RIA Central Digests for 09/16/2014

Sales & Marketing

 

Sometimes advisors don’t recognize their marketing “sins” until someone points them out. In a column at WealthManagement.com, marketing strategist April Rudin lists seven common sins that advisors commit, and offers pointers on how they can change their ways. The first sin: Aiming at everyone. Also, Abby Salameh, chief marketing officer for Private Advisor Group, has advice on how to walk that thin line between getting personal and too personal with clients, particularly because the Internet has blurred the rules. “Get personal — not private,” she writes. A link to her column at RIABizis below.

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Controlling Your Inbox to Boost Productivity

Email OverloadDoes this sounds familiar? Day after day (and year after year)emails pile up in your inbox – thousands of them (maybe even hundreds of thousands). And your inbox becomes a chronological filing cabinet for everything going on in your life and business – from the mundane to the trivial to the vital.

 

You hesitate to get rid of anything because you don’t know if you’ll need it later. You figure – what can it hurt? It’s just sitting there – electronically, right?

 

Actually, it can hurt your productivity – in a major way.

 

 

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RIA Central Digests for 09/11/2014

Regulatory/Compliance

 

“Soft dollars” raise red flags because of the potential for breaching fiduciary duty. Attorney Les Abromovitz, with National Compliance Services, details a recent SEC case involving sanctions against a broker-dealer that made improper soft-dollar payments to a registered investment advisor. The article is at InvestmentNews. Also, software companies have started developing products to help broker-dealers and advisory firms comply with heightened compliance demands. An article at InvestmentNews notes that software company Riskalyze, for example, has come up with a new platform called Compliance Cloud. A link to the article follows.

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RIA Central Digests for 09/10/2014

Practice Management

 

Mixing risk tolerance with risk capacity can create a muddled view of what a client wants — and should have — in a portfolio. Michael Kitces differentiates between the two types of risk, noting, for example, that just because a person has a high tolerance for risk, doesn’t mean he/she should take that risk. Read more in his post at Nerd’s Eye View. Also, if being “client-centric” means you are focused on all of your clients, then you may want to change that definition. An article at Financial Planning explains that you need to be focused in the “right” clients, and data in your CRM system can help determine who they are. A link to the story follows.

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RIA Central Digests for 09/09/2014

Sales & Marketing

 

When other professionals like the job you do for clients and they “click” with you, they’ll send wealthy clients your way, right? Not so fast. Those factors aren’t enough, according to a story in Financial Advisor magazine. Advisors need to offer direct and/or indirect financial incentives — preferably both — to earn referrals from others. A link to the article follows. Also, many investors have a hard time distinguishing one advisor from another because their value propositions sound so similar, a Pershing study notes. An article at ThinkAdvisoridentifies from the study the key ingredients of a stand-out value proposition. The first is to include these three promises: Tailored solutions to meet their needs, advisors working for the investors’ best interest, and experienced investment managers. Read about the other three elements in the article that follows.

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Advisor Profile: James Meehan

Firm Expands Assets by Recruiting Younger Advisors

James MeehanGet younger. That’s the formula embraced by James Meehan, managing partner of 1847Financial, a life insurance and wealth management firm in Conshohocken, Penn.that has grown its AUM to $400 million in three years, and is up an impressive 61% this year.

Meehan started 1847Financial, a Penn Mutual firm, in 2011 with seven advisors, and now has 80 full-time staff and advisors on his team, more than half of which are younger than 35.

 

A former Navy officer, and 20-year veteran wealth manager, Meehan recognized the need to recruit the next generation of advisory talent – as a growth strategy and as part of his team-based philosophy.
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RIA Central Digests for 09/04/2014

Regulatory/Compliance

 

FINRA has been taking a tougher stance on “high-risk” brokers and the firms that hire them, and industry observers note that it’s become harder for brokers — even those with a clean record, but who left a firm that had black marks — to find a place to do business. A story at Wealth Management elaborates on this industry trend. A link to the article follows. Also, increased scrutiny of fiduciary responsibility in 401(k) plans has spurred renewed interest in insurance policies that cover employers and advisors. A story at RIABiz examines the pros and cons of warranties and insurance policies in the 401(k) arena.

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RIA Central Digests for 09/03/2014

Practice Management

 

What characteristics make an advisory firm stand out from the pack? Bob Veres draws up a list of top differentiators that he believes give firms or advisors a competitive advantage, but he’s also looking for feedback on his preliminary conclusions. He suggests that the No. 1 differentiator is “a close relationship with your existing clients.” Do you agree? Read his column at Advisor Perspectives. Also, Todd Clarke of CLS Investments defends the high number of advisors who haven’t yet settled on a succession plan — because they plan on practicing well into their golden years. Findings from a study by his firm indicate that the average age that advisors intend to retire is 71. He talks with advisors who have taken different approaches to “retirement,” and notes that selling isn’t the only way to go. His column is at RIABiz.

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RIA Central Digests for 09/02/2014

Sales & Marketing

 

Why not try this cost-effective marketing approach: Offer a service or solution that prospects will pay for, and then upsell them to your “full solution.” Michael Kitces presents this idea in his blog post at Nerd’s Eye View and uses the example of offering an individualized Social Security analysis for a flat $200 fee. Even if participants don’t choose to work with the advisor on an ongoing basis, the advisor still gets paid for the limited solution –for marketing his/her expertise, in other words. Read the details below. Also, advisor Dave Grant, the founder of NAPFA Genesis, writes about some younger advisors (as well as a 70-year-old) who have leveraged the Internet and their own social circles to generate referrals. One advisor, for example, uses her writing skills to partner with content websites – and get her name out. The story is at Financial Planning.

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How to Market Your Business Like Neiman Marcus

A popular fashion blogger recently offered some marketing advice that can apply to any high-end business. The story goes that in the middle of the roaring twenties, Neiman Marcus devised a brilliant strategy to market its luxury goods to Texas oil and cattle millionaires.

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