It can also give you the opportunity to highlight the outside expertise you provide – whether it’s asset managers, estate planners, or tax attorneys. The process ensures that everyone is on the same page in terms of what the client is hoping to achieve, and it shows the client the amount of intellectual capital, hard work, and thoughtfulness that goes into their investment plan.
When it’s time to bring the client back to plan (say they’ve had a life event or they are worried during a market downturn), it should be easier for them to recall why they invested the way they did. As a result, this process may help clients remain far more committed to staying invested and on track to achieving their long-term goals. Because they built the plan with you, they understand why the investments are important to their long-term needs.
Another important benefit is that the client may feel more informed, more in control, and smarter about investing. This is important, because recent research shows that the number one thing clients want from a financial advisor is help making smarter financial decisions.2
Through this process, you might just be giving clients exactly what they want: involvement in the process, education on financial services, and a sense of control and commitment to their long-term goals.
For more on the benefits of a collaborative portfolio construction process, click here.
Patty Quinn McAuley is the Director of Marketing at Clark Capital Management Group, a participant in the ETF Strategist Channel.
1. https://www.behavioraleconomics.com/mini-encyclopedia-of-be/ikea-effect
2. “Winning the Allegiance of Top Financial Advisors.” CEG Worldwide, 2014.Clark Capital reserves the right to modify its current investment strategies based on changing market dynamics and client needs. This is not a recommendation to buy or sell a security or to adopt a particular investment strategy. There is no assurance that any securities, sectors, or industries discussed herein will be included in or excluded from an account’s portfolio at the time you receive this report. It should not be assumed that any of the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. All recommendations for the last 12 months are available upon request.
The opinions expressed are those of the Clark Capital Management Group Investment Team. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. There is no guarantee of the future performance of any Clark Capital investment portfolio. Material presented has been derived from sources considered to be reliable, but the accuracy and completeness cannot be guaranteed. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy or strategies. For educational use only. This information is not intended to serve as investment advice. This material is not intended to be relied upon as a forecast or research. The investment or strategy discussed may not be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances. Past performance does not guarantee future results.
Clark Capital Management Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Clark Capital’s advisory services can be found in its Form ADV which is available upon request.
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