them.

THE BENEFITS

Convenience
One reason for the recent surge in popularity of TDFs is that they are becoming commonplace in workplace retirement funds. Almost all workplace plans offer TDFs as an option, as they can group their workforce into retirement brackets and choose similar TDFs for everyone. With many companies going this route, not only do millennials find this option the most convenient, but they may not be aware of other options, due to the prevalence of TDFs in the workplace. This makes it easy to see why they may choose TDFs outside of their workplace investment accounts as well.

Automation
Target date funds are set up based on the target retirement year, with asset allocation already predetermined. For beginner investors, this option may sound ideal as they will not have to choose which stocks and bonds to invest in, nor the percentage of each. TDFs are also set up to automatically adjust to a more conservative allocation of assets as the target date approaches.

The convenience of relying on investment managers to handle the financial details of retirement also appeals to millennials, as they may not want to focus on retirement at their current stage of life. With a target date that is 30 to 40 years away, it can be hard to invest the time into making decisions about the future. This hands-off approach makes it an attractive option for new investors who do not have the investment knowledge needed to rebalance portfolios over time.

THE RISKS

Over-simplified and impersonal
Many millennials opt for a TDF simply because it matches their intended year for retirement… and that’s it. There is no research done to determine if the allocation is divided appropriately between stocks and bonds, based on the individual’s risk tolerance. The millennial investor is trusting the TDF portfolio manager to insure the fund becomes more conservative as the date of retirement looms closer. Opting for a fund that’s too conservative could mean they miss out on critical returns.

Target date funds focus on the average person, with average goals and average retirement needs. They do not take into account an individual’s years until retirement, any inheritance income or lifestyle changes over time. For older investors, this may not be an issue, as many of these factors have already been considered or will not affect their retirement significantly. They may also have a clearer idea of what their lifestyle will be when they retire and how much money they will need to support it. Millennials face more risks as they still need to navigate through lifestyle changes. With many years before their retirement date, they may not be able to accurately predict when they will retire.

As TDFs do not take into account each individual’s unique financial situation, every investor would still receive the same TDF, regardless of their needs. For some, this may mean that they won’t have the expected and necessary amount to sustain their lifestyle when they retire.

Inflexible with no guarantees
Although the asset allocation in TDFs are adjusted as the predetermined date approaches, these types of funds do not take into account any changes in market conditions, leading to increased risks or a loss in potential gains.

When the financial crash occurred in 2008, many investors with TDFs who were looking at retiring in two years were shocked when they discovered that their assets plummeted in value—even though they were close to their target date. Uncertain markets serve as a particular disadvantage to millennial investors, who have a longer investment horizon. With unpredictable market fluctuations, retirement plans may take a larger hit than they expected over time. TDFs are not immune to market shifts, even as the target date approaches. This means that market fluctuations will continue to affect retirement funds.

Uncertain retirement age

There is also an increasing number of millennials who don’t believe they will ever retire, but will instead undergo several mini-retirements or complete career changes altogether. Millennial investors who fall into this category could understandably not need a target date fund as there is no set date they will retire.

PLANNING FOR RETIREMENT

Glide path
When looking at TDF options, it is important to note what their glide path will be. The glide path is the rate at which equity exposure is reduced as the fund reaches the target date. Even if the target date is the same, the glide path may differ dramatically, leading to a drastic difference in the amount of money in the TDF. When looking into TDF options, it’s important for investors to know their risk tolerance at different stages in life, and to find a glide path that will match that.

Active participation
A target date fund does not automatically guarantee a comfortable retirement, which means that investors should be aware of the performance of the fund as the date nears. Closer to the target date, it may be worth diversifying portfolios further to help safeguard against potential losses from market shifts. Although this idea may seem far off for millennials, it is important for them to take an active role in planning and not rely exclusively on the set-it-and-forget-it mentality.

* * *

When considering target date funds, understand the risks beyond the benefits. There are also other funds available that can be more effective and will match an individual’s risk tolerance more closely. Look at all of your options, as it is important to have a diversified portfolio to create a successful retirement strategy, especially for millennial investors.

Christopher Crawford is the Director of Advisor Relationships for the Buffalo Funds. He has 10 years of experience in the financial services industry, previously holding positions at Invesco, IMA Financial Group, and Arthur J. Gallagher. At the Buffalo Funds, Christopher works with investment consultant relations, key account management, institutional distribution and client service. His main goal is to partner with advisers to bring business building ideas and provide unparalleled customer support to their business, always striving to make it easy and reliable to work with the entire Buffalo Funds investment team. Christopher received an M.B.A. from Washington University in St. Louis and a B.S.F.A. from Southern Methodist University. He also holds licenses for the Series 7, Series 63, and Series 65.

Back to Advisor Blog

Christopher Crawford
Director, Advisor Relationships
Additional Reading: