For RIAIntel, Holly Deaton discussed the findings of a research study which showed that often advisors are getting in their own way when it comes to growing their practice and effectively serving their clients.

In 2022, about 20% of financial advisors saw a decline in assets under management according to a study from Janus Henderson. The research also showed that many advisors are not being aggressive enough when it comes to asking existing or potential clients for new business due to the fear of being seen as too pushy. 

However, advisors need to move past these fears if they want to successfully grow their business. And, most advisors struggle with adding new clients and growing assets under management. In contrast, successful firms have a culture of growth and consistently take proactive steps to ensure a robust pipeline of future clients. 

In addition to these factors holding back advisors, only 30% of advisors have a business plan in place, while only 25% have marketing material that is targeted towards their ideal client. This is despite 93% of advisors agreeing that a business and marketing plan are essential to growth. 

Overall, advisors need to do a better job of aligning their actions with their goals. And, the key to accomplish this is overcoming psychological hurdles of appearing too pushy and spending less time on client service and portfolio management.

Finsum: Many financial advisors are falling short of reaching their business goals due to some psychological hurdles. For instance, advisors agree that it’s important to have a business plan but only a minority actually do.

Unless you can score a gig on, oh, say, MSNBC, as did a certain Donnie, developing a brand as a financial advisor isn’t exactly as simple as snapping your fingers. In fact, it can seem like the motherlode, according to lpl.com.

After all, there are myriad things that need to be nailed down, like choosing a name and landing on a brand logo. Compounding matters, if initiatives like these aren’t quite in your wheelhouse, well, it can be all the more daunting.

To find your mojo, below are a handful of basic steps:

1. Define your value proposition
2. Pick your DBA name
3. Develop a logo
4. Develop a Website
5. Execute with Consistency

Meantime, did someone say social media platforms? They can be leveraged by financial advisors to expand their business, according to mediaboom.com.

Advisors can share content that not only forges a community but can abet your ability to build trust with your audience. The trust of current and potential clients is gold to financial advisors, which is a good idea to foster considering you’re behind the wheel of the finances of others as well as their long term wealth.

Nickel and diming it? Not the global ESG Reporting Software Market. Uh uh. The bottom line tells the story: from burgeoning 0.7 billion last year, it’s expected to jump 1.5 billion by 2027, according to a new report by MarketsandMarkets, reported esgnews.com.

Among other factors, a leapfrog in the adoption of cloud-based solutions and services across verticals, as well as a spike in corporate data volume, are the most significant aspects fueling the acceleration of the ESG Reporting Software Market.

Meantime, not quite hitting the mark, you say?

While sorely needed transparency will emerge from a proposed European Union shake up of the ESSG ratings, it will fail to address the standardization indispensable in eliminating the scores causing confusion among investors and companies, according to some in the market, reported reuters.com.

The market for evaluating the ESG performance of companies? Its exploded. That’s because of the money socked into products marketed as sustainable by investors.

"By opting for transparency over standardisation, the EU's proposals are a promising blueprint, but they must go all the way," said Daniel Klier, CEO of data provider ESG Book.

Two of the most common ways to invest in real estate are through REITs or private real estate. While both have similarities, there are some key differences in terms of structure, liquidity, access, risk, and return. 

REITs are similar to mutual funds in how they are traded and valued. However, they must derive 75% of their income from real estate investments and distribute 90% of taxable income to shareholders. There are a variety of REITs that encompass the whole industry such as retail, commercial real estate, senior housing, multifamily, office, etc. 

Unlike private real estate, there is no end date, and they can operate in perpetuity. Private real estate differs from REITs in that they tend to be pooled investment vehicles that give investors fractional ownership. 

While REITs must abide by strict tax laws, there is no similar requirement for private real estate. Another difference is that private real estate tends to not offer income. Instead, their goal is to pool capital to acquire and develop a property, hold it for seven to ten years, sell it at a profit, and return proceeds to investors with the operators taking a cut. 

Finsum: There are many ways to invest in real estate. Two of the most common are REITs and private real estate. Here are some key differences between both options. 

In an article for Vettafi’s ETFDataBase, James Comtois reviews how direct indexing can solve complex financial problems for clients. The strategy is quite powerful as it blends the best parts of index investing with active management, however it’s only appropriate for a small group of investors.

One is high net-worth investors who are looking to reduce their tax bill. This is because direct indexing can be used to harvest tax losses with regular rebalancing. It also allows investors to capitalize on volatile markets. Frequent rebalancing is estimated to add between 20 and 100 basis points of alpha.

Another benefit is for clients with strong preferences. For instance, some investors may feel strongly about not investing in ‘vice’ stocks, so these stocks can be eliminated, while stocks with similar factors scores can be added. This is because with direct indexing, investors actually own the individual holdings rather than buying an ETF or a mutual fund.

Similarly, direct indexing can allow for diversification that goes beyond the index. For example, someone with a business in the tech industry may want to diversify their investments and holdings away from technology stocks. This level of customization is not possible with traditional index investing. 

Finsum: Direct indexing is quite powerful and growing in popularity. But, it’s only appropriate for a select group of investors with specific needs and goals.