Ask Brad: Stop Asking If You Need A Haircut

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This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

Here’s a fun little experiment to try. Walk into a barber shop (or salon) and ask if you need a haircut.

Any guesses what the response will be? Every. Single. Time!

Or, to use an example in our industry, ask a mid-cap mutual fund manager (or whatever flavor works for you) if now is a good time to have mid-cap exposure in your clients’ portfolios.

We both know what their answer would be!

Ask someone a question in which the respondent has a vested interest in how it is answered, and you know what the answer is before asking it.

I see this when I am talking to advisors about the RIA model.

There are many misconceptions about how the model works. In most cases, it is because until you take the time to learn more about how it works, there are plenty of forces to lead you astray.