Failing at the Experience
Investors get little from their advisors because they expect little from their advisors
By: Steven Higgins, Financial Advisor, Principal
It does not take much to call oneself a “financial advisor” – a quick search of individuals in Colorado who are licensed by the Financial Industry Regulator Authority (FINRA) returns 19,701 people operating within 1,688 firms.* Countless others conduct financial services business as unlicensed insurance agents or others sorts of salespeople. The industry itself has done little to differentiate between all of the options available to would be savers and investors looking for help navigating a complex financial world.
As a society we have become increasingly discerning. Websites like Trip Advisor and Yelp influence your choice when it comes to where you might go out to eat or at what hotel you decide to book your next vacation stay. Imagine you are searching for hotels on your favorite travel website: you pull up a list of all of the properties in your desired area and begin to sort through your options such as price, stars, resort, beach, pool, restaurants, etc. Every hotel option, loaded with pictures and reviews adds to your own expectations which are already informed by familiarity of certain brand names.
Now imagine, that you booked what you thought was The Four Seasons for your family vacation. You arrive at the property and you immediately recognize that something is “off.” As you enter the lobby, you realize that what you are experiencing is the Motel 6. You check your confirmation as well as your invoice. You did in fact pay for The Four Seasons and you are overcome with disappointment as you realize you are not experiencing The Four Seasons. You made what you thought was an informed decision, and you are certainly not getting the value or experience you paid for. The difference is most people don’t have any expectations in the first place…and that needs to change.
For instance, you know what type of experience you might expect at the Four Seasons; you also know what you might expect at the Motel 6. The Four Seasons is synonymous with service and the company famously lives by the “Golden Rule.” The Motel 6 “leaves the light on for you.” Both properties are equally capable of providing a safe, warm, and clean place to sleep, but we know the experiences are different and for the cost difference, they should be.
Unfortunately, there is not a website equivalent for financial advisory practices. It’s hard enough to figure how much advisors/brokers charge, much less what types of services they provide. Going further, how would you possibly begin to expect what kind of experience you might have. On the surface, advisors who are fiduciaries, like HD Wealth Strategies, appear to all charge about the same, but you can’t learn much by simply looking at the cost. Some advisory firms only manage the investments, other firms include full financial planning with planning professionals. Some firms are “bare bones” when it comes to relationships and some firms truly provide an experience. But unlike hotels and restaurants, the prices are very similar.
While appearance isn’t everything, you know a good experience when you see it and you certainly know it when you feel it. People are discerning when it comes to experiences in all sorts of products and services they spend money on, maybe it’s time investors should start to expect more of an experience from their financial service professionals and firms.
At HD Wealth Strategies we are committed to providing our clients with independent and professional investing and financial planning experience. Starting with the quality of our people we have prepared an environment to create and pursue our clients’ goals. As part of our process, we make you feel as important as you are as we help you create a better way forward.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment Advice offered through HD Wealth Strategies, a registered investment advisor and separate entity from LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
