One of the cardinal rules for Investment Advisors is the “know your client” rule. Essentially, this rule recognizes the importance of personalizing investment advice for individuals who are unique… whether it be risk tolerance, portfolio size, stage in life, investment knowledge, etc.
In my experience, both as a former bank employee who was guided to direct clients into particular products and investments and as a consumer of these options, the typical “know your client” questionnaire is more of a formality more than it is a guideline for advisors.
And, to be honest, I think this is generally alright. Let’s face it… sometimes people have very unique circumstances. But more often than not, we all fit within a general season of investing.
Some of us are younger and just starting out. Our commitments are different than others of us who are looking toward the last few years of our careers and wondering if we have enough saved to retire. Some of us have incurred debts, whether it be as a result of education, purchases, or unforeseen circumstances.
Whatever unique situation we find ourselves, it is fair to say that we are not alone…
Peter has tried a few things… but for the most part, he hasn’t been too involved with his finances. He wishes he knew more about investing, but he quite simply doesn’t have the time.
Typically, Peter delegates investing to his local bank… he goes in once a year or so (usually when they call him about his RRSP) and he receives quarterly statements which he glances at and files away.
Peter has not been a “risk” taker… it just didn’t seem to be the prudent thing to do with his savings… but now that he’s turning 50, he wonders if retirement in 10 years will even be possible. There are more stable investment approaches… such as the Invesinthemarkets.com Weekly Newsletter.
If you like what you see, why not try it out for a couple months…