Home > Digests > Breakaway Digests > Financial Roundup: Practice Management, Breakaways, and Retirement Planning

Here is this week’s roundup of must-read news for financial advisors:

Practice Management

Inevitably, an advisor will reach a point in which his/her number of client relationships become unmanageable. And the process of transitioning clients to a new or associate advisor can be daunting, notes Michael Kitces in a post at his Nerd’s Eye View blog. He recommends a three-year process that follows three steps: Listen, Learn, and Lead. Read the complete post below. Also, advisors looking for a practice pick-me-up should take a look at Bill Bachrach’s column at Financial Advisor magazine. He suggests several ways to “make your own tailwind,” starting with “attitude.” Read the full column below.

How To Transition Existing Clients To An Associate Advisor
By Michael Kitces
Source: Nerd’s Eye View blog

Even with today’s technology tools, an individual financial advisor can only handle “so many” client relationships, until it’s just too many people to meet with, and too many people to keep straight in your head. At some point, every financial advisor hits a wall, where it’s necessary to either stop taking on clients altogether, or hire another advisor and begin transitioning some existing clients to free up room to accept more clients. Yet in a business that’s built on the foundation of the advisor-client relationship, the actual process of transitioning clients to another advisor can be daunting!


Having The Wind At Your Back
By Bill Bachrack
Source: Financial Advisor

Long-distance cycling has delivered many lessons that have contributed to me helping FAs run better businesses and live better lives. An obvious fact about riding a bike is that it’s easier to ride with a tailwind. The problem with this, of course, is that you don’t get better, stronger or faster riding with a tailwind. That usually comes by riding uphill or into a headwind or both. Where’s the fun in that, right? Don’t worry, this it not another “no-pain, no-gain” lecture! Instead, here are three things you can do to make your own tailwind. Each is guaranteed to contribute to your success and happiness in business and in life. When the real world is not giving you a tailwind, implementing these ideas will make it feel like you have one anyway.


Breakaways/Aspiring Advisors

If a prospective advisor is having a difficult time finding a position at a firm, the reason could be a lack of strong business development skills, writes Glenn G. Kautt, an adviser and principal of Savant Capital Management. In a column at Financial Planning, Kautt notes that at his firm, “every adviser is regularly involved in sales and technical training, using inside and outside activities and resources.” Read his column below. Also, recruiter/consultant Mindy Diamond describes the steps an advisor should take when given the dreaded news that they have been terminated. After taking a deep breath, Diamond suggests the advisor next call a trusted recruiter and then hire an attorney. Read her full list of suggestions in a column at WealthManagment.com, below.

How new advisers can get over the hiring hump
By Glenn G. Kautt
Source: Financial Planning

Why are some new planners having trouble finding a suitable job, even when there is a need for advisers at many firms? I’ve had entry-level CFPs repeatedly tell me they can’t find a position that allows them to use all of their newfound talents and skills. Yet their experience flies in the face of industry surveys that report a shortage of qualified planners — that is, those with real-world client experience who are right for existing or upcoming openings. So if there are truly few real professional jobs open to entry-level planners, why do these conditions exist?


Termination Is Not the End of the World
By Mindy Diamond
Source: Wealthmanagement.com

Too many times in the past year alone, I have been the recipient of a frantic call from a quality advisor who has just been terminated. In almost every case, what started off as a typical day quickly turned into a nightmare—a termination without notice and a security escort to the door. When that happens, advisors find their entire careers and relationships with their clients in jeopardy.


Retirement Planning

Retirement planning requires two-way communication, and an article at Financial Advisor offers some suggestions on what you need to ask your pre-retiree clients to help tailor a successful solution for them. One: “What will your basic expenses be?” Read the entire column below. Also, Americans’ knowledge of retirement planning is still not up to par, a Fidelity survey finds. Advisors can boost clients’ knowledge and help better prepare them for retirement by clearing up some of the misconceptions they have. For example, 74% of those surveyed underestimated how much the average person needs to save for retirement. (Answer: At least 10 times the amount of one’s last full year’s income.) More results are outlined in an article at ThinkAdvisor.

Three Things Your 60-Year-Old Clients Wish You Would Ask Them
By Dylan Huang
Source: Financial Advisor

Retirement advice is everywhere these days: “save $1 million,” “plan to replace 80 percent of your pre-retirement income,” “invest in target date funds,” or “systematically withdraw 4 percent of your assets.” Is it possible that all of this guidance can be right for everyone? Maybe. But these are broad guidelines. In order to deliver real retirement security to the masses, we have to recognize that an individual’s needs are multi-dimensional, complex, personal and can’t always be solved by a simple rule of thumb.


8 Things Most Americans Don’t Know About Retirement
By Michael S. Fischer
Source: ThinkAdvisor

In an effort to understand Americans’ knowledge about retirement planning, Fidelity Investments conducted a first-ever Retirement IQ Survey in December. The response was not encouraging. Many, including those 55 or older, missed the mark on key retirement questions, and adhered to several myths and misconceptions that could be holding them back.


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