‘Fiduci-what?’ Most clients don’t know what the fiduciary duty really means
Earlier in my career, I switched firms. The change meant I left a position where I couldn’t legally call myself a fiduciary. But at the new firm, I was required to be one. I was super excited. Finally, I could...
Searching for the perfect investment is counterproductive for clients
Have you ever had a client who’s really used to being in control? I had a client like that once. He was a great guy and a friend who also happened to be a super-successful entrepreneur. For him, when he...
Clarify what diversification really means, and why it matters
When you sit down with a client for the very first time, what happens when you start talking about diversification? I’m betting you talk about picking a mix of investments, like stocks and bonds, maybe even some cash or real...
Correcting the adviser-client disconnect over the definition of risk
When we say the word “risk” to clients, we’re most often thinking of technical things. Like volatility or standard deviation. But when clients hear the word “risk,” they’re thinking of the chances they’ll run out of money or fail to...
How to prevent clients from making a classic behavioral investing mistake
At some point, we’ve all had a client walk into the office and start a sentence with something like “I heard” or “I read.” This happened pretty regularly after David Swensen wrote a book about his experience managing Yale’s endowment...
