In real estate, you might have heard, it’s location…location….and well, yeah.

Now, in financial services, the client calls the shots: their needs, wants. location, where they’re headed and who they can refer on their way there rule, according to usnews.com. Financial advisors have to know their stuff – and more – in the art of generating new clients and engaging those who are already onboard.

One component of an adviser’s role is boosting the knowledge of clients when it comes to gaining a sense of what it takes to meet their goals, according to business owner Vanessa Bester, reported thinkadvisor.com.

How, you might ask? By lending a hand with debt financing or wealth management. Guidance and financial management services like investment management, budgeting and insurance all are in a financial advisor’s wheelhouse.

A financial advisor should pinpoint their niche by homing in on what they do well, their skill set and knowledge. They’ll rise above the competition with a niche. And darn their your expertise might  resonate – and loudly -- among prospective clients.

Growing a financial advisor practice is a challenging but rewrarding journey. It will force you to build new skills and marketing yourself in order to find the best clients. In an article for SmartAsset, Rebecca Lake CEFP laid out four key steps for advisors to grow their business.

The first step is to determine who is your ideal client and what niche will you be serving. Specializing in a particular segment will lead to more expertise and trust, leading to longer-lasting relationships and a more sustainable practice. It will also lead many people to seek you out, because they will find greater comfort.

The next step is to write a mission statement. This will help clarify your values, priorities, and motivations. It should be shared with your prospective clients so they have an understanding of how you do business. Not only will it help with conversion, but it will screen out candidates who aren’t a good fit.

Another important step is to get involved in the community which will increase the visibility of your brand and create opportunities for connection with prospects. This also leads to face to face interactions which are often the most impactful.

Finally, advisors should also embrace digital marketing. Younger clients are likely to find you online and will also likely have read reviews. You should have a comprehensive digital strategy and utilize social media, a user-friendly website, and email marketing. You can favor the platforms where your clients are likely to be found.

Finsum: Growing a financial advisor practice can be challenging but rewarding. Rebecca Lake CEFP lays out 4 steps that advisors should take.

In an article for CNBC, Sean Conlon discussed some factors behind the rise in demand for fixed income ETFs. Despite some softening in the economy and in terms of inflationary pressures, the Fed seems intent on hiking by another quarter point at its next meeting. 

This is leading to juicy opportunities in the fixed income space which may not last if inflation does continue to trend lower or a recession materializes in the second half of the year. Additionally, current futures markets are forecasting that the Fed will be cutting rates by the end of the year. As noted by Vettafi, this dynamic is leading to inflows into Treasuries, corporate bonds, and high-yield bonds as investors look to lock in duration and yields.

Since the start of the year, there was about $45 billion in inflows into fixed income ETFs. Another factor behind this demand is the underperformance of traditional asset allocation models like 60/40. This is leading many investors to get more conservative and examine the fixed income space for opportunities.Until market stresses ease, demand for fixed income ETFs should remain elevated. 

Finsum: Fixed income ETF demand rose sharply in Q1. Given the Fed’s hawkish bent and current market conditions, this should persist.

Commercial real estate was facing serious issues at the end of 2021 due to the increase in remote work and changes brought about by the pandemic. This resulted in a situation of excess inventories amid declining demand. However, these issues have been exacerbated by recent bank failures.

In a MarketWatch article by Joy Wiltermuth, she covered a research piece by Lisa Shalett, the Chief Investment Officer (CIO) at Morgan Stanley Wealth Management, who warned that commercial property prices could drop by as much as 40% and even have negative effects for other parts of the economy. 

Shalett’s concern centers around the trillions of dollars of commercial mortgage debt set to mature over the next decade. And, the pressure is more acute in the current environment especially given high rates. 

In terms of the broader economy, Shalett sees collateral damage from offices at depressed occupancy levels in terms of the businesses and municipalities that rely on people working in the cities. In her opinion, the stock market’s performance in Q1 reveals that investors are being ignorant of these risks. 

Finsum: Morgan Stanley’s Lisa Shalett lays out some concerns over the commercial real estate market, why it could get worse, and its potential broader impacts on the economy.

In an article for Vettafi, James Comtois laid out some of the benefits of direct indexing for investors. Direct indexing has grown in popularity for certain investors because it leads to greater tax savings and customization than traditional passive and active funds.

In terms of taxes, direct indexing allows investors to sell losing positions and then buy back stocks with similar characteristics. Then, these tax losses can be harvested and used to offset capital gains, leading to a lower tax bill. 

Another beenfit of direct indexing is that it allows investors to have their personal values and preferences reflected in their investments. For instance, an investor may be uncomfortable with companies in a certain industry and can exclude them from being considered for investment. 

Many investors may also be in a unique situation such as having large exposure to a particular company due to stock options or family holdings. Direct indexing allows them to construct a portfolio that reduces this particular exchange, leading to a more resilient portfolio and financial situation.

Finsum: Direct indexing is growing in popularity as it offers some advantages of traditional funds. However, it’s likely not appropriate or necessary for most investors.