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ANNUAL U P DAT E WEALTH IS ABOUT MUCH MORE THAN MONEY
VERMONT OFFICE (802) 660-7068 2 Market Street South Burlington, VT 05403 PATHWAYADVISORS.COM GEORGIA OFFICE (404) 812-4979 2000 Riveredge Pkwy, Suite 640 Atlanta, GA 30328
WELCOME Whether you have been a client for years or only recently began working with us here at Pathway, we are grateful and excited to share your life’s journey with you. This brochure provides you with an overview of Pathway in 2023, offers a sense of what clients have told us is on their minds, and looks forward to 2024 and beyond. You’ll find information on your Pathway team, answers to our most frequently asked client questions, and see how we gave back to our community this year. We’ve also included access to digital resources curated just for you. Pathway enjoyed considerable growth in 2023 and added several new members to our team. They’ve brought fresh perspectives on how we can better serve you, our clients, and are poised to serve you for decades to come. We are excited for what lies ahead in 2024, and look forward to helping you achieve your definition of a successful life. As always, your best interests continue to be our first priority. – Your Pathway Team
Our practice is built upon three pillars. First, everything we do is rooted in our distinctive advisory status as a fiduciary, fee-only firm, which ensures that we align with your best interests. Second, our team dedicates their time and resources to a limited number of clients, allowing each client to receive the individualized attention that they deserve, and that matches their individual needs. Finally, our extensive expertise in traditional financial planning – some 118 years of combined experience in our team of 10 – includes investment management, retirement planning, and estate planning, and is complemented by our unique skills in collaborative discovery. We are proud to be at the forefront of providing integrated, holistic financial planning. Few firms in the nation have invested the necessary resources to acquire this skill set, and we are proud to be one of them. OUR PHILOSOPHY S O U N D A D V I C E | D E D I C A T I O N | E X P E R T I S E
The eagerness of our clients to engage in our Guided Discovery offering continues to show me that our clients do wish to be intentional about living their best lives. — Scott Beaudin CFP®, CPA/PFS LEAD FINANCIAL PLANNER YOUR PLAN YOUR GUIDE That’s where Pathway comes in. We lead you through a collaborative Guided Discovery process that clearly illuminates what is most important to you. We merge our findings with experienced, traditional financial planning. We then work with you as a trusted fiduciary to implement your plans in a systematic, purposeful, holistic way. We will confidently steer you through the complexity and lead you with certainty toward the life you aspire to.
2023 RECAP Prominent themes and their impact As we look back over the past year, the financial headlines were largely focused on the themes of interest rates and inflation. We believe that focusing on the intersection of what’s most important and in our control yields fulfillment in the lives of the individuals and families we serve. Consider the following seven numbers: 3.8, 6.4, 10.3, 6.6, 4.1, 1.9, and 3.8. These are the 10-year treasury rates in ten-year increments from the start of 1963 through the start of 2023, respectively. This 10-year treasury rate is of fundamental importance, as it is used as a benchmark for other interest rates, such as fixed-rate mortgages, and is often considered the “Risk-Free Rate” in business valuation models. Imagine you have $1,000 in cash and your schedule is open for tomorrow. How would you spend your time and money? Now, suppose you have to incorporate the treasury yields mentioned above. Does this make it easier or more difficult for you to plan your day? What we’ve observed during our countless hours of client collaboration is that unknowables, such as future 10-year treasury rates, are not meaningful factors considered in making real-life decisions such as: • Where are we traveling this year? • What charities are we donating to this year? • When am I going to retire? — Mike Schell LEAD FINANCIAL PLANNER, CFP® Many families have placed more of an emphasis on finding the balance on allocating their resources between getting the most out of "today" and saving for "tomorrow.” Being there to help find the right balance for them is one of the reasons I enjoy coming to work every day.
At Pathway, we understand influences such as the direction of capital markets, interest rates, tax rates, inflation, and even the weather, are not only beyond our control, they are beyond everyone’s control. Therefore, we should allocate our resources to what we can control, on that which has the most meaningful impact on the lives of the individuals and families we have the opportunity to serve. This is why we choose to be full-time fiduciaries. We choose to lead our tailored investment portfolios with comprehensive financial planning, and we choose to limit the number of clients we serve per financial advisor. With this reflection, we ask our clients, professional colleagues, and friends to consider the following questions for 2024 and beyond: • If I had more time, I would… • If I had more energy, I would… • If I had more wealth, I would… • I am happiest when… We’ve found these four questions capture the essence of our wealth management approach; these four questions begin to lay the foundation for what’s most important to you, which we believe is the essential first step to illuminating a life of fulfillment. With gratitude, Your team at Pathway
Your most common questions throughout the year With all the uncertainty out there, should we reduce risk? This question should depend more on your plan than on the current environment. If something has changed to shorten your time horizon or increase the value you place on avoiding stock market fluctuations, it may make sense to reduce risk accordingly. It’s important to remember that most of the information causing us to feel uncertain has already been priced into the market and that, as a general rule, feelings of discomfort around investments are more likely to signal a buying opportunity than identify the right time to sell. #1 Will there be a recession? Yes, there will likely be a recession in the next several years. Though recessions can be painful in the short run, they are part of a healthy business cycle, and the fiscal responsibility they impose can actually create the environment for the ensuing recovery. Your plan should account for the possibility of a recession. #2 I cherish the connections we share with our cients. It’s fulfilling to facilitate moments of insight, guide them through challenges, and join in the celebration of their successes. — Mary Williams FINANCIAL PLANNER, CFP®
My bank is paying zero or meager interest rates. Are there alternatives? Should I take Social Security early, since I’ve heard the trust fund is running out of money? Yes, money markets and short-term treasuries offer much better return rates, while maintaining low risk. If you have cash sitting in a low-yield account, be sure to reach out to your advisor. This is one of the most challenging questions we get. It does seem clear that something needs to be done to shore up the Social Security system. However, many possible changes could be implemented to increase the system’s solvency. While the right Social Security claiming strategy varies with each client’s situation, delaying Social Security can be a valuable hedge against longevity. Right now, it seems premature to give up that hedge (when the situation otherwise would call for taking advantage of it), based on the possibility that future changes will benefit those claiming early. #3 #4 I value the trust that clients extend to Pathway and me. They share personal details about their lives with us, look to us to guide their financial future, and in many ways invite us into their family. These are extraordinary gifts for which I am extremely grateful. — Darren Beck LEAD FINANCIAL PLANNER, CFP®
GET TO KNOW YOUR TEAM Scott Beaudin CFP®, CPA/PFS LEAD FINANCIAL PLANNER Favorite homecooked meal? Chicken Cordon Bleu Favorite sport? Sailing Favorite music genre? Indie Americana Mike Schell CFP® LEAD FINANCIAL PLANNER Favorite color? Olive green Favorite book? Think Again, by Adam Grant Favorite music genre? Rock Ben Rinehart CFA®, PHD INVESTMENT DIRECTOR Favorite place you’ve traveled to? Greek Isles Favorite homecooked meal? Steamed lobster Favorite animal? Tent roosting bats Jonathan Smith CFP® LEAD FINANCIAL PLANNER Favorite homecooked meal? Waffles with Smith maple syrup Favorite movie? Christmas Vacation Favorite outdoor activity? Paddleboarding Darren Beck CFP®, MBA LEAD FINANCIAL PLANNER Favorite team? The Georgia Bulldogs Favorite decade? The 80’s Favorite outdoor activity? Playing tennis
Mary Williams CFP® FINANCIAL PLANNER Favorite sport? Running Favorite podcast? Lasso Lessons Favorite team? Iowa Hawkeys Zana van Rooyen FPQP® CLIENT SERVICES ASSOCIATE Favorite homecooked meal? Pasta Fazool Favorite outdoor activity? Skiing Favorite book? Harry Potter Allie Hardy CLIENT SERVICES ASSOCIATE Favorite place to relax? The Adirondacks Favorite animal? Cats Favorite drink? Lemonade Jordan MacDougall PLANNING SUPPORT Favorite sport? Mountain biking Favorite homecooked meal? Chicken Pot Pie Favorite podcast? Huberman Lab Allyssa Stevens DIRECTOR OF FIRST IMPRESSIONS Favorite place you’ve traveled to? Ecuador Favorite decade? The 70’s Favorite color? Teal
BURLINGTON SERVING YOU WHERE YOU ARE ATLANTA With offices in VERMONT and GEORGIA, we serve clients all across the country.
ATLANTA, GA The Penguin Plunge was a great team bonding event. In addition to raising money for the VTSO, we also got to freeze together and cheer for each other. The stories told in the lunchroom still make us laugh. — ALLYSSA STEVENS Director of First Impressions ACTS OF KINDNESS Helping our community At Pathway Financial Advisors, we believe that charitable giving, whether through the contribution of time, money, or talent, is an exceptionally personal and heartfelt way to contribute to the betterment of our community. Individually, each of us supports various causes that hold a special and meaningful place in our hearts. This year, we worked together as a group to support the Vermont Special Olympics Penguin Plunge and Spectrum Youth & Family Services. Causes we support: VTSO Penguin Plunge Spectrum Youth and Family Services HSCC Humane Society Chittenden County SLAMT1D Vermont Summer Classic HomeShare Vermont Richmond Land Trust ALS Association-New England Chapter Vermont International Film Festival Dana-Farber Cancer Institute A Woman’s Lunch Place Flynn Center for Performing Arts South Burlington Rotary Heifer International
DIGITAL RESOURCES Education is a key part of what we bring you. We have recently teamed up with a local videography company, StoryWorkz, to create high-quality educational videos for our clients. These videos offer extra support and address our clients’ most frequently asked questions. In addition to new educational and informational videos, our Quarterly Investment Commentary shorts are always up to date and available on our website. Check back throughout the year for our latest content and for exciting website updates. We are always happy to hear from you, and we would love to hear your feedback.
LOOKING AHEAD Your team at Pathway welcomes the new year with great excitement. Using the feedback you provided in our semiannual Client Insights survey, we are constantly working to improve and adapt to your needs. Based on the data you provided, we will implement various new practices and stay on the cutting edge of our field. You can expect several changes in the coming year, including the exploration of new financial planning software, and a heightened community presence. Pathway is well-positioned to serve more clients like you. If you think someone you care about could use our help, please don’t hesitate to connect them with us. Even if their needs fall outside our area of expertise, we will provide them with guidance and help them find the right professional to accommodate their situation. We are excited to work with you in the year to come. info@pathwayadvisors.com Vermont > (802) 660-7086 Georgia > (404) 812-4979
Our Guided Discovery Process How we illuminate paths & provide support for the discovery and pursuit of a fulfilling life VERMONT (802) 660.7086 2 Market Street South Burlington, VT 05403 GEORGIA (404) 812.4979 2000 Riveredge Parkway, Suite 640 Atlanta, GA 30328