A significant change in how investing works today does not need to be a bad thing for Financial Advisors. Certainly business plans that today rely on clients passively accepting whatever investments an advisor recommends will need to be scrapped. But such business plans have a short life-span anyway. When clients understand the benefits of Dynamic Investments the days of trusting and dependent advisor clients will be over. The DIT-educated and empowered investor of the future will demand the significantly higher performance that simple Dynamic Investments produce. Only those companies that offer DIs will thrive.

Financial Advisors Will Offer Standardized DI Investment Products

In the DIT-based future of investing, the methods used and products sold by Financial Advisors will change. And such changes, if made correctly, will be a major boon for the investing advice industry. Let's look at a few reasons why.

DIs are off-the-shelf, standardized products that perform better than any MPT-based, customized portfolio in existence today. Eliminating the need for portfolio customization will free up an extraordinary amount of time for the Financial Advisor of the future. This is time that can be used to provide better, more valuable financial services to the public such those discussed next.

Providing Total Investing Solutions

Dynamic Investments will enable Financial Advisors of the future to offer total investing solutions that contain the following components:

  • Education in the use of Dynamic Investments

  • Recommending appropriate DIs and/or DI-based portfolios (refer to the DI Products area of the NAOI site)

  • Offering more comprehensive financial planning education to clients for topics such as savings plans, budgeting, tax planning, retirement plans, social security benefits, insurance, wills, trusts and more.

  • Bringing together a group of financial specialists and resources (including Web sites) to build a financial "team" for each client

This will be a world in which investing and financial planning will be separate products. Investment advice will be far simpler than it is today. Advisors, or even individuals, will be able to select powerful Dynamic Investments from a "catalog" developed by companies such as the NAOI and others. Not needed will be the effort to determine each individual's risk tolerance level or to sift through reams of market data and analysis to make investment recommendations. DI's let "the market" make buy and sell decisions automatically. The time freed up will go into the second component of what an advisor sells; namely financial planning and this is what the public needs most.

The NAOI sees the role of the Financial Advisor of the future as being that of a total financial solutions provider and a one-stop shop for an individual's financial needs. 

Individual investors will be able to clearly see the value-added by an advisor in this role and be willing to pay for this service; unlike the expenses they pay today for items such as "fund management fees" for which they so no value whatsoever. Individuals who have been trained by the NAOI know that no study has ever shown that increased fund expenses correlate positively with increased fund performance.

 

The "Nature" of Advisor Recommendations

In a world dominated by Dynamic Investments a financial advisor will still recommend which Dynamic Investment products that a client should buy. And for DI Portfolios and Hybrid MPT / DIT Portfolios they will recommend allocations of money to each. But these will not be the "life and death" decisions that are required in the current MPT portfolio design process where a wrong choice can mean years of lost or unrealized savings. 

As long as they meet the specifications set forth by NAOI Dynamic Investment Theory, there are no "bad" Dynamic Investment recommendations. The NAOI has a catalog of powerful DI products that can be used by brokers and individuals to select products appropriate for their goals. And the NAOI is available to buyers to certify any Dynamic Investment created by a third party.

Advisor Consulting

The NAOI is available to consult with financial advisors to make a smooth transition from today's static portfolios to the dynamic portfolios of the future. Click here for more information related to NAOI consulting services. Click here for our contact information.