Betterment, MarketRiders Leave Financial Advisers In The Dust is the latest example of how the Internet can fuel investor distrust, and lead clients down the wrong path.
In her Huffington Post article, Catherine New compares investment advisers to 350-pound bouncers who stand between clients and the bar. She says, “(Investment advisors) want you to believe you have to get past them to get to the good stuff.”
Her main premise is that advisors aren’t any better investors than the average Joe. She proselytizes that fees and commissions neutralize advisors’ performance gains and thus encourages investors to go the Do-It-Yourself route. She goes on to critique three online investment sites.
Sun-Tzu’s strategy of keeping friends close but enemies closer prompted us to encourage advisors to take a few minutes to read Ms. New’s article.
See what she has to say.
Poke around on the three sites she references.
Although Ms. New dismisses Mint as a competitor in the DYI investment space, you’d be wise to tool around that site as well.
As personal financial management (PFM) websites gain sophistication and popularity, your clients will see more articles like this. Even if PFM’s don’t threaten your business, they must be acknowledged for their role in transforming the investment landscape.