Fee-Only™, comprehensive tax and financial planning firm with over 20 years of experience.

Founders Note

Let me introduce myself. I am Mike Lynch, the founder of Lynch Financial Advisors. I started advising clients in 2000 back in New Jersey after my wife’s and my financial advisor urged me to work with him. When we moved back to California in 2002, I started my own practice.

 

What is important to me?

Like most people, my wife, kids, my family, friends, and my dog.  When I set my goals, these are the things that are uppermost in my mind. And without doing my own planning, I cannot reach the goals that give my life balance and happiness. Like many, I put in fair portion of hours at work.  Fortunately for me I LOVE going in and helping my clients meet their goals and put together solutions that makes their lives better.

As you can see through our website, this practice is centered around knowing what is important to YOU.   It is NOT some marketing line by some national firm.  We truly love what we do and are passionate about our clients.

 

Background:

Mike Lynch, founder
B.S in Finance, minor in Economics
MBA in International Business
4 years in software business development
20+ years financial planning
100s of clients served
RIA, California, 2002

 

Top 3 Reasons to Work with us

1) Our Clients
We work with awesome clients — people who want to make changes in their life and are successful at doing so.  Finances can be very stressful. It can cause waves in relationships. And often is just plain scary or confusing. We do our best to have our meetings be a positive experience.

2) Our Work
We work with clients in all types of industries, various career levels, single, married, widowed, young — and not so young. Every set of clients has different income levels, goals and challenges. Every day is a different day and each client has a unique story. That’s what makes our job fun!

3) Our Approach
Our approach to financial planning is not just “the numbers.”  We take a very close look at the behavioral side of finances. We look at how financial decisions affect “other” areas on one’s life: such as time with children, intimacy with spouse, family/friend relationships, and more.

Firm Philosophy

  1. Advisor: Dual objective
    1. Connect with the client, understand THEM.
    2. Create a great working environment where people want to come to work.
  2. Employees
    1. Focus on how they can take as much work off each client’s plate as possible.
    2. Focus on how they can create processes that are more efficient.

Our clients

Who do we work with?

From college graduates to millionaires, we have them all.  This may sound like a large range, however, our hurdle is finding clients that are good people and are coachable.  We want to have a firm where we look forward to coming to work.  So, it follows, our clients must be people that we look forward to seeing.  We aren’t looking for the life of the party.  Many of our clients are introverts.

 

A similar thread that runs through all of our clients, no matter how smart they are, is that they learn they can’t know everything.   Many of our clients are leaders in their field, as such, they seek out leaders in areas they aren’t experts in.

Here is a look at the types of clients we have.  See if you fit in with any of these:

  • Client Occupations: administrators, engineers (software, hardware, electrical, civil, etc.), teachers, doctors, fire fighters, police officers, attorneys, single parents, business owners, retirees, salespeople, consultants, therapists, and the list goes on.
  • Level of Education: PhDs from Harvard, MBAs from Stanford, and a myriad of other advanced degrees from other colleges. Importantly, we also have many successful entrepreneurs without a degree!  They have built successful businesses, learning their trade and treating their customers right. 
  • Education: “College of hard knocks”, Harvard, Chico, Stanford, Berkeley, Sac State, Davis, USF, ASU, and the list goes on and on.
  • Employers: Sutter, Kaiser, State of California (STRS and CalPERS), publicly traded companies and yet to go public, etc.
  • Current stage in life: college graduates, retirees, those building their foundation (little to no assets), multi-millionaires.

Our approach in seeking good people (agnostic of their career or place in life) has worked.  We have only attracted great people!  We can’t think of one client of ours that would look down on any client for their career choice, financial status, or whether they went to school or not.  When we say we attract good people, it really is true!

We think that this vast array of clients gives us something unique – data on hundreds of clients over 20 years.  How much data have we accumulated? How much experience have we gained? How many problems have we solved? Having a wide range of clients with a vast array of experiences gives us more tools and more ideas to which we can help clients find solutions to their financial story.

We think that this vast array of clients gives us something unique – data on hundreds of clients over 20 years. When you think about it, each client within this array has had a unique problem to solve. We find this interesting because regardless of education (this person could happen to be a doctor or business owner), the individual could face the same hurdle to overcome. Having clients cross different spectrums gives us more experience to draw from and to better help guide our clients.

 

Think of us as a boat captain that has sailed all types of boats small and big throughout the years. He has sailed in all sorts of weather (market conditions). And he has sailed to a variety of destinations.  That is what we call a seasoned captain and one that can tell you more than just what to invest in, but where the storm may lie.

Investment Philosophy

Assume we gave you two choices: 

Choice A was a stable return of 4% each year and the expectation of meeting your financial goals 98%. 

Choice B was a portfolio that had a 20% chance of being lower each year and an 80% chance of being higher each year.  You had a 50% chance of beating the 4% portfolio, but you had only an 80% chance reaching your financial goals in the same time frame as Choice A.  Or put another way, you had a 20% chance of not reaching your financial goals in a similar time frame as choice A.

Most asset managers look at choice B as the only option.  They are geared towards trying to maximize client returns, instead of maximizing the chance their client reaches financial independence.   Their goal of maximizing returns (chasing the market), and the results, studies have shown, is that the average investors underperforms the market. 

Think about this, do you feel the same if you lose $100 or win $100?  Given a 50/50 chance of winning or losing $100, most people would prefer not to take the chance of losing.  Portfolio management today is a done without the understanding of human behavior.  What we mean by this, is that the average money manager gives their client a risk questionnaire in the hopes of finding out how much risk a client can handle.  What research has shown is that the average consumer does poorly with movements down in the market.  They tend to leave the market when it is going down and get back in when it has already gone up too much. Research shows that risk tolerance questionnaires fail to accurately predict client emotions/actions in down markets.

Instead, what a good manager should be doing is building a portfolio that increases the probability that the client will meet their goals.  What would you rather have – a high degree of certainty you can retire, or a chance that you can retire?