As a CPA, your clients turn to you for all kinds of advice, one common area is likely how to find a quality financial advisor to help them manage their assets.
Clients and their CPAs need to start asking about investment reporting. Most people are playing catch up with retirement savings and don’t have the luxury of poor returns or large losses. Moreover, after 2008 we saw clients leave their advisors in droves due to oversize losses so, clearly, picking the right advisor is crucial.
Many advisors are great salespeople and will describe their firm’s abilities in meetings, but you should always ask for documentation. But as we all know, numbers can be manipulated, so how can you get numbers you can really rely on?
Enter GIPS, Every Investor’s Best Friend
Global Investment Performance Standards (GIPS) is a worldwide standard of reporting investment results created and maintained by the CFA Institute, an association responsible for the testing and credentialing of investment professionals worldwide. Advisory firms voluntarily choose to comply with the CFA Institute’s standard, GIPS, by doing the following
About John Odell
John Odell, CFP® is CEO of Arroyo Investment Group, LLC, a fee-only financial planning and investment management firm based in Pasadena, California, but serving investors nationwide. As a GIPS®-compliant firm, we bring institutional quality, high performance investment management and comprehensive financial planning to individuals and families. Together with Capital Research + Consulting, our sister firm, we collectively manage over $4 billion of assets for individuals and retirement plans.