Newsletter 12/17/2020

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Hello!

I hope you have all had a wonderful start to your December. I landed in Colorado yesterday and got to see Callaghan on my stop in Denver. We haven’t seen each other in person since starting Hoskin Capital, so this was an extremely welcome moment. We were able to catch up and reflect on how Hoskin Capital has grown and changed throughout 2020. 

We found ourselves reflecting on why we started Hoskin Capital. A startup in the middle of a pandemic isn’t exactly a good idea, so what made us want to try? For both of us, our mission can be distilled down to a sentence: we want to add value to people’s lives. When we were figuring out what HC was going to be, we had to find the ways we could add the most value. We chose to start Hoskin Capital because we can add value in three critical ways:

1. We get to help in the best and worst of times

2. We tangibly benefit the planet and our society

3. We offer a service that simply didn’t exist before HC 

Today, my goal is to tell you more about how we help in the best and worst of times. Stay tuned over the next few weeks for parts two and three! 

A side note: today’s email is going to be a bit shorter than usual because I’m excluding the nitty gritty investment details. Instead, I’m going to provide an official investment update in early January as we move into 2021. 

Helping in the best of times

Everyone has highs and lows, and money can complicate either extreme. At both ends of the emotional spectrum humans become very, very bad at making rational decisions. The most common example of an emotional “high” is winning the lottery. Most people know that the prudent thing to do with the winnings would be to invest it and use it as a source of lifetime income. Most people who win the lottery know this! So why is it that 70% of lottery winners go bankrupt three to five years after they win? 

They go bankrupt because they make quick, emotional decisions. It’s also worth mentioning that 100% of the lottery winners who hire financial advisors do not go bankrupt and save an average of 25% on taxes. The same goes for any type of financial windfall, such as collecting inheritance or selling a house. When we learned this, we knew we could add a lot of value by providing objective advice in these critical moments.

We started Hoskin Capital because we can help people make smart decisions on the best day of their lives. 

Helping in the worst of times

Money might also play a role on someone’s worst day, like the day they lose a loved one. Life insurance and cash inheritance are actually very simple to deal with at a time like this, but other factors can be very complicated. Some might find they have a house being passed down to them, or even a debt or mortgage. In the weeks following the tragedy, the heir could expect to hear from lawyers, probate officials, executors, insurance companies, and banks. The combination of complexity and grief makes certain decisions seem more attractive than others, even if they really aren’t. To make matters worse, many people try to take advantage of grieving survivors to claim a piece of the inheritance. 

When we studied events like these, we realized we could add value by being fiduciaries. Fiduciaries are trusted professionals who have a legal and moral duty to place the needs of the client above all else. As a Registered Investment Advisor, Hoskin Capital has a fiduciary duty.

We started Hoskin Capital because we can lift the burden of planning and paperwork at a time when our clients need all the support they can get.  

Helping all the time

We believe that our value grows exponentially when disaster strikes, but we have also found ways to add value in day-to-day life. As we watched our friends, family, and clients make financial decisions, we learned the value of a quick text or phone call. Money plays a role every single day, so we made ourselves available every single day. Whether it’s a new car or a new credit card, we started Hoskin Capital to help people make the best financial decisions every time.Looking back

When we wrote it all out, we could plainly see the value Hoskin Capital would add to people’s lives, and there was no way we could back down from the risk of getting started. Even if you don’t plan to hire an advisor, I hope you will reach out whenever you have questions. We are always an email away and will help as best we can at no cost. If the problem is too complex to answer in an email, we may be able to add value for you too!

Thank you for your attention, and I hope you have a great holiday season. Keep an eye out for the next two parts and our end of year investment update!

Warm regards,

Nate Hoskin