2019 DALBAR Retirement Study: How Financial Advisor Designations can Affect Customer Experience

2019 DALBAR Retirement Study: How Financial Advisor Designations can Affect Customer Experience

When providing a service, the perception of preparedness can play a crucial role in customer satisfaction. This fact is highlighted in the recent 2019 DALBAR Retirement Study, which analyzed customer interactions with advisors at several financial institutions during retirement planning appointments.

The findings of this study show that a variety of factors can have an impact on a customer’s overall perception of an interaction, including how prepared an advisor seems when coming into the appointment, how confident they are in explaining the material, and the potential impact advisor designation can have. This study provides a comprehensive examination of these factors, as […] Read more

The Asset Allocator: Dalbar’s Investor Panic-Relief Tool (Podcast)

The Asset Allocator: Dalbar’s Investor Panic-Relief Tool (Podcast)

By SA For FAs, December 3, 2019

Summary

For a quarter of a century, Dalbar has highlighted the problem of poor investor performance, fueled by return-chasing and panic selling; now it wants to offer a practical solution. Dalbar has developed a panic button targeting financial advisors, and interested individual investors, aimed at preventing financial suicide. Its “Investor Panic Relief Tool” is designed to help advisors help their clients at the point of panic, providing a meaningful and appealing alternative to selling. The tool presents a put option as inferior to doing nothing, but as superior to selling, and backs that up with dollars-and-cents calculations.

Listen on the […] Read more

Avoiding the Cost of Panic

Avoiding the Cost of Panic

by Louis S. Harvey, 12/2/19

Investors lose massive amounts due to panic selling in down markets. More can be done about this perennial problem.

This article identifies one critical action that can be taken to stem panic-driven losses. That action is based on a full understanding of the timing, cause and prudent use of financial instruments that can avoid much of the loss.

To appreciate the solution, it is essential to agree on what the problem really is.

Understanding the problem

Understanding begins with knowing when the losses occur.

More than 70% of losses over the last 35 years originated in 10 very short crisis periods. […] Read more

2020 Trends & Best Practices in Investor Statements: How Key Statement Features Can Help Acquire and Retain Clients

2020 Trends & Best Practices in Investor Statements: How Key Statement Features Can Help Acquire and Retain Clients

Are your current financial statements meeting the needs and expectations of your clients? This is an important question to ask, especially when it comes to staying at the forefront of industry trends and best practices. To help your institution effectively address the needs of clients, DALBAR is conducting a detailed analysis and ranking of financial statements in the 2020 Trends and Best Practices in Investor Statements report. Customers have been shown to value up-to-date content and ease of navigation, and the findings of this analysis will provide exclusive insights into how your institution can benefit from the implementation of an […] Read more

DALBAR USA Study has the Potential to Change Conversations about e-Delivery

DALBAR USA Study has the Potential to Change Conversations about e-Delivery

In today’s digital age, more businesses and service providers than ever are opting for electronic solutions when it comes to communicating vital information. Financial service firms are no exception, as paperless financial solutions (commonly known as e-Delivery in the financial services space) are becoming an increasingly commonplace way to communicate with consumers. DALBAR’s first-ever Online Search Behavior Analysis provides interesting insights on who is searching for electronic delivery of their financial statements, and how the searches are taking place. These insights have the potential to fundamentally alter the way financial services firms talk about their e-Delivery solutions.

Currently, there is a […] Read more

Reliable Advice on Retirement

Reliable Advice on Retirement

It’s easy to find information about strategies, savings, mutual funds, and a plethora of other options to plan for retirement. In fact, the financial space is teeming with suggestions. Add into the mix an increasing range of tech-savvy solutions, and it’s clear that, to find the right retirement advice, a knowledgeable and experienced advisor is needed.

Of course, financial institutions already have procedures in place to help individuals interested in planning for their retirement, but how effectively do the advisors of these programs address client concerns? Can a comprehensive retirement plan be created for someone without previous experience in saving or […] Read more

The Asset Allocator: Dalbar’s Louis Harvey On What Drives Investors To Lose Money (Podcast)

The Asset Allocator: Dalbar’s Louis Harvey On What Drives Investors To Lose Money (Podcast)

By SA For FAs

August 7, 2019

Summary

Investment consultancy Dalbar’s latest research suggests that it is a mistake for advisors to assume that investors have a static risk tolerance. The firm’s president Louis Harvey says it changes constantly – on the basis of both market conditions and the client’s constantly shifting personal status. The firm’s analysis of equity flows demonstrates clearly that market conditions prompt clients to buy and sell stocks – at the wrong times. Harvey suggests defining investor goals in simple understandable terms (e.g., “house fund”) and designating separate pools of funds for each investor goal.

Listen on the go! Subscribe to the SA for FAs […] Read more

Just A Little Too Cute For Their Own Good

Just A Little Too Cute For Their Own Good

By Frank Armstrong III

August 16, 2019

Shortly after I discovered that I could ride my bicycle no hands it occurred to me that I could stand on the seat. My mother, watching from the yard called out that I was being just a little too cute for my own good. That warning was followed up almost instantly by a memorable crash to the sidewalk. To my credit, I learned from my over confidence and didn’t try that again. But, seventy years later I still have traces of the scar on my chin.

Despite repeated pointed reminders, many investors continue practices that are just […] Read more

Investors Are Usually Wrong. I’m One of Them.

Investors Are Usually Wrong. I’m One of Them.

By Jeff Sommer

July 26, 2019

Forget about getting everything right. Most people are so consistently wrong that merely avoiding major errors is enough to set you apart from the pack.

That is the message in the latest data from Dalbar, a Massachusetts research firm that has been studying the behavior of mutual fund investors for 25 years.

Over the past year and for periods of five, 10, 20 and 30 years, the average mutual fund investor has underperformed the markets for both stocks and bonds, according to Dalbar. Bond investors have generally failed to even keep up with inflation.

In the 30 years through […] Read more

About DALBAR’s Telephone Service Seal of Excellence

About DALBAR’s Telephone Service Seal of Excellence

All financial institutions are invited to apply for the DALBAR Telephone Service Seal of Excellence. The audit encompasses all aspects of a customer service interaction, and offers insight into the service delivered. The Seal of Excellence is earned when service levels at the firm meet or exceed the stringent benchmarks in each of the key areas of measurement. Random sampling of service over the calendar year allows accurate representation of the contact centre’s quality of service. Interactions are evaluated by highly trained analysts with the aid of over 150 attributes, providing a uniform process to evaluate interactions with a high […] Read more