RIA Recommends That Financial Advisors Show StrengthPosted by in Blog on September 24, 2012
Grow a spine. That’s the blunt advice that Bob Auer, a former Morgan Stanley executive, has for financial advisors, AdvisorOne reports.
“Advisors have become spineless, and clients are leading the conversations,” Auer says. “After four years of bad markets, advisors are just in survival mode.” Auer, an RIA who founded the Auer Growth Fund and SBAuer Funds LLC, says that it irritates him to see financial advisors who don’t show leadership, and instead give in to the clients’ every whim.
“Today, the pressure is so great to preserve the client’s capital,” Auer says, because ”the clients hear about the fiscal cliff, Europe and the Middle East, and they’re bombarded.” The RIA says that “advisors play along” because “they’ve been beaten into submission.”
Auer also warns that those advisors who don’t show leadership could still lose their clients. “When the market does turn around, advisors will be in passive mode, and they’ll lose their clients anyway,” he said.
Written by Lisa Swan