Complexity is the enemy of investors and the ally of brokers. If they can convince you investing is too confusing to deal with yourself, it’s easier to drive you into their waiting arms.
My coaching clients tell me they are losing wealthy clients to robo-advisors. They want advice on how to better articulate their value proposition.
If you watch the financial news (which I don’t advise), you know much of it is filled with “analysts”, “technicians”, fund managers, and other self-appointed “gurus” who explain to the rest of us why we should buy a particular stock.
On July 18, 2013, I wrote a blog for U.S. News. I discussed the sorry state of pension plan management. Most plans pay hefty fees to “consultants” who advise them which actively managed funds to buy and sell. These consultants usually ignore the data demonstrating most of these funds will underperform a comparable index fund over almost all time periods measured.
To succeed as an advisor (and improve your personal relationships), focus on your empathetic skills.
If you need the services of an advisor, limit your search to registered investment advisors (RIAs).