Displaying items by tag: client management

Focusing on others can be challenging, as our brains are naturally wired to center on self-related thoughts and needs. Research by Shenbing Kuang highlights this tendency, showing that our attention defaults to self-focus, which can hinder effective communication, especially in client interactions for financial advisors. 

Self-focus is linked to activity in the medial prefrontal cortex, while focusing on others activates a different brain area, the temporoparietal junction; however, the prefrontal often dominates, drawing us back to self-related concerns. 

Advisors can counter this bias through mindful awareness and empathy, training themselves to recognize inward shifts and refocusing on clients' needs. By consciously practicing empathy and active listening, advisors can enhance their client relationships, building trust and understanding.

Finsum: This is a great way to focus on personal growth as an advisor and find a way to form deeper connections with clients. 

Succession planning remains a critical yet often overlooked issue in the financial advice sector, with a substantial portion of advisors nearing retirement. A recent Cerulli report highlights that nearly 40% of advisors, representing over $11 trillion in assets, plan to retire within the next decade, underscoring the urgency for succession strategies. 

Advisors without a clear plan risk devaluing the business they’ve built, while thoughtful succession planning can help protect and even enhance this value. Cetera has assisted in numerous advisor transitions and acquisitions, providing advisors with resources to prepare for both anticipated and unexpected exits. 

Proper succession planning ensures continuity, whether through expected retirement or unexpected events like disability, safeguarding both the advisor's legacy and family’s future. 

Finsum: Strategic succession plans prioritize choice, flexibility, timing, and control, helping advisors smoothly transition.

According to new research from BNP Paribas and Coalition Greenwich, investors are increasingly focused on strategies that drive both growth and positive societal impact. Thematic investing, which identifies long-term trends related to technology, demographics, and sustainability, has gained popularity, with 63% of respondents prioritizing impact and sustainable outcomes. 

Thematic strategies are especially appealing in areas like artificial intelligence, clean energy, and water management. European investors are leading in the adoption of these strategies, with participation growing from 46% to 61% since 2020. 

Themes like gender diversity, demographic inequalities, and mobility are also gaining attention. As the economic landscape evolves, thematic investments are becoming a preferred way for investors to align their portfolios with future trends.

Finsum: Thematic investing can be a wonderful way to connect with clients, and to dive deep into their interests in the portfolio construction

Advisors aiming to strengthen relationships with younger affluent investors may want to enhance their AI knowledge, as a new survey suggests. Conducted by Boosted.ai, the survey found that younger high-net-worth (HNW) individuals are increasingly incorporating AI into their daily lives and expect their financial advisors to do the same. 

With 82% of respondents describing themselves as AI-proficient and 56% using it regularly, many are looking for advisors who integrate AI into their services. In fact, 35% of younger HNW individuals would consider leaving their current advisor if they aren’t adopting AI. 

As a generational wealth transfer looms, adapting to the preferences of tech-savvy clients becomes critical. However, the survey also reveals concerns about AI, particularly around data security and regulation.

Finsum: This is a huge shift in adoption of this technology and advisors might want to integrate this into their practice for new client adoption.

Parkwoods Wealth Partners LLC has recently launched a new platform aiming to support registered investment advisors (RIAs) with their growth and succession planning. The platform has integrated its first partner, FMF&E Wealth Management, a Syracuse-based RIA managing approximately $358 million in assets. 

Founded by industry experts including Al Sears and Ed Edwin, who have deep connections with Dimensional Fund Advisors (DFA), and Chris Gardner, formerly of FMF&E, Parkwoods plans to scale nationally. The firm is designed to help advisors maintain their independence while benefiting from centralized services like compliance and trading. 

This model provides a pathway for long-term continuity and succession, focusing on maintaining professional autonomy. Parkwoods is actively looking to partner with RIAs that value evidence-based investing and a client-focused approach.

Finsum: Leveraging all the tools at your disposal can allow you to optimize your succession plan.