Displaying items by tag: clients

In a recent article for U.S. News & World Report, Cameo Roberson, founder of Atlas Park Consulting, offered six networking tips for advisors to get great results. Her first tip is to make a good impression to win prospects. She wrote that “Networking can happen when you least expect it,” which means it's important to be friendly, but not be too intrusive in determining whether a person wants to discuss their financial plans. Her second recommendation is to offer value to networking partners. She wrote, “Be a good resource and keep your word to people in your network. As time goes on, you'll build up a reputation as someone they can count on.” She also recommends normalizing the sharing of referrals by creating a system such as writing a note to share with colleagues that clearly describes who you'd like to be introduced to. Roberson also recommends growing your network through business partners. This includes developing a short list of firms that you have built relationships with. This creates a path to possible future referrals since some clients aren't a great fit for every firm. Her fifth recommendation is to build a clear strategy. Roberson recommends thinking outside the box and beyond traditional contacts such as accountants and attorneys. Her final tip is to move with intent and be consistent, meaning that you must implement any plan you create.

Finsum:Advisor consultant Cameo Roberson offered six tips for networking, including making a good impression, offering value to networking partners, normalizing the sharing of referrals, growing your network through business partners, building a clear strategy, and moving with intent and being consistent. 

If advisors are looking to build out their practice, they should look no further than Millennials and Generation Z. That is according to Fidelity, which believes younger investors represent substantial, long-term wealth potential. According to a recent report from Fidelity Institutional, population and wealth are significantly shifting to the younger generations, who now collectively represent 47% of the U.S. population. These findings came from the Fidelity Investments 2022 Investor Insights Study, which included 2,490 investors who were 21 and older and had household investable assets of $50,000 or more. Fidelity also offered recommendations on how to approach younger investors. For instance, advisors should create an ideal profile of the young clients they would like to work with. They should also engage with the children of their current clients as a way to retain assets when wealth is transferred. Financial advisors can differentiate themselves by becoming a coach and elevating the client experience with frequent check-ins and establishing and monitoring financial routines. In terms of gathering clients, Fidelity recommends that advisors refine their social media strategy to capture their attention, while also telling younger prospects what they do for the community and the causes that they care about.

Finsum:According to a recent study by Fidelity, advisors should consider reaching out to Millennials and Generation Z as they offer substantial long-term wealth potential.

According to a recent survey, market volatility is prompting advisors to actively grow their practices through digital marketing strategies. Broadridge Financial Solutions’ fourth-annual financial advisor marketing survey revealed that 63% of advisors are actively looking for new clients, while only 43% are seeing an increase in inbound prospect inquiries. Financial advisors from both Independent Broker-Dealers (IBDs) and Registered Investment Advisors (RIAs) continue to face challenges stemming from competition, increasing compliance, market volatility, and regulatory pressures. This has forced them to come up with new strategies to grow their book. Broadridge has found that one of the better strategies for advisors to increase their pipelines is by implementing digital marketing. Kevin Darlington, general manager, and head of Broadridge Advisor Solutions stated, “…digital media usage is a bright spot and continues to show upward-trending success, as advisors double down on digital strategies and maximize the use of websites, LinkedIn and Facebook to generate leads." The survey also revealed that the success rate of advisors in converting social media leads into clients has been increasing, climbing from 34% in 2019 to 41% in 2022.

Finsum:The current volatility, along with regulatory pressures, and increased compliance has spurred advisors to grow their books through digital marketing.

Last month, LPL Financial announced that it was acquiring Financial Resources Group Investment Services, an LPL branch office that supports financial institutions and advisors. The firm comprises approximately 800 advisors and serves approximately $40 billion of advisory and brokerage assets. Now that deal is paying off as LPL is adding another large team to Financial Resources. The firm was able to lure advisors David Rimkus, Donald Sharko, and Thomas Phelan to LPL and Financial Resources from LaSalle St. Securities. The three-advisor team rebranded its Orland Park, Illinois-based practice as Harbor Lighthouse Wealth Management. Harbor Lighthouse managed about $285 million in client assets at its previous firm and plans to use LPL as its brokerage, registered investment advisor, and custodian, and align with Financial Resources. Rimkus said in an interview that “The choice of Financial Resources enables Harbor Lighthouse to remain part of a firm more closely resembling the size of their prior midsize brokerage even as they became three out of the more than 21,000 advisors with LPL.” He also stated that “The need for technology enabling growth among new and existing clients and succession planning played a role in the move as well.”

Finsum:LPL's recent acquisition of Financial Resources Group is starting to pay dividends as another team of advisors that manages a combined $285 million in assets aligns with the branch.

Direct Indexing is expected to grow faster than ETFs, mutual funds, and separate accounts over the next five years and is poised to reach more than $800 billion in assets by 2026. This is according to The Case for Direct Indexing: Differentiation in a Competitive Marketplace, Cerulli Associates’ second annual report on direct indexing. The report, which was sponsored by Parametric Portfolio Associates, provides the first comprehensive analysis of how advisory firms are using direct indexing to address client needs. It revealed that assets in direct index products reached $462 billion in the first quarter of this year, growing at a 15% rate from the second quarter of last year. However, a recent Cerulli survey showed that only 14% of financial advisors are aware of and recommend direct indexing solutions to their clients. Cerulli expects that number to increase, resulting in direct indexing assets growing at an annualized rate of 12.3% as it becomes more mainstream. The report was designed to help advisors identify situations where direct indexing can help their clients. It examined seven real-world use cases by advisors, which included Tax-Loss Harvesting, Trimming Highly Appreciated Stock Positions, Planned Charitable Giving, and ESG Investing.

Finsum:According to a new report from Cerulli Associates, direct indexing is expected to grow 12.3% annually and reach $800 billion in assets by 2026.