Have you ever wondered if some people know a smarter way to invest that you haven’t been told about? Do you feel like there’s a special backstage door guarded by a guy named Boudreaux for those who know the password and no one told you? If so, congratulations! You’re right and you’re standing at the doorway now.
Many are unaware of how the financial industry misrepresents risk, overprices protection, muddies the concept of diversification, engages in slow-motion churning, speculates through active management, and fails to disclose the true costs of investing. Many are unaware of how to be broadly diversified, manage volatility, and reduce the long-term costs of investing which typically take a far bigger bite out of earnings than investors realize. It’s not unusual for investors to pay more in fees and commissions than they made on their portfolio. Why is that? A dirty little secret we see in the financial industry, especially the brokerage industry, is how the pressure to continually produce new revenues places brokers and reps on a commission treadmill they’re afraid to step away from if they have bills to pay or a family to feed. We see how incentives are provided for reps “hitting their numbers” and reduced percentage payouts are the punishment for anything less. We often see a corporate culture that encourages reps to live at levels they can hardly afford to keep them in constant fear of not meeting sales goals. And where does this leave their unsuspecting clients?
If the traditional financial industry model is the problem, then going to someone else peddling new flavors of the same products is just more of the same. The solution is education and coaching, exposing the traps and providing a path to avoid them.
At Rainey Asset Management, Inc, our coaching paradigm is a process based on educating clients and providing a platform to help them reach their goals. Want to find out what you have been missing? Take our Investor Quiz and contact us to learn about our investor education workshops. It’s not just your portfolio or retirement plan, it’s your future!