Portfolio Check-up

What is wrong with the Financial Services Business?

• The financial services system that investors rely upon is broken
• Investors are not being taken care of and looked after
• Investors are not getting value for the fees that are paid
• Investors are often left alone wondering if they are invested correctly
• Investors are “sold to” and not educated

In 1992, I started my practice because my passion was to help people find solutions. From day one, I realized that the industry was not about educating advisors on money management skills. It was about arming sales people. It was about the home office pushing for more sales. It was about reward trips for the top salespeople.

The big financial services companies train the sales managers. The sales managers train the sales people. Then the sales people regurgitate what they have been told.

It really isn’t the salespersons fault. They trust what they are taught and they grow to believe in their product or service as the answer. They passionately sell their ideas and the client buys into the recommendation. The problem is that the salesperson does not fully understand the other side of the story concerning the product that they are recommending. Unfortunately, neither does the client. Every decision has a risk and a pro and a con.

The advisor/client relationship only works when the advisor consults and listens. It only works when the advisor can make recommendations without bias. When a person has a limited amount of products to sell, it is impossible for this to happen. Thus, the client runs the risk of going with the wrong solution. This is a system that is broken.

The appropriate way to go about selecting an advisor and a strategy is by using the prudent decision making model. You understand the pros and the cons and make a decision on a strategy that affords you the ability to sleep good at night with the cons. The cons are the most important part of the story that is not being told.

This is why I work on a fee basis. I want to bring solutions to my client. Yes I do have my bias based on beliefs of what I think works. I explain these pros and cons thoroughly. I hope to have the opportunity to talk with you in person about the possibility of hiring me to be your partner in your financial journey. Please take the time to read more about my passion.

Keep the Faith

Bob