Clients Think "Goals-Based Investing" Equals Performance.

Investors aren't sure what "goals-based" investing means, asset managers can't turn data into sales and a study funds that the UHNW hide 25 percent of their wealth.

Many advisors use a goals-based investing approach, where success involves progress towards a specific life goal, such as funding retirement. And while 94 percent of ultra high net worth investors believe their financial advisors use a goals-based approach, these investors are confused about what that approach entails. A recent survey by SEI found that over half (56 percent) of advisor-exclusive investors define goals-based investing as a measure of performance. "There is a strong disconnect between consumers' intended investment purpose and their understanding of how to achieve those goals over the long-term," said Jeff Ladouceur, director of SEI Private Wealth Management. "If investors do not understand goals-based investing themselves, how can they be sure their financial advisors are using that approach when managing their wealth?" To conduct the study, SEI surveyed 300 UHNW individuals.


Source:wealthmanagement.com


Nick Kalikajaros 2017