Leading Adviser's Advice To Novice Investors

The focus of many financial consultants is on serving older, wealthier clients. Nayan Ranchhod of Ameriprise Financial is defying the norm. The Scottsdale, Arizona-based advisor is in charge of a group that serves many youthful clientele. "I think what helps make us distinctive is that we are able to support clients in the accumulating phase of life," adds Ranchhod, 38.

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Ranchhod, a Tulsa, Oklahoma, native, has been a consultant with Ameriprise since 2006. He discusses his best financial practices with Trade Algo, provides his prediction for 2023, and describes how a college counselor's advice ultimately motivated him to relocate from chilly Boston to warm Phoenix.

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Trade Algo: How would you describe your usual customer meeting?

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Nayan Ranchhod: To begin, we establish a rapport by finding out about their recent changes and new experiences. We go over any significant updates before assessing our progress toward their objectives. Instead of focusing on where the market is, we want them to be involved about where they must go. We evaluate their portfolio and provide our economic forecast with them. It lasts between 45 and an hour. Although we have been holding remote meeting since 2017 due to our clients all around the country, I prefer to conduct them in person.

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The year 2022 was difficult for investors. Did it alter the way you handle your portfolio?

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We removed equity-related risk from the table in 2021, and when that tailwind materialized in the fourth quarter of 2022, we were able to re-introduce it. Throughout June and July, we rebalanced a lot, and we continued to do so whenever we noticed market pain areas.

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While the economy has continued to be robust, inflation has remained high. What do you anticipate for this year's investors?

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We believe there are opportunities this year. In regard to demography, there is a population scarcity in the 18 to 23 age bracket and low unemployment overall. We don't have a labor shortage in our country, therefore you need to look at businesses that can automate. Naturally, each recovery appears different, but there are advantages in the macro - environmental factors that are improving every day.

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Many of your clients are younger than you. What financial behavior would you like to see among young Americans?

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Spend less than you earn is the same advice that was given to me. Always put saving first. Take it before you see it out of your paycheck. My paychecks were transferred directly into two accounts, one of which I never touched.

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And for millennials who are a little bit further along in life, what words of wisdom do you have?

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Be adaptable. It's simple at first: just spend less than you earn. Once you have a solid financial plan in place, you can focus on achieving your life goals as well as your financial ones.

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How do you stay current on economic and investing trends?

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We have a team for this reason, among others. I came to the conclusion that time is the most valuable resource in life about seven years ago. You don't have enough time for everything as a solitary practitioner. I had the good fortune to meet two excellent companions. We hold monthly investing meetings where we discuss macroeconomics, microeconomics, and what we anticipate will happen. From there, we make adjustments. We read a lot of investment periodicals, including Investor's Business Daily, Barron's, and many more; between the three of us, we cover roughly 30. We enjoy having many viewpoints.