A Symphony of Collaboration is the Key

WealthManagement.com
Sep 1, 2015

Martin M. Shenkman 

Jonathan Clements wrote the following in a recent article in Financial Planning, “To
Beat Robos, Stop Selling Fantasies,” Aug. 31, 2015:

“Many traditional advisors, of course, do far more than just invest clients’ money…
They help investors think through their goals, including what sort of retirement they
can afford, how much assistance they can offer their kids with college and whether
there’s room in the family budget for a second home. Good advisors help clients
estimate how much they need to save for retirement and how much they can safely
spend once they stop working. They spot holes in clients’ insurance coverage and in
their estate plans, and suggest ways to save on taxes. They develop full-blown
financial plans. And when disaster or tragedy strikes, good advisors help clients
cope with the financial fallout…If traditional advisors want to fend off the robos,
they need to change the conversation. How? Stop selling the fantasy of marketbeating
performance. Explain that your goal [in collaboration with the rest of the
client’s advisory team] is to help clients not just with investments, but their entire
financial life. Tell clients that, while you might charge 1% a year, only a quarter or
half of the fee is for investment management — and the rest is for everything else
you do [emphasis added].”

Read his commentary here.