If you’re sailing to a destination, you need a compass. Likewise, in investing, a client needs to know the return required to meet their goal
Understanding the difference between desired and required returns can help clients stay focused on measuring their personal progress.
What’s the best way to prevent clients from reacting to market headlines? Prepare them in advance for the challenges of investing.
Patience, patience, patience. For those of us building portfolios, it’s critical we understand the behavioral challenges inherent in active investing if our clients are to reap the potential rewards.
Expanding your team of advisors allows you not only to increase the services you offer but also to interact with clients per their personalities and preferences.
First, do no harm. It’s good advice for doctors. It’s good advice for financial advisors and investors.
Investors cannot control the markets’ returns. To boost the odds that investors will succeed, advisors should help them focus on saving more. A higher contribution rate may even enable less risk-taking.