Is Your Dream Home a Money Pit?
Buyers and sellers beware - wealth management practice valuations depend on NextGen clients
The hardest part of investing is knowing when to sell. For any owner of a wealth management business – of any size – the opportunity may never be better. Especially when you consider the market is up nearly 6X the March 2009 low and a stunning 45X the August 1982 level at the start of my career. But unlike a stock with its constant real time pricing, your business value is harder to determine.? Stock prices ultimately track business earnings power – forward earnings. Acquisitions and supportive markets increase earnings but savvy analysts know to look deeper for evidence of true organic growth. That organic growth is the real test of a business – it’s real value.? The primary factor affecting organic growth of wealth management is the aging of our clientele and how firms deal with that reality. We see three primary responses – -?? ?“We don’t care” (because we have record earnings now) -?? ?“We don’t know what to do” (but we are losing clients) -?? ?“Bring it on” (we see the opportunity to grow)? ?
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All three categories can benefit from better retention of Generation 1 clients – mostly Boomers and Silent Generation, plus consolidating the family assets with Generation 2 and ultimately growing forward with Gens 2 and 3.? The 2024 RIA/IBD NextGen x NextChapter Survey is underway and the early interviews confirm that practices are either leaning in – or leaning away. Not much in between. Stay tuned for more learnings and how the best are getting better.
Welcome Scott Bieler!
I cannot be more excited about the arrival of my longtime friend and former Fidelity colleague, Scott Bieler. He brings 30+ years experience in senior leadership roles including a stint as interim general counsel for Fidelity Investments, where he also led litigation. His final stop at Fido was serving as the lead attorney for the “institutional” businesses working with Mike Durbin. ?Scott continues to serve the industry on the executive committee of SIFMA’s compliance and regulatory effort. ? ? He will help NextChapter with our next level of organizational structure and governance while also connecting with advisory firms and our business partners to address head on the challenges of retaining long-time clients and engaging with Generation 2. He sees significant opportunity but also considerable risks to firms who don’t have plans in place to deal with issues of longevity for clients and their families. Stay tuned.
Advisorpedia Summer 2024 Update ?
Congratulations Advisorpedia Leading the way with next-generation content distribution
In January 2023, NextChapter connected with Advisorpedia founder, Doug Heikkinen and established a working partnership to leverage their growing platform. Advisorpedia has tapped the growing eco-system of financial content – where both financial advisors and consumers go to find objective information. Generation X and older Millennials are the targets of opportunity for the financial advice industry and they do research before taking action. Only 35% of Gen X works with financial advisors, so information has to be in a place they can easily find it on their own. ?
Rocking the Web – Advisorpedia Stats?
We’re watching NextGen consumers – and advisors - rewrite media and marketing strategy. Advisorpedia is an active engagement strategy using content, not just a website or a newsletter. Key learnings: ?
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For more information about Advisorpedia, reach out to Doug - [email protected]
领英推荐
Advisorpedia will be opening slots in new Centers of Excellence for qualified sponsors –
? And look for the Advisorpedia Media team at the upcoming Annual Conference of the Money Management Institute on October 15-17 in Charlotte.
The Business of Wellness
“Wellness” is a universal client objective – but creating and delivering wellness is only sustainable if it can be a business. Suzanne Schmitt and I take a look at the business issues in the cover story for the June edition of Financial Advisor magazine: ?
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The Trusted Contact Nothing Burger An Advisorpedia Podcast with Suzanne Schmitt and Tom West
We talk a lot about helping clients to prepare for retirement and their longevity. Trusted Contact was the first attempt by industry leadership and regulators to establish a bridge to the next generation for clients who might need assistance. COVID-19 proved that such permissions were critical. But the uptake has been ….slow.. ? NextChapter’s dynamic longevity duo, Suzanne and Tom have their opinions. ?
Grandchildren and Longevity ?
My new granddaughter has a predicted life span of 92 years – taking her out to year 2116.? When my mother, now 90, was born in 1934, her life expectancy was 65.? Will the future bring greater gains in longevity – and in the quality of that longevity?? We ask those questions here at NextChapter – and help companies prepare for implications of longevity for their businesses and their clients – and for themselves.
On behalf of the team,
Steve Gresham
Join us at NextChapter ? And follow all of our partners and sponsors on Advisorpedia