Donovan Sanchez, CFP® Skyview Financial Planning, LLC

About Donovan Sanchez, CFP®

Skyview Financial Planning, LLC is founded on the belief that financial advisors should be paid based on their knowledge, time, and skill, rather than their ability to sell a product, or how much money you choose to let them manage. With this belief in mind, financial planning and investment management services are provided through a flat annual fee paid on a quarterly basis.

Services are primarily suited for those looking to offload their financial planning and investment management so that they can focus on that which brings them greater satisfaction and fulfillment in life.

Skyview Financial Planning, LLC works with physicians on a virtual basis throughout the United States.

If you’re interested in independent advice for a fair price, or simply want to explore what a partnership looks like, please schedule a free, no-obligation appointment.

Sincerely,
Donovan

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Recently Published

"The Dangerous Pursuit of Financial Independence" - Interview with Daniel Wrenne, CFP® on the "Finance for Physicians" Podcast

October 1, 2021

I had the honor of speaking with Daniel Wrenne, CFP® about the pursuit of financial independence.

Becoming financially independent is a worthy goal that we should all aspire to. But what happens if that goal becomes all-consuming and we lose track of what’s important along the way? To some degree, we are all guilty of mindlessly allowing our lives to drift away from relationships, and living life in the way that we really want to.

Daniel and I discuss these topics, and others, on his podcast “Finance for Physicians.”

The show is titled “The Dangerous Pursuit of Financial Independence” and you can access it by following the link below: https://podcasts.apple.com/us/podcast/the-dangerous-pursuit-of-financial-independence/id1532953668?i=1000536359632

Disclaimer:

The content provided is for informational purposes only and represents my personal opinions based on my experience, study, and practice. Yes, I’m a financial advisor, but this article isn’t intended as advice for you specifically. Your unique situation needs to be taken into account, and the ideas presented here may not apply. 

Please make sure you do your due diligence before implementing anything. Due diligence includes hiring a qualified professional who understands your situation completely and can offer you personalized advice.

Read the full post →

White Coat Investor Guest Post: "On Living a Rich Life"

June 7, 2021

My article titled, “On Living a Rich Life,” was featured on June 2, 2021 on The White Coat Investor blog site.

In it I share a few ideas for keeping life in perspective, as well as some simple strategies for budgeting, increasing saving, and giving.

The following link will take you to the article: https://www.whitecoatinvestor.com/on-living-a-rich-life/

Enjoy!

Disclaimer:

The content provided is for informational purposes only and represents my personal opinions based on my experience, study, and practice. Yes, I’m a financial advisor, but this article isn’t intended as advice for you specifically. Your unique situation needs to be taken into account, and the ideas presented here may not apply. 

Please make sure you do your due diligence before implementing anything. Due diligence includes hiring a qualified professional who understands your situation completely and can offer you personalized advice.

Read the full post →

Is the Efficient Market Hypothesis Still Relevant in 2021?

March 5, 2021

Some believe that the stock market distills the “wisdom of crowds,” creating a market where securities are fairly priced. In contrast to this view, financial history has demonstrated that at times the “madness of mobs” also plays a role in how markets behave.

How then, should physicians approach their investment strategy? Does it make sense to try to “beat the market”? Should they pay an active manager to help them find the best securities, or engage in market timing?

In light of our current investment landscape, investors should be aware of the Efficient Market Hypothesis, it’s usefulness, and practical implications for investing in the real world.

What is the Efficient Market Hypothesis?

Famed American economist, Eugene Fama, first proposed the Efficient Market Hypothesis in his Ph.D. dissertation in the 1960s.

In brief, the Efficient Market Hypothesis proposes that a stock’s price has already taken into account all publicly available information. (There are more nuances here, but explaining them is not the purpose of this article.) 

Accordingly, the Efficient Market Hypothesis implies that investing with the objective to consistently “beat the market” is probably a fool’s errand. If all publicly available information is already baked into the price of a given security, then it is unlikely that one will find market inefficiencies where underpriced securities may be found, purchased, and exploited in a way to beat the market.

How useful is the Efficient Market Hypothesis in practice?

It’s hard to make the argument that markets behave efficiently all the time, or that securities are always accurately (and fairly) priced. Doing so seems to ignore the many market booms and busts that have occurred throughout history, and are likely to occur again. 

Yet, while the Efficient Market Hypothesis does not reflect reality perfectly, it can still be a useful framework to guide investment strategy.

In "Rational Markets: Yes or No? The Affirmative Case," Mark Rubinstein notes Hayak's 1945 assertion that prices in liquid markets are a culmination of the information of millions of investors all over the world. 

Those seeking an inefficiency in the market are pitting themselves against the collective wisdom of all other investors. It’s not so much that inefficiencies can never be found, but that the costs associated with implementing strategies to capitalize on those inefficiencies make this a suboptimal strategy.

Rubinstein points to Jensen’s 1968 and 1969 studies of mutual funds in which it was shown that the average actively managed mutual funds do not outperform market index funds. "Indeed the average fund underperforms by about the size of its fees and trading costs."

SPIVA® Statistics and Reports tracks the percentage of funds that underperform their benchmarks. Data as of June 30, 2020 indicates that over a five year time horizon, 77.97% of US Large-Cap funds underperformed the S&P 500®. Stated another way, only 22.03% of Large-Cap funds outperformed their benchmark.

The data currently tilts heavily in favor of a simple index fund approach.

Not a perfect reflection of reality, but useful nonetheless.

In "The Efficient Market Hypothesis and Its Critics," Burton Malkiel concedes that while there are short periods of time when markets behave irrationally, these are much more the exception, rather than the rule. 

In fact, he states that "acceptance of such occasional mistakes is the necessary price of a flexible market system that usually does a very effective job of allocating capital to its most productive uses." 

Malkiel's strongest case for market efficiency is that if pervasive inefficiencies in the market were present, then the professional fund manager should be able to exploit them with consistency. To this he writes, "[m]anaged funds are regularly outperformed by broad index funds, with equivalent risk. Moreover, those funds that produce excess returns in one period are not likely to do so in the next. There is no persistence in performance."  

If the professionals appear incapable of outperforming the market on a persistent basis, then it seems prudent to accept the Efficient Market Hypothesis as the basis for an effective investment strategy, rather than pay for costly active management.

Some final thoughts.

The idea that the market is perfectly efficient need not be argued. It is not.

The Efficient Market Hypothesis is useful, however, if by efficient we mean that there don’t appear to be predictable and consistent opportunities to take advantage of market inefficiencies. When a market inefficiency is discovered and made public, it will probably only be a matter of time before the inefficiency disappears as more and more investors seek to capitalize on it.

For more of my thinking and writing, click here.

Disclaimer:

The content provided is for informational purposes only and represents my personal opinions based on my experience, study, and practice. Yes, I’m a financial advisor, but this article isn’t intended as advice for you specifically. Your unique situation needs to be taken into account, and the ideas presented here may not apply. 

Please make sure you do your due diligence before implementing anything. Due diligence includes hiring a qualified professional who understands your situation completely and can offer you personalized advice.

Read the full post →

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Ideal Clients

  • Gen Y/Millennials
  • Medical Professionals

Ways Advisor Charges

  • Flat Fee

Fee Options

  • Flat Fee: $4,800

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