Displaying items by tag: recruiting

In an article for AdvisorHub, Karmen Alexander discussed the first 100 days of the new presidents of Merril Lynch, Eric Schimpf and Lindsay Hans. The duo have been hitting the road and personally meeting with the company’s roster of advisors, associates, executives, and investment professionals across major markets. 

They are also betting on a new growth strategy which dovetails with its parent company, Bank of America. Essentially, it comes down to discovering new talent and then investing in their training. And, it’s a major shift from its previous aggressive recruiting of brokers and advisors. 

Currently, it’s targeting about 200 new advisor recruits every quarter. In part, this is a response to the current attrition rate of 4% annually due to a combination of recruitment by competitors, exits from the industry, and retirements. The new trainees will also help to offload work and responsibilities from existing teams so that they can focus more on growing their business and serving clients. 

Merril is also offering incentives for advisors to pursue new clients. So far, it’s working as it saw a more than 100% increase in the number of new client relationships in the first-half of the year and a 150% increase in the number of net new households added. 

Finsum: Merril Lynch has two new presidents leading it. In their first 100 days, the duo have unveiled their new growth strategy for advisors and clients.

In an article for InvestmentNews, Steve Randall shares some insights from a recent study conducted by Dynasty Financial Partners of investors who work with an advisor and have at least $500,000 in investable assets. 

It finds that many wealthy investors seek out an advisor following a major life event such as a change in employment or inheritance. Interestingly, 57% end up working with the first advisor they meet. This is an indication that advisors should invest in efforts that increase their visibility especially among this set. 

One caveat is that while high net-worth clients are quick to choose an advisor, they are also prone to switching especially if they feel a lack of trust or generating value. For high net-worth clients under 45, 61% had changed advisors. 

Another finding from the research is that referrals remain an important source of new clients. About a little more than half of new clients come from family and friends with another quarter coming from a professional colleague. About a quarter of new business came from social media, blogs, or other online platforms. 

Finsum: A recent survey of high net-worth investors by Dynasty Financial Partners has some interesting insights for financial advisors.

In an article for SmartAsset, Rebecca Lake CEFP shares some tips on successful retirement planning for financial advisors. While advisors spend so much time and thought into their clients’ financial goals, they don’t do the same for themselves especially given the complications of succession planning. Additionally, advisors can maximize the value of their practice by taking some proactive steps.

The first step is to figure out your ideal outcome and then create a plan to achieve the goal. The earlier that you can start taking steps towards this goal, the higher your chances of success. This could mean thinking of how to transition the business whether that means selling to employees, the highest bidder, or passing the business on to your heirs, and how it will impact clients and employees.

The second step is to figure out the value of your business and to consider getting a professional appraisal. This will help you make better decisions so that you can ensure a successful transition. 

Finally, advisors have to consider their own personal financial situation that is independent of their business to ensure a comfortable retirement. This includes all the major components of planning such as retirement contributions, insurance, life insurance for family, budgeting during retirement, etc.

Finsum: Many advisors don’t spend enough time on their own retirement and succession planning. However, this is an increasingly important issue given the aging of the wealth management industry.

In a piece for FutureVault, Kristian Borghesan covers some important items that financial advisors need to consider for succession planning. This type of thinking is increasingly important given the boom of M&A in the space in addition to the aging of advisors in the industry.

Advisors want to ensure a smooth transition in their business to the next generation of advisors while ensuring that client satisfaction is not sacrificed. Additionally, both parties need to be aware of regulatory requirements as well as potential impacts on other employees at the firm.

The goal of succession planning is to ensure continuity of the business, retain clients, preserve the value of the practice, and transfer skills and expertise. Advisors and acquirers have a variety of options to choose from when it comes to structuring the transaction. Increasingly, many advisors are choosing to stay on as employees in a limited capacity to ensure a smooth transition. 

So much of the value of a financial advisor practice is due to the clients. Therefore, there needs to be a plan and transition period to ensure that relationships are successfully transferred to the new team. Some recommendations include joint meetings and a slow transition of responsibilities while maintaining active communication with clients during the transition process. 

Finsum: Succession planning is essential for advisors to ensure a smooth transition of their business and maximizing the value of their firm. Here are some important considerations.

In a piece for AdvisorHub, Karmen Alexander covers the latest developments in First Republic’s wealth management unit following the regional bank’s bankruptcy. The majority of the beleaguered bank’s assets were acquired by JPMorgan, but many of its financial advisors are choosing to move to new firms. 

Overall, the general trend seems to be that the advisors with the most assets are moving to an independent model. One exception is Mark Alibrandi and Stephen Alibrandi who are joining UBS’ Private WEalth Management unit, taking an estimated $1.5 billion in assets and a total of $5.1 million in annual production. Both Alibrandis had been with First Republic for over a decade and were ranked #8 by Forbers for best wealth advisors in Massachusetts. 

This move came on the heels of Shannon McAllister also exiting First Republic for UBS with around $1.3 million in assets earlier in June. While UBS is recruiting brokers in the New England area away from First Republic, NewEdge Wealth, a hybrid brokerage and advisory firm, was successful in recruiting John Froley in California. Froley was ranked as the #62 advisor in California by Forbes and has $309 million in assets under management.  

Finsum: First Republic was acquired by JPMorgan. Yet, many of the companies’ wealth advisors are leaving the bank for greener pastures.