from Financial Advisor Magazine:

Are you starting to feel a little uneasy about the “stay the course” assurances that worked for so long? Should you be? Is the buy-and-hold, strategic-allocation-with-regular-rebalancing style of managing investments (the one service that you actually got paid to provide) really good for all seasons? Or is MPT and its efficient market hypothesis overly simplistic and maybe even dangerous to your increasingly restless clients and to your business?

If your 64-year-old executive client has lost 30% of his life’s savings under your supervision, and his head is on the corporate downsizing chopping block at work, is another birthday card going to cheer him up, make him happy with your advice? Does he want to pay you to say, “Just work three years longer, Bob,” or “We need to help you plan a no-frills retirement, Diane?” Is there some reason that you believe they are not among the 70% of clients that the surveys show are ready to switch advisors?


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