Stout Bowman Quarterly
Q2: 2017 
Behavioral Alpha: The True Power of Financial Advice
In a seminal paper titled, "Advisor's Alpha," the famously fee-sensitive folks at Vanguard estimate that the value added by working with a competent financial advisor is roughly 3% per year. In a recent article by Barron's Investment Publication, Daniel Crosby, Ph.D., of Nocturne Capital summarizes the paper and provides some analysis to complement its findings. Below is an excerpt from the article (for more, follow link below):

"In an era of seven-dollar trades and fee compression, some have been quick to dismiss the traditional advisory relationship as a relic of a bygone era. Years ago, brokers and advisors were the guardians of financial data, the keeper of the stock quote.

Today, investors need only an iPhone and a free online brokerage account to do what just 30 years ago was the exclusive purview of Wall Street. It is worth asking in such an age, "Is my advisor really earning their fee?" An appeal to the research shows that the answer is a resounding "yes", albeit not for the reasons you might have supposed..."

Travel Article - 5 Ways to Save on Summer Vacation
"Cold temperatures and record snowfall totals have people pondering two words: summer vacation. While your trip may seem miles away, now is the time to figure out how to pay for it.

Whether you are looking to spend a week at an island hideaway or stay in a penthouse in the heart of the city, summer vacation expenses add up. Here are five ways you can save money, before you even book the trip."

Quarterly Business Highlight
From all of us here at Stout Bowman & Associates, we thank you for the opportunity to serve as your financial advisors. We hope you enjoy a great summer! 


Stout Bowman & Associates
In This Issue
Quick Links
Top 3 Mistakes Retirees Make With Their Finances
In a recent publication, Brandon Carter, CFP, reviews the top 3 mistakes that retirees make with their finances:

1. Claiming Social Security Benefits Without Careful Consideration

2. Having an Unbalanced Investment Portfolio

3. Failing to Plan for Life Events

Click here to read on about each of these pitfalls.

Also, don't forget to check out the Social Security Planning section of our newly designed website!

Financial Calculators

This newsletter has links to other web sites as a convenience to our clients. These include links to web sites operated by other government agencies, nonprofit organizations and private businesses. When you link to another web site, you are subject to the privacy policy of that new site.

Matthew A. Stout
Managing Partner
Marc E. Bowman
Managing Partner