Financial advisers can sometimes struggle to communicate the total value of advice to prospective clients - particularly in the face of concerted campaigns around industry super, index funds and emerging low-cost Robo advisers. However, a new report by Russel Investments has made it easier for advisers to create a clear, credible and attractive client value proposition that they can use to promote their business.
A thriving financial advice business looks very different today than it did only a few years ago. Increasingly stringent regulations and higher client expectations have left traditional advice firms struggling to make headway - with thousands exiting the industry. Interestingly, advisers prepared to adopt a modern financial planner business model are quickly filling the void and boosting their profitability at the same time.
The COVID-19 pandemic has upended world economies, bringing with it sweeping changes in the way money is managed. Strategies that worked well to generate wealth in the past are likely to bring disappointing results in the years ahead, making it vital for financial advisers to adjust how they approach portfolio management.
Being in lockdown can bring feelings of uncertainty and despondency, but taking advantage of the imposed downtime to work on your advice business may help instil hope and position your firm for a brighter future once the pandemic is behind us.
A market correction can spell disaster for a financial planning business. Time is lost calming clients’ nerves rather than building your business, some clients may even leave after seeing their capital shrink and your income may plunge along with the market. But this is not true for all financial planning firms; some businesses thrive during weak market conditions, which provide them with an opportunity to demonstrate their value.
