Trust in financial advisors is on the rise, according to a new Spectrem Group report. Wealthy investors believe advisors are more trustworthy than their attorneys and accountants and almost as trustworthy as their primary care physicians. “Affluent investors often carry the burden of sustaining and building their family’s wealth, sometimes for generations, which is why it is critical that their relationship with an advisor be built on trust,” said Spectrem Group President George H. Walper, Jr. Poor communication and lack of proactivity among advisors were the top reasons cited by investors from all wealth segments that would cause them to terminate their relationship.
Pershing Launches Alternative Means to Invest in Gold
Advisors with high net worth clients seeking to invest in gold outside of traditional ETFs or private storage now have a new option. Pershing has launched BMO Gold Deposit Receipts, or GOLDRs, a means for investors who want bullion in their brokerage accounts without the inconveniences that typically accompany purchasing and storage. GOLDRs allows bullion to be held in a brokerage account, represent an investor's ownership in 1 ounce of physical gold bullion held at the Royal Canadian Mint. The bullion is stored in a regulated gold depository backed by the Canadian government, with none of the annual fees, tracking errors or derivatives typically found in gold tracking ETFs. There are no investment minimums to take advantage of GOLDRs, and the bullion can be redeemed for cash at spot market levels twice a day and can be delivered to an investor on request.
Krawcheck's Four Factors for New Investors
Sally Krawcheck says the longer people wait to start investing, the more money they are losing thanks to inflation. So instead of thinking about when to invest (the answer is right away, Krawcheck says), first-time investors should think more about where. And in that regard, Krawcheck recommends four factors to consider: fees, fiduciary, experience and approach. The Ellevest founder and CEO recommended keeping fees below 75 basis points, if possible, choosing a firm that operates as a fiduciary, considering the experience of people running the company (especially the CIO and CCO), and making sure the firm’s approach to investing aligns with your personal goals even if you’re inexperienced.
