Displaying items by tag: advisors

The nature of being a financial advisor has shifted significantly over the past decade. It’s gone from being centered around selecting investments and managing portfolios to financial planning and client service. Model portfolios have been ascending along with this evolution and are forecast to exceed $1 trillion in assets over the next decade.

According to surveys, clients invested in model portfolios are more likely to have higher levels of trust with their financial advisors and believe that volatility is an opportunity to grow assets. Additionally, they are more likely to be interested in other services offered by an advisor. They can also help in terms of aligning the interests of advisors, the firm, and clients. They also free up time and energy for advisors to spend on factors that ultimately drive success for advisors, like client service and prospecting. 

Another benefit is that model portfolios provide an extra layer of due diligence, with 77% of advisors saying that they help with managing risk. In essence, it gives clients access to a higher quality of investment management and a more comprehensive relationship with an advisor.

Models also mean that advisors’ services become more scalable, enabling growth and expansion. In recent years, models have expanded to include offerings from third parties and a wider array strategies, which means there are possibilities for endless customization to fit clients’ unique needs and goals.

Finsum: Model portfolios bring the promise of a win-win for clients and advisors. Clients invested in model portfolios report higher levels of confidence with their advisor and don’t fear volatility. For advisors, they offer the ability to decrease time spent on investment management and focus more on client service and prospecting.

Research shows that the average advisor spends about 11 hours per week on administrative duties. Ideally, this time could be better spent on activities that are more directly connected to the firm’s success. AI can offer some relief in terms of reducing time spent on repetitive tasks. It can also help generate better outcomes by increasing efficiency, analysis capabilities, and decision-making. 

Among the many use cases, scheduling and transcription are two that can be immediately applied. For scheduling, apps like Trevor or Clockwise can organize tasks, create to-do lists and daily plans, sync calendars across apps, and maximize time for deep work and productivity. These apps also become more effective over time as they adapt, learn patterns, and can help prioritize tasks.

Another powerful use for AI is transcription. Apps like OtterAI record, transcribe, and summarize meetings and can be integrated with Zoom, Microsoft Teams, or Google Meet. Future versions of these apps could analyze communications with clients or prospects to understand their emotions and provide more personalized service and communications. 

While AI can make advisors more effective, it’s necessary to understand the limitations, especially given the nature of financial services and the importance of safeguarding client information. 

Finsum: Advisors spend 11 hours per week on administrative tasks. AI apps can offer relief, especially in terms of scheduling, transcription, and organization. 

While the looming demographic shift to millennials is upon the RIA community the question of which actions to take is something completely different. A massive generational wealth transfer is on the horizon, yet numerous firms find it challenging to transition from acknowledgment to action. 

Broadridge's "2024 Financial Advisor Marketing Trends Report" indicates that 78 percent of advisors target baby boomers due to their considerable wealth, but Cerulli Associates reveal that fewer than 20 percent of affluent investors retain their parent's financial advisors, underscoring a significant potential loss or opportunity.

To ready my firm for next-gen clients, I emphasize technology that boosts operational efficiency and client interaction. Investing in technology not only draws next-gen clients but also makes the firm more enduring and future-proof, ultimately resulting in higher valuations or a more robust business.

Finsum: Even millennials want a personal touch in their financial advice, but integrating technology will help you deliver optimally.

When selecting the best wineries to visit, the environment can play as crucial of a role as the wine itself. With over 400 wineries in Napa and Sonoma counties, up from just 25 in Napa during the 1970s, the region has seen a surge in tourism driven by Michelin-starred restaurants, luxurious accommodations, and unique wine experiences.

This intense competition has forced Napa Valley wineries to boost their offerings beyond standard tastings with luxurious experiences like sensory garden tours and private dining with Michelin-starred chefs. 

1. Stags' Leap Winery, the Napa landmark that was established in 1883, helped create the iconic AVA. The 240-acre estate offers extensive tours and features an Apothecary and Sensory Garden along with a Kitchen Garden, providing a rich historical experience.

1. Beaulieu Vineyard, renowned for its Georges de Latour Private Reserve Cabernet Sauvignon, offers experiences celebrating its nearly 120-year history, including the Cabernet Collector tasting and the Georges de Latour Legacy Experience, all set against stunning valley views.

1. Cakebread Cellars, family-owned since the 1970s, is a premier destination for both wine and culinary enthusiasts. Visitors can enjoy farm-to-table cuisine, cooking classes, and strolls through the estate’s culinary garden, with various seated tastings and tours to choose from.

Finsum: The serene views at these Wineries provided a much-needed respite for RIAs looking for a chance to decompress.

According to a white paper by SEI and FP Transitions, nearly 99% of independent financial services and advisory practices fail after the founder retires, so succession planning is not just survival but an opportunity for growth.

The paper found that although 32% of advisors claim to have a succession plan, only 17% have a binding agreement, highlighting the need for more actionable planning. But this plan helps gain new clients and encourage growth because many firms don’t have a strategy in place and can’t draw in new talent. 

Succession planning should focus on building a sustainable business that aligns with long-term goals, whether through acquisition or extending ownership. The white paper also notes that while 45% of advisors have a continuity plan, many intend to implement one soon, reflecting an increasing awareness of its importance.

Finsum: The current benefits of succession planning are growing and could improve practice performance today.