To celebrate Dimensional’s 30 years of working with financial advisors, we asked seven wealth management professionals how the industry has transformed to help clients.
From the earliest ages that I can remember,
I wanted to get into investments,
and so, I became a stock broker.
And then I realized very quickly,
that really wasn't investing, that was selling.
When I first came into the industry,
there were brokers,
and there were people making cold calls.
There was pressure to make more money,
and I got a sense that I was stealing
from people who weren't really know
what they were buying.
Literally that whole culture was
"I need to make some commissions this month,
I haven't talked to Joe for a while,
I know Joe's got some extra money,
I'm gonna call him and pitch this idea
and see if it works for him".
You really just want to close the sale,
you're often tempted to sell
the most expensive products.
That's when I decided,
I wanted to make a change.
It's about 1993, '94 and we're
hearing more and more about this fee model.
Fee-based investing simply means
we're not compensated by any products,
by any commissions,
we're only working for our clients.
A lot of time I'm spending with clients,
I'm not generating transactions of any sort.
I'm asking about families,
I'm asking about goals and dreams.
So the process really starts with
a lot of listening and understanding,
what money means to the client,
and where they want to be.
But you don't sell performance.
You sell a goal, you manage behavior.
What they're really looking for
is someone who can help them cut through
all of the noise, all of the information
that's coming at them.
What every advisor has,
is they're able to engender a relationship
and trust with a client.
Trust is the grease that kind of lubricates
the wheels of the entire financial process.
I think the big leap,
is not just saying we put the client first,
but actually putting the client first
and putting your business second,
and realizing that if you do well by the client,
your business will do well.
We must not just see our job as managing money,
but in fact, you know,
it's about managing lives.
The spouse of one of my clients, she said,
"You gave me my husband back. He stopped watching
the market, he stopped watching the portfolio,
he quit trying to manage this at night
when he came home, and so you gave me my husband
back, and all that time".
I wake up everyday feeling great
and proud and inspired,
because financial advice, good financial planning
changes lives.
Dimensional is celebrating 30 years of working with financial advisors, a collaboration that has helped change the way the world thinks about investing. To recognize that impact, we compiled 30 ways that investors can benefit from the industry’s transformation. See Part 1, Part 2, and Part 3.
Disclosures
The information in this document is provided in good faith without any warranty and is intended for the recipient’s background information only. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized copying, reproducing, duplicating, or transmitting of this document are strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein. All expressions of opinion are subject to change.
CANADA: August 31, 2020. These materials have been prepared by Dimensional Fund Advisors Canada ULC. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Unless otherwise noted, any indicated total rates of return reflect the historical annual compounded total returns, including changes in share or unit value and reinvestment of all dividends or other distributions, and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any security holder that would have reduced returns. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.