By CHM on Oct 22, 2007 in Psychology Behind Financial Planning | 0 Comments
Subscribing to my site guarantees you don't miss any new content. Choose either E-Mail Feed or RSS Feed. Thanks for visiting!
Last Friday I met up with a good friend of mine for a few drinks. He’s been working in the investment management field for as long as I have and is very familiar with the psychology behind client behavior.
We got on to talking about the markets and I told him that I had recently lost a client. I told him, my client decided to trade stocks on her own, attempting to outperform the market. He looked at me and rolled his eyes and we both just smiled.
I knew, from his own client experiences, he was thinking the same thing I was… ‘another client making a poor decision, overcome by the emotions the markets can evoke.’ In this case- Greed. (A lot of time that emotion is Fear)
Continue Reading “An analogy to drive home the point”
By CHM on Oct 18, 2007 in Mutual Funds, Psychology Behind Financial Planning | 0 Comments
Apples to apples, no load funds are by far the most cost effective way to own mutual funds, far more cost effective then load mutual funds.
Now, that fact and a subway token will get you on the subway.
Some people decide to buy luxury automobiles, some people are only interested in a car that gets them from point A to point B. Some people only shop when things are on sale, some people are willing to pay top dollar for the highest quality and a brand name.
As a mutual fund investor, you need to decide a few things for yourself:
- if cost is going to be the overriding factor.
- whether or not you want to incorporate all the financial services that exist, outside the provincial world of no load funds.
Continue Reading “The Real Cost of Investing in No Load Mutual Funds is…”
By CHM on Oct 15, 2007 in Advisor Compensation, Featured, Mutual Funds, Psychology Behind Financial Planning | 0 Comments
Sometimes I come across prospective clients that want to work with me, but don’t want to be charged advisory fees.
Either they are the kind of people that have an aversion to being charged any kind of fees or they’ve had a bad experience, after being charged a lot of commissions, somewhere in their investing past.
Inevitably, I still want to convert them to my way of thinking. I will go through the whole process of why I believe an ETF fee based approach is the best way to build an investment portfolio, but much of what I say will go in one ear and out the other.
(Please note I’m generally wary of these type of people and may not take them on as clients, as I understand my approach may not be for everyone)
Continue Reading “Trying to fight the good fight”
By CHM on Oct 12, 2007 in Mutual Funds | 0 Comments
There has been quite a bit of controversy surrounding Class B shares in the last few years.
The NASD and SEC are taking a very close look at advisors that do a lot of B share business; attempting to determine whether or not the B share investment recommendation(s) are in the best interest of the client or the advisor.
Since there is such a firestorm over this issue, my top 10 list will have a strong bend towards addressing some of these concerns. Without further ado…
Continue Reading “10 things you need to know about Class B share mutual funds”
By CHM on Oct 11, 2007 in Mutual Funds | 1 Comment
Included in this list are some cold hard facts about Class A shares, along with some tactics you really need to watch out for when purchasing an A share mutual fund.
I feel like I need a drum roll here for my first Top Ten list, a la David Letterman.
10 things you need to know about Class A share mutual funds:
Continue Reading “10 things you need to know about Class A share mutual funds”
By CHM on Oct 10, 2007 in Mutual Funds | 0 Comments
In some circles people refer to mutual fund share classes as alphabet soup. Why?
Because some fund families have lots of share classes beginning with A, B, C, some even have D, I, M, Y etc. It can look alot like the letters floating in a nice big bowl of hearty Campbell’s soup.
On a more serious note, people often ask me to explain to them why mutual funds have different share classes?
Continue Reading “Opening the conversation on mutual fund share classes”
By CHM on Oct 8, 2007 in Advisor Compensation, ETF, Featured, Mutual Funds | 0 Comments
Well today marks my triumphant return to the blog after a month away from the keys. All I can say is its good to be back and back with a vengeance.
I’ve spent the last few weeks cleaning up the blog and have made significant strides in resolving most of the technical issues that stopped me in my tracks. Like everything else in the universe, Chance favors will continue to evolve over time.
Lets get down to business…
Many posts ago I talked about offering up a series of posts on mutual funds. Well, I’d like to pick it up there. Over the next few days I will be offering a lot of information on the topic, as well as, links to other sites where you can get even more pertinent information.
Continue Reading “A Cost Comparison- The Real Cost of Mutual Funds v ETF’s”
By CHM on Aug 21, 2007 in Featured, Psychology Behind Financial Planning | 0 Comments
Sometimes when people find out I’m a financial planner they immediately ask me questions about individual stocks or the market. When I don’t know anything about the stock in question, they sometimes act surprised.
They say things to me like, “you’re in finance and deal with the stock market, how did you not hear about this?” “How come you didn’t hear about the merger between SO&SO and Them&US?” “You didn’t see that XYZ stock dropped 6 points today?”
Continue Reading “I don’t know much about stocks!”
By CHM on Jul 30, 2007 in Advisor Compensation, Featured, Financial Planning, Retirement, and Now!, Psychology Behind Financial Planning | 2 Comments
The reason why the financial planning process works so well is because it aligns you and your clients.
The plan puts you on the same wavelength; you tend to work far more efficiently together. And here’s a real biggie…. there are far fewer trust issues to deal with, than if there is no financial plan in place.
Let me ask you a question: Have you ever had a successful relationship when there were trust issues, financial or otherwise? I’m going to say NO to that.
Here’s another question: What would you say, is a major problem that has plagued the financial services business for as long as I can remember? Trust.
Continue Reading “Fixing the alignment”
