Charles Schwab To Launch Free ‘Robo’-Adviser Next Quarter

By Mason Braswell
Source: InvestmentNews

 

Launching its own online advice platform, Charles Schwab & Co. Inc. is aiming to make low-cost, web-based advice even cheaper in the latest development in the quickly evolving business, but some industry watchers say it could rankle advisers who custody assets with the firm.

 

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Experimenting With New Compensation Models

By Ellen Uzelac
Source: Research Magazine

 

In a new initiative, more and more advisors are turning to hybrid compensation models—a monthly retainer, say, paired with an AUM fee—in order to expand their client base. The move is being driven in part by next-gen advisors who want to offer financial planning services to younger clients who haven’t yet built up much in the way of investable assets.

 

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Best Practices For Buyers Acquiring A Financial Advisory Firm In A Seller’s Market

By Michael Kitces
Source: Nerd’s Eye View blog

 

As the average age of advisors creeps older every year, the industry has continued to predict an impending wave of advisors retiring and looking to sell their practices, leading to a massive buyer’s market for advisory firms. Yet thus far, data from FP Transitions suggests the number of buyers still outnumbers the sellers by a whopping 50:1, and the succession planning “crisis” has been little more than a mirage.

 

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How RIAs Can Compete With Super-RIAs, Robo-RIAs And The ‘Phono’- And Faux-RIA Market Of 2015 and Beyond

Source: RIABiz

 

BROOKE SOUTHALL (Editor-in-chief, RIABiz): What I want to do is essentially outline a history of competition to the RIA business. There is a sense now that there is a new age of competition that will threaten the independents who have a hammerlock on new assets, and they retain assets extremely effectively. They have more or less proven themselves against every channel. We’ll take a look for a minute how that came to be, the challenges that have followed the RIA business everywhere its gone, and then we’ll get to some of these new challenges and look at them in the context of its history.

 

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The Ongoing Crisis Of Advisor Differentiation: Once-Unique Value Propositions Are Now Advisor Table Stakes

By Michael Kitces
Source: Nerd’s Eye View blog

 

The essence of a unique value proposition is to answer the consumer question “what is the value that you offer, and why should I buy it from you?” In other words, what is it that you uniquely do that can’t be gotten anywhere else, unless doing business with you? In an increasingly competitive advisory firm environment, having a clearly defined unique (and compelling!) value proposition is essential to getting clients to do business with you and not someone else.

 

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Dan Seivert Drops M&A Data Bombshell At His Dealmakers Summit To Gasps

By Jason Lahita and Megan Carpenter
Source: RIABiz

 

There were a few gasps and heads were nodding assent. Acknowledgments were mumbled. The audibles and body language kicked into gear at the ECHELON Deals and Dealmaker Summit in Santa Monica last week as its principal, Dan Seivert, who started his career with law firm Skadden, Arps, Slate, Meagher & Flom LLP, got into appealing a case that he believes has been prosecuted for years with faulty evidence. The volume of M&A deal activity executed by RIAs — and buyers of them — has been wrongly documented, leading to a conclusion that an average of 47 deals were reported by the industry annually from 2004 to 2014 — or .02% of the total number of licensed advisors in the United States.

 

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The Five Biggest Ways Your Practice Needs To Change

By Bob Veres
Souce: Advisor Perspectives

 

Pundits and journalists make their living telling you that our profession is in a period of rapid evolutionary transition, and exhort you to be open to radical transformation. “You’re going to have to adapt to the new realities,” they proclaim. “The transitions are traumatic, and the old ways of working just won’t work anymore.” “It’s time to make some changes. Now.”

 

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Advisors, Show Your Value With Calculated Aggression

By Mark Tibergien
Source: Investment Advisor magazine

 

Elite advisory firms distinguish themselves in many nuanced ways. Recent research reveals the three key areas where Leading Firms made the right decisions over the past five years—decisions that helped them to truly stand out. “Mission Possible IV,” a study prepared in partnership by FA Insight and Pershing, outlines these important findings. FA Insight tracked the individual performance of advisory firms between 2008 and 2012, and then segmented the Leading Firms based on growth rate, profitability and owner’s income as a percentage of revenue. The top-performing firms grew revenue at twice the rate of their peers!

 

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The PIMCO & Gross Breakup: What Advisors Need To Know

By Paula Vasan and Andrew Coen
Source: Financial Planning

 

After more than 43 years at PIMCO, Bill Gross’s departure from the firm he founded has left advisors wondering whether their clients should continue with the “Bond King,” or stay with his old firm, now that the playing field has changed. Some advisors say that Gross, and his erratic behavior before leaving, hurt his credibility and PIMCO’s. Yet, many agree that he was instrumental to the firm’s success, and that without him, the fate of the PIMCO Total Return Fund is uncertain.

 

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Risk Tool Smackdown: FinaMetrica vs. Riskalyze

By Bob Veres
Source: Financial Planning

 

Let’s say about a year from now the S&P 500 were to drop 18% in one day, the result of a terrible Wall Street mishap. Over the subsequent three months, the index would give up just under 40% of its value. Naturally, I’d worry about how planning clients will react. One client who I’m especially worried about is, well, me. Will I panic and retreat to money market funds? Will I stoically remain on course? Or will I cackle with excitement and urge my advisor to throw all the chips on the table at the bloody bottom of the wreckage?

 

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