- In theory, goals-based planning for clients makes a lot of sense. Make long-term goal achievement a priority relative to account performance.
- Our concern is that the original intent of goals-based planning has morphed into a potentially self-serving interpretation for some financial representatives.
- We believe the financial advice industry still needs to make significant strides towards better transparency for client account performance against a suitable benchmark.
- Many things can be gleaned when performance is examined relative to a benchmark such as fees, suitability of investments and alignment of stated goals relative to portfolio structure.
- Good or bad, your advisor “owns” the performance of your investment portfolio. Ask questions and demand thoughtful answers. Don’t give them a free pass.