Guess the sex of this offspring from an institution

Isn’t he beautiful? So cute. We need to start college savings for the son of the institution. What shall we call him?

I often hear that human investors need to be smart, unemotional, and as committed as institutional investors. They should use the same money managers, the same “time-tested” methods as the institutional investor. That way, they will be forced to buy low and sell high. Smart people do it that way.

So, when was the last time your institution gave birth? Had a divorce? Was laid off from work? Had to pay for four years of private college tuition?

People are not institutions! They have specific timelines and unique distribution needs. The institutional method suggests we need to “assess their risk profile.” This requires the prospective investor fill out a multi-page questionnaire identifying how much pain they could tolerate in order to successfully identify someone’s risk profile. I have news for you. Even the compliance officer who demands this document be completed before making any investment recommendations knows full well, this document is flawed from the beginning!!!

Share:

Share on facebook
Share on twitter
Share on linkedin

More Posts

Unreal Expectations, No Trust Lead Investors to Failure Read

Written by Jeff Mount October 01, 2020 Registered representatives. Wealth consultants. Investment advisor representatives. Financial planners. These are all names that describe people who are in the financial services business. They differ in that each has a slightly different tilt, but all have one thing in common: Most Americans have chosen not to work with

New Tolerance for Lofty Inflation Is Dangerous

Written by Jeff Mount September 03, 2020 Federal Reserve Chairman Jay Powell recently announced a policy for tolerance of higher than average inflation rates for short periods of time. Although the language has changed, the actions really haven’t changed. The Fed has kept rates near zero for quite some time. What has changed is this

Financial Education Can Reduce Poverty And Help Americans Escape Its Cycle

Written by Jeff Mount July 6, 2020 Multi-generational poverty negatively affects every aspect of the American economy. Real Intelligence CEO Jeff Mount says financial literacy education helps break the cycle of poverty.The legacy of multi-generational poverty among American families is reaching worrisome levels. Multi-generational poverty is defined as a family having lived in poverty for

Send Us A Message

Scroll to Top