One of the main expectations for clients is that their financial adviser not only offers advice on tax efficient investments and retirement plans but also provides a comprehensive investment strategy to run alongside this. After all you can have the most tax efficient product in the world but if the investment strategy is flawed or fails to deliver then no matter how significant the tax effectiveness of the product the overall benefit is worthless.
How is it then that most advisers disappoint and fail to meet client’s expectations. It all starts with getting to know your client and understanding their attitude to risk. So many advisers we come across want to adopt a one size fits all strategy, perhaps because they don’t have the necessary expertise to construct a proper portfolio or perhaps they do not even consider the risk appetite of their clients as being an important issue.
You would think that once a risk assessment had been made then advisers would be concentrating on looking for funds that have a quantifiable track record and will stand the test of time. Too many advisers, however, ignore funds from investment managers with enviable track records and instead go off at a tangent looking at the latest trend whether it be life settlements or student accommodation. There could be a number of reasons for this approach, call us cynical but one reason could be the higher level of commissions and incentives that some of these funds pay. You only have to pick up a financial newspaper to see how many of these funds have run into trouble and how advisers, particularly in the UK are being pressed by regulators to explain why these funds have been included in investment and retirement portfolios. Whilst some funds can achieve decent returns liquidity can often be an issue, after all it makes sense if you are waiting for people to die before a fund can see a return then this doesn’t bode well for the investor relying on an investment or pension for regular income.
The biggest area of concern however remains that of ongoing servicing of a client’s needs. Attitude to risk can change and a client’s requirements for income, capital preservation or growth can also change and of course markets will continue to do what markets always d in that they react and move in response to changing macro economic conditions. If your adviser’s interest in you as a client has diminished following receipt of the initial commission cheque then the likelihood of establishing an ongoing relationship is remote. How often have we seen a client left in the lurch because their adviser has not maintained contact, because they have grown too big to bother, ceased to trade or just aren’t interested.
If you have experienced this type of approach help is at hand. Fiduciary Wealth will only accept you as a client on the basis that we can build a long term relationship with you to service your needs not just now but in the future as well. If you feel that this is the approach that suits you, make an appointment to see one of our advisers by calling Tel: 956796911 or by emailing firstname.lastname@example.org.