Wednesday, September 15, 2010

Your Investment Advisor Can Juggle, Too!

Schwab's Drugs, recreated neon signImage by jericl cat via FlickrOver at Schwab.com they have a new Investment Adviser survey. It has quite a few details of what your advisor has to go through. The job of your investment advisor is part guide and part handholder. Advising is a person to person business. You must establish trust and build a relationship. We are handing over our money, which is like our children. 
 
One survey reflects the difficulty in achieving a clients goal. The data shows back in July 2007 it was quite easy, only 27% thought it was a problem. It peaked at 84%, January 2009. This shows the good times when everything was fine and money was being made. But when the market tanked, I'm sure your advisor was on the phone all day trying to calm down their clients. 
 
The survey reflects the changing activities of clients. Clients have increased their activities in reducing expenses at home. Also, reducing their spending on discretionary items. Everyone is tightening their belts during these times. 
 
The chart demonstrating the reasons clients leave the advisor, states 62% leave because they have lost trust in the firm. 64% leave because they want more personal service. 33% leave because they have lost money. Which also leads to losing faith in the advisor. When the market pulls back your bottom line is not the only thing that suffers. Your advisor catches alot of the blame. 
 
When ask to pull out their crystal ball and asked for a prediction on which sectors would rise, they said the top 3 sectors to rise are Information Technology, Energy and Health Care. Also 20% of the adviser's revealed they had no view of the future. They are the smartest of the bunch. 
 
I have a healthy respect for financial adviser's, there consul and advice have helped me succeed in investing. It's always good to pay an independent advisor to get a recommendation and learn a little about your investments. It's like your yearly Doctor's visit. Do you take as good care of your money as your body? 


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