Byallaccounts Blog Feed

Five Tips on Giving Back to Community and Growing Your Business

Fri, 25 May 2012 00:00:00 +0000

Ways to give back to community include volunteering, being on a board or supporting your local sports team. As advisors, it is common to be asked to be treasurer or on a finance committee, as your expertise lies with numbers. Community activities will benefit your business by developing solid, trusting relationships. Five tips on giving back to community and growing your business are:

Morgan Stanley Advisors 50+ Win with Social Media

Thu, 24 May 2012 00:00:00 +0000

A top Morgan Stanley Smith Barney compliance officer said recently the company has been surprised to discover that its financial advisors in their 50s and 60s were achieving more success in the use of social media than younger advisors.

5 Ways to Get More Referrals from CPAs and Estate Attorneys

Tue, 22 May 2012 00:00:00 +0000

Accountants and estate attorneys can be excellent referral sources for your firm, but that means every advisor in your area looking for an opportunity here, too. Take a pinpoint approach. In general, the better you understand the people you want to work with, the more success you’re likely to have.

Developing New Strategies for More Sophisticated Customers – How Advisors Can Leverage the Cloud

Fri, 18 May 2012 00:00:00 +0000

In the wake of the recent financial crisis, wealth management clients are more focused than ever on the value financial advisors deliver. While portfolio performance has always been an important element in the calculation of value, customer service remains the most critical factor in retaining customer assets. And a fundamental component of customer service is developing highly customized investment strategies that better fit the needs increasingly skeptical, and often increasingly sophisticated clients.

3 Fundamental Strategies to Minimize the Risk of Losing a Client

Thu, 17 May 2012 00:00:00 +0000

For financial advisors—as in most businesses—it’s easier to generate additional business with existing clients than to go out prospecting and cultivating new relationships. That holds true if your client is already satisfied with how you’re serving them and, as a result, agrees to entrust you with even more business. But the reverse also holds true: if your clients are not happy, you may lose them. This begs the question

Clients and Prospects Love Their Tablets Too

Tue, 15 May 2012 00:00:00 +0000

Mobile computing is a lot more than taking the back office on the road. Advisors who get their brand on other people’s iPads have a lot to gain.

Top Ten Checklist for Tough Conversations

Fri, 11 May 2012 00:00:00 +0000

Although the beginning of a tough conversation can be stressful, it can also be the best opportunity for you to influence the direction of where it is going. Conversations become interactive when you are listening, asking questions, sharing your view, solving problems and getting back on track when it goes a little haywire. Thinking like a mediator and describing the problem between the two of you in a way that works for both sides is something that takes practice. The top ten checklist for tough conversations are:

Fool’s Gold? Or Are You a Fool Not to Own It?

Thu, 10 May 2012 00:00:00 +0000

A burgeoning question these days seems to be surrounding gold and the worthiness a position the shiny metal would have in a balanced portfolio in today’s market. It seems like there are many opinions out there regarding this and I would offer one here that seems to be rarely brought up when the “experts” discuss this smoldering topic.

Financial Video Comes of Age with Schwab: 60 Seconds in Money

Wed, 09 May 2012 00:00:00 +0000

Allow me to start with a complaint. Why would The Charles Schwab Corporation put “60 seconds” in the title of its new video series when the videos average two minutes? I guess you could argue the long-running television program “60 Minutes” is less than sixty minutes when you take out the commercials. But isn’t it on for an hour? Okay, now that I got that out of my system: I come to praise Schwab, not to bury it. The San Francisco-based financial firm’s new video series is all that it should be and everything its competitors should be trying to attain. But they better act fast; first mover advantage and all.

Clients Want It, Advisors Need It, Advisors Adopt It

Fri, 04 May 2012 00:00:00 +0000

Last year was a watershed for the financial advisor community: it marked the year when philosophical prejudices about investment management acquiesced to the practical needs of advisors as small business owners. More plainly, after nearly twelve years of lackluster performance and a growing sensitivity among clients to downside risk after two market bubbles, it seems that many advisors are conceding the need for a more risk-managed investment solution to protect client assets, and, in so doing, protect their own businesses. We observe the following:

Search and Selection for New Advisor Technology – Three Steps to Get you Started on the Right Foot

Thu, 03 May 2012 00:00:00 +0000

Advisors should apply same planning skills they use with their clients to purchasing new technology The process of selecting of new technology is similar to the process of selecting a new investment for your client. Before you would plug the trigger on a trade, you spend time of upfront to ensure that the investment is sound and appropriate for your client’s portfolio. The same holds true for new technology upgrades and purchases. Before making your next technology decision, spend some time upfront developing a plan and understanding the gaps in your portfolio. In my last couple of blogs I discussed how understanding your technology personality and your investment portfolio complexity will help streamline the search process when it comes to upgrading your portfolio accounting capabilities. In this blog I will like to discuss three key preparation tasks you should perform when starting a vendor search and selection process.

3 Ways to Ask for Referrals

Tue, 01 May 2012 00:00:00 +0000

All advisors love it when clients recommend them to family and friends. And by this point, most of you know that referrals are the most reliable sources of new business. Either way, this aspect of the advisory business is so important that a refresher course is always welcome. Remember, the goal here is never to create homework for your clients or yourself, for that matter. You’re not demanding “referrals.” What you want is to be the person your clients recommend.

Wall Street’s Sales Culture is Under Attack

Fri, 27 Apr 2012 00:00:00 +0000

The financial service industry is dominated by a sales culture that has flourished for more than 35 years. Wall Street companies protect this culture by spending more than $300 million per year on lobbyists who make sure industry regulations favor companies and not investors. Two of the lobbyists’ biggest challenges are fighting fiduciary standards and mandatory disclosure requirements (transparency) for brokers. These activities are intertwined because fiduciaries are required to put investor interests first and withholding pertinent information violates this requirement.

Ten Tips for Better Networking

Wed, 25 Apr 2012 00:00:00 +0000

Part of your marketing strategy will involve networking events or mixers where you will meet new people and develop relationships. Expanding your networking circle requires engaging acquaintances and strangers in conversation, so start thinking of strangers as people who can bring you business opportunities. Ten tips for better networking are:

Catch the Warning Signs of Clients Ready to Leave

Tue, 24 Apr 2012 00:00:00 +0000

Every advisor dreads the notion that his or her clients are looking to go elsewhere. And with 40% of investors thinking about making a move even though the market is nominally rising, nobody can afford to simply let them go. But by the time they’ve made up their minds to tell you, it’s usually too late to convince them to stay. Instead, the time to be alert for red flags is well before the formal relationship ends, forensic accountants say.

10 Killer Ideas for Financial Advisor Websites

Fri, 20 Apr 2012 00:00:00 +0000

You may have a great firm with a group of state-of-the art associates, but if your website fails to convey that excellence—you will miss out on a myriad of prospective clients. Below are some tips to help you create a web page that thoroughly communicates your professionalism.

Did You Know There Are Two Types of Advisor Transparency?

Thu, 19 Apr 2012 00:00:00 +0000

In a recent Investor Watchdog (www.InvestorWatchdog.com) survey, 93% of respondents said they wanted increased transparency from financial advisors when they sell investment advice, services, and products. In particular, they wanted transparency for: Compliance records, education, certifications, experience, and licensing. This first form of transparency is more about you and your competence, ethics, and business practices.

Monitoring Employee Trading is no Longer a Nightmare

Tue, 17 Apr 2012 00:00:00 +0000

Account aggregation is not just a way to track assets your clients hold away from your active management. It's a way to make sure your staff aren't breaking the inside trading rules.

Staying Connected with Customers 24/7 – How Wealth Managers Can Improve Engagement

Fri, 13 Apr 2012 00:00:00 +0000

A key consideration driving financial advisors’ data management strategies is how to leverage data and technology to forge stronger client relationships. There’s been considerable buzz recently about emerging new technologies that have improved wealth management systems such as CRM and account aggregation. However, an area that’s still very much unexploited and rife with opportunity is the development of advisory-branded mobile applications.

Data Portability Breaks Advisors’ High-Tech Chains

Thu, 12 Apr 2012 00:00:00 +0000

Between the credit crunch and the relentless pace of technological innovation, the last few years have taught us that advisors are only as captive to their circumstances as they choose to be—and everyone needs to be able to roll with the punches. At this point, advisors have almost complete control over every aspect of their business. They can replace the investment platform, switch custodians or broker-dealer affiliations, or swap out all their technology from the ground up.

ROI Means Making Every Minute Count More

Tue, 10 Apr 2012 00:00:00 +0000

Was Benjamin Franklin right in saying that time is money? Some advisors try to evaluate technology in terms of the labor it promises to save them, but the distractions and other hidden costs can overwhelm even the biggest theoretical efficiencies.

Top Four Categories That Clients Use to Determine How You Measure Up

Fri, 06 Apr 2012 00:00:00 +0000

There is always going to be a client that leaves out of the blue that gets you wondering; why weren’t they happy? Why did they leave? Wasn’t I doing a good job for them? The first place advisors look is how the client’s portfolio has been doing. Unfortunately, this is only a part of the measurement of the client’s satisfaction. The other part is their satisfaction with the relationship, which is trickier to measure. The top four categories that clients use to determine how you measure up are:

10 Mobile Apps to Keep Financial Advisors Ahead of the Game

Wed, 04 Apr 2012 00:00:00 +0000

Whether it’s an iPad, Blackberry, Macbook, iPhone, or Android, just about everyone owns a digital device to maintain global connectedness and communicate with co-workers, family, and friends with the mere touch of a screen. “Having the world in the palm of your hand” used to be a metaphor; today it’s a reality. Technology has not only changed the way we experience and interact with the world, it has also changed the way we do business.

Twitter Can Actually Generate New Business While Retaining the Old

Tue, 03 Apr 2012 00:00:00 +0000

A lot of advisors remain skeptical when it comes to using Twitter to attract new prospects, instead using it more as a way to retain and strengthen existing client loyalty. The truth is that Twitter alone may never get clients to line up on your doorstep, but it is a powerful tool that nobody can afford to ignore. Twitter can generate new leads for advisors who position themselves as experts in their financial niche. Effectively, Twitter gives you another place to showcase your knowledge and expertise, and the social network effect helps your messaging reach its widest possible audience. Here are some ways that you can incorporate this new channel into a larger content marketing strategy:

Monitoring A Financial Plan in the Digital Age

Fri, 30 Mar 2012 00:00:00 +0000

Historically, the update of a financial plan has been a somewhat arduous process, as new data is gathered manually from the client, entered into financial planning software, analyzed for problems or opportunities, and then finally delivered to the client. Perhaps even more challenging is the fact that it's never quite clear when or how often to do the plan update; annual updates are proactive but often produce a lot of work when nothing has actually changed, yet waiting for the client to request an update can be too reactive. In the digital age, though, monitoring a financial plan will be very different. As integrated technology allows plan details to updated automatically and continuously, we will reach the point where you don't notify the client that it's time for a plan update; the planning software will notify you!

Avoiding the Value Trap

Thu, 29 Mar 2012 00:00:00 +0000

Is the value you believe you offer the same as the one the client perceives? I raise this question because I am meeting so many advisors who are confusing the idea that their clients trust them to manage their financial affairs with the idea that their clients trust only them to invest the money. As a consequence, they are trapped: their businesses are often not growing and they feel unable to change course, all because they misunderstand the fundamental value proposition that underlies their client relationships. In the past, this wrong turn was into the right neighborhood – asset management – which proved profitable regardless; but the neighborhood is changing and I argue that you should use this strategic planning season to reconsider your path and maybe even ask for directions.

Buying an iPad Just the First Step for Advisors on the Go

Tue, 27 Mar 2012 00:00:00 +0000

While tablet-based versions of popular wealth management programs are finally coming out, low reported deployment rates indicate that advisors are still relying on makeshift solutions for integrating their mobile computers into their business routine. At this point, the iPad in particular is almost ubiquitous in some corners of the industry. You see advisors pull out their tablets the way they used to pull out a Blackberry or Palm Pilot. Accounting and custody platform providers have bent over backward to create dedicated mobile apps, but uptake rates from giant vendors like Pershing are reportedly under 10%. What’s going on here?

Five Tips to Improve Client Service

Fri, 23 Mar 2012 00:00:00 +0000

The more you know about your clients, the easier it is to provide the products that best suit their needs. Be curious about their opinions and viewpoints, and make a habit of asking them what they think and what is important to them. Imagining yourself in your clients’ position is one way to figure out what they need. Five tips to improve client service are:

Financial Advisor Transparency: Will it Benefit You?

Wed, 21 Mar 2012 00:00:00 +0000

Let’s start with a three-part definition. Part I: Advisors who practice transparency provide accurate information to investors when they sell investment advice and services. The most important information documents the professionals’ education, experience, certifications, compliance record, fiduciary status, compensation, and services. Part II: Transparency is synonymous with full disclosure. Advisors who practice transparency do not withhold any information that would impact investor decisions when they buy what financial professionals are selling. Part III: The information is voluntary. Investors do not have to ask the right questions or go to FINRA BrokerCheck to obtain advisor information. Advisors make the process for obtaining information easy for investors.

Cleaning Up: Lindsay Lohan Somehow Forgot to Add the IRS to Her “List”

Tue, 20 Mar 2012 00:00:00 +0000

Although Lindsay Lohan is supposedly in recovery from her various addictions, she reportedly owes the IRS over $140,000 for unpaid 2010 taxes. What could Lindsay's advisors have done differently to make sure the federal government didn't come so high on her list of people she's wronged?

Don’t Let the Tail Wag the Dog: Put Your Portfolio First When Selecting a Portfolio Accounting System

Fri, 16 Mar 2012 00:00:00 +0000

When I was a technology consultant I would, from time to time, receive inquiries such as “I am considering Advent, Archway Technology or Investran, for portfolio accounting”. I would wonder how the person identified such a random short list of vendors for consideration. I have used a similar example in discussing how to better understand your “technology personality”. By understanding your preferences you can streamline the search and selection process. The same holds true in understanding your investment portfolio makeup. The better you understand how your investment portfolio drives requirements, the better your search process will become.

A Better Way for Even Small Advisory Firms to Monitor Personal Trading

Wed, 14 Mar 2012 00:00:00 +0000

The demands of keeping up with a growing practice—adding staff, adding clients, meeting regulatory requirements—can become burdensome. As practices grow, many look for operational efficiency gains in all aspects of the business, one of which is monitoring personal trading. As you know, SEC and FINRA regulations require investment advisors, broker/dealers, hedge funds and other asset managers to supervise employee personal trading activity. Advisor activities at RIA firms are governed by Rule 204A-1 under the Investment Advisors Act of 1940 which requires the establishment, maintenance and enforcement of a written Code of Ethics. This Code of Ethics includes provisions that require “access persons” to report their personal securities transactions and holdings periodically.

We Know Clients Love "Holistic" Advisors, But What Does That Mean?

Tue, 13 Mar 2012 00:00:00 +0000

It’s one thing to divide the industry into advisors who give their clients a 360-degree view and those who don’t. Positioning yourself as one of the must-have relationships takes a little more work. At this point, everyone in the wealth management business is aware that investors would rather work with an advisor who exceeds the minimum expected level of service. As ByAllAccounts and the advisor benchmarking gurus at Paladin Registry discovered a few weeks ago in a national survey of investors, clients are increasingly inclined to move their assets if they find an advisor who goes an extra inch, much less an extra mile.

Is Pinterest the Next Big Social Network? Learn How Financial Advisors Can Participate

Fri, 09 Mar 2012 00:00:00 +0000

Have you heard the hype about Pinterest? If not, its 73 million users make it worth checking out. Pinterest is on the cutting-edge of creative social media platforms. Comprised of virtual pinboards, it allows users to keep track of their favorite things—such as recipes, home décor, motivational blog posts, songs, and fashion. And just in case you were wondering, Martha Stewart wasn’t the founder of the site. And while it seems the platform is solely for crafty soccer moms in mini-vans, it could potentially be a powerful platform to not only promote your brand in a creative way, but to also pioneer the female demographic.

Estate Planning Together: a Win-Win for Clients and Financial Advisors

Thu, 08 Mar 2012 00:00:00 +0000

No estate-planning attorney works alone. Financial advisors are an irreplaceable resource that goes far beyond referrals. I rely on my clients’ financial advisors to provide accurate information regarding the tangible assets within an estate, but I also look to them to help me sift through and make sense of all that is less than tangible. It’s a team approach where financial advisors are invaluable to my process. And like any team, there are strategies that can help us work together more effectively. These strategies can also help financial advisors benefit from the estate planning process as a whole. Here are my top 5 tips for success:

How Advisors Can Create Some “March Madness” Around Their Business

Tue, 06 Mar 2012 00:00:00 +0000

Simplifying Market Data Management – How Wealth Managers Can Better Handle the Market Data Explosion

Fri, 02 Mar 2012 00:00:00 +0000

Market data is an integral component to critical wealth management systems across the front-, middle- and back-offices. From investment research to portfolio reporting, compliance and risk management to online customer portals, market data drives decision-making and provides enhanced transparency. Managing market data across all of these disparate systems has always been a challenge, but has become increasingly complex in recent years due to the explosive increase in the volume of market data. The daily flood of market data shows no sign of slowing down—in fact, experts project it to accelerate in the coming years. This means that market data management solutions must easily scale to meet the needs of tomorrow.

The Top 3 Mind-Boggling Trends of the New Year and What to Do About Them

Wed, 29 Feb 2012 00:00:00 +0000

Spending a lot of time on radio and tv affords me the ability to not only get my thoughts and messages out, but more importantly, hear the musings and predictions of others who, like me, are trying to be the most informed and engaging personalities when it comes to the investment world. That’s why as I write this January update, I’m rather amazed about the strength of the equity markets around the globe and some of the new trends that have emerged out of nowhere that might be pointing to something different happening in 2012 that many originally thought would not be possible. Let’s take a look at several of the early “trends” that may make investors “friends” with their portfolios again in 2012…

14 Reasons Why Start-Up Advisor Technology May or May Not Be Worth the Risk

Tue, 28 Feb 2012 00:00:00 +0000

When buying new technology, advisors have the option of buying straight from entrepreneurial start-ups and bypassing what the mature tech conglomerates have to offer. Some advisors love the innovation and the ability to challenge the status quo. Do you?

Two Strategies to Get the Most From Your Goals

Fri, 24 Feb 2012 00:00:00 +0000

As an advisor, you probably have the acronym SMART (specific, measureable, actionable, realistic, time-bound) memorized. You have written down your goals and you’ve asked someone to hold you accountable. To add extra value and to boost your attainment you can add two more strategies: the goal superchargers—affirmations and visualization.

8 Rules for Marketing Independent Advisory Firms

Thu, 23 Feb 2012 00:00:00 +0000

Wall Street firms and their advisors used to have a major marketing advantage. Just a few years ago the majority of investors selected advisors from major firms because they felt safer. That feeling of safety has largely eroded because headline after headline has documented industry abuses that resulted in billions of dollars of fines. Several of the abuses were perpetrated by the biggest, most trusted names on Wall Street (Goldman Sachs, Citigroup). The result of the negative publicity is a major marketing opportunity for smaller, Independent Advisory Firms that no longer have to compete with the perception that bigger is somehow safer or better. Wall Street greed has leveled the playing field. However, you still have to convince investors to select you and your firm. Your best approach is to practice full transparency when you market financial advice and services. Only advisors and firms with nothing to hide can afford to practice full transparency.

3 Ways Advisors Get More Business Using Google

Wed, 22 Feb 2012 00:00:00 +0000

Local search advertising can be highly effective because it allows advisors to tailor their brand messages very precisely to fit what prospects in their area are looking for. As the Web grows, more people are submitting geographically constrained searches to sites like Google to find local businesses and filter out everything else. Typical local search queries include not only information about "what" someone is searching for -- keywords, a business category, or the name of a product -- but also "where" information like a street address, city name or zip code.

What Do Economies of Scale Look Like to Your Clients?

Fri, 17 Feb 2012 00:00:00 +0000

One of the key themes we discuss with advisors is the re-emergence of economies of scale as a driver of RIA business success. To date, we have discussed this theme in terms of an advisors inability to find the time and resources they need to “keep up” with day-to-day business demands or to focus on new business development to grow the business. Today, we want to explore what economies of scale look like to client prospects and what that means to the competitiveness of firms without it. In most industries, firms that achieve economies of scale are in a position of competitive advantage. Why? Because, by definition, a larger revenue base affords these firms a greater resource base with which to support front and back office efforts. These firms can afford to dedicate personnel and resources to specific efforts like marketing, technology, customer service and product (planning, investing, insurance, etc.). Smaller firms simply do not have the revenue base to do so. Principals must therefore operate as “jack of all trades” taxing their time and risking the perception that they are “master of none”. The table below illustrates how much additional resources are afforded by scale.

Top 5 Wealth Management Technology Challenges Addressed by the Cloud

Thu, 16 Feb 2012 00:00:00 +0000

As market data volumes continue to grow exponentially, so too does the burden on wealth managers and financial advisors to identify ways to harness the power of market data and transform it into a meaningful competitive advantage. What’s required is a cohesive market data management strategy that not only simplifies internal operations, but also lays the groundwork for tools that enhance engagement with customers.

Every Advisory Firm Should Know What Technology They Need, Not What They Want

Tue, 14 Feb 2012 00:00:00 +0000

Understanding your “technology personality” will help streamline the decision process when it’s time to make changes to your office systems. From time to time people ask me which technology vendors they should consider when upgrading their portfolio accounting capabilities: Advent, Black Diamond, Asset Book, Morningstar, someone else? I often wonder what process was used to develop this short list because often times it appears to me that they are comparing apples and oranges. In trying to answer this question, I like to take a step back and look at the advisor’s real preferences.

Understanding How Investors Choose an Advisor – 4 Rules of Thumb for Attracting New Clients

Wed, 08 Feb 2012 00:00:00 +0000

It’s a fact. Investors rely on referrals to find the financial advisor they want to work with. According to a recent survey conducted by ByAllAccounts in conjunction with PaladinRegistry.com, almost 46% of the individuals who responded say they found their current advisor through a referral from a friend, respected associate, CPA or attorney. Yet, surprisingly, even though a sizable percentage of investors have relied on a referral, over 50% of them state that they have never provided a referral to their own advisor. There are a variety of factors behind this statistic. As the chart illustrates, over 27% of clients simply feel uncomfortable making a referral. But over 25% of clients report that their advisor has not asked for a referral—an indicator to me that new business prospecting opportunities are being missed every day.

If You’re Not Managing 401(k) Assets, You’re Leaving Money On The Table

Wed, 08 Feb 2012 00:00:00 +0000

How many of your clients pay attention to their 401(k) investments? I mean, really pay attention? Zero, right? So, how do you deal with your clients’ 401(k) investments? I’ll bet that every year or two, when meeting with a client, you might look at a recent 401(k) statement. You’ll tell the client how to adjust the allocations and that’ll be it for another year or two. If this describes your practice, you’re leaving money on the table!

Advisors Can Learn A Lot From the Super Bowl

Tue, 07 Feb 2012 00:00:00 +0000

Let’s face it: the Super Bowl hype is not just about the big game itself. Many of us tune in to the Super Bowl to watch the commercials. This might be especially true for marketers. Whether you have $3.5 million to spend on a 30-second spot during the Super Bowl or simply want to acquire more clients for your book of business in 2012, you can glean a few marketing tips from watching the Super Bowl ads.

When Looking for a Firm, Seek a Partner and Not a Clone

Fri, 03 Feb 2012 00:00:00 +0000

One of the up-and-coming advisor service organizations told me a few days back that one of their brokerage clients is using the relationship as a recruiting tool. Or more to the point, advisors who want to provide this service are actually calling the brokerage firm to see what it would take to get it for themselves. They’re lining up as qualified leads for this firm’s recruiters to prospect at their leisure. What’s pulling all these advisors into the net? Expertise that they don’t have.

Remember When “What’s your AUM?” Was a Simple Question?

Wed, 01 Feb 2012 00:00:00 +0000

RIAs and financial planners often provide a broad range of services and receive compensation in a number of different ways. Certain aspects of these services and compensation arrangements will dictate whether or not assets are counted as “regulatory assets under management” in an advisor’s regulatory filings. The SEC now defines “regulatory assets under management” as assets where the advisor provides “continuous and regular supervisory or management services.” Here are some guidelines to help advisors determine which of their clients’ assets should be counted towards AUM under this new definition.

Five Tips to Choose Your Ideal Client

Tue, 31 Jan 2012 00:00:00 +0000

Taking on a new client is a decision that may change your business dramatically. Being desperate and signing up someone just because they happen to have that magic number of assets can cause problems. Having a process for making the decision of taking on a new client will help you filter out your ideal client from one that only makes your numbers look good. Five tips to choose your ideal client are: