Formal Business Plans Portend Adviser AUM Growth, Survey Shows

By Liz Skinner
Source: InvestmentNews


Financial advisers who create and follow a written business plan are more likely to boost assets under management faster than those who do not, a new survey shows. Creating a documented business plan, however, has proved an elusive task for most financial planners.


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Using Kolbe, MBTI, & Other Personality Profile Tools To Advance Your Career As A Financial Advisor And Help Build Your Advisory Team

By Michael Kitces
Source: Nerd’s Eye View


Being a financial advisor is complex, whether in an employee role working with clients, or as an entrepreneur building an advisory firm. Success requires drawing on a wide range of strengths and talents, to the point that as an advisory firm grows, it’s eventually necessary to hire more people and build teams to round out the services provided and ensure that everything is getting done that needs to be done.


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To Ensemble Or Not To Ensemble

By Philip Palaveev
Source: REP. (Wealth Management)


While outright acquisitions and deals get all the media attention, mergers are quietly transforming the industry. At the time you read this, thousands of advisors are negotiating the combination of their practices with others in order to create scale, leverage each other’s skills, gain resources, and tackle succession. Perhaps the fastest and best way to grow into a bigger firm is by merging with another business.


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Veres: How To Survive Big Market Shifts

By Bob Veres
Source: Financial Planning


Advisor Dennis Stearns of Stearns Financial Group in Greensboro, N.C., is a heavy dabbler in scenario learning — the process by which corporate leaders combine possible wild card events as a way to identify future scenarios that nobody is expecting, and then plot out how they would respond. The classic example is Shell Oil in the 1970s, which used the process to determine in advance how the company might turn to its advantage such strange futures as a major oil supply disruption, an unexpected market glut or — as actually happened — OPEC nations banding together and demanding dramatically higher market prices for the crude that was being pumped out of their soil.


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Dos And Don’ts For Year-End Tax Planning

By Christine Benz
Source: Morningstar


You sometimes hear that you should conduct your portfolio maintenance–checkups, rebalancing, tax-loss harvesting, and so forth–at year-end. But in reality, waiting until late December is apt to be too late if you’re aiming to minimize your tax bill. You may lose your chance to act pre-emptively to avoid capital gains distributions from your mutual funds, for example. And the longer you wait, the more you court the risk that you won’t conduct these year-end portfolio maneuvers at all. After all, December is often a busy month, period.


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Don’t Let Clients Take Their Passwords To The Grave

By Jane Wollman Rusoff
Source: ThinkAdvisor


Greek mythology depicts the Ages of Man: The Golden Age, Silver Age, Bronze Age, Iron Age. The Digital Age, on the other hand, is far from mythological. Indeed, the digitalization of wealth brings up all sorts of estate-planning issues, not the least of which is that digital assets you think are yours to leave to loved ones may not be yours at all.


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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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