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Mar 7, 2008 4:20 pm

Lots of talk on here by people trying to validate our fee/commission and many outsiders crying we get paid for doing something the average investor can do by themselves.  Problem is, you assume the AVERAGE investor knows what you do, but they don't.  I own a tax practice alongside the investment business and here is an example which came into the office today.

50 year old client paid $6500 for a "Spread Trade System Marketing" seminar in Orlando, FL.  Also spent $1414 in travel costs to simply get there, lodge, and eat.  Traded options (Options Express) all 2007, came in with 5 Excel pages of transactions-mostly buying puts/calls on AAPL, beginning in mid 2006, and 15 months later had a loss of $2500.  AAPL went from $80 to $190+ end of '07, and he lost money.
Average investor wants the get rich quick scheme.  Think we can educate the average person?
 
Mar 7, 2008 4:34 pm

If all we do is show people 3, 5, 10 yr history & have a 4Everyone strategy, then no, there is no need for us. If we have a forward looking thesis on investing & the markets or use a professional IA who does & we help them manage the transitions in their lives, we earn our keep and more.

Mar 7, 2008 9:35 pm

Some people are beyond help.  Do clients need us?  Yes.  Someone could be just as educated as their advisor about investing, but the fact they are paying someone else to make the decisions and take their emotions out of it may be worth the fee in and of itself.

Mar 7, 2008 11:24 pm

snaggletooth - that's only if the advisor is reaching out to the client during these times & I see a lot of peers being just as hooked as their clients.

Mar 8, 2008 3:26 pm
Ashland:

snaggletooth - that's only if the advisor is reaching out to the client during these times & I see a lot of peers being just as hooked as their clients.

 
Sounds like a good time to prospect to me.  Any way I can get your peers' client's information?  Kidding...kind of.
Mar 8, 2008 3:28 pm

snaggletooth. You're one of my peers