Before becoming a wealth manager I had to ask myself - "Is this really an area in the world that I can make better and add value to peoples lives, or should I just continue to medical school where I know that I will make a difference for others?" As it turns out there is overwhelming evidence that independent fee only advisers with passively managed funds can do wonders for a client's goals. Combine the previous with successful financial planning techniques and one has a solid solution for a client's life. In previous posts we have pointed out that active management, private equity, hedge funds, venture capital, and more are sub par investment experiences for clients. That was the first bit of research that helped me see that I could make a difference. The second bit of insight and the subject of this blog has shown even more solidly that advisers are necessary for successful wealth management and goal realization. In other words, an adviser is worth his keep as they help point the client in a positive direction towards a client's said goals.
(CLICK TO ENLARGE)
This chart shows that DFA advisers (Arianna Capital) with passively managed strategies succeed much more often than indexers that try and do it themselves. They also outperform actively managed funds by a land slide. So, if your adviser uses active techniques, or if you are an indexer that likes to do it yourself think about looking into a change that serves your future.
Chart reference -
Hebner, Mark. "Investors Success With Capturing Return With and Without Advisors." Index Funds Advisors Blog. Web. 10 Sept 2011.
No comments:
Post a Comment