Introductory advice

Allow me to introduce myself: For the past six years at Advisor’s Edge, I’ve worked behind the scenes with my editorial team to produce content that helps you build your business. Now that I’m in the editor’s chair, I thought it would be a useful exercise to reflect on what I’ve learned from you and this industry.

Diversification is a good thing

Before joining AE, I worked as a business technology journalist, covering personal computing trends and companies such as IBM and Apple Computer. I knew all about equities, IPOs and shareholder agreements, but only as they pertained to the technology sector.

Many people invested a disproportionate amount of their money in the “new economy.” Diversification be damned! However, I received advice seven years ago about the importance of diversification. Heaven knows, I had my doubts as both the TSX and Nasdaq hit record levels, but come April 2000 and years beyond, I’m so glad I listened to reason, logic and advice. Thanks!

Real progress takes a long time

In 1999, anyone could set up shop and call themselves “financial advisor.” Today, I still see business cards with this title but without the proper designations. Tick tock.

An anti-advisor stance exists in the consumer media

If it’s not about Portus, then it’s about Ian Thow, the Victoria investment executive who spent lavishly, apparently at the expense of his clients’ drained accounts, according to the Sept. 26 – Oct. 9, 2005 issue of Canadian Business. Or it’s about Leonard Cohen’s mysterious money woes. But you have a significant role to play here. Instead of simply grumbling to your spouse or colleagues that “not all advisors are bad,” make yourself available to the media to discuss how you’re doing things differently.

Even better, speak out against this kind of behaviour and offer suggestions to consumers about how they can avoid getting caught in a situation where their money suddenly disappears. Doing nothing won’t solve the perception problem.

You really care about your clients

Despite all the paperwork hassles, new fees passed down from your dealers, and ever-growing compliance and regulatory burdens, the great advisors I’ve met remain advisors for one main reason: their clients. They care about helping a couple accumulate enough savings to send a daughter to university or buy their dream retirement home.

They’re obsessed with preserving client assets so more goes to their heirs instead of the taxman. With these advisors, it’s not the money that moves them but the gratification they get from helping others.

You sure aren’t a shy bunch

I wrote and edited hundreds of technology articles and rarely heard from the readership of network managers and IT support staff. (Maybe they were too busy running from cubicle to cubicle installing software.)

Thankfully, you don’t hesitate to give us feedback. If there’s an article you don’t like, you tell us. And you also don’t hesitate to give praise when it’s warranted. So please keep your letters coming (both positive and critical) because they help us to gauge whether we’re hitting a homer or totally missing the ball.