Managing the Self-Destructive Behavior Of Clients
Let’s face it, as a financial advisor, managing client assets is not usually the hardest part. Rather, the bigger challenge can be managing client expectations. I think this data from Natixis Investment Managers starkly illustrates the point about expectations: When asked in 2023, investors said they expect their investments to earn 12.8% above inflation over the…
Read MoreHow to Improve the Odds You Are Hired by New Clients
Plenty of quantitative measures support the oft-cited analogy between a financial advisor and a football quarterback. Football players view the quarterback as a leader on the field and in the locker room while investors look to their advisor for guidance and reassurance throughout the year. Quarterbacks call a play that fits the situation on the field…
Read MoreWhat Would You Say…You Do Here?
“So, what do you do?” “I’m a financial advisor.” (Not true.) “Oh, so you pick stocks?” “Yep!” (Also not true.) It’s funny how after many years in this business my response to the question of, “What do you do?” has shifted. I used to attempt to explain that Blueprint Investment Partners supports financial advisors by…
Read MoreThe Market Is Right, And We Don’t Fight It
As a parent, I try to encourage my daughters to be inquisitive and develop cognitive skills by answering their questions with explanations that encourage conversation. Note that I said, “try,” because I’m certainly guilty of looking at them in the rearview mirror and letting out a, “Because I said so!” from time to time. Similar…
Read MoreTrends With Benefits
Something that unites almost every asset manager that believes it uses a disciplined, repeatable investment process is our annoyance with performance chasing. The root of this frustration is how performance becomes a shiny object that can distract some investors, and even some financial advisors. It can be particularly difficult to look away from the shine…
Read MoreMarket Predictions – Why Bother?
Well, here we are again. It’s that time of year when many asset managers like to make predictions about the year ahead, while Blueprint Investment Partners calls attention to the foolishness of that exercise. As evidence, I give you this January 2022 tweet from Bloomberg media personality Jonathan Ferro, who recaps how 14 leading financial…
Read MoreSystematizing the Referral Process For Financial Advisors
Remember that episode of “Seinfeld” where Uncle Leo gets Jerry’s father a last-minute appointment with a top notch back doctor? And when Jerry’s father accuses the office of stealing his wallet, Uncle Leo is mortified since he gave a personal recommendation and asked the back specialist for such a big favor. Although this scenario was…
Read MoreUgly Couple: Capital Gains & Negative Performance
Let’s face it. If you have clients with any level of exposure to traditional assets, such as stocks or bonds, 2022 has been unpleasant. Equities closed at all-time highs in 2021, then steadily declined in 2022. Bond investors have arguably had it worse, certainly on a risk-adjusted basis. Just when you think it can’t get…
Read MoreStocks on Sale Or About to Go ‘On Final Clearance’?
During market drawdowns, you often hear financial services media types talking about stocks being on sale. This phrase has always irked me. I think it’s completely imprecise and utterly useless. Clichés may help sell airtime, but in my opinion they get you nowhere toward designing or implementing a comprehensive investment process. Instead of leaning on…
Read MoreInvestments that are Good on Paper, Bad in Practice
Don’t ask me why I know this, but there’s an episode of “Sex and the City” when the women discuss dating people who “look good on paper.” They explain that a “good on paper guy” is someone who offers great credentials, good manners, and financial stability. He seems like a great match – but only…
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