I recently watched a webinar featuring some of the findings of the Hearts and Wallets research series.
Although the presenters said that the number of investors who use a financial professional has increased since the 2008 market crisis, more than half of investors overall, and nearly half of HNW investors, identify themselves as their primary source of investment advice.
I was blown away by this statistic.
Why, after witnessing record-setting market volatility, would a HNW investor decide to go it alone?
After all, when we’re sick, we go to a doctor. Why wouldn’t someone with substantial wealth also want a professional to handle his or her nest egg? My only guess is that the average investor doesn’t see a difference between, the 1-800 no-help fund family, a major wire house broker, and many of the financial advisors out there.
The real question is, “How are we setting our selves apart from the noise?” Are we still focusing on promising the highest returns, talking about standard deviation and alpha – or are we helping clients achieve all of their goals? Think about the last client meeting you had. Did you discuss investment returns, or the market in the first 20 minutes of the conversation?
What are you doing to set yourself apart?