There has been much hype recently that retail investors are rediscovering the value of equities and will or should be selling bonds. While it's true that bond yields are exceptionally low, there are plenty of reasons why investors should, and will, continue to own fixed income. The question isn't should investors own bonds—the question is which bonds should investors own?
Industry White Papers
Investors are looking to advisors for new solutions that seek to protect portfolios from market extremes and, ultimately, help preserve wealth. In a 2011 study by Cerulli Associates, 22.7 percent of all households indicated that their greatest personal concern was protecting the current level of their wealth – underscoring just how defensive investors have become.
Principals at the most successful advisory firms spend 75% of their time on new business development, according to Schwab Advisor Services. This figure may seem daunting for many RIAs, but it’s a number you can reach when you focus exclusively on your core competencies. In order to spend more time growing your firm, you may need to consider outsourced solutions for any and all activities that aren’t directly helping you serve existing clients or win new business.
Many investors within five to 15 years of retirement are worried. On one hand, they’re scared that another sharp market drop could devastate the stocks they’re using to grow their portfolios for a comfortable retirement. On the other hand, they see the risk that supposedly safe investments such as Treasuries could fall in value. In this paper we explore how certain alternative investments can reduce this anxiety and boost financial advisors’ value in their eyes.
Left unchecked, an excessive focus on risk reduction can threaten your clients’ chances to enjoy sufficient long term returns to meet their goals. This article discusses how this problem may be inadvertently created by advisors who all too frequently spout volatility concerns that can push clients toward overly conservative models, ultimately hampering their future gains.