We are not a perfect fit for everyone.
15 Jul 2015
Most often, we meet new potential clients, that have come to the conclusion that they want to delegate some part of their financial lives to a third party. As I have said many times, it comes down to you wanting to pay someone to manage the time, knowledge and/or desire of your financial life.
As much as potential new clients are “looking around” or “shopping around” for new financial advisors, believe it or not, we are looking at potential clients as well to make sure they fit our methodology & expectation of the relationships we are looking to build. For us, this means people who:
1) Are looking for a relationship not just a place to invest. We are looking to build long-term relationships with our clients so that we can better serve their needs as they arrive. Trust me, there are plenty of people that will take your money to invest and don’t want to take the time to develop a relationship. Our experience has shown in times of chaos, i.e. bad markets, those relationships don’t last long. We strive to build proactive relationships with our clients that will withstand the good times, and the bad.
2) Want to do a Financial Plan. For whatever the reason, some people don’t want to do the most important part; for us, that is setting up the financial plan. How can you know where you are going and if you will get there without a plan? I equate this to going to the doctor because you are in pain and saying, “Hey doc, skip the physical exam, let’s just start cutting out what hurts me!” We believe that every situation is unique, and in order to help each individual to the best of our ability it is important to go through the financial planning process.
3) Have realistic expectations. We are looking for people who understand the difference between needs and wants and who are willing to go through the process to find their unique goal that is realistic to their financial success. People with unrealistic expectations are those who say, “I won’t work with you unless you can beat the markets” or “I expect you to outperform the indexes because you claim to be so smart.” First, successful investing should not be predicated on beating an index or market, but should be based on achieving your personal “fair rate of return” goal. Pure and simple. Secondly, I have never claimed that I am smarter than the markets. As I have said many times, I am not in the prediction business. I am in the business of helping people achieve their personal goals. This is done by having strong relationships with our clients, setting up financial plans that are reviewed regularly and having realistic expectations for both parties.
While this process has worked well for us, this does not mean our way is the best way. Each individual investor requires a unique approach to how we as advisors treat their business. As an advisor, the best advice for developing your business would be to find what you want your business to be and taking the steps necessary to reach those goals. As an investor, set your expectations for the type of advisor that best fits your needs and research to find the best fit for you and your money.
Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Premier Investments of Iowa are not affiliated. Cambridge and Premier Investments of Iowa, Inc. do not offer tax advice.