Morningstar Advisor - August/September 2010 - 20

Advisor Profile

Iris Mack Dayoub, president, Alpha Financial Management

Guiding clients through this transition has returned Dayoub to her teaching roots. “I want my clients to be comfortable with the decisions they make,” she says. “I go overboard with the explanation. Sometimes people say, ‘That’s enough!’”
Long List of Goals

How she caught our eye: Dayoub has a high-energy approach to helping clients reach their financial goals. Career path: Financial planning is a second career for Dayoub, who was a teacher and advanced-degree student until her children went off to college. Personal: Age, 73; married with five adult children and 12 grandchildren. Dayoub is an accomplished

triathlete and council director for Girls on the Run, an afterschool program for preteen girls, encouraging them to make healthy choices and boost self-esteem through running. Favorite funds: DFA US Vector Equity DFVEX, DF US Core Equity 2 DFQTX, DFA International Value DFIVX, DFA Emerging Markets Small Cap DEMSX.

Even though Dayoub’s age suggests she should be thinking about retiring, that move isn’t among her current goals. To be sure, she recently expanded her practice from two to three, hiring Chase Mouchet, a Savannah native and recent University of Georgia graduate. Mouchet’s dual degree is in finance and family financial planning, and Dayoub hopes he’ll help her attract younger clients to Alpha Financial Management. “I think I want to do this forever,” she says. “I look at the Supreme Court justices and the important work they do. If they can do that, I can continue to run my own business.” Even so, Dayoub says that she often stretches her weekends into “mini-vacations,” and she takes time out of her work schedule to train for races and support Girls on the Run, a group that helps third-, fourth-, and fifthgrade girls build self-esteem and make healthy choices by encouraging them to run. Dayoub also is committed to spending time with her family, which has grown to include 12 grandchildren spread out across the country. The Dayoubs keep track of and encourage one another by posting pictures and updates on the family blog, and in July, they all vacationed together. Dayoub’s list of goals may be long, but she’s making strong progress on each of them. “The main thing is helping my clients make good, wise decisions—making sure their heads, hearts, and actions are in a straight line.” K
Laura Pavlenko Lutton is an editorial director with Morningstar.

Dayoub soon began reshaping her brokerage career into one that stressed comprehensive financial planning. She first branched into insurance, harnessing that industry’s profiling system to better assess clients’ financial needs. Along the way, she also picked up a Fidelity booklet on starting a financial-planning practice. Dayoub struck out on her own when Michael retired in 1984 as a colonel and the couple settled in Savannah. From there, she founded Alpha Financial Management, a fee-only practice that trades through Schwab.
From Active to Passive

assets into passive funds. “Even before I started indexing, I was moving toward more and more diversification,” she says. “Once I got into indexing, I thought, ‘What’s the best way to do this?’ Being a mathematician, I loved the Fama-French approach at Dimensional.” Dimensional’s approach to money-management hinges on three theories: Stocks will outperform bonds; small-cap companies will outperform large-cap firms; and lower-priced value stocks will outperform pricier growth stocks. DFA’s funds, which may only be purchased through a DFA advisor, are low-cost, low-turnover, and broadly diversified to capture broad market moves. Over the past six months, Dayoub has been transferring her clients’ portfolios, replicating their current strategies in DFA funds.

Dayoub’s evolution from diversified-fund advocate to quantitative passive investing has occurred over the past two years. In 2008, Dayoub’s clients were invested in diversified— but actively managed—funds. Like thousands of other advisors, Dayoub has since moved

20 Morningstar Advisor August/September 2010



Morningstar Advisor - August/September 2010

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2010

Morningstar Advisor - August/September 2010
Contents
New on MorningstarAdvisor.com
Contributors
Letter From the Editor
What Aspects of Health-Care Reform Will Most Affect Your Clients?
Bonds, Chicago Style
Investment Briefs
Which Risk Are You Managing?
Eye on the Prize
Advisors Can’t Rely on Fidelity Alone
Health Care Gets Back to Business
An Opportune Time to Bet the Pharm
Reform’s Impact on Other Health-Care Industries
Top Takeover Targets in Biotech
After Reform, Narrow-Moat Firms Have Strong Prospects in Diagnostics
Health-Care Investing Alive and Well
Quest for Knowledge
Four Picks for the Present
How to Make Your Bond Portfolio Inflation-Resistant
Weeding Through the Energy Patch
Uncertainty and Value in Basic Materials
Stock Market Doom-Busters
Hunting Down European Debt-Dodgers
Mutual Fund Analyst Picks
50 Most Popular Equity ETFs
Undervalued Stocks With Wide Moats
VA Sales Slip a Bit in First Quarter
New at Morningstar
Star Wars, the Sequel
Morningstar Advisor - August/September 2010 - Morningstar Advisor - August/September 2010
Morningstar Advisor - August/September 2010 - Cover2
Morningstar Advisor - August/September 2010 - 1
Morningstar Advisor - August/September 2010 - 2
Morningstar Advisor - August/September 2010 - Contents
Morningstar Advisor - August/September 2010 - 4
Morningstar Advisor - August/September 2010 - 5
Morningstar Advisor - August/September 2010 - New on MorningstarAdvisor.com
Morningstar Advisor - August/September 2010 - 7
Morningstar Advisor - August/September 2010 - Contributors
Morningstar Advisor - August/September 2010 - Letter From the Editor
Morningstar Advisor - August/September 2010 - What Aspects of Health-Care Reform Will Most Affect Your Clients?
Morningstar Advisor - August/September 2010 - 11
Morningstar Advisor - August/September 2010 - Bonds, Chicago Style
Morningstar Advisor - August/September 2010 - 13
Morningstar Advisor - August/September 2010 - Investment Briefs
Morningstar Advisor - August/September 2010 - 15
Morningstar Advisor - August/September 2010 - Which Risk Are You Managing?
Morningstar Advisor - August/September 2010 - 17
Morningstar Advisor - August/September 2010 - 18
Morningstar Advisor - August/September 2010 - Eye on the Prize
Morningstar Advisor - August/September 2010 - 20
Morningstar Advisor - August/September 2010 - 21
Morningstar Advisor - August/September 2010 - Advisors Can’t Rely on Fidelity Alone
Morningstar Advisor - August/September 2010 - 23
Morningstar Advisor - August/September 2010 - 24
Morningstar Advisor - August/September 2010 - 25
Morningstar Advisor - August/September 2010 - 26
Morningstar Advisor - August/September 2010 - Health Care Gets Back to Business
Morningstar Advisor - August/September 2010 - An Opportune Time to Bet the Pharm
Morningstar Advisor - August/September 2010 - 29
Morningstar Advisor - August/September 2010 - Reform’s Impact on Other Health-Care Industries
Morningstar Advisor - August/September 2010 - 31
Morningstar Advisor - August/September 2010 - 32
Morningstar Advisor - August/September 2010 - Top Takeover Targets in Biotech
Morningstar Advisor - August/September 2010 - 34
Morningstar Advisor - August/September 2010 - 35
Morningstar Advisor - August/September 2010 - After Reform, Narrow-Moat Firms Have Strong Prospects in Diagnostics
Morningstar Advisor - August/September 2010 - 37
Morningstar Advisor - August/September 2010 - 38
Morningstar Advisor - August/September 2010 - 39
Morningstar Advisor - August/September 2010 - 40
Morningstar Advisor - August/September 2010 - Health-Care Investing Alive and Well
Morningstar Advisor - August/September 2010 - 42
Morningstar Advisor - August/September 2010 - 43
Morningstar Advisor - August/September 2010 - 44
Morningstar Advisor - August/September 2010 - 45
Morningstar Advisor - August/September 2010 - 46
Morningstar Advisor - August/September 2010 - 47
Morningstar Advisor - August/September 2010 - 48
Morningstar Advisor - August/September 2010 - Quest for Knowledge
Morningstar Advisor - August/September 2010 - 50
Morningstar Advisor - August/September 2010 - 51
Morningstar Advisor - August/September 2010 - Four Picks for the Present
Morningstar Advisor - August/September 2010 - 53
Morningstar Advisor - August/September 2010 - How to Make Your Bond Portfolio Inflation-Resistant
Morningstar Advisor - August/September 2010 - 55
Morningstar Advisor - August/September 2010 - 56
Morningstar Advisor - August/September 2010 - 57
Morningstar Advisor - August/September 2010 - Weeding Through the Energy Patch
Morningstar Advisor - August/September 2010 - 59
Morningstar Advisor - August/September 2010 - 60
Morningstar Advisor - August/September 2010 - Uncertainty and Value in Basic Materials
Morningstar Advisor - August/September 2010 - 62
Morningstar Advisor - August/September 2010 - 63
Morningstar Advisor - August/September 2010 - Stock Market Doom-Busters
Morningstar Advisor - August/September 2010 - 65
Morningstar Advisor - August/September 2010 - Hunting Down European Debt-Dodgers
Morningstar Advisor - August/September 2010 - 67
Morningstar Advisor - August/September 2010 - Mutual Fund Analyst Picks
Morningstar Advisor - August/September 2010 - 69
Morningstar Advisor - August/September 2010 - 70
Morningstar Advisor - August/September 2010 - 71
Morningstar Advisor - August/September 2010 - 50 Most Popular Equity ETFs
Morningstar Advisor - August/September 2010 - 73
Morningstar Advisor - August/September 2010 - Undervalued Stocks With Wide Moats
Morningstar Advisor - August/September 2010 - 75
Morningstar Advisor - August/September 2010 - VA Sales Slip a Bit in First Quarter
Morningstar Advisor - August/September 2010 - 77
Morningstar Advisor - August/September 2010 - 78
Morningstar Advisor - August/September 2010 - New at Morningstar
Morningstar Advisor - August/September 2010 - Star Wars, the Sequel
Morningstar Advisor - August/September 2010 - Cover3
Morningstar Advisor - August/September 2010 - Cover4
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