Leaving Professional Management

An article I read recently stated that 70% of those investors with traditional brokerage houses would consider leaving and finding a new advisor. This trend is fueled by several factors.

First, lost trust. Brokers told their clients they were safe and they were not. The recent event showed that these brokers were just lemmings that went over the cliff just like everyone else. The deception and excessive greed became apparent in the 2008 meltdown.

Second: Lack of communication. Most clients don't know what's going on with their portfolio and this crisis made them realize that they needed to be more proactive. A once a year phone call from your broker is not the kind of relationship that is needed in this economic climate.

Third: Availability of Information. Most clients can turn on their financial cable channel and get more information than their broker gives them. Some think they can be self-investors because of the wealth of free information out there. That's a dangerous game...but can be played with help. Most miss the buy and sell signals.

Those that are looking for improvement or better yet ESCAPE from "professional" management need to look at an "investment coach" or to an independent Registered Investment Advisor......