Asset allocation differences between endowments and foundations abound, especially when one considers size. Advisors have an opportunity to provide insight and guidance to smaller endowments and foundations on proper governance structuring and setting an appropriate asset allocation.
The Employee Benefits Research Institute recently released the 2013 Retirement Confidence Survey. Some notable items suggest a conflicted sense of investor confidence and the value that skilled financial professionals can offer investors.
According to our most recent Financial Professional Outlook survey, advisors report that many of their clients think the equity markets are scary. So scary, in fact, that 60% of respondents said clients are looking to reduce exposure to risk assets. But is this really a safer approach to fund future investment goals?
Anticipating unforeseen events that have financial implications is key to getting to and through retirement confidently. But of course, it’s impossible to know exactly what will happen when and at what magnitude. So, what distinguishes prepared investors is that their ability to anticipate contingencies exceeds their reliance on clairvoyance. Our guide can help you get your clients on this path, too.
Despite the recent highs reached by many equity markets, advisors report that investors of all ages are still feeling uneasy about the 3-year prospect for the capital markets.
Think quickly: what are three things you do that most distinguish you from your competitors? Does your list include proposals – the asset allocation recommendations you make to your clients? If not, I have some ideas for how you may want to consider enhancing your proposals so they are more distinctive – and more successful.
In the same way that you rebalance your clients portfolios, perhaps it is beneficial to refresh the list of questions you typically use with you clients. Powerful questions can strengthen relationships.