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. 

Private equity payouts to investors have significantly dropped, with firms cashing out only half the usual value of investments in 2024, marking a third consecutive year of declining returns. Rising interest rates since 2022 have hampered deal-making, leading to difficulties in selling assets at favorable prices and creating a $3 trillion backlog of ageing deals. 

Innovative approaches like continuation funds, where firms sell stakes between their own funds, have gained traction but remain a partial solution. Skepticism persists among investors regarding whether firms can achieve valuations close to those recorded during the investment boom of 2021. 

Many assets are now seen as overvalued, with sales often happening at a discount of 10-15% rather than the traditional premium. 

Finsum: With falling rates and expected increases in mergers and acquisitions, private equity could have a strong turnaround in 2025

Interval funds are gaining traction as a compelling investment option, offering high yields and access to exclusive asset classes like private equity and credit. These funds operate as a hybrid between open- and closed-end funds, allowing investors to purchase shares anytime but limiting redemption opportunities to specific intervals, such as monthly or quarterly. 

While their appeal lies in diversifying portfolios and enhancing fixed-income returns, they come with notable downsides, including high fees that often exceed those of traditional mutual funds or index funds. 

Another concern is the limited track record of many funds, making it harder to evaluate long-term performance or compare strategies effectively. Additionally, the valuation of illiquid assets within these funds can mask underlying risks, as daily net asset values may not reflect real-time market conditions. 

Finsum: Investors, interval funds can be a strategic complement to a portfolio, but careful consideration of liquidity, fees, and transparency is essential.

The Fed’s recent rate cuts are reshaping the landscape for fixed annuities, bringing both challenges and opportunities for investors. Fixed annuities, which offer guaranteed returns unaffected by market fluctuations, remain steady for existing contracts but may see reduced rates for new purchases in a lower-rate environment. 

This could lead less risk-averse investors to consider alternatives like variable annuities or registered index-linked annuities for potentially higher returns. Despite these shifts, the core appeal of fixed annuities—income guarantees and stability—remains intact, making them valuable for conservative financial strategies. 

Rate cuts, while altering some dynamics, do not diminish their long-term benefits, such as tax deferral and customization for individual goals. 

Finsum: Advisors need to be aware of how the different annuity structure is affected by the various interest rates cycles, in order to serve clients.