Help clients turn off the financial news spigot

Help clients turn off the financial news spigot
For most clients, paying attention to financial media distracts them from their primary goals.
MAY 31, 2016
Over the last few years, I've spent a lot of time traveling and talking to people. During that time, I've been running a mini experiment, and it's based on a simple question: When was the last time you read some financial news that you acted on and then were glad you acted on it? This question stumps most people. Unless they're concerned with following the latest changes in tax law, there's little value to be had in much of what passes for financial journalism. It's a lot of noise dedicated to grabbing our time and attention. But for most clients, it's just distracting them from everything else that should be more important to them. There's a valuable role for us to play as real financial advisers, that of the human curator. Do our clients really need to spend hours sorting through their feeds and trying to decode the headlines or could we be doing that for them? What should they be paying attention to? For instance, one friend shared with me that when he turned off the financial news spigot, he calculated that he saved two to three hours every night. Do the math and it ends up being a savings of 40 or so days each year. Even if you cut that in half, it's still 20 more days in a year to do something else besides trying to translate the noise masquerading as financial news. By becoming a human curator, you can solve a massive problem for your clients. I've often referred to it as helping people detox from financial pornography. After all, people think it's their job to pay attention to it, sort through it and act on it. But it's not. It can take time and patience, and some clients may resist it in the beginning. (Remember, they think it's their job.) But they'll find that after working on it for a bit, they won't miss the news. They'll wake up one day and realize they've stopped obsessing. Just imagine being able to tell clients they can get back entire days. That's a huge value and you can offer it as a real financial adviser. Carl Richards is a certified financial planner and director of investor education for the BAM Alliance. He's also the author of the weekly "Sketch Guy" column at the New York Times. He published his second book, "The One-Page Financial Plan: A Simple Way to Be Smart About Your Money" (Portfolio), last year. You can email Carl here, and learn more about him and his work at BehaviorGap.com.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.