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Monte Carlo simulations have become a central method of conducting financial planning analyses for clients and are a feature of most comprehensive financial planning software programs. the Great Depression or the Global Financial Crisis), showing clients when and to what degree spending cuts would have been necessary.
The necessity of fee increases entails a certain amount of pain for monthly-fee advisors since each conversation around raising fees creates the possibility of pushback from clients that could put a strain on the client-advisor relationship. Read More.
Over the past few decades, advicers have used Monte Carlo analysis tools to communicate to clients if their assets and planned level of spending were sufficient for them to realize their goals while (critically) not running out of money in retirement.
barrons.com) Advisers Don't discount the power of the Fidelity, Vanguard and Schwab brands to potential clients. (downtownjoshbrown.com) Ritholtz Wealth Management continues to grow without acquisitions. riabiz.com) Advisory firm profitability and how affiliate fees play a role.
Most financial advisors strive to provide excellent client care and prioritize a systematic process to maintain regular communication with their clients both on a scheduled (e.g., Suddenly, the question of, "What does it mean to provide the best care for clients at this firm as a team?" becomes a crucial one to solve.
For financial advisors, an ongoing client service model often means finding ways to keep clients engaged and progressing toward their goals outside of the 1 or 2 typical client review meetings each year.
There's an old joke in the financial planning industry that the ideal client is "anyone with a pulse". However, as their firms mature, advisors often notice a divide manifesting between newer clients paying higher fees and 'legacy clients' from the early days paying discounted rates. take a physical and emotional toll.
This fee confidence gap has large ramifications in the long term, as firms with higher revenues can reinvest in growth – with hiring, marketing, and process improvements – that enhance their value proposition and attracts more prospective clients. Have clients described the advice as "life-changing"? Read More.
The need for financial professionals to ask prospects and clients questions has a long history in the industry. One of the best ways to accomplish that goal is not to ask better questions, but to also ask engaging follow-up questions that build trust and rapport with clients. as judgmental.
While an advisor needs technical financial planning knowledge to create and implement plans for clients, soft skills that involve effective communication and relationship building are also crucial to both relate to prospects and clients and to understand their needs. Notably, the goal-development process is not a quick one.
For many financial advisors, financial planning advice traditionally focuses on optimization: tax-efficient, continually rebalanced portfolios are often designed to maximize a client's wealth throughout retirement. Which can help clients narrow down what really matters to them most.
While an advisor needs technical financial planning knowledge to create and implement plans for clients, soft skills that involve effective communication and relationship building are also crucial to both relate to prospects and clients and to understand their needs. Notably, the goal-development process is not a quick one.
As comprehensive financial planning has become more widely adopted, many financial advisors have felt pressure to find new ways to differentiate themselves by demonstrating their unique value to clients. Others use frequent emails to stay in regular contact, sending reminders or helpful information relevant to their clients.
The obvious answer to growing beyond the capacity of a single owner/advisor is to build a team of employees (either in advisory and/or other roles like client service or operations) that can accommodate additional room for growth.
In recent years, politically charged topics have become the forefront of news and media, and with the rise of access to digitally distributed media, it has become commonplace for clients to have concerns about the possible impact of political events on their portfolios.
peterlazaroff.com) The biz Charles Schwab ($SCHW) wants your high net worth clients for itself. investmentnews.com) Practice management RIAs can, and should, segment their clients. riabiz.com) Five ways to boost your business in 2025 including 'Proactive communication.' riabiz.com) Advisers Why clients change financial advisers.
In the modern era of financial advice, the advicer/client relationship is tightly centered on trust. Then, because the client isn't "bought in" to the recommendations, they simply don't act on what the advisor recommends.
Establishing successful client relationships as a financial advisor relies on good communication skills not just to present information persuasively and with confidence, but also to establish client rapport that allows meaningful and engaging relationships to be built.
Traditionally, financial planning meetings have been held face-to-face in an advisor's office, and over the years, a body of research has emerged showing that how the advisor's office is laid out can have a significant impact on how clients perceive the advisor, their mood during the meeting, and even their resulting financial planning decisions.
For many financial advisors, keeping an open line of communication with clients is a key component of building trust, understanding the client’s values, and developing a meaningful plan to help them reach their financial goals.
For many financial advicers, helping long-time clients identify and progress toward their goals eventually transitions into conversations around the best ways to enjoy the fruits of their labor once they reach them. And by ensuring that their clients are equipped with (and know how to follow!) Read More.
About a decade or so ago, one of the most pressing issues facing the financial advice industry was the threat of an imminent deluge of advisor retirements coupled with a paucity of succession plans to transition clients to the next generation. or "Is there anything that's top of mind right now that maybe we haven't addressed yet?"
Eric is the Chief Financial Advisor and Co-Owner of Econologics Financial Advisors, an independent RIA based in Largo, Florida, that generates more than $4M of revenue while working with nearly 300 client households.
bonddad.blogspot.com) Earlier on Abnormal Returns Adviser links: loving clients' problems. (sherwood.news) Economy Bubbles often leaving interesting stuff behind. awealthofcommonsense.com) The November ISM manufacturing index remains weak-ish. abnormalreturns.com) What you missed in our Sunday linkfest.
Measuring a client's tolerance for risk is an essential (and required!) step when onboarding a new client, as making any sort of recommendation is impossible without first understanding how comfortable clients may be when their portfolios inevitably experience volatility. And while few (if any!)
In any business profession, establishing credibility and trust are important to attracting clients and building a reputation amongst colleagues. Traditionally, business attire for financial advisors meant wearing the typical suit and tie in all instances of client-facing activities. Read More.
But some advisors who choose to take more time off from their schedules might be concerned that prospects and clients will consider them to be less committed to serving their planning needs than other advisors. Notably, the choice of work schedule can affect the type of client with whom an advisor might want to work.
Historically, advisors haven't had many avenues to manage clients' 401(k) plan accounts, since unlike traditional custodial investment accounts, advisors generally lack discretionary trading authority in employer-sponsored retirement plans.
Meaningful communication is crucial to building strong, durable relationships, and asking effective questions is an essential part of facilitating impactful conversations. More often, initial outreach from a prospect occurs because there's some urgent issue they need help with.
accounting reports, client contract templates, and a surety bond) and filing an annual renewal fee near the end of the year. After year-end, firms typically have until March 31 to submit an annual amendment to their Form ADV Part 1 and Part 2A/2B, and until April 30 to offer a copy of their updated Form ADV to their clients.
After advisors do all of the work of bringing on a new client (Marketing! And while all may appear well on the surface – the client rarely contacts the advisor with problems but they show up for every annual meeting – they may actually be feeling quite disengaged with the financial planning services being provided.
When it comes to politically charged discussions, financial advisors generally try to stay neutral and focus on providing clients with objective financial advice. While many advisors want to remain neutral, the recurring conversations about politics can be stressful, especially when the client and advisor have opposing political viewpoints.
Financial advisors create value for clients not only by giving good advice, but also by ensuring that the advice they give is actually implemented. Ultimately, clients often come to advisors in the first place because, at least on some level, they are motivated to make a change.
and how hiring not just an assistant, but someone with a strategy mindset who was determined to grow in and with the company, proved pivotal to the growth of MainStreet Financial and led to a successful, naturally integrated succession plan when Jim's assistant-turned-partner eventually bought him out nearly 8 years later. Read More.
And while there are many factors that help owners determine whether their firm is making enough money to profitably sustain itself, one common variable that can help them adjust their net revenue is the fee they charge to clients for financial planning services. Read More.
accounting reports, client contract templates, and a surety bond) and filing an annual renewal fee near the end of the year. After year-end, firms typically have until March 31 to submit an annual amendment to their Form ADV Part 1 and Part 2A/2B, and until April 30 to offer a copy of their updated Form ADV to their clients.
Also in industry news this week: The Federal Trade Commission released a final rule that would ban most non-compete agreements, which could lead to an increasing number of non-solicit agreements (and, potentially, lawsuits regarding their enforcement) between financial planning firms and their advisors The Securities and Exchange Commission issued (..)
Also in industry news this week: A recent survey indicates that about 98% of clients are at least somewhat satisfied with their financial advisor and that an advisor’s ability to provide peace of mind when it comes to finances is a key driver of this satisfaction A study indicates that advisors can potentially boost client referrals by using (..)
With inflation running hot, a potential recession looming, and both stock and bond markets seeing significant drops so far this year, there is no shortage of potential stressors for financial planning clients. But to an angry client, these quick answers could feel dismissive or combative, potentially escalating the situation.
As a result, people are often reluctant to make decisions when doing so would result in a significant change; this can result in ambivalence about taking action to make improvements in one’s life – including the types of financial decisions that advisors work with their clients to make. Read More.
Prospective clients often approach a financial advisor because they have a problem. Sometimes the advisor and their client can fall into a complacent routine, with annual check-ins that confirm that the client is on track to meet their long-term goals. What have you not done, but have always wanted to do?)
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