Spider-Man is well known to live by the credo, “With great power comes great responsibility.” It was the superhero’s moral compass that guided him to use his powers for good instead of evil. What does this have to do with investment management? Quite a lot, in fact — if you change the thought just a bit.
I often rephrase that quote as, “With great wealth comes great responsibility.” For some people who simply want to live their lives, managing their life savings can feel like a burden — and even an emotional one. Certainly, there is a simple way to keep things in order using bank CDs and money market funds. From an economic perspective, however, this is the lowest-risk approach and, historically, it has not kept pace with inflation.
There are situations where this conservative strategy makes sense. For example, I would recommend it when resources are limited and earmarked for a defined, near-term liability, such as nursing home care or an upcoming college expense.
Outside of those special situations, wealth is something to be managed according to an appropriate risk tolerance. Historically, the ability to tolerate some level of risk has produced higher returns and helped assets keep pace with — and in some cases exceed — inflation. All, to fund the goals and life we want to live.
With wealth comes responsibility — not heroics, not headlines, but stewardship. At Dattilio & Ash, we manage that responsibility quietly and deliberately, so our clients can stay focused on living well, not watching markets.