Most investment advisors can’t resist. Even the ones with the fancy letters after their name on their web sites and business cards.
These advisors want to be a jack-of-all-trades. They will tell new investment advisor prospects they can provide all financial services and products.
The truth is that the investment advice industry has followed much of the rest of the industrialized world. That is, investment advisors are now part of a world of specialists.
I think that is a good thing. I think investment advice clients are well-served by specialized investment advisors. I can’t help you budget or prepare a financial plan. Or set up your will or estate plan. Insurance? No chance on earth I could advise you. Mortgages? All I know is to not have one.
On the other side of the coin, there are no financial planners or investment advisors that you know who could breakdown your company 401(k) retirement plan mutual fund menu like my knowledge and experience permits me.
Many years ago, I took my investment advisory business deeply into individual company 401(k) investment advice. Schwab, Fidelity, Vanguard, etc., I speak it all.
I was determined to build the best and most unique investment advice skill set that I could ever develop. When I presented those skills to my existing clients, the reaction was overwhelming. The referrals skyrocketed. I was able to approach new individual company 401k) participants in the same retirement plans as my existing clients with a logical, disciplined, and organized plan to answer the “what do I guy” question found on every company 401(k) mutual fund menu.
I have been an investment advisor for over 37 years. Specializing in individual company 401(k) investment advice since 1999. I understand that not every individual investor I talk to could be my client.
The investment advice and financial planning world is increasingly complex. But my very narrow investment advisory niche is working with individual company 401(k) retirement plan participants who realize they don’t have the time or expertise to manage their default company 401(k) mutual funds.
Do yourself a huge favor. Determine the investment advice or financial planning experts you need at this stage of your working career. Assemble the team. Make sure you are taking full advantage of the specialized investment advice expertise and experience that is available to you.
The last thing you want to do is to rely on the mutual fund recommendations of any investment advisor who states “I can watch your company 401(k) account too.” And if that advisor offers to watch your 401(k) “for free,” run away as fast as you can.
An investment advisor or financial planner needs to provide a fiduciary standard of investment advice regarding your default company 401(k) mutual fund options. You need to pay an annual investment advisory fee to gain the investment management benefits of that relationship.
Ric Lager
Lager & Company, Inc.
