Part 6: Great Financial Advisors Do More than Manage Assets

  • June 27, 2018

    shutterstock_289559441

    There is much more to a healthy financial path through life than good asset management. Comprehensive financial advisory services should include managing liabilities (e.g., mortgage borrowing), optimal tax planning, estate planning, controlling for risks such as the financial consequences of premature death or outliving one’s wealth, and catastrophes. Sound decision making across the spectrum of choices requires a broad and solid understanding of the investor’s financial sophistication, goals, financial circumstances, risk tolerance, and other aspects that can affect the client’s financial future.

    There can be substantial merit to retaining a financial professional who can see the entirety of relevant information regarding the client and integrate the information and decisions into a cohesive path. For people with substantial means, a skilled and unbiased financial professional can coordinate various specialists serving the client’s needs. The search for a great long-term financial advisor is not unlike the search for a great place to live or retire; the search should be based on a comprehensive analysis of all the facts and facets – not just one factor such as asset management.

    The bottom line is this: commission-based financial planners seem to always find that the client needs more transactions, more insurance, more annuities, and more loaded mutual funds. Commission-based brokers talk clients into buying an asset and then soon thereafter need to find an excuse to tell the client that they need to transact again. Note that the asset they so highly recommended a few years ago suddenly needs to be sold. The reason given may be to “cut losses short” if it has gone down, or to “take the profits” if it has gone up; but until conflicts of interest are brought under control through sensible compensation schemes, the client will never know.

    There is a clear alternative: fee-based investment professionals who offer a comprehensive spectrum of financial advice, clear answers to your questions, well-diversified portfolio management, minimal conflicts of interest, zero hidden fees, and reasonable asset-based fees.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Archive

Tags

1256 contracts, 2010, 401K, adp report, Advisors, Alexandra Twin, alternative investments, annuity, asset allocation, asset classes, asset management, Associated Press, away, banks, Barrons Top 100, BCA, BCA. Biltmore Capital, Ben Bernanke, Best Week, bias, Biltmore, Biltmore Capital, Biltmore Capital Advisors, bond market, Brand, Brand Recognition, Business, Call, CFP Princeton, changes in market price, Chief Investment Officer, closed end funds, CNBC, CNBC Halftime Report, CNN, CNN Money, CNNMoney, CNNMoney.com, collar stock, college grads, Consumer Confidence Report, correlations, Covered, Covered Call Options, credit ratings, customized investment strategies, Dean, donald chambers, Dow Jones, dr don chambers, drop, Early, easy trading, economic policy, economy, Edge, efficiency, election, end, equilibrium, equity trading, etf, etf trading, ETFs, euro, Europe, Europe debt, European debt crisis, family office approach, federal income tax, federal investment income tax, Financial, financial advisor, financial crises, financial distress, financial management, financial security, financial strategies, Ford, Fox, Fox Business, fund manager, futures contracts, Gains, General Motors, Global, global market, Global stocks, groupon, halftime report, Herbert Lash, high income tax, home country, Home Sales, housing market, IDEAS, income tax, income taxes, initial public offering, Instant View, investment bias, investment income, investment returns, investment risk, investment strategies, Investors, IPOs, IRA, Jilian Mincer, Jonathan Cheng, KANA INAGAKI, key, large losses, long risk exposure, Los Angeles Times, make money, making investment money, making money last, Manufacture, Manufacturing, Market, market news, market price, market volatility, Markets, marketwatch, MICHELE MAATOUK, Mike Miliard, Molly Vernon, money, Money Manager, money managers, money strategy, municipal bond interest, municipal bonds, nassau club, New Jersey Advisors, New York Times, NJ, NJ advisors, NJ financial advisors, NJ money manager, NJ wealth advisor, NJ Wealth Advisors, obamacare, oil slide, Options, options strategies, Outlook, outperformance, Pending, personal financial services, personal risk analysis, Play, portfolio manager, Potfolio Manager, Princeton, Princeton Advisors, Princeton asset management, princeton financial advisors, Princeton Money Managers, Princeton wealth advisor, private wealth management, rally, recession, Recognition, registered investment advisor, Registered Investment Advisory Firm, retirement, retirement strategy, return, returns, Reuters, reward, RIA, RIA Princeton, Risk, risk exposure, riskier, rmd, Roth IRA, safer, saving taxes, savings, SEC-registered, Seeking Alpha, short risk exposure, Shudder, signals, skype, social security, social security benefits rules, star ledger, state income tax, Stephen Bernard, Stock, stock market, stock market returns, stock market winners, stock option strategies, stock price, stock prices, stock research, stock strategy, Stock Volatility, Stocks, structured notes, Stuart Day School, swine flu, tail risk, Tax Advantaged Investments, tax free investments, tax savings, tax strategy, taxes, taxes for social security, taxes on investment income, The Dean, The Wall Street Journal, Thomson, Thomson Reuters, Tick, Tim Ralph, Timothy Ralph, Today, Tony Roth, Trading, tricks, Tyler, tyler vernon, U.S., U.S. dollar gains, U.S. Stock, unemployment, USA, USA Today, VIX, volatility, Wall Street, wealth management, wealth manager, wells fargo, world market, worth, Yahoo, Yahoo Financial,