Modernizing the Client Service Model
Modern financial advisory firms need modern service models that match the needs of all client types (older, younger, high account balances, low account balances, etc.). This is an absolute must for modern firms to account for the various desires and needs of a diverse client base. Some clients simply want to pay 25 bps for an automated investment service (Robo). Other clients prefer a full-service virtual relationship with an advisor at a discounted fee (i.e. 75 bps). Then, we have clients that prefer the traditional model (i.e. meet in person, need more hand-holding, etc.). Finally, there are clients that just want to pay a reasonable monthly subscription fee for a call center type of service (this subscription gives them access to financial planning software and a CFP? call center for questions about investing, insurance, tax planning, estate planning, etc.). *These models are described in more detail below. When you combine a modernized investment management process with a modern service model, the advisor of the future is born. Every advisor can now implement both concepts into their practice and create an entirely new experience for their current and future clients.
Traditional Planning Model
A TRADITIONAL “IN-PERSON” EXPERIENCE
Cost = .50% - 1.25 % of assets under management
The Traditional Planning Model is recommended for those who are looking for/require concierge-level service for both investment management and financial planning services. The services offered in this model include retirement planning, estate planning, college planning, tax planning, complex services for high net worth individuals. This level of service makes sense for clients who need comprehensive planning services and need to have a face to face relationship with their advisor.
Virtual Planning Model
A VIRTUAL EXPERIENCE FOR PEOPLE ON THE GO
Cost = .35% - .75% of assets under management
The Virtual Planning Model is suitable for tech-savvy individuals and those who are comfortable working with their advisor via phone calls, screen share, etc. The ideal client for this model is comfortable communicating virtually with their advisor and possess the technological ability to update their financial planning information in a software platform such as e Money.
Automated Investing Model
A LOW-COST AUTOMATED INVESTMENT EXPERIENCE
Cost = .15% - .40% of assets under management
The automated investment platform is suitable for investors trying to reduce investment management expenses to the utmost minimum and do not require communication with a human advisor. These portfolios are managed with the same level of care as any other portfolio. The difference is a significant cost reduction as a trade-off for an automated experience with no human advisor to work with.
Monthly Subscription Model
A MONTHLY SUBSCRIPTION MODEL FOR FINANCIAL PLANNING
Cost = $100 per month for planning and investment model delivery
Cost = $50 per month for planning only
A monthly subscription model provides a great solution for people who need financial planning and/or asset management services and are comfortable coordinating their own financial affairs. The subscription provides access to trained CFP’s in a call center that provides general guidance on all financial planning matters (retirement, investing, insurance, estate, etc.). The ideal client for this model is tech-savvy, organized and is well versed in financial matters. This model provides an alternative to a percentage of assets pricing model.