The Most Common Misconceptions Our Advisors Notice With New Clients

The Most Common Misconceptions Our Advisors Notice With New Clients

July 16, 2021

In today’s blog post we look at some common misconceptions clients have when they first meet with our advisors. We asked three of 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.

Nathan 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.

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.

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