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Leaders tend to fall somewhere on the “transactional-transformational leadership” spectrum. A transactional leader typically uses the exchange of rewards for performance and focuses on keeping everyone in line in order to meet his and the organization’s goals. The transformational leader, on the other hand, focuses on the intrinsic needs of team members, motivating performance by ensuring the interests and goals of the team members and the organization are aligned. The transformational leaders I’ve worked with …
Recently, The Wall Street Journal reported that J.P. Morgan Chase & Co.’s private banking group went through another layoff as it shifted its business strategy and increased its minimum investible assets from $5 million to $10 million. The rationale, as explained in the article, is that wealthy clients require much more attention, generate more fees, and have less risk than less lower income, middle class clients. The article continues: Wealthy clients also typically generate …
Using an arbitrary minimum asset level for clients unduly limits the market for financial services providers to those who have already “made it,” and ignores the substantial number of prospects that are ultimately headed for financial success. For advisors, using minimums often means excluding the coveted Millennial group because they do not meet asset requirements . . . yet. So why does the industry continue to focus on current asset levels? Defining target markets by …
According to Dalbar’s 2015 Quantitative Analysis of Investor Behavior (QAIB), the worst gap between market and investor performance in the past 30 years was in October 2008 when, as the report states, the S&P 500 index lost 16.8% but investors lost a little over 24%. There are, of course, many psychological factors that explain the disparity: behavioral finance biases that model why investors act irrationally. However, to be able to anticipate this behavior, and …
What separates those who have the highest potential for building wealth from others? Is it exotic investments or timing the market? In many cases, it’s the basics of financial planning. In our latest white paper, we discuss how Wealth Potential groups differ in terms of their behaviors and self-reported experiences related to financial management. We measured Wealth Potential with Data Points’ proprietary assessment of frugality, confidence, level of responsibility for one’s finances, and focus on …