2019: The Advisor – Client Relationship Will Become More Important Than Ever

By Al Emid via Iris.xyz

Two Heads Are Better Than One — Especially Right Now

Sometimes a seemingly harmless phrase becomes a popular maxim, especially when it suggests a universal truth. ‘Two heads are better than one’ fits that description. In this case, the two heads are client-investor and advisor and the two will most often be better than one, especially in the year to come.

Having spoken professionally to approximately 300 accredited financial advisors in both Canada and the United States over the years, I’ve had the good fortune to achieve a reasonable understanding of their role and their connection to an individual’s financial health.

Every profession — including my own profession of journalism — has some questionable actors and there are a very few in the financial advisory profession. On more than one occasion, I have cringed when a friend repeated to me an advisor’s suggestions, while at the same time omitting some important concepts. However, by far, the vast majority of these individuals take a very caring, very knowledgeable and very serious attitude towards their clients’ financial well-being.

The current market tumult, along with the plunge earlier this year and in all probability plunges to come, underline the advisor’s role and how much many investors need timely perspective as well as wealth-building advice. Many investors felt blind-sided by the most recent sudden plunge, which affected many major equities and, therefore, most investment categories – whether retirement savings plans, investment portfolios, education plans or other financial strategies.

Many advisors had seen a pullback as inevitable and in some cases wisely positioned client portfolios for the shock. When it happened, many advisors suggested that their clients remain calm and stay the course.

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