Business

Five Opportunities for Advisors to Add Value

Advisors need to determine where they can add the most value in helping clients achieve their financial goals. Surmounting this challenge is central to a successful business strategy.

When evaluating and explaining their own value, advisors should consider these five questions:

  • How do we measure advisor value added?
  • How can advisors better communicate their value-added message?
  • Should advisors worry about the threat from online or “robo” services?
  • How can advisors serve not just the wealthy, but also average folks?
  • Which activities should advisors outsource?

I will offer some answers to those questions. First, I will define a categorized menu of the areas in which advisors can provide services. This particular menu focuses on the retirement stage, which requires a wide range of services.

General planning

  • Affordability of retirement and when to retire
  • Estimating retirement expenses
  • Debt management, including credit cards, mortgages
  • Social Security timing
  • How to structure an overall plan, including systematic withdrawals, floor/upside or time segmentation (buckets)
  • When to adjust spending as conditions indicate

Investment selection

  • Individual stock and bond recommendations
  • Stock and bond funds and investment manager recommendations (including choice of active or passive approach)
  • Alternative investment recommendations
  • Individual securities trading

Investment allocation

  • Basic asset allocation, including matching the asset allocation to spending flexibility and adjusting the asset allocation for risk tolerance
  • Strategic adjustments to allocations, both short term and long term
  • Rebalancing
  • Asset location decisions and withdrawal sourcing

See full article on Five Opportunities for Advisors to Add Value by Joe Tomlinson Advisor Perspectives

Get our newsletter and our in-depth investor case studies all for free!