Over the weekend a MarketWatch article discussed why financial advisors should be specialists, not generalists.
Check out financial advisers’ websites and you may notice a common theme: They define their market broadly. In many cases, advisers describe their firm as serving people of all ages across a range of professions who seek financial freedom and peace of mind. Michael Kitces was interviewed for the article and says:
“I see advisers’ websites that say they specialize in helping individuals, families, business owners and institutions,” he said. “That’s almost everyone on the planet.”
It is quite the oxymoron to say that you specialize in all these areas.
I’ve always thought of it like a doctor – a general practitioner knows a little bit about a lot of areas. My internal medicine doctor does my physical every year and can diagnose the routine stuff. But a specialist knows a lot about just one area. One time I had an injured finger and my family doc sent me to a doctor that specialized in hands.
I believe a financial advisor is much more valuable to their client when they specialize – obviously, assuming the client fits into the specialty. You don’t go to a cardiologist for a knee replacement!
Here’s the full article: Give your money to financial advisers who get what you need and see who you are