Clients who say they're satisfied with their financial advisor will still seek second opinions to test the recommendations they get, a noted industry consultant says.
As he puts it, investors are inherently disloyal -- after all, these are business relationships, not friendships or love matches.
For an industry where people often pride themselves on building long-term relationships with clients that will last through thick and thin, richer or poorer, this is an eye-opener.
Do advisors always need to be seducing each other's clients away? Is the notion of client retention a myth?
Definitely food for thought. It's true that a lot of advisors sentimentalize their books, but some churn is probably natural.
Of course, if the book starts shrinking, there's a problem.