The Shocking Truth about Advisors

The Shocking Truth about Advisors

December 14, 2015
By: Holman Skinner

I don’t need one. That’s what affluent millennials are saying.

Researchers at Phoenix Marketing found that just over half of the investors they spoke to (among those under 35 with $1 million or more in investible assets) stated they were comfortable managing their wealth with their smartphones, and nearly 60% were very comfortable managing their wealth with online tools.

They take on responsibility for themselves, because they’ve been operating that way, with access to information at their fingertips, and with empowered by data as stated in the report.

Translation: They don’t view the benefit of what advisors have to offer. Given that 93.6% of the financial planning process is the behavioral management of the client, I must pose a question.


How will these millennials manage their own behavioral and emotions biases so as not to sabotage their financial plan?


When the market is “down”, on individual’s score behavior might tell them it is a purchasing opportunity and the other individual might be very cautious and want to sell. Which strategy is right and which is wrong? It depends on the financial personality of the individual, as well as, a lot of other issues. Being powered by data is certainly important, but that is only one piece of the puzzle. Furthermore, we all have biases on data. So we can pick and choose what data we want to support out theories.
What if your financial advisor could know exactly how you felt in every market turn and assist you maintain your financial plan based on objective data? And then give you certain action steps so that you don’t operate from your biases?


This “behavioral coaching” provided by a financial advisor adds 150 basis points a year to a client’s account value based on Vanguard Alpha Advisor Research in 2015.


Technology, behavioral discovery processes, and financial planning can be successfully integrated into wealth management. When it is done right, the shocking truth about financial advisors is that you DO need one!


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