Enjoy the current installment of “Weekend Reading For Financial Planners” – this week’s edition kicks off with the news that while both the total number of RIAs and advisor headcount have seen significant gains in recent years, client assets remain concentrated among the largest firms, according to data from Cerulli Associates, with the 7% of RIAs with at least $1 billion of AUM managing 71% of total RIA assets. Which suggests that instead of trying to go head-to-head with these larger firms (and their heftier marketing budgets) in attracting clients, smaller firms might instead demonstrate how they are ‘different’ by offering a unique service offering tailored to their ideal target clients.
Also in industry news this week:
- A recent study has found that advisors who gain additional credentials tend to see a boost both in their confidence and in their business metrics, with the CFP certification standing out in terms of value
- The implications for RIAs of a proposed Treasury Department rule that would subject many firms to certain anti-money-laundering regulations for the first time
From there, we have several articles on advisor marketing:
- How advisors can adjust their email distribution practices to ensure their marketing messages are delivered amidst a crackdown on spam among major email providers
- How leveraging Artificial Intelligence (AI) tools can help advisors create personalized marketing content more efficiently
- 3 potential marketing strategies for advisors that come with zero (hard dollar) cost
We also have a number of articles on investment planning:
- How the growth of index funds (to the point that they have surpassed actively managed funds in terms of total assets) has changed the business of financial advice
- The potential benefits of customized bond ladders for clients and how they could complement direct indexing strategies
- While a recent research paper suggests that investors across the age spectrum could benefit from maintaining a 100% equity portfolio, the benefits (and potential risks) of such an approach might be overstated
We wrap up with 3 final articles, all about financial advisory business trends:
- Why robust demand among larger, often PE-backed, RIAs, combined with the challenges facing smaller, ‘tweener’ firms, could lead to robust M&A activity in the year ahead
- How the United States has experienced a productivity ‘boomlet’ in recent months and how advisory firms could further boost their efficiency
- Industry veteran Bob Veres offers his predictions for 2024, including an increasing number of next-generation advisors breaking off to start their own firms amidst industry consolidation and a growing role for AI in advisors’ tech stacks
Enjoy the ‘light’ reading!
