NEXT CHAPTER
Steve Gresham
What Do The Top Advisors Do ?
New research confirms they pursue these winning growth strategies .
T
HE BEST ADVISORS ARE GETTING BETTER . OF THE 50 fastest growing RIA firms in Financial Advisor ’ s 2022 RIA survey , the 50th ranked firm grew at a 40.6 % rate .
Other surveys reveal similar findings . The top 100 wealth management teams ranked by Barron ’ s increased client assets by an average of 10 % over 2021 . That ’ s strong performance considering this challenging environment . But much more impressive is their average revenue gain of 48 %.
How are they doing this ? It is likely not by beating the market — but because they are following the leads of clients and listening to them about their changing needs .
New industry data shows that clients want help with complex issues such as the retirement planning challenges that arise when people live longer . Those advisors who listen carefully to their clients are adapting , and thus likely winning new assets and new clients .
Here I ’ d like to distill these ideas into what I see as winning growth strategies and the action steps advisors should take to pursue them . I ’ ll also look at the research that gives these ideas support .
Adapting To New Client Priorities
Sometimes it feels as if clients are from Venus and advisors are from Mars . Why ? Why is it that they are increasingly talking at cross purposes ?
Successful advisors will also adopt protection strategies besides investing — helping clients prepare for expected and unexpected events .
It ’ s likely because advisors are still mainly talking about managing portfolios and touting their investment solutions , while clients are instead talking about the things that matter most to them , including the risks of inflation , health and the healthcare costs they ’ re going to face in retirement .
It ’ s important to remember , too , that retirement is a family affair . Too often , spouses , parents and adult children have not been involved in the planning , and they all have different priorities and concerns .
The advisors who are going to see growth in this environment are the ones who engage with a client ’ s entire family , especially aging parents with immediate needs and adult children who will become the next-generation clients .
That means advisors will have to lead with the planning — by first organizing a jumble of accounts and products , and then by providing the foundation for more specific solutions the clients will need in retirement .
Successful advisors will also adopt protection strategies besides investing — helping clients prepare for expected and unexpected events . They ’ ll be asking the clients tough questions about their health and family history and a lot of “ what if ” questions .
Most of the industry claims to be client-focused , but too many clients say they don ’ t see it ( or feel it ). In April ,
30 | FINANCIAL ADVISOR MAGAZINE | JUNE 2023 WWW . FA-MAG . COM