Investment advisors have had a rough time since the financial crisis. Volatile markets and low interest rates have lead to skittish investors and made decent returns hard to come by. Frauds perpetrated by Bernard Madoff, Allen Stanford and others have also hurt consumers' perception of the financial industry.
That doesn't mean the market for financial professionals, especially financial advisors, is weak though. Sallie Krawcheck, who has stints as the CFO of Citigroup and as the head of Bank of America-Merrill Lynch on her resume, recently told a group of investment professionals at an event moderated by InvestmentNews editorial director Jim Pavia that now is actually a good time for young people to get into the financial advisory business.
Krawcheck, who has recently been rumored to be in the running to lead the Securities and Exchange Commission, said advisors will have to overcome perceptions about the industry, but that their services are needed as badly now as ever. She said that despite the misdeeds of some big names, the industry is well regulated and most advisors work under a strict compliance regime. She also downplayed the importance of stock picking, saying advisors should focus more on customer service and helping clients meet their investing goals than on returns.
Another issue highlighted in Krawcheck's talk was the changing customer base of financial advisors. As more women become heads of households, more women are seeking out financial advice.
You can read more of Krawcheck's remarks here.
You can also read more on a variety of personal finance topics in our Personal Finance section. Articles there include:
- How to find a financial advisor
- Will Social Security be there more me?
- What is the difference between a Roth IRA and a traditional IRA?
- When should I start planning for college?
- CPA, CFP, CFA, what do all those letters mean?
Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at firstname.lastname@example.org or follow him on twitter @BRatMICenter.