Meet the Partners! An Interview with Jim Palermo, CFA, CAIA, CFP®

August 3, 2020

Estimated Reading Time: 4 minutes

Meet the Partners! An Interview with Jim Palermo, CFA, CAIA, CFP®

Partner Jim Palermo joined Chicago Partners in July of 2020!

After working with Chicago Equity Partners for many years, he brings with him to Chicago Partners over two decades of experience in the financial industry.

We interviewed Jim to learn more about his background, his interest in finances, and advice he would give to investors. For the full interview, read on!

Q: How did you get into wealth management?

JP: I’ve long had an interest in saving and investing. At 11 or 12 years old I can remember walking to the local savings & loan and stepping up to the teller to open a savings account.  She told me I wasn’t old enough without my parents signing some forms, so instead of returning home and getting the necessary signatures, I bought a $25 U.S. Savings Bond.  I kept buying savings bonds until I was old enough to open a bank account of my own.  I didn’t redeem that first bond when it matured, instead I kept it to one day show my own children the importance of saving at an early age.

My first job out of college after graduating from the University of Pennsylvania was in the Personal Trust-Investment Department at the Manufacturers Hanover Trust Company in New York City.  I was a portfolio assistant, which had me doing a lot of the tasks involved in portfolio management, ranging from opening new accounts, attending client meetings where my boss discussed portfolio construction ideas and performance, and even clipping coupons from the clients’ bearer bonds.  While at Manny Hanny I earned the Certified Financial Planner designation and passed Level l of Chartered Financial Analyst program before I left attend business school.

After earning my MBA at the University of Rochester I had a brief stint in corporate lending in Boston and later spent many years with a quantitative institutional equity management firm in Chicago, serving as an analyst and portfolio manager.  While institutional asset management was intellectually stimulating and very rewarding, it lacked the client interaction and the personal gratification of helping clients identify and achieve their financial goals.  In early 2020 I decided to return to wealth management, joining Chicago Partners in May.

Q: How would you describe your wealth management philosophy?

JP: My investment philosophy is heavily influenced by the legendary investor and author Benjamin Graham said who said “Successful investing is about managing risk, not avoiding it”.

Real returns aren’t achieved without risk, but the portfolio risk investors take on may be unrecognized, and can result in unintended return volatility. A well-crafted portfolio will match a client’s objectives, risk aversion and time-frame with their investments.  By building a portfolio with different asset classes, time horizons and seeking assets with low and even negative correlations to one another, at Chicago Partners we aspire to provide our clients with steadier returns over the long run.

Q: What is the number one question you receive from clients, and how do you usually respond?

JP: The question investors most often ask me about is what impact federal, state and local budget deficits will have on their financial plans. Unfortunately, the outlook isn’t good.  U.S. government debt has more than doubled in the past ten years and government budgets are facing deficits as far as the eye can see, so the debt can only grow, ultimately resulting in higher inflation and higher tax burdens. Though benign for many years, conventional wisdom says inflation can’t help but re-ignite, eroding the purchasing power of savers.

Investors need to be prepared for inflation by having exposure to a variety of assets that will appreciate when it returns.  This includes gold and other commodities as well as real estate, where nominal rents will move higher as inflation grows.  Real estate investors need to be selective, however: certain types of real estate such as retail and CBD office buildings will suffer from a loss of demand as the “Amazon effect” spreads and the ability to work from home grows with improved telecommunications.  Multi-family housing real estate may also suffer if a pandemic inspired urban exodus materializes.

Q: What is the single most important thing for investors to keep in mind?

JP: Good investment decisions sometimes don’t work out as planned.  Markets are very efficient because information flows so fast today. Because professional investors are intelligent, competitive and highly motivated, not every stock or fund we pick for our clients will have a positive return.  By thoughtfully designing a portfolio with both return expectations and risk in mind, we’ll improve our chances of helping our clients achieving their financial goals.

Q: What do you do outside of being an investment advisor?

JP: The home my wife Joan and I have owned since we were married was built in the late 1800s, so there’s always something to update or replace. It's a labor of love finding the right furniture, fixtures or accents to honor the home’s 19th century architecture while providing 21st century comforts and functionality. When I don’t have tools in my hand fixing the house (truth be told, most often it’s the check book in my hand) I enjoy taking online classes in American history and behavioral finance.

As recent empty-nesters, we plan to travel as soon as the post-Covid-19 environment permits.  Joan is a University of Michigan graduate and we make it back to Ann Arbor a few times a year for football games; in the future we hope to travel to a couple of road games each year to experience college campuses and parts of the country we’ve never visited.

Important Disclosure Information

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Chicago Partners Investment Group LLC (“CP”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CP. Please remember to contact CP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. CP is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the CP’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.

August 3, 2020

Estimated Reading Time: 4 minutes

Meet the Partners! An Interview with Jim Palermo, CFA, CAIA, CFP®

Partner Jim Palermo joined Chicago Partners in July of 2020!

After working with Chicago Equity Partners for many years, he brings with him to Chicago Partners over two decades of experience in the financial industry.

We interviewed Jim to learn more about his background, his interest in finances, and advice he would give to investors. For the full interview, read on!

Q: How did you get into wealth management?

JP: I’ve long had an interest in saving and investing. At 11 or 12 years old I can remember walking to the local savings & loan and stepping up to the teller to open a savings account.  She told me I wasn’t old enough without my parents signing some forms, so instead of returning home and getting the necessary signatures, I bought a $25 U.S. Savings Bond.  I kept buying savings bonds until I was old enough to open a bank account of my own.  I didn’t redeem that first bond when it matured, instead I kept it to one day show my own children the importance of saving at an early age.

My first job out of college after graduating from the University of Pennsylvania was in the Personal Trust-Investment Department at the Manufacturers Hanover Trust Company in New York City.  I was a portfolio assistant, which had me doing a lot of the tasks involved in portfolio management, ranging from opening new accounts, attending client meetings where my boss discussed portfolio construction ideas and performance, and even clipping coupons from the clients’ bearer bonds.  While at Manny Hanny I earned the Certified Financial Planner designation and passed Level l of Chartered Financial Analyst program before I left attend business school.

After earning my MBA at the University of Rochester I had a brief stint in corporate lending in Boston and later spent many years with a quantitative institutional equity management firm in Chicago, serving as an analyst and portfolio manager.  While institutional asset management was intellectually stimulating and very rewarding, it lacked the client interaction and the personal gratification of helping clients identify and achieve their financial goals.  In early 2020 I decided to return to wealth management, joining Chicago Partners in May.

Q: How would you describe your wealth management philosophy?

JP: My investment philosophy is heavily influenced by the legendary investor and author Benjamin Graham said who said “Successful investing is about managing risk, not avoiding it”.

Real returns aren’t achieved without risk, but the portfolio risk investors take on may be unrecognized, and can result in unintended return volatility. A well-crafted portfolio will match a client’s objectives, risk aversion and time-frame with their investments.  By building a portfolio with different asset classes, time horizons and seeking assets with low and even negative correlations to one another, at Chicago Partners we aspire to provide our clients with steadier returns over the long run.

Q: What is the number one question you receive from clients, and how do you usually respond?

JP: The question investors most often ask me about is what impact federal, state and local budget deficits will have on their financial plans. Unfortunately, the outlook isn’t good.  U.S. government debt has more than doubled in the past ten years and government budgets are facing deficits as far as the eye can see, so the debt can only grow, ultimately resulting in higher inflation and higher tax burdens. Though benign for many years, conventional wisdom says inflation can’t help but re-ignite, eroding the purchasing power of savers.

Investors need to be prepared for inflation by having exposure to a variety of assets that will appreciate when it returns.  This includes gold and other commodities as well as real estate, where nominal rents will move higher as inflation grows.  Real estate investors need to be selective, however: certain types of real estate such as retail and CBD office buildings will suffer from a loss of demand as the “Amazon effect” spreads and the ability to work from home grows with improved telecommunications.  Multi-family housing real estate may also suffer if a pandemic inspired urban exodus materializes.

Q: What is the single most important thing for investors to keep in mind?

JP: Good investment decisions sometimes don’t work out as planned.  Markets are very efficient because information flows so fast today. Because professional investors are intelligent, competitive and highly motivated, not every stock or fund we pick for our clients will have a positive return.  By thoughtfully designing a portfolio with both return expectations and risk in mind, we’ll improve our chances of helping our clients achieving their financial goals.

Q: What do you do outside of being an investment advisor?

JP: The home my wife Joan and I have owned since we were married was built in the late 1800s, so there’s always something to updates or replace. It's a labor of love finding the right furniture, fixtures or accents to honor the home’s 19th century architecture while providing 21st century comforts and functionality. When I don’t have tools in my hand fixing the house (truth be told, most often it’s the check book in my hand) I enjoy taking online classes in American history and behavioral finance.

As recent empty-nesters, we plan to travel as soon as the post-Covid-19 environment permits.  Joan is a University of Michigan graduate and we make it back to Ann Arbor a few times a year for football games; in the future we hope to travel to a couple of road games each year to experience college campuses and parts of the country we’ve never visited.

Important Disclosure Information

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Chicago Partners Investment Group LLC (“CP”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CP. Please remember to contact CP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. CP is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the CP’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.

Meet the Partners! An Interview with Jim Palermo, CFA, CAIA, CFP&reg

August 3, 2020

Estimated Reading Time: 4 minutes

Meet the Partners! An Interview with Jim Palermo, CFA, CAIA, CFP&reg

Partner Jim Palermo joined Chicago Partners in July of 2020!
After working with Chicago Equity Partners for many years, he brings with him to Chicago Partners over two decades of experience in the financial industry.
We interviewed Jim to learn more about his background, his interest in finances, and advice he would give to investors. For the full interview, read on!

Q: How did you get into wealth management?

JP: I’ve long had an interest in saving and investing. At 11 or 12 years old I can remember walking to the local savings & loan and stepping up to the teller to open a savings account.  She told me I wasn’t old enough without my parents signing some forms, so instead of returning home and getting the necessary signatures, I bought a $25 U.S. Savings Bond.  I kept buying savings bonds until I was old enough to open a bank account of my own.  I didn’t redeem that first bond when it matured, instead I kept it to one day show my own children the importance of saving at an early age.
My first job out of college after graduating from the University of Pennsylvania was in the Personal Trust-Investment Department at the Manufacturers Hanover Trust Company in New York City.  I was a portfolio assistant, which had me doing a lot of the tasks involved in portfolio management, ranging from opening new accounts, attending client meetings where my boss discussed portfolio construction ideas and performance, and even clipping coupons from the clients’ bearer bonds.  While at Manny Hanny I earned the Certified Financial Planner designation and passed Level l of Chartered Financial Analyst program before I left attend business school.
After earning my MBA at the University of Rochester I had a brief stint in corporate lending in Boston and later spent many years with a quantitative institutional equity management firm in Chicago, serving as an analyst and portfolio manager.  While institutional asset management was intellectually stimulating and very rewarding, it lacked the client interaction and the personal gratification of helping clients identify and achieve their financial goals.  In early 2020 I decided to return to wealth management, joining Chicago Partners in May.

Q: How would you describe your wealth management philosophy?

JP: My investment philosophy is heavily influenced by the legendary investor and author Benjamin Graham said who said “Successful investing is about managing risk, not avoiding it”.
Real returns aren’t achieved without risk, but the portfolio risk investors take on may be unrecognized, and can result in unintended return volatility. A well-crafted portfolio will match a client’s objectives, risk aversion and time-frame with their investments.  By building a portfolio with different asset classes, time horizons and seeking assets with low and even negative correlations to one another, at Chicago Partners we aspire to provide our clients with steadier returns over the long run.

Q: What is the number one question you receive from clients, and how do you usually respond?

JP: The question investors most often ask me about is what impact federal, state and local budget deficits will have on their financial plans. Unfortunately, the outlook isn’t good.  U.S. government debt has more than doubled in the past ten years and government budgets are facing deficits as far as the eye can see, so the debt can only grow, ultimately resulting in higher inflation and higher tax burdens. Though benign for many years, conventional wisdom says inflation can’t help but re-ignite, eroding the purchasing power of savers.
Investors need to be prepared for inflation by having exposure to a variety of assets that will appreciate when it returns.  This includes gold and other commodities as well as real estate, where nominal rents will move higher as inflation grows.  Real estate investors need to be selective, however: certain types of real estate such as retail and CBD office buildings will suffer from a loss of demand as the “Amazon effect” spreads and the ability to work from home grows with improved telecommunications.  Multi-family housing real estate may also suffer if a pandemic inspired urban exodus materializes.

Q: What is the single most important thing for investors to keep in mind?

JP: Good investment decisions sometimes don’t work out as planned.  Markets are very efficient because information flows so fast today. Because professional investors are intelligent, competitive and highly motivated, not every stock or fund we pick for our clients will have a positive return.  By thoughtfully designing a portfolio with both return expectations and risk in mind, we’ll improve our chances of helping our clients achieving their financial goals.

Q: What do you do outside of being an investment advisor?

JP: The home my wife Joan and I have owned since we were married was built in the late 1800s, so there’s always something to update or replace. It’s a labor of love finding the right furniture, fixtures or accents to honor the home’s 19th century architecture while providing 21st century comforts and functionality. When I don’t have tools in my hand fixing the house (truth be told, most often it’s the check book in my hand) I enjoy taking online classes in American history and behavioral finance.
As recent empty-nesters, we plan to travel as soon as the post-Covid-19 environment permits.  Joan is a University of Michigan graduate and we make it back to Ann Arbor a few times a year for football games; in the future we hope to travel to a couple of road games each year to experience college campuses and parts of the country we’ve never visited.

Important Disclosure Information
Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Chicago Partners Investment Group LLC (“CP”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CP. Please remember to contact CP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. CP is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the CP’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.

August 3, 2020

Estimated Reading Time: 4 minutes

Meet the Partners! An Interview with Jim Palermo, CFA, CAIA, CFP&reg

Partner Jim Palermo joined Chicago Partners in July of 2020!
After working with Chicago Equity Partners for many years, he brings with him to Chicago Partners over two decades of experience in the financial industry.
We interviewed Jim to learn more about his background, his interest in finances, and advice he would give to investors. For the full interview, read on!

Q: How did you get into wealth management?

JP: I’ve long had an interest in saving and investing. At 11 or 12 years old I can remember walking to the local savings & loan and stepping up to the teller to open a savings account.  She told me I wasn’t old enough without my parents signing some forms, so instead of returning home and getting the necessary signatures, I bought a $25 U.S. Savings Bond.  I kept buying savings bonds until I was old enough to open a bank account of my own.  I didn’t redeem that first bond when it matured, instead I kept it to one day show my own children the importance of saving at an early age.
My first job out of college after graduating from the University of Pennsylvania was in the Personal Trust-Investment Department at the Manufacturers Hanover Trust Company in New York City.  I was a portfolio assistant, which had me doing a lot of the tasks involved in portfolio management, ranging from opening new accounts, attending client meetings where my boss discussed portfolio construction ideas and performance, and even clipping coupons from the clients’ bearer bonds.  While at Manny Hanny I earned the Certified Financial Planner designation and passed Level l of Chartered Financial Analyst program before I left attend business school.
After earning my MBA at the University of Rochester I had a brief stint in corporate lending in Boston and later spent many years with a quantitative institutional equity management firm in Chicago, serving as an analyst and portfolio manager.  While institutional asset management was intellectually stimulating and very rewarding, it lacked the client interaction and the personal gratification of helping clients identify and achieve their financial goals.  In early 2020 I decided to return to wealth management, joining Chicago Partners in May.

Q: How would you describe your wealth management philosophy?

JP: My investment philosophy is heavily influenced by the legendary investor and author Benjamin Graham said who said “Successful investing is about managing risk, not avoiding it”.
Real returns aren’t achieved without risk, but the portfolio risk investors take on may be unrecognized, and can result in unintended return volatility. A well-crafted portfolio will match a client’s objectives, risk aversion and time-frame with their investments.  By building a portfolio with different asset classes, time horizons and seeking assets with low and even negative correlations to one another, at Chicago Partners we aspire to provide our clients with steadier returns over the long run.

Q: What is the number one question you receive from clients, and how do you usually respond?

JP: The question investors most often ask me about is what impact federal, state and local budget deficits will have on their financial plans. Unfortunately, the outlook isn’t good.  U.S. government debt has more than doubled in the past ten years and government budgets are facing deficits as far as the eye can see, so the debt can only grow, ultimately resulting in higher inflation and higher tax burdens. Though benign for many years, conventional wisdom says inflation can’t help but re-ignite, eroding the purchasing power of savers.
Investors need to be prepared for inflation by having exposure to a variety of assets that will appreciate when it returns.  This includes gold and other commodities as well as real estate, where nominal rents will move higher as inflation grows.  Real estate investors need to be selective, however: certain types of real estate such as retail and CBD office buildings will suffer from a loss of demand as the “Amazon effect” spreads and the ability to work from home grows with improved telecommunications.  Multi-family housing real estate may also suffer if a pandemic inspired urban exodus materializes.

Q: What is the single most important thing for investors to keep in mind?

JP: Good investment decisions sometimes don’t work out as planned.  Markets are very efficient because information flows so fast today. Because professional investors are intelligent, competitive and highly motivated, not every stock or fund we pick for our clients will have a positive return.  By thoughtfully designing a portfolio with both return expectations and risk in mind, we’ll improve our chances of helping our clients achieving their financial goals.

Q: What do you do outside of being an investment advisor?

JP: The home my wife Joan and I have owned since we were married was built in the late 1800s, so there’s always something to updates or replace. It’s a labor of love finding the right furniture, fixtures or accents to honor the home’s 19th century architecture while providing 21st century comforts and functionality. When I don’t have tools in my hand fixing the house (truth be told, most often it’s the check book in my hand) I enjoy taking online classes in American history and behavioral finance.
As recent empty-nesters, we plan to travel as soon as the post-Covid-19 environment permits.  Joan is a University of Michigan graduate and we make it back to Ann Arbor a few times a year for football games; in the future we hope to travel to a couple of road games each year to experience college campuses and parts of the country we’ve never visited.

Important Disclosure Information
Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Chicago Partners Investment Group LLC (“CP”), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from CP. Please remember to contact CP, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. CP is neither a law firm nor a certified public accounting firm and no portion of the commentary content should be construed as legal or accounting advice. A copy of the CP’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.