How is that different from a traditional financial planner or financial advisor? We believe that the traditional financial planning model is broken. Interestingly, the traditional model has been the source of many problems for people seeking investment advice. Although people naturally seek out a planner to assist with their financial affairs, we find that the heart of the planning problem lies in the way that the planning is carried out.
For starters, financial planning, or the development of a financial plan, is often used as a sales or marketing tool to sell a firm’s financial products. And of course, the sale of these financial products produces a commission on the plan’s recommendations. Unfortunately, investors rarely know whether a plan’s recommendations are in their best interest or in the best interest of the planner and the planner’s firm. In addition, a majority of planners work for a brokerage firm or insurance company, so they don’t really work directly for the client. In this case the brokerage firm or insurance company actually controls what products the planner can recommend to clients.
Next, the traditional planning model does very little to educate investors and help them to deal with the instincts and emotions at the root of a poor investment experience. In the traditional model, almost no effort is given to help clients learn how markets work and how to achieve true peace of mind when investing.
So, how do you know if you are working with a coach or a planner? Take The Investor Quiz on this website. If you can answer “yes” to every question, you are on the right track! If you answer “no” to one or more, then it might be time to ask yourself why your financial planner isn’t helping you, and to get a second opinion on your investments.
At Cornerstone Wealth Partners we believe that all investors should be encouraged to increase their knowledge of investing. As a result, we offer clients the opportunity to attend regularly-scheduled educational events.
If you are not being offered an opportunity to receive important investor education, then please contact us and see how Cornerstone Wealth Partners can help you achieve a more meaningful investment experience.