Displaying items by tag: wealth management

Thursday, 07 December 2023 07:52

Recruiting Tips for Financial Advisors

Having a strategy to acquire new clients is necessary for any financial advisory practive to grow and thrive. Yet, there are multiple paths to accomplishing this goal. Some examples are cold calling, digital marketing, in-person networking, etc.

 

While the tactics can vary, the principles are the same. This entails identifying your target client, figuring out your unique value proposition, and identifying the best medium to reach prospects in a way that is complementary to your personality.

 

It can also be helpful to spend more time with your existing clients. This will strengthen these connections and increase the chances of getting a referral. These types of referrals have a higher chance of conversion given a stronger foundation of trust. It’s also a reminder that the most important job of an advisor is to build relationships which can only be done by spending time with clients and prospects.

 

By making financial planning a family affair, you can increase your chances of serving the next generation. This will give you an opportunity to spend time and build a relationship with multiple family members which could ultimately be assets in terms of recruiting, retention, and finding leads. 


Finsum: There are many tactics when it comes to landing new clients for financial advisors. However, many successful strategies have some important principles in common. 

 

Published in Wealth Management
Tuesday, 28 November 2023 02:57

Implications of Advisor Demographics on Recruiting

A major consideration for many firms is the aging of financial advisors. It’s estimated that over the next 5 years, 25% of advisors will be approaching retirement age. This demographic reality means that recruiting will be a greater challenge and of even more importance. 

 

Similar to financial planning, effective recruiting means setting clear goals and identifying what your firm needs. This will ensure that your decisions and actions are in alignment with the long-term vision. 

 

When looking at which groups to target, some common pools to consider are interns and recent college graduates, emerging advisors, and paraplanners. In terms of finding the best candidates, it can be helpful to do some research on competitors to see what they are offering recruits in addition to understanding what prospective hires value. 

 

Many may not be familiar with the various opportunities and career paths of an advisor. Nor will they be familiar with how an advisor can have a meaningful impact on their clients’ lives so having some personal examples of helping clients and building relationships will be particularly useful. Many candidates also will want some visibility around how the business works, and how the progression will work in terms of professional development, compensation, responsibilities, and partnership opportunities.


Finsum: A major challenge for the financial advisor industry is that 25% of advisors are approaching retirement age. This means that effective recruiting is of greater importance and value.

 

Published in Wealth Management
Wednesday, 22 November 2023 02:49

Unique Marketing Ideas for Financial Advisors

Being a financial advisor certainly has its challenges due to the unique nature of the industry. One aspect of this is the difficulty of differentiating your offerings and services from your competitors especially when it comes to attracting new clients. 

 

This means that an effective marketing strategy is essential to long-term success. It can help in building a solid pipeline of prospects and increasing your conversion rate. There are many well-trodden templates that advisors can follow such as building a website or a newsletter. However, your marketing strategy can be more creative and go beyond these generic ideas.

 

Additionally, it can result in more chances of success if it’s something you enjoy, can be consistent with, and reflect your personality which will lead to a more authentic connection with prospects. 

 

Some of the more outside-of-the-box ideas include sharing ideas on online forums or message boards. Here, the key is not to make a hard sell but instead show your expertise. It can be valuable in building SEO visibility while creating a more genuine connection than other marketing channels.

 

Some other ideas to consider are direct mail marketing, hosting a client appreciation event, or sharing quizzes or polls on social media. The commonality of these marketing ideas is that you can experiment with different approaches, show off what makes you unique, and target your ideal clients. 


Finsum: Marketing is more important for financial advisors than most industries given that it can be difficult to easily differentiate services and offerings. Here are some out-of-the-box ideas to consider. 

 

Published in Wealth Management

At the DeVoe and Company annual M&A+ Succession Summit, LPL Financial announced an expansion of its liquidity and succession offerings for unaffiliated advisors. The program was initially started last year for LPL advisors who are eyeing retirement but still a decade away from actual retirement.

 

In essence, the program is designed to allow advisors to receive market value for their firm immediately, but they are required to commit for a period of time to support the next generation of advisors who would be groomed to take over the business. As an intermediary, LPL would buy 100% of the practice while the chosen successors would run the firm while participating in a 10-year ‘successor advisor’ program before fully taking over. 

 

This strikes a balance as it gives the current generation liquidity and full value for their business, while also setting up the next generation of advisors who may not necessarily have the capital to acquire a practice. According to LPL Executive VP of Strategic Business Development Jeremy Holly, “They’re not having to come out of pocket or take down a bunch of debt to take over. And the principal seller doesn’t have to take a steep discount to sell their practice to that next generation.”


Finsum: LPL Financial introduced a new program for succession planning. Current advisors would be able to sell to LPL but remain with the firm while the next generation is trained to takeover. 

 

Published in Wealth Management
Tuesday, 21 November 2023 02:22

Rollover Partnership Can Be a Win-Win Proposition

Financial advisors increasingly recognize the significant growth opportunities that rollovers from 401(k) plans represent. With more than $10 trillion invested in participant accounts, these plans offer advisors a considerable potential stream of new assets under management (AUM) in the coming years.

 

This potential is especially pronounced for advisory organizations that provide both plan advice and wealth management services. The recent trend of advisor consolidation and the push for firms to diversify their offerings means these organizations are in a prime position to attract rollovers from these retirement plans.

 

However, it's worth noting that some advisors have account minimums that may exclude smaller rollovers or prefer not to take on new accounts with low balances. Additionally, plan sponsors often prefer that all participants, not just those with larger balances, have the opportunity for rollover assistance.

 

This is where collaboration with record keepers comes into play. A successful example of such a partnership was recently highlighted on planadviser.com, featuring an interview with Ed Murphy, CEO of Empower. The article pointed out Empower's quarter-over-quarter growth in rollover capture. According to Murphy, this success was attributed to the firm's capability to service average accounts of around $100,000, which third-party wealth managers often overlook.

 

In essence, strategic partnerships in rollover capture can be a win-win, enhancing service provision to all participants while providing potential wealth management AUM growth for financial advisors and record keepers alike.


Finsum: Partnering with 401(k) record keepers on rollover capture offers advisors a win-win proposition.

 

Published in Wealth Management
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