Measuring the Quality of an Advisory Firm
We’ve all gritted our teeth whenever one of the trade magazines comes out with a list of the “top” wealth management firms, ranked from “top” to “bottom” based on the absolute least meaningful way to measure the quality of an advisory business: their AUM. The goal of such lists should be to identify those firms that are best at serving their clients and are managed in a healthy and sustainable way. Here’s a way to rank firms that achieves that goal.
Five Big Ideas to Gain an Unfair Competitive Advantage in 2020
Let’s look here for a handful of unfair advantages to gain over the competition in 2020. These are things that are not hard to implement, which will help you become more efficient, gain new clients or stand out from your peers.
Two Opposing Views: Will the CFP Board Survive the WSJ Expose?
On July 30, on its front page, the Wall Street Journal reported that it had compared 72,000 profiles from the CFP Board’s “Let’s Make a Plan” website against FINRA broker-check complaints, including criminal and regulatory problems, and found that approximately 6,300 CFP profiles omitted those complaints. Most disturbingly, there were 140 CFPs who faced or currently face felony charges. We speak with two experts who have very different views on whether the CFP Board can still serve the advisory profession and,if not, what its future should be.
The Interview Questions That Only Outstanding Job Candidates Can Answer
Dr. Suzanne Peterson delivered a keynote presentation at the NAPFA spring conference, and Bob discusses her penetrating insights about the unconventional questions advisors should ask to select for exceptional new hires. Bob also tells us what he really thinks about Reg BI - and what is in store for attendees of his upcoming conference.
Survey Results - RIA Capacity and Segmentation Practices
CANAM Research surveyed over 300 RIAs on their capacity and segmentation practices. Join this webinar for the survey results and to learn the key takeaways from three distinct vantage points:
Bob Veres is an editor and publisher of the Inside Information service for financial planners, monthly columnist for Financial Planning magazine, and author of The New Profession, a new book about the future of the financial planning profession.
Lisa Rapuano, CFA, is a financial services executive with over 25 years experience analyzing businesses and investing in technology. She spent 10 years of her career at Legg Mason managing the top decile $4 billion Special Investment Trust and for 10 years after that she managed hedge funds.
Brent Weiss CFP®, ChFC® is a co-founder and the head of planning for Facet Wealth. He has over a decade of experience as an investment advisor and financial planner for high net worth individuals. As a former principal at an independent wealth management firm, he will examine the results through the lens of an advisor who's been through the generational transition underway in the industry.
A New Way to Charge Custodial Fees
If you’re looking for something new to worry about, imagine how it would impact your firm if the independent custodians were to decide that instead of charging your clients a variety of fees for their services, they would charge you an asset-based fee that would cover everything. The custodial costs would suddenly come out of your pocket.
The (Un)certain Future for Small Advisory Firms
Behemoths like Amazon and Uber have transformed industries, putting smaller competitors out of business. Could the same fate await smaller financial planners? Many analysts have predicted massive consolidation in our industry, resulting in a landscape where a few “Goliaths” make it impossible for the small “Davids” to compete. Is this thesis accurate and, if so, what should advisors do to protect themselves?
Four Books That Will Change Your Professional Life
This has been an unusually fruitful season for books for and about financial planners. Four absolute masters of the financial planning universe have published books that add to your chances of success as you grow your business and career.
The Future of the FPA, the CFP Board and the Organizations that Run the Planning Profession
Last month, I asked readers of Advisor Perspectives to help me think through some complicated issues regarding the future of the profession. Should the professional associations (like the FPA and NAPFA) consolidate in order to create more scale and unity, or should we maintain a healthy competition between them? Today we look at the responses I received.
Who Shall Rule the Planning Profession? Competition versus Consolidation
If there’s one topic that is guaranteed to stir up passions in the financial planning/advisory profession it’s consolidation of associations and credentials. Consider some of the issues that are being debated today.
Three Emerging Trends That Are Upending Our Profession
Last year, I made a number of bold predictions about how the advisory profession is evolving, and what firms are going to have to do to stay ahead of the curve. How have my predictions held up? Here are three transformations that will force every advisory firm to adapt.
The Tech Landscape: Results of the 2018 Technology Survey
The 2018 Software Survey, conducted by Advisor Perspectives, Joel Bruckenstein at T3, and my firm, Inside Information, offered by far the most comprehensive data on the advisor tech landscape ever collected. In all, we received 1,554 useable responses, representing firms very small to very large, across a broad spectrum of experience in the business.
Eight Rules for Developing the Next Generation of Leaders
According to Philip Palaveev, the most successful firms have the most talented and competent advisors and support staff. This doesn’t happen by accident. These firms are better at developing the skills of younger advisors and staff members. Here’s how they do that.
What’s Behind the Anti-Fiduciary Mindset?
In case you missed it, on September 7, APViewpoint hosted one of the best debates ever regarding the fiduciary standard and the DOL rule. It was notable because unlike most of what you’ve been reading, it covered both sides of the topic, and the debaters forced each other to provide deeper rationales for their beliefs. Here are my key insights, particularly those that illustrate the thinking behind the anti-fiduciary mindset.
The Five Points that Belong on Every Advisor’s Website
Shouldn’t clients be able to look on a financial planner’s website and see what services they can expect to receive for the fees they expect to pay? Shouldn’t the profession evolve a pricing model where people who do more for the client can charge more, and those who do less will charge less?
Seven Surprising Insights about Advisory Fees
I asked the readers of my Inside Information service, members of the Advisor Perspectives community, and others, to tell me how they were charging their clients, and how much. The most interesting conclusions related to a key question that has arisen from the DOL Rule: what is a “reasonable” AUM fee to charge clients?
DOL Fiduciary Compliance Part II: The most comprehensive solutions for RIA firms
Let’s look at a couple of new tools that give you an integrated solution to DOL fiduciary compliance. Are you recommending a superior asset allocation? Are you recommending better investments in the IRA than the client previously owned? Is the IRA’s all-in cost lower than the plan sponsor’s offering, and if not, are you offering more services than the plan sponsor was offering?
New Tools to Prove You Acted as a Fiduciary
This article, the first of two parts, is a review of some of the more prominent new tools that advisors can lean on as they prepare for the full DOL rule implementation on April 10. Each of them addresses a different aspect of the rule, and they all approach it from different angles.
A Seven-Step Plan to Transform Your Practice
Advisory firms face a daunting challenge as they prepare themselves for the latest version of the future. They will have to retool their service offering for a new generation of clients (aka Millennials), who have very different preferences, different advice needs and far more digital sophistication than your Baby Boomer clients ever had.