Menu
For years, financial advisors have touted their ability to help clients maximize their wealth. Through vigilant economic analysis, careful investment selection, and timely allocation shifts, advisors looked to add value to their clients’ portfolios and generate excess returns. Traditionally, advisors were money managers first and financial counselors second. A recent study conducted by Morningstar confirms what many of us in the industry already know to be true, clients value personalized advice much higher than portfolio return.
For years, financial advisors have touted their ability to help clients maximize their wealth. Through vigilant economic analysis, careful investment selection, and timely allocation shifts, advisors looked to add value to their clients’ portfolios and generate excess returns. Traditionally, advisors were money managers first and financial counselors second. A recent study conducted by Morningstar confirms what many of us in the industry already know to be true, clients value personalized advice much higher than portfolio return.
More specifically, clients prioritized the value their advisor provides in the following order…
While maximizing return is still important, what is most important to clients comes from a deep understanding of who the client is, what they are trying to accomplish, and how they can get there most efficiently. There are myriad ways financial advisors can maximize an individual’s wealth: Cash flow analysis, risk management strategies, tax diversification, Roth strategies, estate planning, asset location. The list goes on and on. The art of financial planning is in knowing which strategies to implement for a particular client, based on their individualized needs. This can only be done by cultivating a strong relationship and a deep understanding of who a client is.
Think about a doctor, for example. They may have the best medicine in the world for treating a particular disease, but if a patient comes to them with a different disease, they wouldn’t recommend this treatment. First, they would need to talk to the patient, collect a history, and properly diagnose the patient before recommending any treatment plan. Similarly, financial advisors need to first understand who a client is and what they are trying to accomplish, before recommending any plan of action or financial strategy. This is where advisors can really provide value and become a trusted counselor.
This is the future of the financial planning industry and the approach I take in my practice. My favorite part of my job is getting to learn about all kinds of different people, what worries them and what their dreams and aspirations are. From there, I can apply my deep understanding of financial planning strategies to customize a financial plan that not only gets them to where they want to be in life, but knowing that they can do so with a trusted counsellor in their corner. If you would like to learn more about how I help my clients achieve financial success and peace of mind, please send an email to dlevinson@bluebellpwm.com to schedule a free consultation.
Read the full article here àhttps://www.morningstar.com/financial-advisors/why-do-clients-think-advisors-are-valuable
PLEASE SEE IMPORTANT DISCLOSURE INFORMATION at www.bluebellpwm.com/disclosure
As a client of Blue Bell Private Wealth Management, LLC (“Company”), by selecting the “I Agree” button, I elect to participate in the password-protected access portion of Company Internet web site. I understand that my participation will allow me to review certain investment-related information published by Company and unaffiliated third parties. This password-protected access is made available to clients of Company free of charge. This authorization shall continue until canceled in writing.
I understand that the password-protected section is a secure web site intended only to allow a client access to information relative to his/her/its specific account. I also understand that I will be assigned an individual password. I agree not to share my password with any other person. I hereby release and hold Company harmless from any adverse consequences relative to any failure by me to keep the identity of my password secure.
Access your personal financial planning home page. Your homepage allows you to organize, store, and monitor all your personal financial information, including access to all of your accounts, credit cards, mortgages, insurance, and investments from a wide range of sources.
Access your account information, Blue Bell quarterly reports and commentary as well as Schwab statements and tax documents.
