Three Things That Will Never Change in Wealth Management

I think there are three big ideas in the wealth management industry that will never change. There may be others, but to me, these are the big three.

1. Financial advice is the only business where you are better off giving customers what they need versus what they want. 

Other businesses cannot afford to follow this path – nor should they. Packaged food companies and quick service restaurants would go broke selling fresh fruit, water and salads alone. Bars and nightclubs would close. So would all the fashion houses and luxury car brands. If everyone was only offering what people needed rather than wanted, the global economy would grind to a halt. Don’t worry, there’s no danger of this happening in free market capitalism.

In the advisory business, however, I think giving the clients what they need actually turns out to be a better model. If advisors were all out there selling clients what they want, they would be pitching the holy grail: All the upside of the stock and bond markets, with none of the downside. That’s the easiest sell on earth, “I can protect you by anticipating corrections, but it won’t cost you any gains on the way up.” Sure.

Read on (source and credit)

https://thereformedbroker.com/2017/05/01/three-things-that-will-never-change-in-wealth-management/