Relational Finance

Most financial managers try to practice rational finance, where emotions are removed from the investment process. But at Charter, we practice relational finance as well.

Relational finance is when you invest in such a way that you don’t have to worry about the future. It means that you don’t dread the arrival of your next statement in the mail. It means that long-term goals are managed, not only by squeezing out more return, but also by managing your expenses. It may not maximize profits, but it sure improves returns.

I recently advised a couple clients who want to share their good fortune with friends and family. By structuring investments so their current and future needs are met, and by establishing a consistent plan for making gifts, we’re able to give them a way to share generously without impoverishing themselves.

Relational finance sometimes means owning a safe and boring bond when a high-flying stock could yield more. But if the bond meets your needs and you can sleep at night, the relational approach is actually the most rational as well.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
reception: 603-224-1350 • •
By |2017-07-17T12:35:23+00:00May 26th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

Leave A Comment