Displaying items by tag: practice management

Wealth managers rely on platforms such as broker/dealers and custodians, and over two-thirds have considered switching their current arrangements, though only 17.1% are actively planning to make changes by 2025 or 2026. 

More successful wealth managers are actually more likely to switch for better operational and business support. Key factors influencing platform choice include financial arrangements, operational support quality, and business development assistance, while personal relationships are less influential. 

Efficiency and negotiating favorable financial terms are critical, as is the ability to find ideal clients through referrals. Wealth managers should critically evaluate the claims of platforms, especially regarding business development support programs. Despite interest in changing platforms, inertia and other demands may prevent many from following through.

Finsum: While the relationship isn’t causal its worth pointing out that higher networth advisors are more active in thinking about their future relationships with their broker dealers.

When transitioning between custodians, advisors need to be on the lookout for options that could improve their practice. One of the first things to look out for is discussions around a pricing strategy rather than resorting to fixed rates marking the inception of our the plan. RIAs should look for custodians that understand their unique business before proposing a suitable pricing structure. 

A good custodian will seek insights into operations before tailoring pricing. Personalized solutions will consider a variety of factors that lead to custom solutions such as growth stage and client dynamics. By embracing flexibility and collaboration, RIAs can feel empowered when navigating custodial transitions effectively, ensuring a prosperous future for their businesses.

Look for custodians that are open to this flexibility when it comes to this sort of pricing structure and make sure they understand your business when changing providers. 

Finsum: Clients are seeking flexibility and understanding with their advisors and RIAs should look for a similar approach when it comes to custodians. 

Spring often marks a period of transition for financial advisors, where opportunities for change abound. While the optimism of the season is commendable, it's important to acknowledge that not everything is within reach. Spring serves as a moment for introspection, especially regarding career paths. For advisors, contemplating a shift to a new firm or business model can be daunting, requiring consideration of clients, staff, and the plethora of options available.

However, the abundance of choices can lead to analysis paralysis, necessitating a focused approach. Advisors should consider their priorities, including client service, autonomy, and income growth, as they navigate the landscape of potential moves. The key questions are: what I might not have that I want going forward, and what do you already possess that you will want to maintain?

From traditional wirehouses to independent broker-dealers and RIA aggregators, each option presents its own set of pros and cons. The evolving RIA aggregator market, with its financial backing and potential for future liquidity events, adds a new dimension to the decision-making process. Ultimately, the complexity of the financial services industry highlights the importance of thorough research and leveraging expertise when considering a career transition.

Finsum: Consider the improvements of advanced technology and flexibility of hybrid work when pondering a transition as well.

Research from Nuveen's indicates that when it comes to advisor recruiting employers can boost their competitiveness in talent acquisition and retention by optimizing employee benefits. With the growing strain of succession planning for financial advisors this could be a key strategy to attracting talent. Among the recommendations is the expansion of benefit offerings to include family planning, caregiving assistance, and tuition aid, fostering a more diverse and engaged workforce.

By reframing benefits as investments rather than mere expenses, employers can potentially amplify returns on investments while addressing employee needs comprehensively. Clear communication and education about benefits are emphasized as essential for maximizing their impact, as evidenced by the findings that only 30% of employees are highly satisfied with their retirement plans.

Furthermore, disparities in benefit satisfaction and confidence in retirement prospects were observed across racial and generational lines, underscoring the need for tailored approaches. In conclusion, by aligning benefits with the diverse needs of employees, employers can drive productivity, efficiency, and overall workforce satisfaction, crucial elements in succession planning for advisors.

Finsum: The bottom line is no longer the bottom line when it comes to attracting new talent in the advisor space and benefits could offer a needed boost to recruiting. 

According to Marcy Keckler, senior vice president of financial advice strategy at Ameriprise Financial, couples consulting a financial advisor tend to be more transparent about their finances, emphasizing the importance of selecting an advisor jointly. Keckler highlights the optimistic trend in couples' financial communication, as revealed by the Ameriprise Couples, Money & Retirement study, which surveyed over 1,500 American couples with substantial investable assets. 

The study indicates that the majority of couples trust each other on financial matters and share similar retirement goals. Keckler stresses the necessity for advisors to engage with both partners from the outset, ensuring a balanced relationship and effective financial planning.

Furthermore, the survey underscores the crucial role of advisors in addressing couples' concerns, such as providing support to family members and navigating retirement uncertainties. While most couples plan to retire simultaneously, the reality often diverges, requiring flexibility in retirement planning. The study's recommendations include open communication about financial objectives, resolving disagreements constructively, and collaborative selection of a financial advisor. Despite positive findings, challenges such as estate planning and financial transparency persist, highlighting the ongoing need for advisor assistance in fostering financial harmony among couples.

Finsum: The couple adds a different dynamic to the advisor client relationship and understanding their needs is fundamental, as more are seeking advisors in pairs.