The Big Questions that advisors ask themselves as they go about the work of managing a client’s portfolio haven’t changed much over the years: Which asset classes to rely on, given a client’s age, risk tolerance, timeframe and retirement needs? And how, exactly, to allocate those assets to deliver the desired outcome?
Advisors still ask themselves those kinds of questions. Only today, “the answers are coming up different,” says Allan Katz, CFP, ChFC, CLU, president of Comprehensive Wealth Management Group in State Island, N.Y.
Lack of transparency is another issue with certain alternative investments. “There is going to be an opaqueness with some of these,” acknowledges Shen.
Due diligence is the advisor’s best weapon against those issues. That means: