Broker Check

The Most Common Misconceptions Our Advisors Notice With New Clients

| March 01, 2018
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In today’s blog post we look at some common misconceptions clients have when they first meet with our advisors. We asked our advisors to answer the question, what is the most common misconception they see with new clients?

Scott Marks - Scottsdale, AZ branch:

What is the most common misconception you see with new clients? 

Many people have old retirement plans or IRAs that they are no longer contributing to, so they have the perception that those plans cannot benefit from professional management. They tend to feel that those accounts are “dormant” and won’t grow since there aren’t consistent contributions.

I always stress with new clients that we need to look at all of the assets as one big pool, which means that contributions to any account are simply dropping into that larger pool. It is just as important to manage all accounts according to goals, not just the ones that are being contributed to.

Nate Archuleta - Colorado Springs, CO branch:

What is the most common misconception you see with new clients? 

I think that there are 2. First, keeping accounts at different institutions (or with different advisors) is “diversifying.”

Secondly, money is not just a grownup conversation. Children need to be involved with learning about how money works and tradeoffs for saving and spending money from an early age.

Nick Rose - Lakewood, CO branch:

What is the most common misconception you see with new clients? 

There are quite a few misconceptions from clients when I first sit down with them. I have listed a few of the more common themes I’ve noticed. 

  1. One needs to have significant wealth in order to work with a financial advisor
  2. A Financial Advisor’s only service is in picking stocks
  3. When asked what their risk level is in their investments, a lot of people will say “I’m invested in a 401(k) or IRA” and they think that is the actual investment. They typically don’t understand that you can invest differently within a 401(k).

Jason Runung - Lone Tree, CO branch:

What is the most common misconception you see with new clients? 

One of the primary misconceptions is that it is too late to take the appropriate actions to positively or significantly impact their financial circumstances and future. Though it is better to start early when it comes to financial and retirement planning, there is no cutoff for initiating and completing this process. It is an ongoing effort and fluid process which must be actively engaged by both the client and advisor.

Emily Biehler - Lakewood, CO branch:

What is the most common misconception you see with new clients? 

There are a few that I can think of about what we do and how we do it. I would say one question/comment that we get a lot is about us being hired to time the market.

Rather, we invest strategically in a portfolio that can ride the waves of the market without getting in and out. We are paid to be a life/behavioral consultant that encourages you to save more, to not make poor market-timing decisions and to plan for your future.

We'd love to hear from you! What is a misconception you had until you met with a financial advisor? 

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