Might Modi Lose?
14 hours ago
Friday, February 17, 2012
The Illusion of Skill
Are Wealth Managers a commodity? It depends.
I think this article gives the justification that the traditional relationship is focused on the product, and not the client.
That said, Wealth Managers must focus on the experience and the relationship to differentiate themselves.
I think this article gives the justification that the traditional relationship is focused on the product, and not the client.
That said, Wealth Managers must focus on the experience and the relationship to differentiate themselves.
Tuesday, February 14, 2012
Thursday, February 2, 2012
Stream of Consciousness Thinking - Reflecting on Serving My Clients
Every January, I take some time to reflect on how well I did serve my clients and what I could do better. Typically the list is very tactical and more like a checklist of action items. This year, I have taken a different approach and read something about "The Fluid Customer" and have developed what my opportunities are.
So after taking notes, I have tried to find what each client wants, needs, and deserves. Here is what I got out of that reflection....
Productivity = What is Done/What is Required to Do It
Today "What is Required to Do It" is Time so Finding Client Time is the measure I need to focus on. When/where does that exist?
Today they are real-time, more demanding, always on and they are "Right Here, Right Now". Lots of touchpoints. Give them information for inspiration, but don't make them think. Serve them through aggregation.
What used to be a value proposition is now a value expectation: Achieve goals, there at the point of need, an experience that includes products, services, and process
Do Clients want service or do they want to be served?
So after taking notes, I have tried to find what each client wants, needs, and deserves. Here is what I got out of that reflection....
Productivity = What is Done/What is Required to Do It
Today "What is Required to Do It" is Time so Finding Client Time is the measure I need to focus on. When/where does that exist?
Today they are real-time, more demanding, always on and they are "Right Here, Right Now". Lots of touchpoints. Give them information for inspiration, but don't make them think. Serve them through aggregation.
What used to be a value proposition is now a value expectation: Achieve goals, there at the point of need, an experience that includes products, services, and process
Do Clients want service or do they want to be served?
- Anytime, Anywhere value that they can't live without
- Be where they are and be contextually relevant
- Bring my Value Proposition to them with emotion and value
- Demonstrate how I am improving their productivity
Top 5 Regrets of the Dying - Guardian Article
Top 5 Regrets of the Dying
Definitely something that can shape me to be a better Wealth Manager. These regrets were lost wealth opportunities.
1. I wish I'd had the courage to live a life true to myself, not the life others expected of me.
"This was the most common regret of all. When people realise that their life is almost over and look back clearly on it, it is easy to see how many dreams have gone unfulfilled. Most people had not honoured even a half of their dreams and had to die knowing that it was due to choices they had made, or not made. Health brings a freedom very few realise, until they no longer have it."
2. I wish I hadn't worked so hard.
"This came from every male patient that I nursed. They missed their children's youth and their partner's companionship. Women also spoke of this regret, but as most were from an older generation, many of the female patients had not been breadwinners. All of the men I nursed deeply regretted spending so much of their lives on the treadmill of a work existence."
3. I wish I'd had the courage to express my feelings.
"Many people suppressed their feelings in order to keep peace with others. As a result, they settled for a mediocre existence and never became who they were truly capable of becoming. Many developed illnesses relating to the bitterness and resentment they carried as a result."
4. I wish I had stayed in touch with my friends.
"Often they would not truly realise the full benefits of old friends until their dying weeks and it was not always possible to track them down. Many had become so caught up in their own lives that they had let golden friendships slip by over the years. There were many deep regrets about not giving friendships the time and effort that they deserved. Everyone misses their friends when they are dying."
5. I wish that I had let myself be happier.
"This is a surprisingly common one. Many did not realise until the end that happiness is a choice. They had stayed stuck in old patterns and habits. The so-called 'comfort' of familiarity overflowed into their emotions, as well as their physical lives. Fear of change had them pretending to others, and to their selves, that they were content, when deep within, they longed to laugh properly and have silliness in their life again."
What's your greatest regret so far, and what will you set out to achieve or change before you die?
Definitely something that can shape me to be a better Wealth Manager. These regrets were lost wealth opportunities.
1. I wish I'd had the courage to live a life true to myself, not the life others expected of me.
"This was the most common regret of all. When people realise that their life is almost over and look back clearly on it, it is easy to see how many dreams have gone unfulfilled. Most people had not honoured even a half of their dreams and had to die knowing that it was due to choices they had made, or not made. Health brings a freedom very few realise, until they no longer have it."
2. I wish I hadn't worked so hard.
"This came from every male patient that I nursed. They missed their children's youth and their partner's companionship. Women also spoke of this regret, but as most were from an older generation, many of the female patients had not been breadwinners. All of the men I nursed deeply regretted spending so much of their lives on the treadmill of a work existence."
3. I wish I'd had the courage to express my feelings.
"Many people suppressed their feelings in order to keep peace with others. As a result, they settled for a mediocre existence and never became who they were truly capable of becoming. Many developed illnesses relating to the bitterness and resentment they carried as a result."
4. I wish I had stayed in touch with my friends.
"Often they would not truly realise the full benefits of old friends until their dying weeks and it was not always possible to track them down. Many had become so caught up in their own lives that they had let golden friendships slip by over the years. There were many deep regrets about not giving friendships the time and effort that they deserved. Everyone misses their friends when they are dying."
5. I wish that I had let myself be happier.
"This is a surprisingly common one. Many did not realise until the end that happiness is a choice. They had stayed stuck in old patterns and habits. The so-called 'comfort' of familiarity overflowed into their emotions, as well as their physical lives. Fear of change had them pretending to others, and to their selves, that they were content, when deep within, they longed to laugh properly and have silliness in their life again."
What's your greatest regret so far, and what will you set out to achieve or change before you die?
A New Look at Risk and Spending
Am I asking the right questions to you?
This blog is controversial, but I post it anyway. It is controversial because it is extreme and black and white in his premise.
How much risk are you comfortable with? How much of your income will you spend in retirement?
I don't believe I ask this, but reading this has allowed me to focus on sharpening my questions and message.
First, let's talk about spending in retirement. I personally like to think about it in two "buckets". The I have to spend this bucket and the discretionary "fun" bucket. The article here says that most people when you ask say 75%, but when you ask differently, that number goes to 135%. Both answers in my opinion are incorrect and why I try to treat unique people uniquely. You may need 60 to 75% to pay your bills. The mortgage goes away, savings will fade away. Other expenses will likely favorably change as well.
Risk. I am definitely in the camp that you should minimize investment risk until opportunity presents itself. Opportunity presented itself 3 years ago. Simultaneously, we must avoid the trap of gambling with market timing. Dollar/Percentage Cost averaging, rebalancing, etc are strategies you can use to avoid that. There are other tactics to employ as well.
This is just another awareness article that I am posting and to get people thinking and to challenge your wealth manager with healthy skepticism regarding their collaboration techniques.
This blog is controversial, but I post it anyway. It is controversial because it is extreme and black and white in his premise.
How much risk are you comfortable with? How much of your income will you spend in retirement?
I don't believe I ask this, but reading this has allowed me to focus on sharpening my questions and message.
First, let's talk about spending in retirement. I personally like to think about it in two "buckets". The I have to spend this bucket and the discretionary "fun" bucket. The article here says that most people when you ask say 75%, but when you ask differently, that number goes to 135%. Both answers in my opinion are incorrect and why I try to treat unique people uniquely. You may need 60 to 75% to pay your bills. The mortgage goes away, savings will fade away. Other expenses will likely favorably change as well.
Risk. I am definitely in the camp that you should minimize investment risk until opportunity presents itself. Opportunity presented itself 3 years ago. Simultaneously, we must avoid the trap of gambling with market timing. Dollar/Percentage Cost averaging, rebalancing, etc are strategies you can use to avoid that. There are other tactics to employ as well.
This is just another awareness article that I am posting and to get people thinking and to challenge your wealth manager with healthy skepticism regarding their collaboration techniques.
Behavioral Finance Articles of Interest
I found both of these articles very compelling and a way that I link to consider the investing environment.
Behavioral Finance - RSA Fellowship Journal
This one is a little less directed at Finance and more about confidence and cognitive thinking. Look at this excerpt:
" The confidence we experience as we make a judgment is not a reasoned evaluation of the probability that it is right. Confidence is a feeling, one determined mostly by the coherence of the story and by the ease with which it comes to mind, even when the evidence for the story is sparse and unreliable. The bias toward coherence favors overconfidence. An individual who expresses high confidence probably has a good story, which may or may not be true."
The Hazards of Confidence in Leadership and Picking Stocks
Lots of good stuff later in the article about how when stock pickers sell one stock to buy another, that the one they sold tends to outperform on an average of 3.3%.
Behavioral Finance - RSA Fellowship Journal
This one is a little less directed at Finance and more about confidence and cognitive thinking. Look at this excerpt:
" The confidence we experience as we make a judgment is not a reasoned evaluation of the probability that it is right. Confidence is a feeling, one determined mostly by the coherence of the story and by the ease with which it comes to mind, even when the evidence for the story is sparse and unreliable. The bias toward coherence favors overconfidence. An individual who expresses high confidence probably has a good story, which may or may not be true."
The Hazards of Confidence in Leadership and Picking Stocks
Lots of good stuff later in the article about how when stock pickers sell one stock to buy another, that the one they sold tends to outperform on an average of 3.3%.
Subscribe to:
Posts (Atom)
