In the realm of financial planning, the choice of investment approach is a critical factor that can determine the success or failure of a business and the financial well-being of its clients. The risks associated with an erroneous investment strategy extend beyond mere financial losses and can have profound implications for the reputation, legal standing, and client relationships of financial planning firms.
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.
When prospective clients ask why they should choose your advice firm over another, are you able to provide them with a compelling reason that clearly makes you stand out from the competition?
There are tremendous benefits available to financial advisers and their clients by linking portfolio management directly to client goals.
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.
Are you looking to service more clients efficiently, while still meeting each individual's unique investment needs? A Managed Account can do just that, leaving you with more time and resources to nurture your business.
The financial advice industry is in flux. Clients are increasingly aware of what constitutes quality financial advice and are seeking highly personalised and transparent services. At the same time, new industry standards are driving up compliance costs, putting traditional financial advice models into question. While this has led some firms to exit the industry, others see the changes as an opportunity to evolve their business in order to remain competitive and even boost their profitability.
