For Financial Advisor Ads, a New Frontier
How do we feel about Financial Advisors advertising investment performance? Dave explains it perfectly in a recent Barron’s article (while adding some color, of course, as he always does).
The Barron’s article states that not all Advisors agree on this new rule:
Advisors may have [sharp] disagreements about whether to advertise performance. The proposed rules allow firms to share past performance, net of fees and expenses, while taking certain steps such as including one-, five- and 10-year comparisons in ads targeted to retail audiences. Touting good numbers should go right to the brainstem of many consumers, giving an advantage to advisors who do so.
Dave’s take:
David Armstrong, president and co-founder at $291 million Monument Wealth Management, in Alexandria, Va., wants nothing to do with performance ads. “Personally I wouldn’t touch that with a 10-foot pole,” he says. “I don’t want to sell performance – I’m going to hang my hat on advice and planning.”
At Monument we don’t just focus on investment performance–we specialize in taking complex, 3-dimensional problems and creating solutions that are intelligent, thoughtful, and creatively conceived.
Advisors tend to differentiate themselves by claiming they have the best–the best firm, the best client service, the best investment performance–we say that’s all a bunch of bunk. We know what differentiates us in a sea of sameness, the single thing that no one else can offer or replicate, is our Team’s unique, straight forward, unfiltered OPINION…of which we have plenty, just ask. Not everyone agrees with our opinions, but we are not trying to resonate with everyone…we are just looking to resonate with someone. And hopefully, that’s you!
Along with addressing the new rule on advertising investment performance, the Barron’s article also discusses the new rules for Financial Advisors promoting client reviews and testimonials, which have not been permitted in the past, but we look forward to exploring further once the rule is passed later this year.
David B. Armstrong, CFA
President & Co-Founder
Dave got into the industry when he discovered his passion for finance in his mid-20’s. He’s a combat veteran and served as an officer in the United States Marines Corps on both active duty and in the reserves, retiring at the rank of Lieutenant Colonel. While serving on active duty, Dave was unable to spend money on deployments, so he became a self-taught investor. Along with a few bucks cash as a bouncer, his investing performance grew to be good....
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