Analysts at the research firm Aite Group have identified a list of trends they expect to reshape wealth management this year, including evolving fee models, a holistic approach to financial planning, artificial intelligence, advisor dashboards, and more. The “retirement calamity” is another issue analysts say will demand the attention of advisors and policymakers, according to an article at Financial Planning. See the link below. Also, advisory firm owners face a timing conundrum when hiring new employees: Do you hire early, or do you wait until there’s a true need? Joni Youngwirth at Commonwealth Financial Network notes that most owners prefer getting an early jump on recruitment, but nuances exist between hiring replacements, filling new staff positions and hiring new advisors. See her column at InvestmentNews below.
10 of the most disruptive trends in wealth management
By Kenneth Corbin
Source: Financial Planning
Will 2018 bring a collective embrace of the holistic financial planning model? How will heightened scrutiny from regulators weigh on fees and the delivery of retirement advice? What about robos and artificial intelligence? From regulatory changes to new technologies and approaches to client service, the Aite Group, a Boston-based financial services research firm, is looking ahead to a transformational year in the wealth management sector. Aite Group analysts have identified a number of prevailing trends they see reshaping the marketplace.
When to bring a new employee on board
By Joni Youngwirth
When is it time to hire a new employee? This is a common question asked by advisers. Should you hire early to prevent a crisis or wait to see whether an existing employee can take on extra work? Are things so dire that a new employee — and the related costs — is truly needed? Most experienced advisory business owners agree that it is preferable to hire before chaos breaks out. But there are some interesting nuances regarding the timing of making the new hire.
Independent broker-dealers had a busy recruiting year in 2017, accentuated by the movement of numerous reps from National Planning Holdings B-Ds after the announcement of a deal with LPL Financial. Financial Advisor talked with a large swath of B-Ds about their recruitment efforts last year and going forward. “All told, firms see another good year for recruiting in 2018—some are even a bit giddy about building up their ranks,” the publication notes. See the full story below. Also, in a column at ThinkAdvisor, Caleb Brown of New Planner Recruiting writes about how to avoid problems that can get in the way of a smooth recruitment search and interview process. One problem is setting expectations too high. “It’s going to be hard to attract an A+ candidate with a B+ opportunity,” Brown notes. Read the details below.
Broker-Dealers Seek Reps In Play
By Dan Jamieson
Source: Financial Advisor
This year looks to be another active recruiting year for independent broker-dealers—but beating the record results from 2017 may be tough. The growing diaspora of wirehouse brokers provided one source of recruits, while merger and acquisition activity provided another avenue. Firms saw good numbers of recruits coming out of the National Planning Holdings (NPH) B-Ds, as reps at the four NPH dealers evaluated their options following the August 2017 purchase of NPH assets by LPL Financial.
There Is a Method to the Hiring Madness
By Caleb Brown, New Planner Recruiting
When hiring, you should strive to be thorough and precise, but at what point does the process become a deterrent? Because the current demand for new advisors and planners is high and supply is small, you need to be prepared to make a decision and not worry about what other more qualified candidates might come later. Here are some other common causes that lead to an unnecessarily extended search and interview process, and how to avoid them.
Lower-fee retirement products save money for the average investor, but research shows that the majority of inexpensive products can carry added price tags such as sacrifices in quality and higher costs elsewhere, according to the author of a recent study called “The Efficient Investor.” Matt Fellowes, the author, told Financial Planning those higher, non-fee costs include higher taxes, stunted investment returns and reduced money from Social Security. Read more details below. Also, A Fidelity retirement savings assessment study shows that although Americans’ retirement preparedness has improved, half of respondents are at risk of not being able to fully cover essential expenses in retirement, ThinkAdvisor reports. See the complete story below.
Lower fees may not mean added retirement savings
By Sean Allocca
Source: Financial Planning
Advisors are adopting software and investment platforms geared to help them find the cheapest, low-fee retirement products for their clients — but that might not necessarily equate to added savings in retirement, new research says. Lowering investment fees by 100 basis points saves the average investor $40,000 by the time they hit retirement, according to the research, but the vast majority of cut-rate products will also sacrifice quality and may come along with higher costs elsewhere, says Matt Fellowes, CEO of United Income and an author of the study “The Efficient Investor.”
Americans’ Retirement Preparedness on Upswing: Fidelity
By Michael S. Fischer
American savers are in fair shape when it comes to retirement preparedness, Fidelity Investments reported last week. Fidelity’s biennial retirement savings assessment study showed that Americans’ retirement score had reached a record high 80, which means that the typical saver is on track to have 80% of the income Fidelity estimates he will need to cover retirement costs.