Related Posts
Bowl Leader
Conversation Starter
More Posts
Additional Posts in Financial Advisors
Booyahh, landed hedge fund number 2 for IPOs.
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
I used to focus more on planning and held myself out as such. The last four years I've really just been the investment guy, planning was much more fulfilling in my opinion. I plan to start the CFP next month. I have lost clients over their returns. Conservative clients only being up 7% last year (when they came from cash) apparently wasn't good enough for them. Leading with returns, imo, is too hard because despite what anyone claims you have no control over that aspect. Planning seems to be a better leg to lean on, but at the end of the day is more often than not just a sales tool and much less about planning and more just about gathering aum.
I am more of a financial planer. I basically explain there are two ways that value is added in a portfolio:1. Making sure the asset allocation(Financial Planning): tax effect and liquidity is inline with your goals - ONLY a planner can do that. And I cite vanguard that on average that adds 3% of risk free alpha a year. I'm consistent, predictable and you know that the value I bring is appropriate for your plan, and you get that same value in every environment.2. Security/Sub-Class Selection(Investment Management): - The very best in that arena will not talk to you. The very best are highly institutionalized and only talk to guys like me who will put $10 MM+ with that one manager. At most you're a potential $500,000 account (or whatever) ... whoever is talking to you sucks.(whoever is talking to you.. as a security picker.. the financial planners talking to you are fantastic ;) )
I believe I have at least not won accounts because I'm not more of a planner. As many of you know, Jones has always had an investment first, planning second mentality. I believe they are trying to switch that. I can say without a doubt that we have a couple of people in our region who have proven to the rest of us that the formalized planning approach wins more clients than just the investments. As one of them likes to say "Investments are a dime a dozen and you can get them anywhere." Both of them have a very strict process they utilize with their referrals and their existing clients. Both of them bring in tons of assets every year. I think our top guy has already brought in something like $13 million YTD. He brought in over $30 mil net new assets last year. I'm attempting to switch my practice to a planning one. It's not an easy switch to make with existing clients.
I pitch that I know what I am doing. If someone is meeting with me, there is a reason. I then let them tell me what they are looking for, and then I show them what I do, and let them choose how they want to work with me (wealth, planning, investments). If I had to say one or the other, I'd go the planner route because I charge more for it and it has greater mass appeal. If you want only investment advice, great. I still get paid and don't have to do as much work.
I present myself as a life management advisor and tell my clients anytime they have something to do with money they should call me
Waddle and Reed! Wow I love that positioning. I’m stealing it! Thank you