Category Archives: Marketing

Is There Money To Be Made Serving Younger Clients? #FearlessFinancialAdvisorPodcast

A topic near and dear to our hearts. How to profitably serve millennial clients. In this video I am speaking with Alan Moore MS, CFP®, Co-founder at XY Planning Network. XY Planning Network is the leading organization of fee-only financial advisors who specialize in working with Gen X and Gen Y clients. They offer comprehensive resources to help financial planners run better and more successful businesses.

In This Interview We Discuss…

0:23 – What is XY Planning Network?

01:32 – Is there a market to serve younger clients?

03:41 – Is there money to be made serving younger clients?

06:25 – What fee structure works best for younger clients?

07:42 – How to attract younger clients

10:25 – Does investment management matter to younger clients?

13:45 – CFP Curriculum

14:53 – What is the best way to serve younger clients?

17:13 – Is it too much work serving younger clients?

18:14 – Trust and client acquisition costs

23:21 – What advice would you give to your younger self?

Resources

Alan Moore XYLearn more about Alan Moore

Interview MP3

[Introducing Pocket Risk 2] Why Risk Tolerance Questionnaires Should Not Be Used For Prospecting

In recent years there has been a plethora of risk tolerance tools releasing features to help advisors acquire more clients. The theory goes by assessing a client’s risk tolerance we can know what investments best suit their psychology, a portfolio they will “stick with”.

However, this contradicts the true purpose of a financial advisor, which is to help clients achieve their long-term financial goals. Simply investing along the lines of someone’s psychology could result in a plan that has too little risk or too much.

The Customer Acquisition Challenge

Advisors like these customer acquisition features because they believe it will bring in more clients. But the real customer acquisition cure for advisors is not better technology but more trust and awareness. See research and commentary here and here.

The primary purpose of a risk questionnaire is to educate an advisor about a client’s risk tolerance, risk capacity and risk needs (goals). With this information an advisor can build a plan likely to hit the goal, without the client bailing out midway. A client’s psychology should not be ignored but it should definitely not be the main driver of a plan.

Jumping from risk tolerance to investment portfolios without adequate consideration for goals and risk capacity is a recipe for short-term satisfaction and long-term dissatisfaction.

Introducing Pocket Risk 2

Every week, advisors ask us to build more and more “customer acquisition” features. It’s tempting since, we want to make money but it doesn’t feel like the right thing in the long run. The right thing is a tool to educate advisors and clients that promotes good behavior. Since behavior is the primary determinant of investor returns.

We have released a new risk questionnaire that assesses goals, risk tolerance and risk capacity so advisors can collect the information they need to build a plan that works in the long-run.

Our new feature set is about enhancing the financial planning differentiation advisors have today against robo-advisors rather than trying to compete in commoditized investment management technology. The advisory customer acquisition challenge will be won in personalized financial planning, where robo-advisors cannot easily compete.

Click here to take the risk questionnaire

 risk tolerance questionnaire

How To Differentiate Your Financial Advisory Practice – Interview with Marion Asnes #FearlessFinancialAdvisorPodcast

A marketing focused interview with Marion Asnes on how financial advisors can differentiate their firms. Marion Asnes is the President of Idea Refinery a strategic marketing and communications consultancy for financial service firms. Previously she was the Chief Marketing Officer at Envestnet and Editor of Financial Planning Magazine.

Learn more about Marion Asnes

In This Interview We Discuss…

0:32 – How to differentiate a financial advisory practice managing $100-$500m

02:20 – Know how to grow by segmenting your clients

05:29 – Example – Corporate executives as your niche clients

7:35 – How to handle legacy clients that don’t fit your niche

09:30 – How to build your reputation in the community

12:30 – The power of running events

19:40 – How much marketing do I have to do to get results?

22:22 – How to better communicate with your clients

25:40 – Has it harder to be a good financial advisor today?

30:55 – What advice would Marion Asnes give to his 30 year old self?

Resources
Marion AsnesLearn more about Marion Asnes

Marion Asnes on Twitter

Interview MP3