Investment and Estate Planning Advice with James D. Vaughan III Esq. from Vaughan & Co. Securities, Inc.

James D. Vaughan III Esq. of Vaughan & Co. Securities, Inc. tells the Patch about the best piece of investment advice he has ever received and offers a few key tips to first-time investors.

Patch: What services does Vaughan & Co. Securities offer?

James: We provide investment advice to help families achieve multi-generational prosperity. Our small firm (two partner, four service personnel-designs) implements and manages investments and estate plans. We educate the family so that wealth benefits the family. We are professionally pleased that many members of the second generation of clients' families are now our clients.

Patch: What’s the best piece of investment advice you’ve ever been given and who gave it to you?

James: There are only three ways to invest – you can be a saver, a lender or an owner. Owners of a business (stock owners) earn more money than lenders (bond owners) who, in turn, earn more than savers (money market owners). The hard part is maintaining your ownership investments when they are going down in value. I do not recall where I first heard this advice, but my clients and I would like to thank them.

Patch: If you had to recommend someone three books what would they be and why?

James: 1.“Simple Wealth, Inevitable Wealth” by Nick Murray – Details how to Invest for long-term wealth and the obstacles that an investor must overcome. 2. “Preparing Heirs” by Roy Williams & Vic Preisser – Parents do an excellent job teaching their children how to behave. Parents must prepare their heirs to receive assets. 3. “Fortune’s Children: The Fall of the House of Vanderbilt” by Arthur T. Vanderbilt II – Your money can be a source of financial benefit and family unity or a source of family problems.

Patch: Can you tell us a little bit about your team and their background?

James: Our local, 40-year-old, multi-generational firm is capable of handling problems of today while focusing on long-term family prosperity. With our legal and business background, our long experience with small and large companies and their owners estate plans, we integrate the client's investment program with their estate plan.

Patch: What is Vaughan & Co. Securities' investment philosophy?

James: Our clients live within their means, have low or no debt, maintain large cash or municipal bond reserves, and invest the balance in stocks of well managed businesses. Then, they try to teach their children to do the same.

Patch: How are you involved in Ridgewood community?

James: We have lived in Ridgewood, now Glen Rock, for 50+ years. My brothers and sisters all went through the local parochial and Ridgewood public school systems. Our children went through the Ridgewood public schools where they were involved in sports and New Players. I coached youth basketball and lacrosse for many years. I believe that Cathy, my wife, attended every game, match, race, recital, rehearsal, scrimmage, show and ceremony that any child had.

Patch: What is your morning routine?

James: Cathy and I like to have coffee before she goes to BF Middle School to work as a teacher’s aide. We are a morning firm. If I do not have a meeting at the Daily Treat, then I call my clients early to discuss market fluctuation.

Patch: When should someone start investing?

James: Giving is probably learned in early grammar school. Saving is probably learned in late grammar school. Investing should be encouraged in middle/high school but be careful; middle/high school students can be contrary. All three activities, giving, saving and investing are part of the same continuum.

Patch: What advice would you give to a reader who thinks he or she wants to invest, but does not know where to start?

James: We live in the greatest capitalist society in the history of the world and none of us were taught much about capitalism or investing. Investing is best learned by doing. Start small because you will make mistakes. Learn with your children. Hire an advisor when you can’t decide what you should do right now.

Patch: What three questions should readers ask when trying to find a financial advisor?

James: 1. How should I invest to achieve prosperity for me and my family? 2. Why should I invest and educate as you recommend? 3. How is my family’s prosperity aligned with the advisor’s fees?

Patch: How can readers contact you or find out more about Vaughan & Co. Securities?

James: You can reach us online at www.vaughanandco.com; by email at jdviii@vaughanandco.com or by phone at (201) 444-1361 ext 1.