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The Solo Financial Advisor Is Not Just Surviving, But Thriving, By Serving The Mass Affluent!

Practice Management

Bigger isn’t necessarily better (or more profitable) when it comes to RIAs. Solo advisors “are some of the most financially successful and profitable advisory firms out there,” notes Michael Kitces after sifting through the results of two recent benchmarking research reports. Another finding: the bulk of those solo advisors are serving the broader mass affluent. Read the details in his post at Nerd’s Eye View, below. Also, family members are often tapped as client by newbie advisors, but the relationship can be problematic. “Family member clients are a double-edge sword,” says Peter Blatt of Blatt Financial Group, quoted in an article at REP. But Blatt offers five rules for handling family members as clients that help ensure an amicable relationship. See the article below.

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The Solo Financial Advisor Is Not Just Surviving, But Thriving, By Serving The Mass Affluent!

Posted by Michael Kitces           Source: Nerd’s Eye View blog

The ‘popular’ view of the world of financial advisors these days is that we’re all in a collective race for size and economies of scale, because only the largest can survive and everyone else is doomed to a world of declining profit margins as the overhead costs of running an advisory firm grind their income down to nothing.

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When Family Members Are Clients

By John Kador                 Source: REP. (via WealthManagement.com)

Quick. Who was your first customer? If you’re like many in the financial services industry, it was likely someone in or close to your family. “Work your warm market” is the mantra for newly minted financial advisors. And what market is warmer than family? They are the most accessible and usually have an interest in supporting your success. They may feel that, as family, you will be more trustworthy and treat their investments with a heightened sense of care and protection. Or maybe they just didn’t know how to say no to you.

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