Articles for Advisors

Value of an Advisor Outside Investments

Investors value many different things in a financial advisor.  Assistance with retirement planning, financial planning, investment management, and asset allocation are all services that a financial advisor can provide which could be of benefit to wealthy investors.  What about all of the services that are not directly about investing?  What non-investment related services can an advisor provide that wealthy investors would find either beneficial or valuable?

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Where is the DOW Headed?

No one has a crystal ball to know where the markets are headed.  There are educated guesses and projections based on an immense amount of research, but no one could be certain where the markets are going to move by the end of 2021, especially after the tumultuous year we had in 2020.  Investor attitudes can often drive the stock market, with optimism and desire to invest driving increases in the market.  Investor fear and selling can also have the opposite effect and drop stock prices.  

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What Services Should Be Included in My Fees?

Anytime someone pays a fee, they want to know what they will receive for the fee.  Knowing what is covered or not covered is helpful in determining if the fee is a reasonable one or not.  Investors have this same issue when evaluating the fees a financial advisor will charge them.  The investor may also have predefined ideas about what types of services should be included in the fees they will be paying.  Savvy financial professionals will ensure that the services they provide are the ones that wealthy investors want included in the fees being charged.  What exactly are the services investors want to have included in the fees they pay their financial advisor?

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Should Companies Be

A fairly recent phenomenon is specific brands reaching out and taking a stand on various social justice and political issues.  In the past, corporations were very unlikely to take a stand on any issue in fear of offending one or more types of customers.  In 1971, Coca-Cola created a commercial with the song “I’d like to teach the world to sing” which was one of the first advertisements linking a brand to a message.  The song was sung by a multi-cultural group of children and was a rather soft social justice message compared to some of the types of stances being taken by corporations today.

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The Generational Transfer of Assets is Now

For years the financial services industry has predicted and anticipated the transfer of assets from Baby Boomers to their children.  It has been forecast as the greatest transfer of wealth in history.  And for the past two decades, Spectrem has been awaiting the occurrence of this great generational transfer but hasn’t been able to validate its occurrence within its research.  Finally, Spectrem’s research is beginning to validate a transfer of wealth from one generation to the next.  The great wealth transfer, however, isn’t as simple as forecast.  This wealth transfer will change the role of investment advisors and advice as well as the manner of how wealth is created within the U.S. Will it change our values?

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Investors Less Interested in Investing

With thousands of investment choices, it is often challenging to choose the investments, and the allocation that would be ideal for each individual.  Some people like to be involved in that process, and other investors enjoy the process of investing and managing their assets.  Has stock market volatility impacted investor interest in being involved in their investment management process?

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Spectrem Weekly Update: Investment Risk: More Than Ever Super-Wealthy Are Super-Aggressive Regarding Risk

When one has a few dollars to spare it’s ok to be aggressive in terms of investment risk.  But recent research conducted by Spectrem Group indicates that the risk levels that the Super-Wealthy (those with more than $25 million of net worth) are willing to take on is extremely aggressive - and is contradictory to some of their other beliefs.  What drives these investors to believe that high risk levels are acceptable?

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Are Low Interest Rates Killing Retirement Dreams?

The ability to generate income is critical to many investor’s retirement plans.  Interest rates have the potential to significantly impact income generation from investments.  Interest rates have been extremely low for 16 years.  Investors who are contemplating retirement may be concerned about the impact those low interest rates could have upon their long-term retirement income needs.

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Who Owns Alternative Investments?

Alternative investments can encompass a wide variety of investments.  By the purest definition of alternative, it simply means a type of investment that does not fall into one of the traditional categories, such as equity, fixed income, or cash.  It is an alternative type of investment.  These alternatives include private equity, venture capital, commodities, hedge funds, futures, options, precious metals, and many others.  Often these types of alternative investments require that either the investor or the advisor is very knowledgeable in that asset category.

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Are $25 Million Plus Investors on Social Media?

Social media can be a great equalizer of wealth.  It is challenging to know if the person behind the tweet or LinkedIn profile is wealthy or not.  Of course there are indications such as pictures on Facebook of vacations or surroundings that can indicate wealth, but that requires active participation on those platforms.  Do the wealthiest American’s have time or interest to be online?  What social media platforms are they likely to be currently using?

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