Client Voices

AARP Financial President Richard “Mac” Hisey Authors Award-Winning Op-Ed

Richard “Mac” Hisey, President of AARP Financial, offered his perspective on the importance of clear investor communications in the September 2008 issue of Financial Planning.

In his op-ed, Hisey explains how financial jargon can undermine the relationship between advisor and client, citing an AARP Financial survey that found that more than half of respondents (52%) said they’d made an investment with a bad outcome— like owing unexpected taxes or paying an early withdrawal penalty— because they felt “confused by” or “didn’t understand” an investment.

Accordingly, Hisey asserts that investors are confused and disillusioned— and they think the industry is doing it on purpose. More than half of adults believe that a major reason financial services professionals use jargon instead of simpler terms is to distract people from focusing on the fees they will be paying and roughly half say jargon is all about making consumers feel less confident that they can handle their own finances.

Despite this apparent distrust, the findings also point to a considerable opportunity for advisors to help investors cut through the clutter that all too often surrounds investment decisions. As Hisey puts it, “The research serves as a strong reminder of the positive difference advisors can make for clients, building their confidence and supporting the decision making that enhances financial security every day.” 

Mac Hisey’s article received the 2009 Bronze Anvil for Best Editorial/Op-Ed Column. Read Hisey's article.

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