The Limitations of the Advisor-Client Relationship

My friend Tom Brakke‘s most recent subscriber letter contains a very important reminder about what the financial advisor-client relationship should and should not encompass.

Is your financial guy framing himself as a political expert or giving you advice based on his advocacy of a particular political position?  You may want to read this…

The root of much of this is a relationship that is too often built on misguided expectations. Many clients think of their advisors as being able to provide answers to an incredible array of questions, most of which have no real answer at all. Unfortunately, in many cases they do so because their advisors have positioned themselves and their firms as experts that can do just that, when they cannot.

If you think of your advisor as a pundit, you are setting him or her up for failure, and yourself too. If they position themselves as such of their own accord, don’t be enamored by it, be concerned about it.

Yes, advisors need to make recommendations, but there is a margin for error that needs to be considered at all times. It’s the range of possible outcomes that are important, not whether a recommendation is the advisor’s “best idea” or a “high conviction” pick. Often, those are the ones that go awry.

So, what should those discussions between you and your advisor be about?

For Tom’s answer to that question, visit TJB Advisors here.

 

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Bitcoin Evolution Review commented on Sep 22

    … [Trackback]

    […] Here you can find 38077 additional Info to that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]

  2. bitcoin evolution how does it work commented on Sep 30

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]

  3. 먹튀검증 commented on Nov 07

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]

  4. dumps website commented on Nov 16

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]

  5. tangerine banking online commented on Nov 26

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]

  6. Newer-technology miniStack manuals commented on Jan 21

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]

  7. AWS DevOps commented on Feb 07

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2011/08/01/the-limitations-of-the-advisor-client-relationship/ […]