Are You Leveraging the Four Habits of Today's Top Financial Advisors?

Wealth management is changing, and investors are too. The next generation of investors is technologically savvy, more collaborative, and less trusting of tradition. And often focus on cost, value and tax efficiency. How can you help today’s clients pursue their goals, while also seeking to increase the value of your practice? You may want to consider adopting 4 habits of today’s highly successful advisors. 

Some advisors see the value of their practice as their Assets Under Management (AUM) or Assets Under Advisement (AUA).  But is a marginally profitable firm with a billion in assets under management worth twice as much as a highly profitable firm with $500 million AUM? Investment News noted that the metrics commonly used to determine value today are those that help drive scale, efficiency and profitability. 

More practices are building standout brands by becoming the go-to advisor to a very specific market niche. The key is choosing a market segment that’s deep enough to build a practice around but narrow enough to dominate. Today, we see highly successful firms expertly serving the needs of medical professionals, entrepreneurs, small business owners, pro athletes — one even caters to divorced female spouses of wealthy New York executives. 

It is a well-known market adage that the only investment aspects an advisor really has control over are “fees and taxes”; they cannot control market movements. Optimizing fees and taxes represents putting real money back into the pocket of your end clients—ideally, enough to cover your advisory fee and then some. Active tax management used to be for high-net-worth clients but several platforms now offer tax portfolio transition services and ongoing active portfolio tax management. 

Successful advisors maximize their core competencies – and many are finding the time to do it, by outsourcing at least some of their investment management function. We found that 90% of clients welcome third-party model portfolios. The advisors who use them can provide their clients with quality solutions, while aiming to boost their own productivity, efficiency and growth.

For more ideas on elevating your business and clients, visit WisdomTree.com/MAC.

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