As we approach the halfway point of the fall conference season, we’re noticing some themes that are emerging.
We love fall conference season. Whether exploring the latest advances in technology or meeting new advisors at a networking event, it’s exciting to learn more about the trends and dynamics that are affecting our industry.
At TradePMR, we’re dedicated to making wealth management better for everyone. Our product and practice workflows involve regular team check-ins, and our team members had a chance to visit with clients and colleagues around the country as they attended events in New York City, Las Vegas, Boston, Denver, and across the state of California (just to name a few!).
For those who couldn’t make it to any recent events, we’ve highlighted some of the themes that have popped up during the Fall 2024 conference circuit. Here are three ways that the industry is changing for the better today, as well as a common pitfall that advisors would do well to sidestep.
New Faces at the Career Fair: Financial Advisors
With demand for wealth management services growing and trust in financial institutions approaching all-time highs1, the advice industry appears to be in the midst of a growth spurt. Additionally, willingness to pay for advice seems to be accelerating, and a shift from commission-based models to fee-based ones is winning over new clients based on our experience.
Nevertheless, the number of new advisors entering the industry is “barely offsetting” the numbers of those who are retiring or leaving the business.2
Financial advisors are in a unique position to positively impact the lives of their clients. As they increase their visibility, they’re helping illustrate the viability and rewards of the profession they’ve chosen.
Alongside the encouragement of industry veterans and insiders, it looks like academic institutions are also bolstering programs designed to train the next generation of talent, produce a sustainable source of fresh ideas, and, hopefully, ignite an inextinguishable entrepreneurial spirit.
Customization and Personalization Keep Clients Happy
Advisors who take the time to align their advice and their clients are finding success.3 Equipped with deep knowledge of client needs — and the ability to service specialized demands — advisors are fostering loyalty and providing an emotional connection with their clients.
It’s hard to be everyone to everybody, and it’s also not always necessary. Time and again, we’re hearing of the importance of identifying and serving an “ideal” client persona. It’s helpful in developing business strategies and efficiently sourcing new leads, as well as seemingly making it easier to provide top-level service to existing clients.
Financial Literacy in the Classroom
Our entire industry benefits when investors are more educated and better equipped to handle their finances, which is why we’re enthusiastic about renewed attention to financial literacy programs.4 Mistakes and poor financial decisions cost an estimated $1,506 per person, annually, in the U.S.,5 with financial ignorance contributing to bigger debts, more costly transactions, and less savings for retirement or other major expenditures.6
Highly skilled, locally engaged advisors can be uniquely positioned to help educate the next generation of investors. “I would like everybody in this profession to consider or even invest in…financial literacy,” said industry veteran Mark Tibergien, on a recent podcast. “This would mean adopting their local school, or adopting the school that they went to, to ensure that some level of personal financial education is provided to the individuals who go to that school, whether at high school or elementary school. I think that this is critical for the future of our country.”
Avoid Stagnancy, Keep on Growing
Just as stale financial advice is unappealing; business owners unwilling to hone their management skills or refine their strategies are finding themselves out of sync with today’s marketplace. Leadership, like any ability, is one that must be tended and rejuvenated.
Good advisors can be prone to automatically assuming that they’ll be good business operators and leaders, without accounting for the time and effort it takes to develop those skills.
Managing people is different from managing investments; allocating assets is different than allocating budget for the coming financial year. The best leaders in business know that technical abilities and strategic abilities are distinct core competencies. Approaching business ownership with a growth mindset and an openness to new ideas should keep everyone nimble and oriented towards success.
Laying the Foundation for What’s Ahead
The end of the year will be here before long. Stay tuned for more, as we launch new workflows, tools, and continue improving. At TradePMR, we’re dedicated to serving you, the advisor, and bringing you the best, RIA-focused custodial technology. Stop by and see us before the conference season ends and, to learn more, schedule a consultation today.
About TradePMR
For more than two decades, TradePMR has worked with growth-minded independent registered investment advisors (RIAs), providing innovative technology tools and support designed to transform their businesses. The privately-held brokerage and custodian services provider (Member FINRA/SIPC), based in Gainesville, Fla., works to streamline investment advisors' operations through comprehensive custodial, operational, and trading support. For more information, visit www.TradePMR.com.
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1 https://citywire.com/ria/news/investors-willingness-to-pay-for-advice-is-rising-cerulli/a2450629
2 https://www.barrons.com/advisor/articles/financial-advisor-next-generation-recruiting-intern-extern-programs-e3102220
3 https://www.financial-planning.com/news/financial-advisors-who-serve-a-unique-niche-find-specialization-rewarding
4 https://www.economist.com/united-states/2024/06/20/america-is-educating-a-nation-of-investors
5 https://www.financialeducatorscouncil.org/financial-illiteracy-costs/
6 https://gflec.org/wp-content/uploads/2015/11/3313-Finlit_Report_FINAL-5.11.16.pdf?x37292
Opinions herein are as of the publication date; they are not statements of facts and may include “forward-looking statements” which may or may not be accurate over the long term. Report includes candid statements and observations. Statements, opinions or forecasts are not guaranteed. Do not place undue reliance on forward-looking statements. The material has been prepared for or is distributed solely for information purposes
Trade-PMR, Inc., member FINRA/SIPC
