Displaying items by tag: advisors

A recent survey reveals that 83% of advisors who switched firms in the past three years are satisfied with their decision, with many wishing they had made the move sooner. The primary motivations for these changes are improved technology and better compensation, as highlighted by 80% of respondents citing tech as a factor in their decision. 

Satisfaction is closely tied to the quality of the tech stack, with advisors emphasizing tools that enhance efficiency, attract clients, and improve work-life balance. Beyond tech and pay, advisors often cite inadequate support and administrative inefficiencies, such as delays in marketing approvals, as key pain points driving their transitions. 

Mergers and acquisitions also prompt advisors to reassess firm culture and alignment with their goals, particularly amid ongoing industry consolidation. 

Finsum: Firms looking to retain talent might focus on addressing tech frustrations, including better integration, improved client-facing tools, and AI-powered automation to boost advisor productivity.

Advisors nearing retirement often focus solely on finding the right successor, but switching broker-dealers can be a powerful strategy for a smoother transition. Aligning with a forward-thinking broker-dealer can attract a larger pool of potential buyers by offering advanced technology, competitive compensation, and broader recruitment options. 

This move can also position advisors to achieve a higher valuation for their practice, making the transition more financially rewarding. Though it may seem like additional effort late in a career, joining a progressive firm can simplify the process and enhance long-term outcomes. 

Succession planning isn’t just about finding a partner; it’s also about creating the optimal environment for a successful exit. Financial advisors should consider how changing broker-dealers could unlock new opportunities for a rewarding and seamless transition.

Finsum: As we approach one of the largest transition periods in American financial history, consider how your future broker can aid in this transition and provide additional value to your business. 

Switching to a new broker-dealer is a pivotal decision for financial advisors, impacting both their practice and long-term growth. Many advisors consider changing broker-dealers when their current firm no longer aligns with their goals or business model. 

Key factors to evaluate include payout structures, which balance competitive earnings with robust support services, and the technology suite offered for streamlining operations and client engagement. 

Advisors should also assess portfolio management flexibility, ensuring alignment with their investment strategies, and compliance support to navigate regulatory requirements. Transition resources, such as a dedicated team to assist with onboarding, can help minimize disruptions during the switch. 

Finsum:  Don’t forget cultural alignment and long-term growth opportunities in the transition.

Strive Asset Management has launched direct indexing services on Fidelity and Schwab platforms, reaching a broad retail audience. These services emphasize daily tax-loss harvesting and pro-shareholder governance, avoiding ESG or DEI constraints. 

Powered by Vestmark’s VAST technology, the initiative aligns with Strive’s anti-ESG philosophy, aiming to deliver superior financial outcomes for clients. CEO Matt Cole highlighted the unique value of Strive’s approach, citing frequent drawdowns in large-cap equities that offer tax-harvesting opportunities. 

Founded in 2022 by Vivek Ramaswamy, now a key figure in President-elect Trump’s administration, Strive manages $1.7 billion in assets. Its ETFs focus purely on financial returns, contrasting with ESG-oriented funds by voting against ESG shareholder proposals.

Finsum: ESG and DEI oriented funds will have an uphill battle against the trump administration. 

Transitioning to a new firm requires careful planning to avoid pitfalls that can jeopardize your move. Advisors should maintain strict confidentiality and avoid discussing their plans with colleagues, as even casual remarks can tip off competitors or managers. 

It's crucial to adhere to legal and regulatory guidelines, particularly when handling client information or navigating the Protocol for Broker Recruiting. Engaging the legal team of the prospective firm and potentially hiring personal legal counsel can help mitigate risks. 

Familiarity with the account transfer process is essential, requiring detailed knowledge of the necessary forms, procedures, and tracking systems to ensure a smooth transition. By preparing thoroughly and staying discreet, advisors can reduce complications and set the stage for a successful move.

Finsum: The notice period is different for advisors than the broader job market, so be aware of these pitfalls and consult an expert.