Three ways the financial services industry fails investors and undermines its own growth

Millennials and Gen Z investors are discovering an industry that is not prepared to serve them adequately.

The coming changes will reveal the stark contrast between business as usual and a developing model for a newer generation of clients. The industry even demographically isn’t representative of the investing public, which also will change. The regulatory structure will lag behind, as usual.

In 2020, I became an advisor myself and I’ve seen the ugly underbelly of the industry.

Failure of leadership:

I speak with investors who are intimidated by their ignorance of investing or feel wary of putting their money into what seems like a casino.

They see investing like a foreign language or rocket science. Many are susceptible to making costly emotional decisions to buy when the market goes up and sell when it goes down. And no one is stopping them from considering the consequences. How many people sold in a panic in 2008 or 2020 when the market tanked?

What we have are investors who are confused, scared, and uninformed by the experts.

They make a killing, but you don’t:

The industry has no other purpose but to make investors wealthier.

All too often I see investors who are losing out because they have no discussions with a professional who can make a recommendation that is right for that particular family. By the time they realize they could’ve done something different, they’ve lost years they won’t get back.

You talk to your dentist more often:

My guess is the top five complaints investors have is the lack of communication.

I know this by virtue of the opportunities available when I simply call to catch up with my clients. Time flies and life happens and often I’m the last thing on my clients’ minds. Staying in touch and reviewing those goals is what keeps investors on track to long-term success.

You can create the ideal relationship for you.

Don’t be too timid to ask for what you want and see if that’s possible. It’s your money and you want the best support for making smart decisions.

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