RIA Choice

The results from digital marketing will ONLY continue to GROW. Learn how AI easily, and significantly, increases digital marketing effectiveness. https://lnkd.in/gnkp8ECV Target your best leads Move beyond generic prospecting methods by identifying and prioritizing high-value leads with precision. By analyzing financial behaviors, demographics, and professional affiliations, AI helps you target your ideal clients efficiently. Personalized Outreach AI tools help you create tailored messages based on real-time data insights, such as job changes, industry shifts, or financial trends affecting a specific demographic. For instance, AI can identify professionals impacted by layoffs and generate customized outreach campaigns offering financial guidance. Content Marketing Optimization AI simplifies content while addressing specific client concerns. It creates blog posts, social media updates, or short-form videos that align with your audience. Further establish yourself as a thought leader while increasing visibility and trust among future clients. Financial advisors who integrate AI into their lead generation and marketing efforts will gain a competitive edge in an increasingly digital world.

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Is your Broker-Dealer Tech-Stacked or Tech-Flat? Performance reporting and fee billing plays a bigger role in advisory practices than many realize. Not just functionality but particularly price, too. Firms like Albridge, Black Diamond, and Orion are well-known platforms, offering performance reporting and billing solutions. While platforms serve similar functions, some providers are regarded as worthier for several reasons, including advanced features, flexibility, user experience, and technology integration. 1. Comprehensive Reporting Capabilities Performance reporting is more customizable than ever. Generate a wide variety of reports tailored to specific client needs, present data in client-friendly formats. Some offer over 70 customizable reports. Capability includes in-depth, accurate, and visually engaging reports—dynamic charts, graphs, and personalized details. Take advantage of robust benchmarking tools, allowing you to compare portfolio performance against various indices and custom benchmarks, delivering a better view of portfolio health and success. 2. Billing Flexibility and Automation Options include billing through highly customizable fee schedules, flexible billing periods (monthly, quarterly, or annual), and automated calculations that reduce the risk of human error. Use various billing methods—flat fees, tiered structures, or asset-based pricing—align your fees with client values and goals. Integrate directly with custodians and portfolio management systems, enabling timely billing updates. 3. Integration with Other Tools Top providers seamlessly integrate with many CRM platforms, trading tools, and custodians, offering a unified experience. This streamlines workflow, reduces manual data entry, and ensures performance data is up to date. Open API framework allows firms to connect virtually any software solution to their system. Avoid siloed data and inefficiencies in workflow, a concern with multiple software systems. 4. Client Portal and User Experience Best in class providers offer a superior client portal experience. Clients access real/near time investment data, view interactive reports, and communicate directly with you, enhancing the client experience through transparency and easy access. 5. Technology and Support Cloud based options are it- for data processing and faster report generation. Use highly regarded support teams for advanced platform knowledge and ongoing assistance. Comprehensive tools empower advisors to better serve clients while streamlining administrative tasks, making it a lay-up for many firms. (Image: courtesy Pixabay)

Selling your practice is a big deal. You may be a few years away, or more, but keeping these ?? points in mind now can pay big dividends. 1.????VALUATION AND MARKET TRENDS: Understanding current market trends and accurately valuing the practice is essential. The valuation should reflect not only current revenue but also potential growth, client demographics, and the stability of the income stream. Monitoring market conditions, including demand for advisory practices, interest rates, and economic forecasts, can help maximize the timing for sales price. Your BD/RIA may offer a complimentary valuation and/or provide resources to estimate your practice value today, and how it might be tweaked to maximize value. Be proactive to see how this nest egg is incubating. An advisor friend of mine has a great referral source from a company where has clients(both older and younger). He would benefit from a structure that includes ongoing compensation for this specific AUM growth. 2.????CLIENT RETENTION AND TRANSITION PLANNING: Client retention is critical for maintaining the value of the practice. Buyers will be particularly interested in how loyal and satisfied the client base is. Developing a thorough transition plan that includes introducing clients to the new advisor, maintaining service levels, and addressing client concerns is crucial. A well-executed transition reduces client attrition and increases the likelihood of a smooth handover. ? 3.????REGULATORY AND COMPLIANCE ISSUES: Selling a financial advisory practice involves navigating a complex web of regulatory requirements. Ensuring that all client records, contracts, and compliance documents are up to date is vital to avoid legal complications. Understanding the implications of the sale on licensing, fiduciary duties, and regulatory obligations are well served by dedicated experts. 4.????TAX IMPLICATIONS: The sale of a financial advisory practice can have significant tax consequences. Understanding the tax implications, such as capital gains tax, and structuring the deal to minimize tax liability is crucial. This might involve choosing the right sale structure (e.g., asset sale vs. stock sale) and exploring options like installment sales or tax-deferred strategies. 5.????SUCCESSOR FIT AND CULTURAL ALIGNMENT: Finding a buyer who aligns with the practice's culture, values, and client service philosophy is so important, not just financially for both parties, but for the seller to rest easier knowing their clients are in a good cultural and caring environment. This ensures a smoother transition and better long-term outcomes for both the clients and staff. Proper due diligence in selecting a successor who will maintain the practice’s integrity and continue delivering high-quality service is essential for protecting the legacy of the practice. (Image: courtesy Pixabay)

Last night’s Men’s Gymnastics accomplishment was more exciting (for me) than watching a team poised and expected to win??. TEAM USA put their best foot forward when it counted most, with a SPECIALIST focused on one thing only. Does your practice have someone who’s clearly focused on doing one thing REALLY well, so much that everyone takes notice? ?? Unlocking Business Growth with Specialist Roles ?? In today’s dynamic business landscape, having specialized roles is more crucial than ever. Here’s how adding a specialist to your team can drive your business forward: ?? Enhanced Expertise: Specialists bring deep knowledge in their field, ensuring your practice stays ahead of our myriad industry trends and innovations. ?? Increased Efficiency: By focusing on specific areas, specialists streamline processes and improve productivity, leading to faster, more effective solutions. ?? Higher Quality Output: Specialists are adept at delivering high-quality work and maintaining high standards, which can enhance your branding and customer satisfaction. ?? Strategic Insight: With in-depth understanding, specialists provide valuable insights and strategic recommendations, guiding better decision-making and long-term planning. ?? Competitive Advantage: Leveraging niche skills and knowledge can set your practice apart from competitors, attracting more clients and creating unique value propositions. ?? Optimized Resource Allocation: Specialists allow for better resource management, as they can handle complex tasks more efficiently, freeing up other team members to focus on their core responsibilities. ?? Improved Problem Solving: Their expertise enables them to address and resolve industry-specific challenges more effectively, reducing downtime and enhancing operational resilience. ?? Tailored Solutions: Specialists can create customized strategies and solutions that align closely with your business goals, resulting in more targeted and effective outcomes. ?? Boosted Innovation: Their deep understanding fosters creativity and innovation, leading to new ideas and approaches that power your practice ?? Strong Network Connections: Specialists often come with a strong network, providing opportunities for collaborations, partnerships, and business development. ?? Enhanced Training and Development: They can mentor and train other team members, elevating the overall skill level within your practice. ?? Customer Satisfaction: With their expertise, specialists can offer exceptional service and support, resulting in higher client satisfaction and retention. Embracing specialist roles is not just an investment in talent—it's a strategic move towards sustainable practice growth and success. ??

If you're not as focused on your clients' personal lives as much as you could be, consider enhancing your client engagements. Allocate more time during ?? meetings(on the front end) about things they worry about the most/ what's most important to them. Not only will it enhance your client relationships, but may also be the most effective retention to thwart robos and other advisors. Many have found formal behavioral training/ certificate programs to be very effective. Thanks jane wollman rusoff, Meir Statman and ThinkAdvisor for the story. https://lnkd.in/g4axdR2F Janet Purdy Levaux

Do you view your financial practice as a listing on a stock exchange? If not, maybe you should. Great piece Bruce Kelly and InvestmentNews! https://lnkd.in/gbe5ZymZ Not long ago it was challenging/ impossible for advisors to get bank loans to buy other practices. But what about doctors and veterinarians? No problem. Their practices weren't particularly risky nor tied to ups and downs of industry like "the market". Fast forward to today. The advisor loan industry is going gangbusters. Consider that broker-dealer purchases are big business, and so is buying individual practices, which begs the question- Should you be quick to sell all, the majority, or even a meaningful stake in your practice, or might it be worth significantly more later? Granted, big firms buy broker-dealers wholesale, and then can buy- out practices when/if it's right for both parties. But if you haven't analyzed your potential (both AUM growth and average investment returns) now's a great time to review your pratice. When people beat down your doors, it may pay to find out why.

1 of 3 IBD advisors are considering opening an RIA says Cerulli. https://lnkd.in/gCSV-RNt Thanks Jacob Indursky for the write-up. I like Brad Wales' comments about the continued move from IBDs. He’s been a pioneer in our space and has significantly contributed to advisory firms and the financial industry alike. We're seeing a smaller % of advisors who are interested(and suited) to register their own RIA- which is like having a business on top of a business ??. There's growing interest in the “supported RIA” space. This include harnessing the benefits of joining a turnkey RIA while keeping(and gaining) independence and flexibility. And to a smaller extent, interest from larger producers and practices who are paying a (growing) number of firms to help them register their own RIA, provide the tech stack and processes you need to be successful-nearly everything required to be a “fully independent RIA”. Plenty of room for support services in this space to grow.

https://lnkd.in/ecF_hJjd Thanks Bruce Kelly and InvestmentNews. As advisor recruiting continues its competitive strut, our world could benefit from making things more simple, i.e. our rules and regulations, to help bring in new or transitioning advisors ?? ??. Independent broker-dealers are playing an additional role. As more advisors sell a portion of their practice upon joining other IBDs (sometimes a requirement), it can create "stickier assets" for the new IBD stakeholders. Keep in mind- If you're selling significant stake in your practice, it may not be so easy to move to another firm- it could get a little complicated based on contract. As more practice aquisition lenders appear, you likely have more options available. Now's a great time to be an advisor. To capitalize on it, make sure you're networking with the right providers.