August 23, 2004
I spent 5 years with a major Broker/Dealer that was one of the pioneers in managed accounts below 500,000. This was combined with a Financial Plan in which the clients needs, goals and risk levels were carefully determined.
PROBLEM: Whether the client was classified as conservative, moderate or aggressive they ALL had the same investment portfolios. Strange that a conservative retiree had the same stocks that the aggressive, young high income/high tax bracket client held.
This is the problem with the major wirehouses claim that they are correctly matching clients with the proper investments for their goal. I find it hard to believe that the majority of the major brokerage sales people have been able to achieve a client first/Broker second perspective when I look at portfolios from clients who are leaving the big wirehouses to avail themselves of personalized portfolio planning with an independant representative that truly matches client needs with the proper products. Maybe things have changed in the last year, but I doubt it.
Until I became a CFP, it was the gross income to me that drove my sales presentations. Now, the client is first and I can be a close second.